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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
Tuesday, May 19, 2026, Vol. 27, No. 99
Headlines
A R G E N T I N A
PAMPA ENERGIA: Fitch Hikes LongTerm IDR to 'B+', Outlook Stable
[] Fitch Takes Actions on Argentine Banks Amid Sovereign Upgrade
B R A Z I L
BRAVA ENERGIA: Fitch Puts 'BB-' LongTerm IDR on Watch Positive
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Incabide Raises RD$562.8MM in Auction
DOMINICAN REPUBLIC: Raises Fuel Prices By Up to Rd$8.00 Amid Surge
REFINERIA DOMINICANA: Fitch Alters Outlook on 'BB-' IDRs to Stable
J A M A I C A
JAMAICA: BOJ Reports $8 Billion Net Loss for January to April
JAMAICA: Demand Outweighs BOJ's $1BB Liquidity Support to DTIs
JAMAICA: Opposition Proposes National MSME Growth & Export Program
P U E R T O R I C O
EVERTEC GROUP: $185MM Loan Add-on No Impact on Moody's 'Ba3' CFR
PEREZ MENENDEZ: Court Directs U.S. Trustee to Appoint PCO
- - - - -
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A R G E N T I N A
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PAMPA ENERGIA: Fitch Hikes LongTerm IDR to 'B+', Outlook Stable
---------------------------------------------------------------
Fitch Ratings has upgraded Pampa Energia S.A.'s Long-Term Foreign
and Local-Currency Issuer Default Ratings (IDRs) to 'B+' from 'B'.
Fitch also affirmed Pampa's senior unsecured notes at 'B+' and
revised the Recovery Rating to 'RR4' from 'RR3', including the tap
on its 2037 senior notes. The Outlook is Stable.
The upgrade reflects the recent upgrade of Argentina to
'B-'/Stable, which has improved Pampa's business environment,
together with the company's strengthening hard-currency profile.
Fitch projects offshore cash and export receipts will cover over
1.5x hard-currency debt service over the next three years,
supporting Pampa's Long-Term Foreign-Currency IDR at two notches
above Argentina's 'B-' Country Ceiling.
Fitch also expects oil and gas EBITDA to account for at least 60%
of total EBITDA over 2026-2029, up from an average of 40% over the
past four years, supporting export exposure, hard-currency cash
flow generation, and financial flexibility. The Stable Outlook
reflects continued support from export-oriented oil production
growth.
Key Rating Drivers
Sovereign Upgrade and Hard-Currency Strength: The recent upgrade of
Argentina to 'B-'/Stable has improved Pampa's business environment
and increased rating headroom. Fitch expects offshore cash and
export receipts to cover more than 1.5x hard-currency debt service
over the next three years, supported by higher export revenue. This
supports Pampa's Long-Term Foreign-Currency IDR at two notches
above Argentina's Country Ceiling of 'B-'.
Higher oil and gas (O&G) EBITDA further strengthens Pampa's
financial profile through increased hard-currency cash flow
generation, as the company now exports around 30% of its crude oil
production and has reduced exposure to Compania Administradora del
Mercado Mayorista Electrico's (CAMMESA) counterparty risk.
Shale Oil Growth: Fitch expects EBITDA contribution from Pampa's
O&G segment to rise to be around 60% by FYE26, driven by higher
shale oil production at the Rincon de Aranda field. Crude output
averaged 18,200 barrels of oil equivalent per day (boe/d) in 1Q26,
up from 1,022 boe/d in 1Q25, positioning the company as the
ninth-largest crude producer in Argentina. Pampa's ratings are
limited by its 1P reserve base, as the 'BB' category requires a
minimum of 400 mmboe.
Fitch projects consolidated EBITDA of about USD1.2 billion and
estimates total production will average around 112,600 boe/d by
FYE26, with a mix of 24% oil and 76% gas. This production scale is
consistent with the 'BB' category of between 75,000 boe/d and
125,000 boe/d.
Strong Capital Structure: Fitch expects Pampa's gross leverage to
be around or below 2.5x over 2026-2029. EBITDA should approach
USD1.2 billion and USD1.4 billion, in FY26 and FY27, respectively,
with the power generation and E&P segments each representing
roughly 40% and 60% of EBITDA, respectively. Gross and net leverage
in the last 12 months to March 2026 was 2.3x was 1.4x,
respectively, while EBITDA was USD810 million. Fitch anticipates
Pampa's EBITDA interest coverage will remain above 6.0x on average
in 2026-2028.
Negative Free Cash Flow: Fitch expects free cash flow (FCF) to be
negative in 2026-2027 at around USD130 million on average as Pampa
deploys a capex plan of about USD2.4 billion. Most capex will be
directed to development of the Rincon de Aranda shale oil project.
The company plans to fund capex with cash on hand and cash flow
from its power generation business, which benefits from strong
contracts. Fitch projects cash flow from operations (CFO) of
approximately USD1 billion in 2026 and USD1.1 billion in 2027.
Peer Analysis
Pampa's ratings reflect its improved business diversification and
increased O&G operating scale, with expected total production of
112,600 boe/d. This is in line with the 'BB' category, where close
peers are Vista Energy Argentina S.A.U.'s (BB-/Stable), Tecpetrol
S.A. (TECPESA; BB-/Stable), Pan American Energy, S.L. (PAE;
BB-/Stable) and Pluspetrol S.A. (PPSA; BB/Stable). Pampa's
generation business compares with those of AES Argentina Generacion
S.A. (B-/Stable) and MSU Energy S.A. (CCC+). In integrated energy,
Pampa's closest peer is Capex S.A. (B-/Stable).
Pampa's total expected production in 2026 and 1P reserves of 296
mmboe as of 2025 are consistent with the high-end of the 'B'
category, below that of Vista Argentina's 145,000 boe/d and 588
mmboe; TECPESA's 190,000 boe/d and 633 mmboe; and PPSA's 114,000
boe/d and 700 mmboe, respectively.
Pampa's operations are concentrated in Argentina, which is a rating
constraint as the operating environment of 'b' poses higher risks
than for its peers. This is also true for Vista Argentina, PAE,
TECPESA and PPSA, but their business profiles reflect a larger
scale and higher export revenue than Pampa's.
Fitch expects Pampa's EBITDA leverage to remain below 2.0x
throughout the rating cycle, lower than exploration and production
companies in Argentina with an average 3.0x over the next three
years. Pampa's 2025 total debt/1P was USD6.4/boe.
Fitch’s Key Rating-Case Assumptions
- Daily oil production average of 26,900 boe/d in 2026, 40,600
boe/d in 2027 and 41,700 boe/d in 2028
- Daily gas production average: 85,700 boe/d in FY26, 95,200 boe/d
in FY27 and 108,000 boe/d in FY28
- Flat average realized natural gas price of USD3.40 per million
btu over 2026-2029 under Plan Gas;
- Average Brent crude oil price of USD87 per barrel in 2026; USD65
in 2027, and USD60 in 2028
- Fitch average and end of period Argentine peso/US dollar exchange
rates: ARS/USD1,671 2026; ARS/USD2,062 in 2027
- Accumulated capex of USD3.2 billion for 2026-2028
- No dividends
Corporate Rating Tool Inputs and Scores
Fitch scored the issuer as follows, using its Corporate Rating Tool
(CRT) to produce the Standalone Credit Profile (SCP):
Business and financial profile factors (assessment, relative
importance): management ('bbb', Lower), sector characteristics
('bb-', Moderate), market and competitive positioning ('bb-',
Moderate), diversification and asset quality ('b+', Moderate),
company operational characteristics ('b+', Higher), profitability
('bb-', Moderate), financial structure ('a+', Lower), and financial
flexibility ('b+', Moderate).
The quantitative financial subfactors are based on custom CRT
financial period parameters: 10% weight for the forecast year 2025,
30% for the forecast year 2026, 30% for the forecast year 2027 and
30% for the forecast year 2028.
B+ to CC considerations apply in its analysis and have no impact.
The governance assessment of 'good' has no impact.
The operating environment assessment of 'b' results in an
adjustment of -1 notch(es).
The SCP is 'b+'.
To derive the Long-Term IDR:
Country Ceiling considerations apply and result in an adjustment of
0 notch(es).
Fitch made no adjustments to the SCP, resulting in Foreign and
Local Currency IDRs of 'B+'.
Recovery Analysis
KEY RECOVERY RATING ASSUMPTIONS
- The recovery analysis assumes that Pampa would be a going concern
(GC) in bankruptcy and that it would be reorganized rather than
liquidated.
- A 10% administrative claim
- The GC EBITDA is estimated at USD900 million. The GC EBITDA
estimate reflects Fitch's view of a sustainable,
post-reorganization EBITDA level on which Fitch bases the valuation
of Pampa.
- Enterprise value multiple of 5.0x.
Following the upgrade of Argentina's sovereign rating to 'B-' from
'CCC+', the previous variation applied to recovery cap no longer
applies, as Argentina's sovereign rating is no longer considered to
be consistent with a distressed environment.
Under the country groups specified in Fitch's "Country-Specific
Treatment of Recovery Ratings Criteria", Argentina falls under
group D, where Recovery Ratings are capped at 'RR4'. Therefore, the
senior unsecured notes are rated 'B+'/'RR4'.
Fitch's bespoke recovery analysis suggests that Pampa's recovery
prospects comfortably exceed the range implied for an 'RR4' under
the criteria.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Hard-currency debt coverage below 1.5x
- A deterioration of Argentina's operating environment
- Total production below 45,000 boe/d
- O&G segment EBITDA contributing less than 50% of total
- 1P reserve life consistently below seven years
- Significant delays in payments that negatively affect working
capital, liquidity and leverage, or revision of existing contracts
with CAMMESA
- Amendments to capital control rules that weaken the company's
ability to access capital and refinance debt
- Significant deterioration of credit metrics, with total
debt/EBITDA of 4.5x or more
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- 1P reserves consistently above 400 mmboe while keeping reserve
life at over seven years
- Sustained positive FCF up to 2029
- Contracted exports with high quality off-takers, or purchasing
power agreements with non-regulated customers, with a long-term
tenor and adequate legal protection to avoid interference from the
federal government
Liquidity and Debt Structure
Pampa has a record of holding a solid cash position. Fitch expects
it to proactively manage its exposure to refinancing risk while
funding its negative FCF over the next two years.
The company reported consolidated cash and equivalents of USD236
million and marketable securities of USD441 million at end-1Q26,
against short term debt of USD39 million. Total debt was USD1.9
billion at end-1Q26 and was mainly composed of senior notes and
bank loans.
Pampa's interest expense coverage should average 9.0x over
2026-2029 versus 5.0x during 2022-2025. The company's debt and
interest expense are primarily in U.S. dollars, and Fitch's rating
case assumes it will continue to access the official exchange to
service its debt.
Issuer Profile
Pampa is the largest independent energy integrated company in
Argentina. Pampa and its subsidiaries are engaged in generation and
transmission of electricity in Argentina, and oil and gas
exploration and production, refining, petrochemicals and
hydrocarbon commercialization and transportation in Argentina.
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 Pampa.
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 Recovery Prior
----------- ------ -------- -----
Pampa Energia S.A.
LT IDR B+ Upgrade B
LC LT IDR B+ Upgrade B
senior unsecured LT B+ Affirmed RR4 B+
[] Fitch Takes Actions on Argentine Banks Amid Sovereign Upgrade
----------------------------------------------------------------
Fitch Ratings has taken the following rating actions on four
Argentine banks and one Uruguayan branch of an Argentine bank:
Banco Macro S.A.
- Long-Term (LT) Foreign Currency (FC) and Local Currency (LC)
Issuer Default Ratings (IDRs) upgraded to 'B-' from 'CCC+', with a
Stable Outlook;
- Short-Term (ST) FC and LC IDRs upgraded to 'B' from 'C';
- Viability Rating (VR) upgraded to 'b-' from 'ccc+';
- Government Support Rating (GSR) affirmed at 'no support'.
Banco Santander Argentina S.A.
- Long-Term (LT) Foreign Currency (FC) Issuer Default Ratings (IDR)
affirmed at 'B-';
- Long-Term Local Currency (LC) IDR upgraded to 'B' from 'B-';
The Rating Outlook on the LT IDRs is Stable;
- Short-Term (ST) FC and LC IDRs affirmed at 'B';
- Shareholder Support Rating (SSR) affirmed at 'b-'.
- Viability Rating (VR): upgraded to 'b' from 'ccc+'.
Banco BBVA Argentina S.A.
- Long-Term (LT) Foreign Currency (FC) Issuer Default Ratings (IDR)
affirmed at 'B-';
- Long-Term Local Currency (LC) IDR upgraded to 'B' from 'B-';
The Rating Outlook on the LT IDRs is Stable;
- Short-Term (ST) FC and LC IDRs affirmed at 'B';
- Shareholder Support Rating (SSR) affirmed at 'b-'.
- Viability Rating (VR): upgraded to 'b-' from 'ccc+'.
Banco Supervielle S.A.
- Long-Term (LT) Foreign Currency (FC) and Local Currency (LC)
Issuer Default Ratings (IDRs) affirmed at 'CCC+'; Fitch typically
does not assign Outlooks to ratings in the 'CCC+' categories or
below;
- Short-Term (ST) FC and LC IDRs affirmed at 'C';
- Viability Rating (VR) affirmed at 'ccc+';
- Government Support Rating (GSR) affirmed at 'no support'.
Banco de la Nacion Argentina - Sucursal Uruguay (BNAUY)
- Long-Term (LT) Foreign Currency (FC) and Local Currency (LC)
Issuer Default Ratings (IDRs) upgraded to 'B-' from 'CCC+' with a
Stable Outlook.
This portfolio review follows the recent upgrade of Argentina's
sovereign to 'B-' from 'CCC+'. Following this action, Fitch
upgraded its assessment of the Argentine banks' operating
environment (OE) score to 'b-' from 'ccc+' with a Stable Outlook.
Fitch's assessment of the OE directly affects these banks'
standalone ratings and constrains their VRs.
The 'b-'/Stable OE score for Argentina is below its implied score
of 'bb'. Argentina's improved macroeconomics have strengthened
economic development, which will improve Fitch's core metrics used
to assess its OE score. The country's estimated GDP per capita for
2025 is USD14,300 and Fitch's Operational Risk index (ORI)
percentile was 45.8% in April 2026, which supports the implied
score of 'bb'. Fitch adjusted the implied OE for two negative
factors: the Sovereign Rating and Macroeconomic Stability.
Banks are still well capitalized and have been able to manage
extreme interest rate volatility over the last few months. The
combination of higher funding costs and credit costs put
significant pressure on the operating profitability of the banking
system in 2025. Fitch expects these trends to continue to weigh on
banks' earnings in the first half of 2026, with more constructive
credit conditions toward the second half of the year and beyond.
Credit growth in this context has moderated, although lower
interest rates in recent months could provide a more supportive
backdrop for a recovery this year with greater dynamics in FX
loans.
Key Rating Drivers
Santander Argentina and BBVA Argentina
IDRs and SSRs: Fitch affirmed Santander Argentina and BBVA
Argentina's FC LT IDRs and SSRs at 'B-' and 'b-', respectively. In
addition, Fitch upgraded the banks' Long Term Local Currency IDRs
to 'B' from 'B-'. These are supported IDRs and are capped at one
notch above the LT FC IDRs.
In Fitch's view, both banks' LT IDRs remain driven by their SSRs of
'b-' and capped by Argentina's Country Ceiling of 'B-'. Fitch
believes ordinary shareholder support would be available if needed.
The banks' ultimate parents are highly rated, and the subsidiaries
are small relative to the support providers of support. Their roles
within their groups are neutral in the SSR assessment.
VR: Fitch upgraded Santander Argentina VR to 'b' from 'ccc+'
following the revision of the banking industry's OE score. The VR
is now one notch above the OE, reflecting Fitch's view of the
bank's very strong credit profile and its implied VR of 'b'. Fitch
believes the bank's domestic franchise, capitalization, good
financial profile and manageable exposure to the sovereign,
supports its VR above the OE. The VR and the Long-Term LC IDR are
now both above the sovereign because Fitch believes the bank would
probably retain the capacity to service obligations in local
currency after a sovereign default in that currency. Fitch also
believes that the sovereign would probably not impose material
restrictions, such as capital controls, on the bank's ability to
service those obligations.
BBVA Argentina's VR was upgraded to 'b-' from 'ccc+' following the
revision of the banking industry OE score. The VR of BBVA Argentina
is now in line with its implied VR and is no longer constrained by
the banking industry's OE score.
Macro and Supervielle
Macro's LT IDRs are driven by its VR, which Fitch upgraded to 'b-'
from 'ccc+'. The VR remains one notch below its implied VR of 'b'.
Fitch believes Macro's VR is constrained by the 'b-' OE score,
despite the bank's sound financial profile, because the bank is
unlikely to be rated above the sovereign under its current business
and financial profile.
Banco Supervielle's LT IDRs are driven by its VR, which Fitch
affirmed at 'ccc+', in line with its implied VR. Supervielle's
small franchise within the banking system, less diversified
business model than its larger private-sector peers, reflected in
more volatile operating results, drives its implied VR, and it is
no longer constrained by the OE score.
Although most of these banks have sound domestic or established
niche franchises, funding profiles and adequate loss absorption
capacity, their sovereign exposure remains relevant to their
capital sizes and credit profiles.
Banco de la Nacion Argentina (Sucursal Uruguay) - BNAUY:
BNAUY's LT IDRs were upgraded to 'B-' from 'CCC+', reflecting its
status as a full branch of BNA, which has a leading franchise and
systemic importance in Argentina. BNAUY is the same legal entity as
BNA. Therefore, its LT IDRs reflect Fitch's opinion of BNA without
country risk constraints. BNA is fully owned by the Argentine state
and its liabilities, including branches abroad, are guaranteed by
the sovereign.
The outcome of the rating committee would have been the same
whether Fitch applied its methodology registered in Uruguay on
Sept. 28, 2023, or its current "Bank Rating Criteria," published on
May 8, 2026.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Santander Argentina/BBVA Argentina:
- The IDRs and SSRs would be downgraded if Fitch perceived a
material weakening in the parents' ability or willingness to
support these banks;
- The IDRs are sensitive to changes in Country Ceiling, as the
banks' LT FC IDRs are almost always capped by it.
Santander Argentina/BBVA Argentina/Macro/Supervielle:
- The VRs are sensitive to changes in the sovereign rating or to a
deterioration in the OE score beyond Fitch's current expectations,
particularly if this leads to a significant weakening of the banks'
financial profiles;
- Policy announcements that weaken the banks' ability to service
their obligations would be negative for their creditworthiness.
BNAUY:
- The LT IDRs would come under pressure following a downgrade of
Argentina's sovereign rating or a material deterioration in BNA's
financial profile caused by a weaker OE;
- Policy announcements in Argentina that weaken BNA's ability to
service its obligations would be negative for its
creditworthiness.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Santander Argentina/BBVA Argentina:
- Rating actions on the banks' IDRs and SSRs are sensitive to those
of the sovereign and the Country Ceiling.
Santander Argentina/BBVA Argentina/Macro:
- The VRs would benefit from an upgrade of Argentina's sovereign
rating and an improvement in the OE score.
Supervielle:
- The VR and IDRs could be positively affected by a sustained
improvement in the bank's business and financial profile,
particularly through stronger operating profitability that supports
capitalization while maintaining asset quality.
BNAUY:
- BNAUY's LT IDRs reflect Fitch's opinion of BNA and will move in
tandem with Argentina's sovereign rating.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
Senior Debt: Macro's senior unsecured debt was upgraded to 'B-'
with a Recovery Rating of 'RR4' from 'CCC+'/'RR4', at the same
level as Macro's upgraded 'B-' LT IDR, as the likelihood of default
of the notes is the same as that of the bank. The notes rank at
least pari passu in right of payment with all other existing and
future unsecured and unsubordinated obligations.
Subordinated Debt: Banco Macro's subordinated debt was upgraded to
'CCC' with a Recovery Rating of 'RR6' from 'CCC-'/'RR6' and is two
notches below the bank's upgraded VR of 'b-', reflecting Fitch's
base case notching for loss severity. Securities are plain vanilla
subordinated liabilities, without any deferral feature on coupons
and/or principal. The 'RR6' for subordinated debt reflects poor
expected recovery prospects in the event of default for these
hybrid securities relative to Macro's senior unsecured debt.
Government Support Rating:
Macro: GSR of 'no support' reflects Fitch's view that, despite the
bank's systemic importance, government support cannot be relied
upon because of constraints on the government's ability to provide
support.
Supervielle: GSR of 'no support' reflects Fitch's view that,
despite the bank's moderate franchise, government support cannot be
relied upon given constraints on the government's ability to
provide support.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
Senior and Subordinated Debt: Any change, either positive or
negative, to Macro's VR could result in a similar change to the
senior and subordinated debt rating.
Government Support Rating: Changes in the GSR are unlikely in the
short term, given Argentina's low sovereign rating and the
sovereign's limited financial flexibility to provide support.
VR ADJUSTMENTS
Macro:
- The OE score of 'b-' has been assigned below the 'bb' implied
score due to the following adjustment reasons: Sovereign Rating
(negative) and Macroeconomic Stability (negative);
- The Business Profile score of 'b' has been assigned below the
implied score of 'bb' due to the following adjustment reason:
Business Model (negative);
- The Earnings and Profitability score of 'b' has been assigned
below the implied score of 'bb' due to the following adjustment
reason: Historical and Future Metrics (negative);
- The Capitalization and Leverage score of 'b' has been assigned
below the implied score of 'bb' due to the following adjustment
reason: Leverage and risk weight calculation (negative);
- The Viability Rating of 'b-' is below the 'b' implied Viability
Rating due to the following adjustment reason(s): operating
environment/sovereign rating constraint (negative).
Supervielle:
- The OE score of 'b-' has been assigned below the 'bb' implied
score due to the following adjustment reasons: Sovereign Rating
(negative) and Macroeconomic Stability (negative).
Santander Argentina:
- The OE score of 'b-' has been assigned below the 'bb' implied
score due to the following adjustments reasons: Sovereign Rating
(negative) and Macroeconomic Stability (negative);
- The Business Profile score of 'b' has been assigned below the
'bb' implied score due to the following adjustment reason: Business
Model (negative);
- The Earnings and Profitability score of 'b+' has been assigned
below the 'bb' implied score due to the following adjustment
reason: Historical and Future Metrics (negative);
- The Capitalization and Leverage score of 'b' has been assigned
below the implied score of 'bb' due to the following adjustment
reason: Leverage and risk weight calculation (negative).
BBVA Argentina:
- The OE score of 'b-' has been assigned below the 'bb' implied
score due to the following adjustment reasons: Sovereign Rating
(negative) and Macroeconomic Stability (negative);
- The Business Profile score of 'b' has been assigned below the
'bb' implied score due to the following adjustment reason: Business
Model (negative);
- The Earnings and Profitability score of 'b' has been assigned
below the 'bb' implied score due to the following adjustment
reason: Historical and Future Metrics (negative).
Public Ratings with Credit Linkage to other ratings
The IDRs and SSRs of Santander Argentina and BBVA Argentina are
linked to the ratings of their parent companies, Banco Santander,
S.A. and Banco Bilbao Vizcaya Argentaria, S.A., respectively.
The IDRs of BNAUY reflect Fitch's opinion of BNA.
ESG Considerations
Santander Argentina, BBVA Argentina, Macro and Supervielle have an
ESG Relevance Score of '4' for Management Strategy due to the high
level of government intervention in the Argentine banking sector.
This challenges the banks' ability to define and execute their own
strategies, which has a negative impact on the credit profile and
is relevant to the rating in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Banco de la Nacion
Argentina (Sucursal
Uruguay)
LT IDR B- Upgrade CCC+
LC LT IDR B- Upgrade CCC+
Banco Santander
Argentina S.A.
LT IDR B- Affirmed B-
ST IDR B Affirmed B
LC LT IDR B Upgrade B-
LC ST IDR B Affirmed B
Viability b Upgrade ccc+
Shareholder Support b- Affirmed b-
Banco Macro S.A.
LT IDR B- Upgrade CCC+
ST IDR B Upgrade C
LC LT IDR B- Upgrade CCC+
LC ST IDR B Upgrade C
Viability b- Upgrade ccc+
Gov't Support ns Affirmed ns
Subordinated LT CCC Upgrade RR6 CCC-
sr unsecured LT B- Upgrade RR4 CCC+
Banco
Supervielle S.A.
LT IDR CCC+ Affirmed CCC+
ST IDR C Affirmed C
LC LT IDR CCC+ Affirmed CCC+
LC ST IDR C Affirmed C
Viability ccc+ Affirmed ccc+
Gov't Support ns Affirmed ns
Banco BBVA
Argentina S.A.
LT IDR B- Affirmed B-
ST IDR B Affirmed B
LC LT IDR B Upgrade B-
LC ST IDR B Affirmed B
Viability b- Upgrade ccc+
Shareholder Support b- Affirmed b-
===========
B R A Z I L
===========
BRAVA ENERGIA: Fitch Puts 'BB-' LongTerm IDR on Watch Positive
--------------------------------------------------------------
Fitch Ratings has placed Brava Energia S.A.'s (Brava) Long-Term
Local and Foreign Currency Issuer Default Ratings (IDRs) at 'BB-'
and 3R Lux S.a.r.l.'s (3R Lux) USD500 million secured notes due
2031 at 'BB-' on Rating Watch Positive (RWP). Fitch also placed
Brava's Long-Term National Scale rating at 'AA-(bra)' on RWP.
The RWP follows Ecopetrol S.A.'s (Ecopetrol; LT FC and LC IDRs
BB/Stable) announcement regarding the acquisition of a 26% stake in
Brava and the proposed acquisition of 51% of the voting shares
through a public tender offer for the remaining portion. If the
offer is successful, Brava's ratings could benefit from Ecopetrol's
strategic support incentives. The acquisition of the 26% stake is
subject to certain conditions, including the successful completion
of the tender offer.
Brava's current ratings reflect its limited scale, well-diversified
asset base, strong reserves, and moderate and declining financial
leverage. They also reflect Brava's improving operating
efficiency.
Key Rating Drivers
Potential Linkage to Ecopetrol: Ecopetrol's successful acquisition
of a controlling stake in Brava could lead to a one-notch upgrade
of Brava's IDRs. If the offer is accepted, Fitch would incorporate
its assessment of parental support into Brava's ratings in line
with Fitch's Parent and Subsidiary Linkage Rating Criteria. Brava's
scale and presence in the Brazilian market suggest meaningful
strategic incentives for support. The transaction would increase
the Colombian producer's proved oil and gas reserves by 459 million
boe (+12%) and slightly extend its 1P reserve life of seven years.
It would also raise production and consolidated EBITDA by about 11%
and 10%, respectively. Fitch does not anticipate material legal
incentives
Limited Scale Constrains Ratings: Fitch forecasts Brava's
production will average 85 kboe/d in 2026 and 93 kboe/d in 2028,
placing the company on the weaker side of the 'BB' category. The
volume of 1P reserves is also commensurate with the lower side of
that category. Short-term offshore and medium-term onshore drilling
campaigns combined with enhanced oil recovery activities onshore
should be the main organic growth drivers, along with improved
efficiency at Papa Terra. The execution risk of increasing
production and adding 1P reserves is mitigated by the company's
strong asset diversification and exceptional reserve life exceeding
10 years through the rating horizon.
Stronger Financial Profile: Higher Brent prices should accelerate
Brava's deleveraging in 2026. Assuming average Brent of USD87/bbl
this year, Fitch projects EBITDA leverage and net leverage at 1.9x
and 1.1x this year (or 2.2x and 1.3x, if the expected hedging
effect is included in EBITDA), down from 3.7x and 2.2x in 2025.
These ratios are expected to slightly increase in 2027 to 2.2x and
1.2x under a lower Brent assumption of USD65/bbl, and will benefit
from production ramp-up and a one-off reduction in offshore capex.
Projections include an export tax of 12% during five months in
2026. Brava has deleveraged through production growth, lower
onshore capex, receivables monetization, midstream asset-sharing
and dividend retention.
Improving Cost Profile: Fitch expects further efficiency gains from
economies of scale offshore. Overall lifting costs are expected to
decline to around USD17.0/boe in 2026 and USD15.0/boe in 2027, from
USD17.5/boe in 2025. Onshore production (around 37% of Brava's
production) adds to cash flow predictability and capex
flexibility.
CFO to Cover Capex: Strong cash flows from improved cost structure
and tax efficiencies should allow cash flow from operations (CFO)
to exceed capex over the rating horizon. Fitch expects annual capex
of around BRL2.7 billion over 2026-2029 and positive free cash
flows (FCFs). Brava's hedging strategy is an important mitigant to
cash flow volatility. EBITDA is estimated at BRL7.5 billion in 2026
and BRL5.9 billion in 2027. Projections consider dividend payout of
25% and cash inflows around BRL165 million in 2027 and BRL207
million in 2029 from the sale of Brava's interest in the Jubarte
unitization. Brava's hedging strategy is an important mitigant to
cash flow volatility.
Peer Analysis
Brava has lower scale and stronger asset diversification compared
to North American onshore, oil-weighted producers Matador Resources
Company (Matador, BB/Stable) and SM Energy Company, L.P. (SM
Energy, BB+/Stable), and Brazilian offshore producer PRIO S.A.
(PRIO; BB+/Stable). Brava also has less financial flexibility.
Fitch projects EBITDA Interest coverage around 4.4x for Brava over
2026-2027, above the estimates for SM Energy (8.4x), PRIO (8.7x)
and Matador (9.6x). For all these peers Fitch projects EBITDA net
leverage in the 1.0x - 2.0x range over the same period.
Matador and SM produce around 200 kboe/d and PRIO is expected to
reach this level in 2026, with the Peregrino and Wahoo oil fields.
This is more than double the current scale of Brava. The latter
benefits from a long 1P reserve life, estimated around 13 years
over 2026-2027 on average, which is in line with PRIO and above the
nine- to 11-year range for the other peers.
For each boe produced, Fitch estimates Brava will generate around
USD26 of CFO over 2026-2027, below PRIO and Matador (close to
USD28/boe) and above SM Energy (USD23/boe). The company's American
peers benefit from lower royalties, producing costs and interest
costs compared to Brava, but they sell at significantly lower
prices. This reflects the WTI discount over Brent and the higher
share of gas in the revenue of these peers, as well as their
trading efficiencies.
Fitch's Key Rating-Case Assumptions
- Average Brent prices from 2026 to 2028 (USD/bbl): 87, 65 and 60;
- Average BRL/USD exchange ratios of 5.5;
- Average daily production from 2026 to 2028 (kboe/d): 85, 93 and
94;
- Oil sales consider overall discount to Brent around USD5/bbl
(aggregated for the portfolio);
- Cash-effect hedging results close to negative BRL1.2 billion in
2026 and positive BRL110 million in 2027;
- 100% effective working interest in Papa Terra, with no payment
arising from the arbitration;
- Overall lifting costs from 2026 to 2028 (USD/boe): 17, 15 and
16;
- Annual capex averaging BRL2.7 billion from 2026 to 2028;
- Effective tax rate around 22%;
- Dividend payout ratio of 25%.
Corporate Rating Tool Inputs and Scores
Fitch scored the issuer as follows, using its Corporate Rating Tool
(CRT) to produce the Standalone Credit Profile (SCP):
Business and financial profile factors (assessment, relative
importance): management ('bb-', Moderate), sector characteristics
('b', Lower), market and competitive positioning ('bb-', Higher),
diversification and asset quality ('bb+', Moderate), company
operational characteristics ('bb-', Higher), profitability ('bb+',
Moderate), financial structure ('bbb-', Moderate), and financial
flexibility ('bb', Moderate).
The quantitative financial subfactors are based on custom CRT
financial period parameters: 20% weight for the historical year
2025, 40% for the forecast year 2026 and 40% for the forecast year
2027.
The governance assessment of 'good' has no impact.
The operating environment assessment of 'bbb-' has no impact.
The SCP is 'bb-', after one-notch calibration adjustment to reflect
scale constraints.
Fitch made no adjustments to the SCP, resulting in an IDR of
'BB-'.
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- The RWP will be removed if the acquisition by Ecopetrol is not
successfully completed;
- Debt/EBITDA and net debt/EBITDA ratios above 3.5x and 2.5x,
respectively;
- Weakening of the liquidity profile;
- Major operational disruptions at key assets, resulting in a
significant reduction in production.
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- The IDRs and the National Scale ratings may be upgraded upon the
closing of the acquisition;
- Debt/EBITDA and net debt/EBITDA ratios below 3.0x and 2.0x,
respectively;
- Increasing production to levels consistently above 105 kboe/d
while maintaining 1P reserve life of at least seven years.
Liquidity and Debt Structure
Brava has strong liquidity position and a favorable track record of
accessing local banks and capital markets for long-term funding.
The anticipation of FPSO receivables and liability management
transactions carried over in 2025, resulted in a comfortable debt
amortization schedule and reduced the company`s average cost of
debt to around 8.2% in USD.
As of March 2026, Brava had BRL5.6 billion in readily available
cash balance, which was sufficient to cover all debt amortization
through 2028, including M&A payables. The BRL16.9 billion debt was
mainly composed of debentures (71%, including derivatives), secured
notes due 2031 (16%), loans (7%) and M&A payables (6%). More than
90% of Brava's debt is denominated or indexed to USD.
Issuer Profile
Brava is an independent, well-diversified and integrated oil and
gas producer focused on revitalizing mature fields both onshore and
offshore in Brazil. It has no controlling shareholder. 3R Lux is a
funding vehicle domiciled in Luxembourg and is wholly owned by
Brava.
Summary of Financial Adjustments
M&A payables were incorporated into debt. Debt-related restricted
cash was treated as cash. Debt-related derivatives were excluded
from debt, including the total return swap. Lease interest expense
was treated as opex.
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
Brava's Climate.VS for 2035 is 50. While elevated, this score
currently does not affect the company's ratings given the long time
horizon over which the energy transition is expected to occur.
Potential future rating impact may evolve over time, reflecting
developments in Fitch's assessment of these risks.
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
----------- ------ -----
3R Lux S.a.r.l.
senior secured LT BB- Rating Watch On BB-
Brava Energia S.A.
LT IDR BB- Rating Watch On BB-
LC LT IDR BB- Rating Watch On BB-
Natl LT AA-(bra) Rating Watch On AA-(bra)
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Incabide Raises RD$562.8MM in Auction
---------------------------------------------------------
Dominican Today reports that the National Institute for the Custody
and Administration of Seized, Confiscated and Extinction of
Ownership Assets (Incabide) successfully completed its first public
auction, generating RD$562.8 million from the sale of seized and
confiscated assets under the provisions of Law 60-23 on Asset
Forfeiture.
A total of 100 of the 143 assets offered were sold, representing a
68% sales rate. The auction included 52 real estate properties and
48 movable assets. Real estate sales accounted for RD$550.17
million, while movable goods brought in RD$12.67 million, according
to Dominican Today.
Incabide reported strong participation from both individuals and
companies and emphasized that the process was conducted with
transparency, legality, and institutional oversight, the report
notes. Four properties were declared unsold, while 43 others
remain available for future auction phases, the report relays.
The institution said the successful auction reinforces its
commitment to the efficient and transparent management of seized
and forfeited assets, contributing to the strengthening of public
institutions in the Dominican Republic, the report adds.
About Dominican Republic
The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district. Luis Rodolfo
Abinader Corona is the current president of the nation.
TCR-LA reported in April 2019 that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."
An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.
Standard & Poor's credit rating for Dominican Republic was raised
to 'BB' in December 2022 with stable outlook. Moody's credit
rating for Dominican Republic was last set at Ba3 in August 2023
with the outlook changed to positive. Fitch, in December 2023,
affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer
Default Rating (IDR) at 'BB-' and revised the outlook to positive.
DOMINICAN REPUBLIC: Raises Fuel Prices By Up to Rd$8.00 Amid Surge
------------------------------------------------------------------
Dominican Today reports that the Ministry of Industry, Commerce and
MSMEs (MICM) reported that the Dominican Republic government
allocated RD$1.435 billion in subsidies to keep liquefied petroleum
gas (LPG) prices frozen and partially absorb increases in gasoline
and diesel prices for the week of May 16–22.
According to the ministry, West Texas Intermediate (WTI) crude oil,
the benchmark used by the Dominican Republic, is currently trading
near US$105 per barrel after rising approximately US$4.00 in the
latest session, representing an increase of around 3.86%, the
report notes.
As a result of persistently high international oil and fuel prices,
premium and regular gasoline, along with regular and premium
diesel, will see adjustments in their per-gallon retail prices, the
report discloses.
Meanwhile, prices for Avtur, kerosene, Fuel Oil #6, and Fuel Oil #1
— fuels mainly used in the aviation and industrial sectors —
will decrease during the same period, the report adds.
About Dominican Republic
The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district. Luis Rodolfo
Abinader Corona is the current president of the nation.
TCR-LA reported in April 2019 that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."
An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.
Standard & Poor's credit rating for Dominican Republic was raised
to 'BB' in December 2022 with stable outlook. Moody's credit
rating for Dominican Republic was last set at Ba3 in August 2023
with the outlook changed to positive. Fitch, in December 2023,
affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer
Default Rating (IDR) at 'BB-' and revised the outlook to positive.
REFINERIA DOMINICANA: Fitch Alters Outlook on 'BB-' IDRs to Stable
------------------------------------------------------------------
Fitch Ratings has revised the Rating Outlook on Refineria
Dominicana de Petroleo S.A.'s (Refidomsa) Long-Term Foreign and
Local Currency Issuer Default Ratings (IDRs) to Stable from
Positive and affirmed the rating at 'BB-'.
Refidomsa's ratings reflect the strength of its linkage with the
Dominican Republic (Foreign and Local Currency IDRs BB-/Stable),
which owns 100% of the company. Linkage strength is supported by
Refidomsa's strategic importance as the country's only refinery,
its 50% market share, and its role as the main local fuel supplier.
The revision of the Outlook to Stable from Positive is tied to the
Dominican Republic's sovereign rating.
Key Rating Drivers
Linkage to Sovereign: Refidomsa's ratings reflect the linkage with
the Dominican Republic, consistent with Fitch's "Government Related
Entities Rating Criteria." The company's rating is equalized with
its parent based on Fitch's Overall Linkage Score of 30. Fitch
assesses Responsibility to Support and Incentive to Support factors
as 'Strong' due to the government's role to supporting Refidomsa in
distress, given its strategic importance as the sole refinery and
primary local fuel supplier with about 50% market share.
Operational disruptions could have substantial social and economic
effects. Refidomsa faces regulatory risks from government pricing
policies for its products.
Limited Scale: Absent implicit or explicit Dominican government
support, Fitch assesses Refidomsa's Standalone Credit Profile (SCP)
at 'b'. The rating reflects a single-site status, small operation
with production capacity of 32,000 barrels per day (bpd), limited
asset quality, and concentrated geographic location. In addition,
Refidomsa faces regulatory risk from government pricing policies.
Delayed price adjustments under the import parity pricing formula
could pressure margins and working capital, with discrepancies
creating government receivables.
Stable Operating Metrics: Fitch estimates 2025 EBITDA of about
USD63 million (USD3,949 million), a decrease from USD72 million in
2024, reflecting lower crude oil prices and 2025 overhaul that
reduced production. Given Refidomsa's exposure to inherently
volatile international crude oil and fuel prices, the ratings
reflect the cyclical nature of the company's business. Fitch
expects EBITDA to recover to USD72 million in 2026 onward as
refining margins are anticipated to improve to USD4.9/bbl in 2025
from USD3.2/bbl in 2024, as the overhaul's efficiency gains
materialize.
Conservative Leverage: Fitch forecasts 2025 leverage at 0.6x in
2025 and below 0.5x through the rating horizon as Refidomsa
deleverages. The company's investment plan aims to increase its
storage capacity and modernize facilities, primarily financed
through long-term debt. Fitch expects FCF to be neutral to positive
over the rating horizon, driven by EBITDA growth from 2026 on, as
margins improve.
Peer Analysis
Refidomsa's scale is small, being a single-site operation, and
operates in a competitive market. The company's ratings reflect its
strategic importance as the sole fuel refinery in the Dominican
Republic and primary supplier of liquid fuels. The linkage to the
Dominican sovereign rating aligns with that of most national oil
and gas companies in the region, including Empresa Nacional del
Petroleo (ENAP) (ENAP; A-) and Petroleos Mexicanos (PEMEX;
BB+/Stable). Refidomsa is not the sole provider of refined fuels in
the Dominican Republic. Year to date, the company had a 48% market
share.
Refidomsa's 'b' SCP is comparable to that of Refinaria de Mataripe
S.A. (REFMAT; B+/Stable). REFMAT has a nameplate capacity of
302,000 bpd, while Refidomsa has a smaller capacity of 32,000 bpd.
REFMAT's location in northeastern Brazil provides a competitive
advantage. Refidomsa's expected average gross leverage, defined as
total debt/EBITDA, is expected to be around 0.3x, which is
significantly lower than REFMAT's expected 3.7x.
Fitch’s Key Rating-Case Assumptions
- Fitch's WTI price deck of USD64/bbl in 2025, USD58/bbl in
2026-2027, and USD57/bbl in 2028;
- Refining production of 21,100bbl/day in 2025 and 26,000bbl/day in
2026 onward;
- Imports of 16.3 mmbbl in 2025 and 15.3 mmbbl in 2026 onward;
- Average refining margin of USD4.9/bbl in 2025-2028;
- Average terminal margin of USD4.3/bbl in 2025-2028;
- Average price effect margin of USD0.8/bbl in 2025-2028;
- Average discount of USD1.1/bbl in 2025-2028;
- Capex intensity at 2.2% in 2025 and 1% in 2026 onward;
- No dividends paid over the rating horizon.
Corporate Rating Tool Inputs and Scores
Fitch scored the issuer as follows, using its Corporate Rating Tool
(CRT) to produce the SCP:
- Business and financial profile factors (assessment, relative
importance): Management (bb-, Lower), Sector Characteristics (bb-,
Moderate), Market and Competitive Positioning (b-, Higher),
Diversification and Asset Quality (b, Higher), Company Operational
Characteristics (b+, Moderate), Profitability (b+, Moderate),
Financial Structure (a+, Lower), and Financial Flexibility (bb-,
Moderate).
- The quantitative financial subfactors are based on standard CRT
financial period parameters: 20% weight for the latest historical
year 2024, 40% for the forecast year 2025 and 40% for the forecast
year 2026.
- The Governance Impact assessment of 'Some Deficiencies' results
in no adjustment.
- The Operating Environment Impact assessment of 'bb-' results in
no adjustment.
- The SCP is 'b'.
To derive the IDR:
- Application of Fitch's "Government-Related Entities
Considerations Rating Criteria" results in an equalized approach at
'BB-'/Neutral.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Weakening of the relationship with the Dominican Republic or a
deterioration in the credit profile of the controlling
shareholder;
- Significant loss of market share to under 30%;
- Operational disruptions resulting in a deterioration of liquidity
and leverage;
- Sustained increase in leverage, measured as debt-to-EBITDA
exceeding 2.0x.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Strengthening of the controlling shareholder's credit profile.
Liquidity and Debt Structure
As of Sept. 30, 2025, Refidomsa's liquidity position is supported
by a cash balance of USD67 million and USD501 million in committed
credit lines, of which USD110 million was drawn. Refidomsa has a
well-distributed maturity profile, with USD3 million maturing in
2025 as of September 2025 and USD13 million amortizing each year
from 2026 to 2028. Refidomsa's debt is concentrated in a single
unsecured bank loan from Banco de Reservas, maturing in 2028.
Issuer Profile
Refidomsa is an oil refinery and import terminal for petroleum
products dedicated to the marketing of fuels in the Dominican
Republic. Its revenue is derived from oil refining and the
importation of petroleum products for distribution in the Dominican
market.
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 for 2035 for Refineria Dominicana de Petróleo S.A.
is 71. This score reflects the concentration of the company's
assets and its high exposure to precipitation-related physical
risks. Key transition risks include potential demand reductions
driven by policies aimed at decreasing oil use in the global
economy and, in the nearer term, regulations intended to limit
Green House Gas (GHG) emissions from oil and gas production. These
transition risks are not considered to have a material impact on
the rating given the long time horizon over which they may unfold
and the uncertainty around the scale and nature of changes, as well
as how markets and companies may respond.
ESG Considerations
Refineria Dominicana de Petroleo S.A. has an ESG Relevance Score of
'4' for GHG Emissions & Air Quality due to the nature of the
refining business and emissions associated with it, which has a
negative impact on the credit profile and is relevant to the
ratings in conjunction with other factors.
Refineria Dominicana de Petroleo S.A. has an ESG Relevance Score of
'4' for Governance Structure due to its nature as a majority
government-owned entity and the inherent governance risk that
arises with a dominant state shareholder, 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 Prior
----------- ------ -----
Refineria
Dominicana de
Petroleo S.A. LT IDR BB- Affirmed BB-
LC LT IDR BB- Affirmed BB-
=============
J A M A I C A
=============
JAMAICA: BOJ Reports $8 Billion Net Loss for January to April
-------------------------------------------------------------
RJR News reports that the Bank of Jamaica is reporting net loss of
$8 billion for the period January to April 22 this year.
The central bank said the losses were recorded against total assets
of $1.35 trillion as at April 22, representing an increase of
approximately 12.5 per cent, according to RJR News.
The bank also reported growth in its liabilities during the period.
Demand liabilities climbed $838.7 billion, representing an increase
of approximately 25.5 per cent, the report notes.
Other liabilities rose of $453.9 billion, reflecting an increase of
about 7.7 per cent, the report relates.
Meanwhile, the central bank's capital and reserves moved up
slightly to $56.9 billion, compared to $54.5 billion in April of
2025, 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.
JAMAICA: Demand Outweighs BOJ's $1BB Liquidity Support to DTIs
--------------------------------------------------------------
RJR News reports that the Bank of Jamaica received five bids
totalling $2.8 billion for the $1 billion in liquidity support it
sought to provide to deposit-taking institutions (DTIs) on May 11.
The bid came in at an average interest rate of 5.84% per annum,
according to RJR News.
The central bank, acting as lender of lost resort, provides
short-term liquidity support to financial institutions facing
temporary cash flow challenges, the report notes.
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.
JAMAICA: Opposition Proposes National MSME Growth & Export Program
------------------------------------------------------------------
RJR News reports that Opposition Spokesman on Industry Anthony
Hylton has proposed the establishment of a national micro, small &
medium-size enterprise growth and export programme to support
businesses and advance Jamaica's overall growth strategy.
Mr Hylton said the sector cannot continue to operate on the margins
of the economy while carrying much of the burden for employment and
innovation, according to RJR News.
According to Mr. Hylton, in successful economies, MSME growth is
supported by integrated ecosystems in which financing, logistics,
digital platforms, technical support and market access work
together cohesively, the report notes.
Mr Hylton made the proposal while contributing to the 2026/27
Sectoral Debate in the House of Representatives, the report
relates.
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.
=====================
P U E R T O R I C O
=====================
EVERTEC GROUP: $185MM Loan Add-on No Impact on Moody's 'Ba3' CFR
----------------------------------------------------------------
Moody's Ratings said that the credit ratings and the stable outlook
of EVERTEC Group, LLC ("Evertec"), including its Ba3 Corporate
Family Rating, are unaffected by the company's launch of a $185
million fungible incremental add-on to its backed senior secured
term loan B, which will be used, along with some balance sheet
cash, to pay off the current $185 million of outstanding borrowings
under the company's $200 million backed senior secured revolving
credit facility and to cover a modest amount of fees and expenses.
The revolver borrowings were used to fund the company's acquisition
of Dimensa, a Brazil-based financial technology provider with over
2,000 clients, including 9 of the 10 largest banks in Brazil. While
leveraging, the acquisition increases Evertec's geographic and
product diversification adding new capabilities such as risk
management in a growing and dynamic market such as Brazil. The
acquisition closed at the end of April 2026.
The company's current ratings include the Ba3 CFR, B1-PD
Probability of Default Rating (PDR), and the Ba3 ratings on the
backed senior secured bank credit facilities (revolving credit
facility, term loan A, and term loan B).
The Ba3 CFR reflects Evertec's very strong market position in
Puerto Rico and solid credit metrics including solid profitability
and moderate leverage, with pro forma debt-to-EBITDA
(Moody's-adjusted) expected to end FY 2026 below 3.5x, and very
good liquidity reflected in the SGL-1 speculative grade liquidity
rating (SGL). Growth prospects in Latin America (LatAm) also remain
bright, given the still large opportunity for penetration of
electronic payments as well as the potential of cross-selling
payment processing to the financial institution clients of Dimensa
and Sinqia S.A., a software business in Brazil acquired in November
2023. Moody's expects ongoing diversification to come from higher
growth rates in Latin America vs. Puerto Rico, as well as from M&A.
The company also benefits from the diversification that comes from
four different business segments, which provide revenue mix
balance.
At the same time, the company's size is modest for the rating
level, at about $1 billion, and customer and geographic
concentration remains elevated (despite the recent acquisitions,
which help reduce the risk exposure), with about 55% of pro forma
revenues generated in Puerto Rico (PR) and about 25% from Banco
Popular de Puerto Rico, the island's largest bank. The exposure to
the island includes hurricane risks, as captured by the E-4
Environmental Issuer Profile Score, as well as low economic growth
dynamics.
The stable outlook reflects expectations for at least mid-single
digit organic revenue growth in the near term as well as free cash
flow to debt consistently north of 10%. Liquidity is very good as
reflected in the SGL-1 rating. Pro forma for the transaction, the
company is expected to maintain an unrestricted cash balance around
$250 million, an undrawn $200 million revolver due December 2027,
and generate free cash flow north of $175 million. Term loan
amortization is about $30 million in 2026, stepping up to about $45
million in 2027. The term loan A and revolver include a maximum net
leverage ratio covenant of 4x, and Moody's expects the company to
maintain ample cushion.
The ratings could be upgraded if financial leverage is sustained
below 2.5x, with greater scale and with continued customer and
geographic diversification in the business.
The ratings could be downgraded if financial leverage is maintained
above 3.5x, free cash flow to debt closer to 10% or less, and/or in
the event of consistent organic revenue or margin decline, or
aggressive financial strategy.
Evertec is a leading diversified financial technology provider in
Puerto Rico and Caribbean, with a growing presence in Latin
America. The company's revenues for the last twelve months ended
March 2026 were approximately $950 million. Headquartered in Puerto
Rico, the company serves 26 countries out of 24 offices. Latin
America presence includes operations in, among others, Costa Rica,
Mexico, Guatemala, Colombia, Chile, Uruguay, Brazil, and Panama,
while the Caribbean primarily represents the Dominican Republic and
the Virgin Islands.
PEREZ MENENDEZ: 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 Perez Menendez HNOS, Inc.
The bankruptcy judge finds that the provisions of Section 333(a)(1)
of the Bankruptcy Code for appointment of a PCO apply to Perez
Menendez HNOS, Inc. after having filed its bankruptcy petition,
indicating that it operates a health care business.
On April 30, Perez Menendez HNOS, Inc. filed a Chapter 11 petition
designating the company as a health care business.
About Perez Menendez HNOS Inc.
Perez Menendez HNOS, Inc., also known as Farmacia Garden Hills
Plaza, sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. D. P.R. Case No. 26-01990) on April 30, 2026, with assets
of up to $50,000 and liabilities of between $1 million and $10
million.
Judge Mildred Caban Flores oversees the case.
Juan C. Bigas Valedon Law Office is Debtor's bankruptcy counsel.
*********
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