260520.mbx

260520.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 20, 2026, Vol. 27, No. 100 Headlines A R G E N T I N A ARGENTINA: Fitch Upgrade Seen Opening Narrow Window For Debt Sale B E R M U D A TRANSOCEAN LTD: DOJ Issues Second Request on Valaris Merger Review B R A Z I L BANESTES SA: Fitch Affirms 'BB-' LongTerm IDRs, Outlook Stable BANRISUL: Fitch Affirms 'BB-' LongTerm IDRs, Outlook Stable NEW FORTRESS: NFE Brazil Secures $885M Senior Secured Note Deal C A Y M A N I S L A N D S AUB SUKUK: Fitch Affirms 'BB' Rating on Sr. Unsecured Notes D O M I N I C A N R E P U B L I C [] DOMINICAN REPUBLIC: Spain Ambassador Highlights Economic Ties M E X I C O DEL MONTE: Ch. 11 Wind-Down Plan OK'd Over Lender Objection P U E R T O R I C O ANCARLO BROTHERS: Claims to be Paid from Income & Sale Proceeds V E N E Z U E L A VENEZUELA: Launches Effort to Ease Its $170 Billion Debt Load - - - - - ================= A R G E N T I N A ================= ARGENTINA: Fitch Upgrade Seen Opening Narrow Window For Debt Sale ----------------------------------------------------------------- David Feliba at Bloomberg News reports that Argentina's latest credit upgrade is fuelling bets that the country will get another shot at tapping international markets after missing a window in early 2026. Fitch Rating's decision to raise the country's credit score to 'B-' could push spreads back toward multi-year lows reached in January, investors say, according to Bloomberg News. It may give President Javier Milei a fresh chance to secure funding before election-driven uncertainty grips markets next year, when he is expected to seek a second term, Bloomberg News notes. "There is a window opening up, but it will be narrow," said Thierry Larose, an emerging-markets portfolio manager at Vontobel Asset Management, Bloomberg News says. "With 2027 effectively closed by the political calendar, this leaves a real but limited runway, and the upgrade clearly improves the terms on which a deal could be done," it added. Bloomberg News notes that seasonal agricultural exports, energy revenues and steady demand for Argentine corporate debt are bringing in a steady flow of dollars, supporting the currency and helping the Central Bank rebuild reserves. It has already purchased more than US$7 billion this year, Bloomberg News relates. The government has also raised over US$3 billion in the local market and is working on a large bank loan backed by multilateral lenders, Bloomberg News discloses. Argentine bonds rallied after the upgrade, with the 2035 notes - the country's most widely traded - rising to 76.7 cents on the dollar, pushing yields down to about 9.5 percent, Bloomberg News notes. The spread slumped to as low as 515 basis points, the lowest since February 18, Bloomberg News says. While that's still roughly double where Economy Minister Luis Caputo has argued they should trade, investors say Argentina should take the opportunity to come back sooner rather than later, Bloomberg News relates. "With 2035 bond yields below 10 percent, the issuance window is open. The opportunity is there, and it would be positive for the government to take it," said Ivan Stambulsky, Latin America economist at Barclays, Bloomberg News discloses. "Investors are concerned next year will be volatile due to elections, so building a larger liquidity buffer would certainly help," he added. The government relied on a US$3-billion bank repo and local placements to meet its debt obligations this year, Bloomberg News says. It is widely expected to cover about US$4.5 billion in July payments without issuing new debt – Argentina hasn't tapped global markets since it restructured US$65 billion of debt back in 2020 after defaulting for the ninth time, Bloomberg News notes. But the clock starts ticking next year. Argentina faces roughly US$25 billion in payments in 2027, with about US$15 billion tied to local and international foreign-currency bonds, Bloomberg News relates. Milei's rise to power and strong electoral showing last year triggered a sharp repricing in Argentine debt, with yields on longer-dated bonds falling from distressed levels to an eight-year low in January, Bloomberg News discloses. The move fuelled anticipation of a comeback to debt markets, which the government ultimately decided against, Bloomberg News notes. While the gains have stalled amid political noise – from alleged corruption scandals to a decline in Milei's popularity – investors expect the upgrade to gradually be reflected in spreads, which have also narrowed lately amid a broad move in emerging-market bonds, Bloomberg News says. "History shows that once countries move out of 'CCC,' new buyers show up, and they often show up quickly," said Mauro Favini, a senior portfolio manager at Vanguard, Bloomberg News discloses. "This is not about optimism. It is about a change in the composition of demand as the investor base broadens," he added. Bloomberg News relates that the country has received multiple upgrades from major rating firms throughout Milei's tenure as he gradually restored fiscal accounts and brought inflation down from triple-digit levels. Fitch's had already done so twice – first in late 2024 to 'CCC' from 'CCC-,' and then again late last year to 'CCC+.' Moody's Ratings has Argentina at 'Caa1' after two upgrades, while S&P Global Ratings scores it 'CCC+.' While one upgrade partially opens the door to some institutional investors, a second would unlock access to a bigger pool of funds whose mandates restrict exposure to CCC-rated debt, Bloomberg News relays. Daniel Chodos, managing partner at Dhalmore Capital, said Argentina's spreads could initially compress toward 450 basis points, Bloomberg News notes. "The window to issue or carry out liability management could open, but it will depend on whether the government is willing to validate rates that would still be relatively high then," he added. Bloomberg News discloses that Caputo has made clear the government is in no rush, having already raised over US$3 billion locally at cheaper rates through short-term placements and leaning on multilateral funding and expected privatisation proceeds. "As long as we have access to financing at around six percent to repay debt yielding closer to 9.5 percent, that's what makes sense," Caputo said in a TV interview on May 6, Bloomberg News relates. "When that option is no longer available, that's when we will eventually turn to the market,” he added. Investors say a liability management operation – similar to the one done by Ecuador earlier this year – would help ease the country’s debt burden, Bloomberg News notes. They also note the government is operating from a position of relative strength, with multiple financing options on the table – a rare luxury for Argentina, Bloomberg News discloses. "We would frame it less as urgent and more as opportunistic," Vontobel's Larose said, adding his base case is that Argentina returns to markets in the second half of 2026. "The kind of deal you do because the window is open, not because you have no choice," he added. 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, upgraded Argentina's Long-Term Foreign Currency and Local Currency Issuer Default Rating (IDR) to 'B-' from 'CCC+'. The rating Outlook is Stable. S&P Global Ratings, on Dec. 17, 2025, raised its local currency sovereign credit ratings on Argentina to 'CCC+/C' from 'SD/SD'. S&P also raised its long-term foreign currency sovereign credit rating to 'CCC+' from 'CCC' and affirmed its 'C' short-term foreign currency rating. The outlook on the long-term ratings is stable. In addition, S&P raised its issue ratings on local currency bonds to 'CCC+' from 'CCC'. Its 'B-' transfer and convertibility assessment is unchanged. Moody's Ratings, on July 17, 2025 upgraded the Government of Argentina's long-term foreign currency and local currency issuer ratings to Caa1 from Caa3 and changed the outlook to stable from positive. The upgrade reflects its view that the extensive liberalization of exchange and (to a lesser extent) capital controls, alongside a new International Monetary Fund (IMF) program, support the availability of hard currency liquidity and ease pressure on external finances. This reduces the likelihood of a credit event. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024, and confirmed such ratings in November 2025. ============= B E R M U D A ============= TRANSOCEAN LTD: DOJ Issues Second Request on Valaris Merger Review ------------------------------------------------------------------ Transocean Ltd., announced in a regulatory filing that the Company and Valaris Limited, an exempted company limited by shares incorporated under the laws of Bermuda, each received a Request for Additional Information and Documentary Materials from the Antitrust Division of the United States Department of Justice in connection with the DOJ's review of the transactions contemplated by the Business Combination Agreement. The Second Request extends the HSR Act waiting period until 30 days after Valaris and Transocean have each substantially complied with the Second Request, unless the waiting period is extended voluntarily by the parties or terminated earlier by the DOJ. The parties continue working cooperatively with the DOJ as it reviews the proposed transaction. Background On February 9, 2026, Transocean and Valaris entered into the Agreement, pursuant to which, among other things and upon the terms and subject to the conditions thereof, Transocean will acquire all of the issued and outstanding common shares of Valaris in exchange for 15.235 shares of Transocean per Valaris Share. The closing of the Business Combination is subject to, among other things, the satisfaction or waiver of certain conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. Transocean and Valaris each filed an HSR Act notification with the Federal Trade Commission and the DOJ on March 2, 2026. Transocean withdrew its filing under the HSR Act on April 1, 2026, and subsequently refiled on April 3, 2026. About Transocean Transocean Ltd. is an international provider of offshore contract drilling services for oil and gas wells. The Company specializes in technically demanding sectors of the offshore drilling business, with a particular focus on ultra-deepwater and harsh environment drilling services. As of Feb. 14, 2024, the Company owned or had partial ownership interests in and operated 37 mobile offshore drilling units, consisting of 28 ultra-deepwater floaters and nine harsh environment floaters. Additionally, as of Feb. 14, 2024, the Company was constructing one ultra-deepwater drillship. As of March 31, 2026, the Company had $15.2 billion in total assets, $1.1 billion in total current liabilities, $5.8 billion in total long-term liabilities, and $8.2 billion in total equity. * * * In Feb. 2026, S&P Global Ratings placed all ratings on offshore drilling contractor Transocean Ltd., including the 'CCC+' Company credit rating, on CreditWatch with positive implications. Transocean Ltd. announced it will acquire Valaris Ltd. for $5.8 billion of stock and the assumption of Valaris' $1.1 billion of debt. The acquisition would improve leverage and cash flow metrics while also enhancing scale and diversification. The CreditWatch placement reflects the likelihood that S&P will raise its ratings by one notch on Transocean after the deal closes, assuming the transaction is completed as proposed and there are no substantial changes to its operating assumptions. =========== B R A Z I L =========== BANESTES SA: Fitch Affirms 'BB-' LongTerm IDRs, Outlook Stable -------------------------------------------------------------- Fitch Ratings has affirmed Banestes SA - Banco do Estado do Espirito Santo's (Banestes) Long-Term, Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BB-', Viability Rating (VR) at 'bb-' and Shareholder Support Rating (SSR) at 'bb-'. Fitch has also affirmed the bank's National Long-Term Rating at 'AA+(bra)'. The Rating Outlook is Stable. Key Rating Drivers VR and SSR Aligned: Banestes' IDRs are driven by potential shareholder support as captured in the 'bb-' SSR. The ratings are further underpinned by its intrinsic strength, which is reflected in its 'bb-' VR. The SSR captures Fitch's view of the propensity and ability of the State of Espírito Santo, as controlling shareholder, to provide extraordinary support to the bank if needed. The VR captures the bank's intrinsic financial strength, anchored by a stable regional franchise, moderate risk appetite and an adequate financial profile. Owned by a subnational government, Banestes strategically focuses on providing financial services and credit offerings to state and municipal employees. It also supports businesses seeking to invest in the State of Espírito Santo. The ratings reflect Banestes' approach to risk management, aligning with the stringent controls utilized by prominent domestic banks. The National Ratings are based on Fitch's evaluation of the credit quality of the State of Espírito Santo. Resilient Business Profile: Banestes holds a strong market position in the State of Espírito Santo, with a 44% share in loans and securities and 39% of the state's total deposit base as of December 2025. Operating as a commercial bank, it provides a broad array of financial products and services to both corporate and retail clients, sustaining a stable business profile. Its total operating income averaged USD 325 million between 2022 and 2025. Despite the potential influence of political factors inherent to its public ownership structure, Banestes has built a better corporate governance framework. Moderate Risk Profile: Banestes has a moderate risk appetite, following credit underwriting standards comparable to those of major banks. Credit risk is the main capital consumption factor, representing 85% of the bank's total risk-weighted assets (RWAs) as of December 2025. The loan portfolio is predominantly retail-oriented, primarily composed of payroll-deducted and mortgage loans (68%), in addition to corporate loans, mainly to SMEs (32%). As of December 2025, the bank's 10 largest borrowers represented 5.8% of the total loan portfolio, reflecting a diversified credit exposure. Market risk relative to RWAs is minimal, remaining below 1% as of December 2025. The bank's securities portfolio is mostly composed of federal government bonds, considered stable and low-risk. Adequate Asset Quality: Banestes continued to maintain satisfactory and adequate asset quality in 2025. The non-performing loan ratio (NPLs over 90 days) of the expanded portfolio was 1.9% in December 2025, up slightly from 1.7% in December 2024. The commercial portfolio NPL ratio was 2.3%. These levels remained controlled and in line with Fitch's expectations. Stage 3 loans, as defined by Central Bank Resolution 4,966, represented 3.6% of the portfolio, while loan loss reserves covered 108% of impaired assets, largely reflecting the effects of the new accounting standard implementation. The expanded loan portfolio closed the period at BRL15.1 billion. The commercial portfolio stood at BRL12.7 billion and grew 8.2%. This growth reflected the bank's focus on highly collateralized segments, such as payroll-deducted, rural, and mortgage loans, and its rigorous underwriting standards. Individuals and MSMEs represented 89.6% of total exposure. Fitch expects asset quality to remain at current levels over the rating horizon. This view reflects the bank's cautious strategy, continued underwriting improvements, and effective recoveries on written-off loans. These recoveries totaled BRL77 million in the year, up 23% from 2024. Consistent Profitability: Banestes' average operating profit/risk-weighted assets ratio was 3.7% from 2022 to 2025, which reflects strong profitability. The ratio was 3.6% in 2025, unchanged from 2024. Fitch continues to expect margin pressure from intense competition and still-elevated interest rates, which compress the bank's margins. Even so, the bank's sound and relatively low-cost funding base should help it maintain current profitability over the next few years. Banestes is also developing a hedge accounting and ALM strategy to improve the predictability of future earnings. Satisfactory Capitalization: Banestes' CET1 ratio remained stable at 14.2% in December 2025 (2024: 14.0%), composed entirely of Tier I capital. Shareholders' equity reached approximately BRL 2.4 billion (+1.8% y/y), supported by strong internal capital generation capacity, reflected in a return on equity of 17.4%. The capital structure remains solid and adequate to support the growth of the bank's operations. The bank continues to assess potential access to the subordinated debt market to support a possible Tier 2 capital issuance, should stronger business growth require additional capital support. Diversified Funding and Stable Liquidity: Banestes has a stable and diversified funding base, with its main funding sources derived from demand deposits, as well as savings and time deposits. Its loans-to-deposits ratio has remained consistent, averaging 46.5% from 2022 to 2025, positioning it among the most favorable compared to its peers. The bank's liquidity position is satisfactory, and Fitch anticipates that the loans-to-deposits ratio will increase over the medium term, in line with Banestes' strategy to expand its loan portfolio. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade IDRs and VR The ratings may be downgraded if the bank presents a material deterioration in its asset quality, which compromises its profitability indicators, with an operating result/RWAs ratio below 2.5%. In addition, a deterioration of its capital position, with a Tier 1 capital ratio of less than 11% and significant outflows in its funding base, compromising its liquidity, could lead to negative actions. In addition, negative actions on the sovereign's IDRs may result in similar actions for the bank's IDRs. National Ratings Banestes's National Ratings may be lowered by a change in Fitch's perception of the bank's local relativity towards other entities. SSR Banestes' SSR would be revised if there is any change in its strategic importance or changes in the capacity or propensity of the State of Espirito Santo to provide support to the bank. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade IDRs and VR The combination of a stronger business profile supported by recurring and sustainable gains in scale, alongside sustained stability in asset quality metrics (impaired loan ratio sustainably below 5% and operating profit/RWAs ratio at least above 3%) and maintaining a CET1 ratio consistently above 13% would be positive for the international ratings. The combination of a stronger business profile supported by consistent growth in scale, alongside an improved risk profile (impaired loan ratio sustainably below 5% and operating profit/RWAs ratio at least above 3%) and maintaining a CET1 ratio consistently above 13% would be positive for the international ratings. National Ratings The National Ratings are sensitive to strengthening creditworthiness relative to other Brazilian issuers. SSR Banestes's SSR would be revised if there is any change in its strategic importance or changes in the capacity or propensity of the State of Espirito Santo to provide support to the bank. Strategically Important to State of Espirito Santo: Banestes' SSR of 'bb-' reflects the limited likelihood of support from its controlling shareholder, the State of Espirito Santo. Fitch believes that the state would have a high propensity but limited capacity to support the bank, if necessary. Banestes is strategically important for Espirito Santo, as it acts as its main tax collection agent, making transfers to municipalities and is responsible for cash management. In addition, public entities, to which the bank provides services and grants credit to suppliers, as well as payroll deductible credits to public employees, make up an important portion of Banestes' business. Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Banestes' SSR can be revised if there is any change in its strategic importance or changes in the capacity or propensity of the State of Espirito Santo to provide support to the bank. Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Banestes' SR can be revised if there is any change in its strategic importance or changes in the capacity or propensity of the State of Espirito Santo to provide support to the bank. VR ADJUSTMENTS The VR has been assigned in line with the implied VR. The asset quality score of 'b' is below the 'bb' category implied score due to the following adjustment reason: - Historical and future metrics (negative). The funding & liquidity score of 'bb' is below the 'bbb' category implied score due to the following adjustment reason: - Historical and future metrics (negative). 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 ----------- ------ ----- Banestes S.A. – Banco do Estado do Espirito Santo LT IDR BB- Affirmed BB- ST IDR B Affirmed B LC LT IDR BB- Affirmed BB- LC ST IDR B Affirmed B Natl LT AA+(bra) Affirmed AA+(bra) Natl ST F1+(bra) Affirmed F1+(bra) Viability bb- Affirmed bb- Shareholder Support bb- Affirmed bb- BANRISUL: Fitch Affirms 'BB-' LongTerm IDRs, Outlook Stable ----------------------------------------------------------- Fitch Ratings has affirmed Banco do Estado do Rio Grande do Sul S.A.'s (Banrisul) Long-Term Foreign Currency and Local Currency Issuer Default Ratings (IDR) at 'BB-'. Fitch has also affirmed the bank's National Long-Term Rating at 'AA+(bra)'. The Rating Outlook on the Long-Term IDRs and National Rating is Stable. Fitch has also affirmed Banrisul's Viability Rating (VR) at 'bb- and Shareholder Support Rating (SSR) at 'bb-', and Banrisul's Short-Term Foreign Currency and Local Currency IDRs at 'B' and National Short-Term Ratings at 'F1+(bra)'. Key Rating Drivers VR and SSR Aligned at the Same Level: While Banrisul's IDRs are driven by potential shareholder support as captured in the 'bb-' SSR, the ratings are underpinned by its intrinsic strength which is reflected in its VR also at 'bb-'. The SSR captures Fitch's view of the propensity and ability of the State of Rio Grande do Sul, as controlling shareholder, to provide extraordinary support to the bank if needed. The VR captures the bank's intrinsic financial strength, anchored on a stable regional franchise, moderate risk appetite, and an adequate financial profile. Banrisul's National Long-Term Rating reflects the bank's relative creditworthiness within the Brazilian rating universe and incorporates Fitch's assessment of the credit quality of the State of Rio Grande do Sul as controlling shareholder. Shareholder Support Rating: Banrisul's support propensity reflects it policy role as the regional government's bank and the primary financing vehicle for the state public sector, the systemic importance of the bank to the regional financial system, the brand and reputational links between the bank and its controlling shareholder, and the State's controlling stake of approximately 98% of voting (ON) shares. The SSR also incorporates structural features common to sub-national-controlled listed banks, including significant management independence, partial fungibility of capital and funding, the absence of formal legal support commitments, and the moderate ability of a sub-national government to absorb a sizable bank's support need. Resilient Business Profile: Banrisul has an entrenched regional franchise as the dominant financial institution in Rio Grande do Sul, with around 20% market share in loans and demand deposits in the state, a network of 477 branches, and total operating income of around USD1.6 billion in 2025. The current management has progressively rebalanced the portfolio toward higher-margin commercial and small and medium-sized enterprise (SME) lines, while moderating mortgage, payroll and rural exposure. The relationship with the state as controlling shareholder anchors the franchise and is supported by a long history of professional management across alternating administrations. Well-Balanced Risk Profile: Banrisul's risk profile is dominated by credit risk in a granular, retail driven loan book. Around 30% of loans are payroll-deduction lending to public-sector employees, complemented by SME working capital and FX trade finance secured predominantly by receivables. Concentration risks include the geographic exposure to Rio Grande do Sul and a sizable agribusiness portfolio capped by the board at 1x equity. Asset-liability management has improved materially, and management has largely neutralized interest-rate sensitivity. The labor-litigation root cause was structurally addressed in 2025 through a collective agreement migrating staff to a six-hour regime. Operating Environment Drives Asset Quality: Asset-quality metrics deteriorated in 2025 under the new accounting framework. The Stage 3 ratio reached 6.1% of gross loans at YE 2025 (from 4.3% at adoption) and the 90-day nonperforming loan (NPL) ratio rose to 4.18% from 1.73% at YE 2024. The deterioration reflects the broader effects of Brazil's high real interest rate environment on exposures, as well as lower write-offs in 2025 (BRL357 million versus BRL1.0 billion-BRL1.35 billion historically), as Resolution 4.966/21 extended write-off horizons to 540-720 days. On a write-off-normalized basis, Fitch estimates the Stage 3 ratio at 3.0%-3.5%. Coverage of 90-day NPLs was 156%. Fitch expects cost of risk to remain elevated through 1H26. Recovering Profitability: Fitch revised Banrisul's earnings and profitability score from 'b+' to 'bb-', reflecting the bank's improving core fundamentals over the past two years. Banrisul reported net income of BRL1.6 billion and return on average equity of 14.9% in 2025, although headline figures were distorted by approximately BRL615 million of non-recurring revenues, mainly a tax-contingency reversal. Still, on a normalized basis, operating profit/risk-weighted assets (RWAs) was around 2.0%, broadly in line with the 'bb' threshold. Recurring ROAE is anchored around the low double digits, in line with management's structural guidance. Adequate Capitalization: The common equity Tier 1 (CET1) ratio (equal to Tier 1) was 14.0% at YE 2025, well above the regulatory minimum, while the Total Capital ratio reached 19.5%. Drivers in 2025 included earnings retention, BRL1.8 billion of domestic subordinated bill issuances and a 4.966/21 implementation adjustment. Fitch expects the January 2026 call of a USD300 million subordinated bond to take Total Capital to around 16.9%-17.0%, with CET1 broadly unchanged. The pending renegotiation of the state payroll concession could absorb 1.0-1.5 percentage points of CET1 if structured under an upfront-payment model. Fitch projects CET1 in the 13%- 14% range over 2026. Robust Funding and Liquidity: Funding is a credit strength. Total funding reached BRL112.4 billion at YE 2025 (+15.4%), with 89.5% sourced from a granular retail deposit base in Rio Grande do Sul. The loan-to-deposit ratio was 66.2%, well below comparable peers. Treasury holdings net of repo obligations reached BRL51.8 billion, around 32% of total assets, providing a substantial liquidity buffer. Non-deposit funding is moderate and diversified across Letras Financeiras, LCI/LCA and bilateral facilities, and market access has remained reliable through the year. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A sustained decline in the average operating profits to RWAs ratio below 1.5% and increase in the four-year average of the impaired loan ratio above 10.0%; - A sustained deterioration in the bank's CET1 ratio below 12%; - Any negative change in Fitch's view of the credit of the State of Rio Grande do Sul's operating and economic situation, given the bank's strong presence and concentration in this state; - A downgrade of the sovereign rating of Brazil would result in a similar action on the bank's Long-Term IDRs; - If the VR were to be downgraded from the current level, then the downside on the IDRs would be limited to the level indicated by the bank's SSR, currently at 'bb-' due to the potential support from the State of Rio Grande do Sul. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Although not likely, due to the sovereign's Stable Outlook and current fiscal and economic issues, an increase in the SSR above the bank's VR could lead to a positive rating action; - Considering Banrisul's current credit profile, the bank's VR is unlikely to be upgraded even if the sovereign's ratings are upgraded. However, over the medium-term, an improvement in the operating environment combined with a sustained reduction in the bank's impaired loan ratio below 5.0% and increase in the bank's CET1 ratio above 16%, could be positive for its creditworthiness. VR ADJUSTMENTS The VR has been assigned in line with the implied VR. Public Ratings with Credit Linkage to other ratings Banrisul's SSR and National Ratings are driven by a Credit Assessment of Estado do Rio Grande do Sul. ESG Considerations Fitch has revised Banrisul's ESG Relevance Score for Exposure to Environmental Impacts to '2' from '3'. While the bank remains exposed to the state of Rio Grande do Sul, which experienced severe flooding events during 2024, risks have become more visible and manageable. Additionally, the bank's strengthened loss absorption capacity buffers further mitigate the potential credit impact of such events, resulting in minimal relevance to the overall 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 Prior ----------- ------ ----- Banco do Estado do Rio Grande do Sul S.A. LT IDR BB- Affirmed BB- ST IDR B Affirmed B LC LT IDR BB- Affirmed BB- LC ST IDR B Affirmed B Natl LT AA+(bra) Affirmed AA+(bra) Natl ST F1+(bra) Affirmed F1+(bra) Viability bb- Affirmed bb- Shareholder Support bb- Affirmed bb- NEW FORTRESS: NFE Brazil Secures $885M Senior Secured Note Deal --------------------------------------------------------------- New Fortress Energy Inc. announced that its subsidiary NFE Brazil Financing Limited, a private limited company incorporated under the laws of England and Wales has received commitments for the proposed offering of $885 million aggregate principal amount of senior secured notes due 2029 to be issued by NFE Brazil. The Notes will bear interest at a rate of 12.00% per annum, payable in kind semi-annually on May 15 and November 15, and will mature three years from the issue date. The Notes will not be subject to any call protection or financial covenants. The Offering includes a commitment premium, payable in kind. Syndication The Commitments were provided by certain holders of the 12.00% senior notes due 2029 issued by NFE Financing LLC. Each Existing 2029 Noteholder has the opportunity to subscribe for its ratable share of the Notes. Any Existing 2029 Noteholder that provides a commitment to subscribe for its share of the Notes by May 18, 2026 will receive its pro rata share of the Commitment Premium upon the closing of the financing. Existing 2029 Noteholders can obtain further details about participating in the Notes through the notes trustee or by contacting Houlihan Lokey at NFEfinancing@hl.com or Perella Weinberg Partners at ProjectNatural@pwpartners.com. Conditions Precedent The issuance of the Notes is subject to certain conditions precedent, including completion of definitive documentation, the receipt of certain consents, and other customary conditions, but the issuance of the Notes is not conditioned on the consummation of the transactions contemplated by that certain Restructuring Support Agreement, dated as of March 17, 2026, by and among NFE, each of NFE's directly and indirectly owned subsidiaries, each other Obligor (as defined in the RSA each of the holders or lenders of, or the investment advisor or manager to a beneficial holder(s) or lender(s) of, the Debt (as defined in the RSA) party thereto and Kroll Issuer Services Limited, in its capacity as information agent, as amended, restated, amended and restated, supplemented, or modified from time to time as permitted thereby. Use of Proceeds NFE Brazil intends to use the net proceeds from the Offering for the following purposes: (i) up to approximately $368 million for operations, capital expenditures, working capital, letter of credit and similar needs, transaction costs, and payment in full of all trade payables owed to NFE as of the issue date, (ii) approximately $52 million to refinance the existing bridge term loan held by NFE Brazil Holdings Limited, (iii) approximately $420 million to refinance certain existing notes issued by NFE Brazil, and (iv) approximately $45 million to certain cash reserves established in connection with the UK RP. Security and Credit Support The Notes will be secured by first priority liens substantially consistent with the existing Brazil Financing Notes. NFE and NFE Brazil Funding LP will not provide any credit support or be a party to the financing documents in respect of the Notes. Conversion and Exchange The Notes will be convertible or exchangeable into debt and/or equity of NFE Brazil (or another parent company of the Brazil operations) upon the approval of: (i) the new board of the applicable BrazilCo (as defined in the RSA) parent entity, (ii) holders of at least 66.67% of the outstanding principal amount of the Notes, and (iii) NFE Brazil. Listing The parties will cooperate to list the Notes on a recognized stock exchange for purposes of Section 987 of the Income Tax Act 2007 of the United Kingdom. Transaction Details The Offering is being contemplated in parallel with a broader recapitalization of NFE. As part of the UK RP, the Brazil operations will be separated from NFE and owned by a consortium of leading global institutional investors. The transaction is expected to close by the third quarter of 2026, subject to customary conditions and regulatory approvals. About BrazilCo Following the separation, the Brazilian entity will operate as an independent energy infrastructure platform focused on liquefied natural gas (LNG) importation, regasification, and power generation. With strategic assets in Barcarena and Santa Catarina and a strong and well-capitalized financial foundation, it will be committed to delivering reliable, cleaner energy solutions that support Brazilian industry and economic growth. About New Fortress Energy Inc. New Fortress Energy Inc., a Delaware corporation, is a global energy infrastructure company founded to help address energy poverty and accelerate the world's transition to reliable, affordable and clean energy. The Company owns and operates natural gas and liquefied natural gas infrastructure, ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. The Company has liquefaction, regasification and power generation operations in the United States, Jamaica, Brazil and Mexico. The Company has marine operations with vessels operating under time charters and in the spot market globally. As of September 30, 2025, the Company had $11.9 billion in total assets, $10.8 billion in total liabilities, and a total stockholders' equity of $1.1 billion. * * * In November 2025, S&P Global Ratings lowered its Company credit rating on New Fortress Energy Inc. (NFE) to 'SD' (selective default) from 'CCC'. At the same time, S&P lowered its issue level rating on NFE's 12% senior secured notes due 2029 to 'D' from 'CCC-'. The downgrade reflects NFE's decision to enter into a forbearance agreement. S&P will reevaluate its ratings on NFE before the end of November as more information becomes available. The Company has initiated a process to evaluate its strategic alternatives to improve its capital structure. It has retained Houlihan Lokey Capital, Inc. as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as legal advisor to assist it in this evaluation. The Company, along with its advisors, is considering all options available, including asset sales, capital raising, debt amendments and refinancing transactions, and other strategic transactions that seek to provide additional liquidity and relief from acceleration under its debt agreements. As part of this process, the Company is engaging in discussions with various existing stakeholders and potential investors. There are inherent uncertainties as the outcome of these negotiations and potential transactions are outside management's control, and therefore there are no assurances that management will be successful in these negotiations and that any of these potential transactions will occur. In addition, there can be no assurances that these transactions will sufficiently improve the Company's liquidity or that the Company will otherwise realize the anticipated benefits. Moreover, if the Company fails to obtain amendments and forbearance, the Company may be required or compelled to pursue additional restructuring initiatives to preserve value and optionality, including possible out-of-court restructurings, or in-court relief, which could have a material and adverse impact on the Company's stockholders. =========================== C A Y M A N I S L A N D S =========================== AUB SUKUK: Fitch Affirms 'BB' Rating on Sr. Unsecured Notes ----------------------------------------------------------- Fitch Ratings has affirmed Kuwait Finance House B.S.C. (c)'s (KFH Bahrain) Long-Term (LT) Issuer Default Rating (IDR) at 'BB' with a Stable Outlook. Fitch has also affirmed KFH Bahrain's Viability Rating (VR) at 'b+'. Key Rating Drivers KFH Bahrain's LT IDR reflects potential support from its shareholder, Kuwait Finance House (K.S.C.P) (KFH; A/Stable), as reflected by its 'bb' Shareholder Support Rating (SSR). The Stable Outlook on KFH Bahrain's LT IDR reflects that on Bahrain's sovereign rating. KFH Bahrain's VR balances its high exposure to lower-rated countries against resilient asset quality and strong profitability and capitalisation. It is constrained at one notch above Bahrain's sovereign rating due to material exposure to the domestic market (end-2025: 25% of credit exposures or 139% of equity), although the bank could remain solvent and liquid in a sovereign default. KFH Bahrain's VR of 'b+' is below the 'bb-' implied VR due to a negative adjustment for its business profile. Country Ceiling Constrains Support: KFH has a high propensity to provide support to KFH Bahrain, given the latter's full ownership by KFH, its notable role in the group, close operational parent-subsidiary integration and the high reputational risk to the parent from a subsidiary default. However, KFH Bahrain's ability to receive and use support from KFH is constrained by Bahrain's 'BB' Country Ceiling, which also constrains the bank's Long-Term IDR. High Exposure to Volatile Markets: KFH Bahrain operates across the strong Gulf Cooperation Council markets and the UK, but also has exposure to higher-risk markets such as Egypt and Bahrain. Operations in these lower-rated countries was more than half of the bank's gross financing at end-2025, weighing on Fitch's assessment of KFH Bahrain's operating environment and business profile. Adequate Regional Franchise: KFH Bahrain is designated as a domestic systemically important bank in Bahrain and has an adequate regional franchise. Following its conversion to an Islamic bank in 2023-2024, the bank and its subsidiaries were rebranded under the KFH name in 2025, which should strengthen KFH Bahrain's integration with its parent. Moderate Risk Appetite: KFH Bahrain's risk appetite is moderate, with prudent underwriting standards and adequate risk controls, as reflected in its resilient asset quality. Resilient Asset Quality: The bank's Stage 3 financing ratio remained low at 2.5% at end-2025 (end-2024: 2.4%), backed by financing growth and modest write-offs. Coverage of Stage 3 receivables by specific reserves was solid at 80%. The Stage 2 financing ratio declined to a still high 11% (end-2024: 14%). Fitch expects financing quality to remain resilient in 2026, backed by prudent underwriting standards and asset diversification, although the prolonged Iran conflict could lead to a moderate rise in impairments. Strong Profitability: KFH Bahrain's operating profitability in 2024 and 2025 was supported by sizeable one-off effects, which drove a significant improvement in its core profitability metric, the operating profit/RWAs ratio, to 5.7% in 2024 and 4.8% in 2025 from about 2% in 2022-2023. Fitch expects core profitability to moderate in 2026 in the absence of further one-offs, but to remain healthy at above 3%, supported by business growth, good cost control and moderate financing impairment charges. Any impact from the conflict should be manageable. High Capital Buffer: KFH Bahrain's capitalisation remains strong, with a common equity Tier 1 (CET1) ratio of 27.8% at end-2025 (end-2024: 23.2%), including prudential benefits. This provides a substantial buffer above the 10.5% regulatory threshold. Additional Tier 1 sukuk supported the bank's total capital ratio of 31.4% end-2025. Fitch expects the bank's capital buffer to remain high in 2026, supported by internal capital generation amid moderate growth in RWAs. Large Wholesale Funding; Adequate Liquidity: KFH Bahrain's deposit base stabilised in 2025 following the demerger of its Kuwaiti subsidiary in 2024. The gross financing-to-deposits ratio was 96% at end-2025, and Fitch expects it to remain below 100% in 2026. Reliance on wholesale funding remains high, accounting for 43% of liabilities at end-2025, although the repayment profile is manageable and balance-sheet liquidity is strong. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A downgrade of KFH Bahrain's Long-Term IDR and SSR could result from a downgrade of Bahrain's sovereign rating or a downward revision of Bahrain's Country Ceiling. A downgrade of the bank's VR would result from a downgrade of Bahrain's sovereign rating. It could also arise from a material deterioration in the bank's operating environment, or from a sustained material deterioration of the bank's asset quality and profitability. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade of KFH Bahrain's Long-Term IDR and SSR would require an upward revision of Bahrain's Country Ceiling. An upgrade of the bank's VR would require an upgrade of Bahrain's sovereign rating and a strengthening of the bank's business profile, underpinned by higher exposure to low-risk operating environments on a sustained basis, while maintaining a stable financial profile. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS KFH Bahrain's Short-Term IDR is mapped to its Long-Term IDR. KFH Bahrain's senior unsecured debt and sukuk ratings, issued via AUB Sukuk Limited, a wholly owned special-purpose vehicle, are rated in line with the bank's IDRs. A default of these senior unsecured obligations would equal a default by KFH Bahrain, in accordance with its rating definitions. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES KFH Bahrain's Short-Term IDR is sensitive to changes in its Long-Term IDR. KFH Bahrain's senior unsecured debt and sukuk ratings are sensitive to changes in its IDRs. VR ADJUSTMENTS The operating environment score of 'bb-' is below the 'a' category implied score due to the following adjustment reasons: sovereign rating (negative), and geographical scope (positive). The business profile score of 'b+' is below the 'bb' category implied score due to the following adjustment reason: business model (negative). The capitalisation & leverage score of 'bb' is below the 'bbb' category implied score due to the following adjustment reason: risk profile and business model (negative). The VR of 'b+' is below the 'bb-' implied VR due to the following adjustment reason: business profile (negative). Public Ratings with Credit Linkage to other ratings KFH Bahrain's IDRs are linked to KFH's. ESG Considerations As an Islamic bank, KFH Bahrain needs to ensure compliance of its entire operations and activities with sharia principles and rules. This entails additional costs, processes, disclosures, regulations, reporting and sharia audit. This results in an ESG Governance Structure Relevance Score of '4' for the bank, which has a negative impact on the bank's credit profile and is relevant to the rating in combination with other factors. In addition, Islamic banks have an ESG Relevance Score of '3' for exposure to social impacts, above sector guidance for an ESG relevance score of '2' for comparable conventional banks, which reflects certain sharia limitations being embedded in Islamic banks' operations and obligations, although this only has a minimal credit impact on the entities. 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 ----------- ------ ----- Kuwait Finance House B.S.C. (c) LT IDR BB Affirmed BB ST IDR B Affirmed B Viability b+ Affirmed b+ Shareholder Support bb Affirmed bb senior unsecured LT BB Affirmed BB senior unsecured ST B Affirmed B AUB Sukuk Limited senior unsecured LT BB Affirmed BB =================================== D O M I N I C A N R E P U B L I C =================================== [] DOMINICAN REPUBLIC: Spain Ambassador Highlights Economic Ties ---------------------------------------------------------------- Dominican Today reports that the relationship between the Dominican Republic and Spain extends far beyond diplomatic ties, according to Spanish Ambassador Lorea Arribalzaga Ceballos. Speaking in an interview for Europe Day, the diplomat said the bond between the two nations is strengthened by the contributions of their respective communities on both sides of the Atlantic, according to Dominican Today. Arribalzaga highlighted the important role of the Dominican community in Spain, expressing gratitude for its contribution to the country’s economy and society, the report notes. She also noted that thousands of Spanish citizens living in the Dominican Republic actively support the nation’s development, reflecting what she described as the welcoming nature of the Dominican people, the report relates. The ambassador also underscored Spain’s position as the leading foreign investor in the Dominican Republic in 2025, the report recalls. According to figures from the Central Bank, Spanish investment totaled US$1.086 billion, representing 21.5% of all foreign direct investment received by the country, the report notes. Arribalzaga said Spanish companies view the Dominican Republic as a growing market that offers legal certainty and promising opportunities, and emphasized that both nations continue to explore new areas to deepen their longstanding relationship, 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. =========== M E X I C O =========== DEL MONTE: Ch. 11 Wind-Down Plan OK'd Over Lender Objection ----------------------------------------------------------- Ben Zigterman at law360.com reports that Del Monte Foods received confirmation of its Chapter 11 wind-down plan after a New Jersey bankruptcy judge overruled an objection from a group of minority lenders. About Del Monte Founded in 1886 and headquartered in Walnut Creek, California, the Del Monte business has been a cornerstone of American grocery stores for more than 130 years. Del Monte Foods has been driven by its mission to nourish families with earth's goodness. As the original plant-based food company, Del Monte is always innovating to make nutritious and delicious foods more accessible to consumers across its portfolio of beloved brands, including Del Monte, Contadina, College Inn, Kitchen Basics, JOYBA, Take Root Organics and S&W. On the Web: http://www.delmontefoods.com/or http://www.joyba.com/ On July 1, 2025, Del Monte Foods Corporation II, Inc. and 17 affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. D.N.J. Lead Case No. 25-16984) to address $1.235 billion in funded debt obligations. At the time of the filing, the Debtors listed $1 billion to $10 billion in both assets and liabilities. Judge Michael B. Kaplan presides over the case. The Debtors tapped Herbert Smith Freehills Kramer (US), LLP and Cole Schotz P.C. as legal counsel; Jonathan Goulding, managing director at Alvarez & Marsal North America, LLC, as chief restructuring officer; and Stretto, Inc. as claims and noticing agent. The U.S. Trustee for Regions 3 and 9 appointed an official committee to represent unsecured creditors. The committee hired Morrison & Foerster LLP as counsel; Province, LLC as financial advisor; Kelley Drye & Warren LLP as co-counsel; and Stifel, Nicolaus & Co., Inc. as investment banker. ===================== P U E R T O R I C O ===================== ANCARLO BROTHERS: Claims to be Paid from Income & Sale Proceeds --------------------------------------------------------------- Ancarlo Brothers, Inc. filed with the U.S. Bankruptcy Court for the District of Puerto Rico a Small Business Plan of Reorganization under Subchapter V dated May 5, 2026. The Debtor is a closed corporation organized and existing pursuant to the laws of the Commonwealth of Puerto Rico since October 19, 2006. Debtor's main asset is a parcel of land located at Road 866 Km. 3.4, Sabana Seca Ward, Toa Baja, Puerto Rico 00950. The Debtor works as a contractor for telecommunications and plumbing projects for private and public entities. The corporation is also the owner of real property located at Sabana Seca, Toa Baja, Puerto Rico. The Debtor's operation is managed by its President, Javier E. López Quinones, who, is the sole stockholder of Debtor. Currently Debtor does not have employees and due to the nature of its business operates with contractors who render services to the corporation depending on the project to be performed and the services to required. Prior to the filing for relief, Landa Umpierre P.S.C., had obtained a prepetition judgment in state court case no. DCD 2009 2859, for the foreclosure of real property of the Debtor which serves as a guarantee of a promissory note in the amount of $600,000.00. The filing of the petition for relief stayed the public auction of the real property in the state court case, to allow the Debtor to present a Plan of Reorganization. After the filing for relief, Debtor continued to operate its business and is currently marketing the real property which will allow for the payment of the lien. Real property was appraised in the amount of $1,210,000.00 on August 18, 2021. Thus, real property has sufficient equity cushion to provide adequate protection to lienholder of promissory note encumbering Debtor's real property. In compliance with the provisions of Section 1190(1)(C) of the Bankruptcy Code, the Debtor hereby submits appraisal of real property in the amount of $1,210,000.00 which shows that the real property has sufficient equity to pay in full all claims against the Debtor, including administrative, secured and general unsecured claims. In addition, the Debtor will receive a capital investment from its stockholder which will allow the corporation to comply with secured payment to CRIM and administrative claims. This Plan of Reorganization proposes full payment of claims: a) lienholder of promissory note in the amount of $600,000, and b) CRIM's claim #2. The Plan further provides for all administrative claims upon the effective date of the Plan from capital contributions to be made by stockholder. This Plan of Reorganization under Chapter 11, SubChapter V, of the Bankruptcy Code proposes to pay creditors of the Debtor from its future income. This Plan provides for: * No classes of administrative and priority claims, which will be paid in full. * Two classes of claims which will be paid in full and are unimpaired: -- Class 1 claim CRIM: Property taxes owed to governmental entity CRIM to be paid in full. -- Class 2 claim by senior lienholder of promissory note in the amount of $600,000.00: To be paid in full within 12 months from the effective date of the Plan. -- No class of equity security holders. All of Debtor's projected disposable income will be devoted to payment of claims which shall be paid in full within twelve months from the date of the effective date of the Plan as listed in summary of distribution included with this plan. Nonpriority unsecured creditors holding allowed claims will receive full distribution from the proceeds of the sale of the real property as set forth in the Summary of Payment Plan included herein as Exhibit C. This Plan also provides for the payment of administrative within the first year of the confirmation of the plan. Debtor has no priority claims. Principal and President of Debtor, Javier E. López Quinones, has continued to direct the operations of the Debtor. Under his direction, efforts to sell the real property have continued and sale is expected to be completed within twelve months from the effective date of the Plan. The President of Debtor is currently considering three offers for sale which are currently under negotiations. A full-text copy of the Plan of Reorganization dated May 5, 2026 is available at https://urlcurt.com/u?l=JejXOV from PacerMonitor.com at no charge. Counsel to the Debtor: Noemi Landrau Rivera, Esq. Landrau Rivera & Assoc. P.O. Box 270219 San Juan, PR 00928 Telephone: (787) 774-0224 Facsimile: (787) 919-7713 Email: nlandrau@landraulaw.com About Ancarlo Brothers Ancarlo Brothers owns a 20,791.76-square-meter parcel of land located at Road 866, Km 3.4, Sabana Seca Ward, Toa Baja, PR, with a comparable sales value estimated at $1.43 million. Ancarlo Brothers Inc. in Toa Baja, PR, sought relief under Chapter 11 of the Bankruptcy Code filed its voluntary petition for Chapter 11 protection (Bankr. D.P.R. Case No. 26-00423) on Feb. 4, 2026, listing $1,433,490 in assets and $1,303,440 in liabilities. Javier Eladio Lopez Quinones, signed the petition. LANDRAU RIVERA & ASSOC. serve as the Debtor's legal counsel. ================= V E N E Z U E L A ================= VENEZUELA: Launches Effort to Ease Its $170 Billion Debt Load ------------------------------------------------------------- globalinsolvency.com, citing the Wall Street Journal, reports that Venezuela said it would begin a process of restructuring its towering government debt, seeking to take advantage of warming relations with the U.S. to normalize ties with creditors and regain access to international financial markets. With a public debt load estimated as high as $170 billion, Venezuela’s restructuring promises to be one of the largest and most complex efforts to renegotiate sovereign debt, economists say. The country went into default in 2017, according to globalinsolvency.com. Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South America, consisting of a continental landmass and a large number of small islands and islets in the Caribbean sea. The capital is the city of Caracas. Hugo Chavez was president to Venezuela from 1999 to 2013. The Chavez presidency was plagued with challenges, which included a 2002 coup d'etat, a 2002 national strike and a 2004 recall referendum. Nicolas Maduro was elected president in 2013 after the death of Chavez. Maduro won a second term at the May 2018 Venezuela elections, but this result has been challenged by countries including Argentina, Chile, Colombia, Brazil, Canada, Germany, France and the United States who deemed it fraudulent and moved to recognize Juan Guaido as president. The presidencies of Chavez and Maduro have challenged Venezuela with a socioeconomic and political crisis. It is marked by hyperinflation, climbing hunger, poverty, disease, crime and death rates, social unrest, corruption and emigration from the country. On January 3, 2026, the United States launched a military operation in Venezuela and Maduro and his wife were captured and were flown out of the country. As of January 4, 2026, the government formerly led by Maduro remains in control, with Vice President Delcy Rodriguez having been appointed acting president. Moody's has withdrawn 'C' local currency and foreign currency ceilings for Venezuela in September 2022. Standard & Poors has also withdrawn its 'SD/D' foreign currency sovereign credit ratings and 'CCC-/C' local currency ratings on Venezuela in September 2021 due to lack of sufficient information. Fitch withdrew its own 'RD/C' Issuer Default Ratings on Venezuela in June 2019 due to the imposition of U.S. sanctions on the country's government. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2026. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *