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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
Thursday, May 21, 2026, Vol. 27, No. 101
Headlines
A R G E N T I N A
EDEMSA: Fitch Hikes LongTerm IDRs to 'B-/B', Outlook Stable
EDENOR: Fitch Hikes LongTerm IDRs to 'B/B-', Outlook Stable
B A R B A D O S
BARBADOS: IMF Reaches Staff-Level Deal on SBA for US$260 Million
C O L O M B I A
GRUPO CIBEST: Moody's Alters Outlook on 'Ba2' Issuer Rating to Pos.
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: U.S. Treasury Delegation Pushes Fin. Inclusion
P U E R T O R I C O
SPANISH BROADCASTING: Milbank & Richards Layton Advise Noteholders
T R I N I D A D A N D T O B A G O
NATIONAL GAS: Moody's Withdraws 'Ba2' Corporate Family Rating
V E N E Z U E L A
CITGO PETROLEUM: Company's Value Increased, Venezuela Insists
- - - - -
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A R G E N T I N A
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EDEMSA: Fitch Hikes LongTerm IDRs to 'B-/B', Outlook Stable
-----------------------------------------------------------
Fitch Ratings has upgraded Empresa Distribuidora de Electricidad de
Mendoza S.A. (EDEMSA) Long-Term Local and Foreign Currency Issuer
Default Ratings (IDRs) to 'B' and 'B-' respectively from 'CCC+'.
Fitch has also upgraded EDEMSA's unsecured notes to 'B' with a
Recovery Rating of 'RR3'. The Rating Outlook is Stable.
The upgrade reflects improvement in EDEMSA's business environment
driven by the recent upgrade of Argentina (B-/Stable). In addition,
the ratings reflect the company's tariff framework that includes
quarterly regulatory adjustments related to inflation. EDEMSA does
not receive subsidies from Argentina's central government or direct
transfers from the Province of Mendoza. Instead, the company
collects payments for the electric sector and retains about 47% of
the final bill as its Added Distribution Value (VAD).
The Stable Outlook reflects Fitch's view that EDEMSA's revenue
visibility improves through the Integral Tariff Review (RTI) in
place, combined with its energy distribution concession running
until 2048.
Key Rating Drivers
Local Currency IDR and Security Ratings: Fitch has upgraded
EDEMSA´s LC IDR to 'B' from 'CCC+' to reflect the company's
exposure to the local economy, improved regulatory risk, financial
strength, and strong debt profile, consistent with the higher
rating category. Following the upgrade of Argentina's sovereign
rating to 'B-' from 'CCC+', the previous variation in the recovery
cap no longer applies. Argentina's sovereign rating is no longer
consistent with a distressed environment.
For rated Argentine corporates whose LC IDR exceeds their FC IDR,
Fitch aligns the foreign-currency issue rating with the issuer's LC
IDR. Fitch believes exchange and capital controls, rather than
issuer-specific credit weakness, would most likely drive any
foreign-currency default or default-like process, based on
historical precedents in Argentina. In these cases, Fitch assigns
Recovery Ratings above Argentina's Recovery Ratings of 'RR3',
allowing for a one-notch uplift from the FC IDR.
Regulatory Update: Fitch expects EDEMSA's EBITDA to reach around
ARS200 billion in 2026. In November 2025, the VAD adjustment was
nearly 19%, followed by a VAD adjustment of 5.5% in February 2026.
Quarterly tariff adjustments have consistently been applied since
the company's tariff revision was finalized in February 2024. The
adjustments include a basket of indices that replicates the
inflationary cost of the components incurred by the distributor in
its operations. When the tariff periods end in 2028, the company
expects an additional increase in VAD, remunerating additional
assets incorporated in recent years to EDEMSA's Regulatory Asset
Base.
Moderate Leverage Profile: Fitch estimates EBITDA leverage at
around 1.6x in 2026 and an average of 1.4x through FY 2028, which
is commensurate with the 'a' category. Fitch expects the company's
interest coverage to average over 5.0x over the rating horizon,
assuming no incremental debt issued. Fitch assumes neutral to
positive FCF over the rating horizon, driven by assumptions of
USD90 million in capex annually.
Peer Analysis
EDEMSA's business profile compares with regional peers such as
Empresa Distribuidora y Comercializadora Norte S.A. EDENOR is
Argentina's largest electricity distribution company based on the
number of customers and the volume of electricity sold. It has an
exclusive concession to distribute electricity in the northwest of
Greater Buenos Aires and the northwest area of the Autonomous City
of Buenos Aires, serving about 3.4 million clients.
In Peru, Luz del Sur (BBB+/Stable) is among the largest in
electricity distribution and transmission. The company operates an
efficient, high-density area with a high-income consumer base that
allows it to operate with costs and energy losses below regulatory
standards that are incorporated in the tariffs. The company's
leverage ratio is estimated at 2.9x in 2026.
Over the rating horizon, EDEMSA's expected average gross leverage,
measured as total gross debt to EBITDA, over the rating horizon is
to be below 2.0x, while EDENOR is expected to average around 3.0x.
EDEMSA has a lower scale of operations compared with European
integrated utilities such as Engie S.A. (BBB+/Stable), Enel S.p.A.
(BBB+/Stable), e-netz Suedhessen AG (BBB+/Stable) and EDF Energy
Holdings Limited (BBB-/Stable). These are all well-diversified
utilities operating in energy and natural gas distribution, as well
as networks, energy solutions and nuclear assets.
Fitch’s Key Rating-Case Assumptions
- Annual average FX rate of USD/ARS of 1,595 in 2026 and 1,843 in
2027 and 1,980 in 2028;
- Inflation rate of 26.1% in 2026 and 17.7% in 2027 and 7.5% in
2028;
- Five-year tariff review process through 2028 including quarterly
adjustments increasing by inflation;
- CAMMESA debt recognition of ARS25,515 million to be paid for
remaining about seven years included in tariff;
- Energy losses around 16% over the rating horizon;
- No dividend payments during 2026 to 2028.
Corporate Rating Tool Inputs and Scores
Fitch scored the issuer as follows, using its Corporate Rating Tool
(CRT) to produce the Standalone Credit Profile (SCP):
Business and financial profile factors (assessment, relative
importance): management ('bb', Lower), sector characteristics
('b+', Higher), market and competitive positioning ('bb',
Moderate), diversification and asset quality ('bbb-', 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: 40% weight for the historical year
2025, 40% for the forecast year 2026 and 20% for the forecast year
2027.
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
-1 notch for the FC IDR.
Recovery Analysis
- The recovery analysis assumes that EDEMSA 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 ARS140,000 million. The GC EBITDA
estimate reflects Fitch's view of a sustainable,
post-reorganization EBITDA level on which Fitch bases the valuation
of EDEMSA.
- Enterprise value multiple of 4.0x.
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'. Fitch
believes, based on its bespoke recovery analysis, that EDMSA's
recovery prospects comfortably exceed the range implied for an
'RR4' under the criteria.
In addition, given that capital controls remain in place in
Argentina, Fitch believes that a default or default-like process
would more likely occur due to capital controls rather than
idiosyncratic corporate reasons. Based on historical precedents,
Fitch has observed that recoveries from defaults driven by capital
controls in Argentina have exceeded the RR4 threshold, therefore,
the senior unsecured notes are rated 'B'/'RR3'.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Worsening of the regulatory environment, such as negative changes
to the regulated framework that do not allow EDEMSA to implement
the tariff structure, resulting in erosion of the company's
liquidity, cash flow and capital structure;
- A downgrade to Argentina's sovereign rating and/or changes to the
operating environment of Argentina;
- Adverse change of control at EDEMSA that affects the company's
business and financial strategy, dividends distribution and cash
extraction or changes in corporate governance practices;
- Inability to pass through tariff components, creating an FX
mismatch to repay hard currency debt.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Improvement in the regulatory framework migrating to a
constructive scheme, with low government interference in utility
regulations with a clear tariff structure, enabling companies to
recover costs of service from end users through tariffs;
- An upgrade of Argentina's sovereign rating and/or changes in the
operating environment of Argentina.
Liquidity and Debt Structure
As of FY 2025, the company had cash on hand and short-term
investments of ARS147,247 million (USD183 million) with short-term
debt maturities of ARS100,525 million (USD67 million). At FY 2025,
EDEMSA has ARS25,515 million debt with CAMMESA, which the company
has been paying on time as of February 2024. The company's main
financial obligation is their USD150 million bond which starts
amortizing (33%) in 2029.
Issuer Profile
Empresa Distribuidora de Electricidad de Mendoza S.A. (EDEMSA)
oversees the supply and marketing of electricity in 11 departments
of Mendoza, Argentina. Energy distribution is regulated through the
Ente Provincial Regulador de la Energía Électrica (EPRE).
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 Empresa Distribuidora de Electricidad de Mendoza S.A..
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
----------- ------ -------- -----
Empresa Distribuidora
de Electricidad de
Mendoza S.A.
LT IDR B- Upgrade CCC+
LC LT IDR B Upgrade CCC+
senior unsecured LT B Upgrade RR3 B-
EDENOR: Fitch Hikes LongTerm IDRs to 'B/B-', Outlook Stable
-----------------------------------------------------------
Fitch Ratings has upgraded Empresa Distribuidora y Comercializadora
Norte S.A.'s (EDENOR) Long-Term Local and Foreign Currency Issuer
Default Ratings (IDRs) to 'B' and 'B-', respectively, from 'CCC+'.
Fitch has also upgraded EDENOR's unsecured notes to 'B' from 'B-'
with a Recovery Rating of 'RR3'. The Rating Outlook is Stable.
The upgrade reflects improvement in its business environment driven
by the recent upgrade of Argentina (B-/Stable). In addition,
EDENOR's ratings reflect the company's tariff framework that
includes monthly regulatory adjustments above inflation. EDENOR
does not receive subsidies from Argentina's central government.
Instead, the company collects payments for the electric sector and
retains about 30% of the final bill as its Added Distribution Value
(VAD).
The Stable Outlook reflects Fitch's view that EDENOR's revenue
visibility improves through the Integral Tariff Review (RTI) in
place, combined with its energy distribution concession running
until 2087.
Key Rating Drivers
Local Currency IDR and Security Ratings: Fitch has upgraded
EDENOR's LC IDR to 'B' from 'CCC+' to reflect the company's
exposure to the local economy, improved regulatory risk, financial
strength and strong debt profile, consistent with the higher rating
category. Following the upgrade of Argentina's sovereign rating to
'B-' from 'CCC+', the previous variation in the recovery cap no
longer applies. Argentina's sovereign rating is no longer
consistent with a distressed environment.
For rated Argentine corporates whose LC IDR exceeds their FC IDR,
Fitch aligns the foreign-currency issue rating with the issuer's LC
IDR. Fitch believes exchange and capital controls, rather than
issuer-specific credit weakness, would most likely drive any
foreign-currency default or default-like process, based on
historical precedents in Argentina. In these cases, Fitch assigns
Recovery Ratings above Argentina's Recovery Ratings of RR3,
allowing for a one-notch uplift from the FC IDR.
Regulatory Update: Fitch expects EDENOR's EBITDA to reach around
ARS450 billion in 2026. EDENOR's RTI continues to apply the 0.42%
monthly VAD adjustment through November 2027 and automatic monthly
adjustments relating to inflation based on the consumer (33%) and
wholesale price indexes (67%) through the end of its tariff review
period in 2030. FY2025 tariff increase averaged 37% compared to CPI
of 32%. In 1Q26 tariff increases were 9%, followed by 2.04% and
4.1% in April and May of 2026, respectively.
Solid Leverage Profile: Fitch anticipates EBITDA leverage to
increase temporarily to around 3.5x in 2026 following a USD550
million bond issuance used to partially tender existing bonds,
resulting in USD350 million of net new money. These new funds will
be used for refinancing debt, general corporate purposes and
possible M&A activities. Fitch expects EBITDA interest coverage to
average around 3.0x through 2028. Fitch's base case assumes
negative FCF over the rating horizon, driven by capex of about
USD180 million implemented annually through FY28.
Parent Linkage: EDENOR is 51% owned by Empresa de Energía del Cono
Sur (Edelcos S.A.; not rated), a special purpose vehicle created
solely for the purpose of acquiring and managing EDENOR by its
ultimate parent South American Energy LLP, based in the United
Kingdom (AA-/Stable). The ownership structure has a neutral impact
on EDENOR's credit profile.
Peer Analysis
EDENOR's business profile, serving 3.4 million clients, compares
with regional peers such as Empresa Distribuidora de Electricidad
de Mendoza S.A. EDEMSA operates a long-term energy distribution
concession serving 480,000 customers.
In Peru, Luz del Sur (BBB+/Stable) is among the largest in
electricity distribution and transmission. The company operates an
efficient, high-density area with a high-income consumer base that
allows it to operate with costs and energy losses below regulatory
standards that are incorporated in the tariffs. The company's
leverage ratio is estimated at 2.9x in 2026.
Over the rating horizon, EDENOR's expected average gross leverage,
measured as total gross debt to EBITDA, over the rating horizon is
around 3.0x, while EDEMSA expects an average below 2.0x. Neither
company receives direct subsidies from the government. EDENOR has a
lower scale of operations compared with European integrated
utilities such as Engie S.A. (BBB+/Stable), Enel S.p.A.
(BBB+/Stable), e-netz Suedhessen AG (BBB+/Stable) and EDF Energy
Holdings Limited (BBB-/Stable). These are all well-diversified
utilities operating in energy and natural gas distribution, as well
as networks, energy solutions and nuclear assets.
Fitch’s Key Rating-Case Assumptions
- Monthly .42% tariff adjustment from May 2025 to November 2027
with monthly adjustments per inflation through the rating horizon;
- Average annual inflation 25.8% in 2026, 17.8% in 2027 and 7.5% in
2028;
- Increase in energy supplied by increase in GDP: 3.5% in 2026,
3.5% in 2027 and 3.2% in 2028;
- Five-year tariff review process starting May 2025 reaching the
regulated WACC of 6.5%, after taxes;
- Energy losses around 15.5%;
- Annual capex between USD170-180 million through 2026-2028;
- No dividend payments during 2026-2028.
Corporate Rating Tool Inputs and Scores
Fitch scored the issuer as follows, using its Corporate Rating Tool
(CRT) to produce the Standalone Credit Profile (SCP):
Business and financial profile factors (assessment, relative
importance): management ('bb', Lower), sector characteristics
('b+', Higher), market and competitive positioning ('bb',
Moderate), diversification and asset quality ('bbb-', Moderate),
company operational characteristics ('b+', Higher), profitability
('b+', Moderate), financial structure ('a-', Lower), and financial
flexibility ('b+', Moderate).
The quantitative financial subfactors are based on custom CRT
financial period parameters: 40% weight for the historical year
2025, 40% for the forecast year 2026 and 20% for the forecast year
2027.
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
-1 notch for the FC IDR.
Recovery Analysis
- The recovery analysis assumes that EDENOR 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 285,000 million. The GC EBITDA
estimate reflects Fitch's view of a sustainable,
post-reorganization EBITDA level on which Fitch bases the valuation
of EDENOR.
- Enterprise value multiple of 4.0x.
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'. Fitch
believes, based on its bespoke recovery analysis, that EDENOR'S
recovery prospects comfortably exceed the range implied for an
'RR4' under the criteria.
In addition, given that capital controls remain in place in
Argentina, Fitch believes that a default or default-like process
would more likely occur due to capital controls rather than
idiosyncratic corporate reasons. Based on historical precedents,
Fitch has observed that recoveries from defaults driven by capital
controls in Argentina have exceeded the RR4 threshold, therefore,
the senior unsecured notes are rated 'B'/'RR3'.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Continuous improvement in the regulatory framework migrating to a
constructive scheme, with low government interference in utility
regulations with a clear tariff structure, enabling companies to
recover costs of service from end users through tariffs
- An upgrade of Argentina's sovereign rating and/or changes in the
operating environment of Argentina.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Worsening of the regulatory environment, assessed as negative
changes to the regulated framework not allowing EDENOR the
implementation of the tariff structures eroding the company's
liquidity, cash flow and capital structure;
- A downgrade to Argentina's sovereign rating and/or changes in the
operating environment of Argentina;
- Adverse change of control in EDENOR that modifies the company's
business and financial strategy, dividends distribution and cash
extraction, as well as changes in corporate governance practices;
- Inability to pass through tariff components, creating an FX
mismatch to repay hard currency debt.
Liquidity and Debt Structure
As of December 2025, the company had cash on hand and short-term
investments reaching ARS772,741 million (approximately USD446
million) with short-term debt maturities of ARS417,875 million. On
22 April 2026, Senior Notes Class 10 were priced with a total
nominal amount of USD 550 million. The related cash tender for
Class 7 Notes received offers totaling USD 270.4 million, and the
company accepted USD 175 million. Overall, the transaction
generated around USD350 million of new money, after accounting for
the USD 175 million tendered amount for Class 7 and USD26.7 million
total for Class 3 and 5 local bonds.
Issuer Profile
EDENOR is the largest electricity distributor in Argentina in terms
of the number of customers and electricity sold. The concession
area covers 20 municipalities in the northwest of Greater Buenos
Aires and the northwest area of the Autonomous City of Buenos
Aires, spanning 4,637 square kilometers and a population of
approximately 9 million inhabitants.
EDENOR's concession is currently set to expire on Aug. 31, 2087,
after a term of 95 years, and may be extended for one additional
10-year period if EDENOR requests the extension at least 18 months
before expiration. The term of the concession is divided into
management periods.
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 Empresa Distribuidora y Comercializadora Norte S.A.
(EDENOR).
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
----------- ------ -------- -----
Empresa Distribuidora
y Comercializadora
Norte S.A. (EDENOR)
LT IDR B- Upgrade CCC+
LC LT IDR B Upgrade CCC+
senior unsecured LT B Upgrade RR3 B-
===============
B A R B A D O S
===============
BARBADOS: IMF Reaches Staff-Level Deal on SBA for US$260 Million
----------------------------------------------------------------
At the request of the Government of Barbados, an International
Monetary Fund (IMF) team, led by Mr. Michael Perks, visited
Barbados during May 4-14 to conduct the 2026 Article IV
Consultation and discuss the Barbadian authorities' latest
homegrown Barbados Economic Recovery and Transformation Plan 2026
(BERT 2026), which could be supported by a 36-month precautionary
Stand-By Arrangement. To summarize the mission's findings, Mr.
Perks made the following statement:
"I am pleased to announce that the IMF team and the Barbadian
authorities have reached a staff-level agreement on a precautionary
SBA for the amount of SDR 189 million (about US$260 million). The
SBA will provide insurance against external shocks, while
continuing to anchor macroeconomic stability and support reforms
under the homegrown BERT 2026 Plan. The latest phase of the BERT
Plan focuses on economic transformation, with emphasis on boosting
productivity and competitiveness, strengthening fiscal
sustainability, deepening financial markets, strengthening human
capital, and enhancing climate resilience.
"Guided by sound macroeconomic policies, economic activity remained
robust in 2025, with growth estimated at 2.7 percent, driven by
tourism, construction, and business services. The labor market
remained strong and inflation continued to moderate to an average
of 0.9 percent. The current account deficit reached 5.7 percent of
GDP, while foreign direct investment strengthened significantly,
supporting the balance of payments. Gross international reserves
remained at about US$1.5 billion at end-2025 (equivalent to around
6 months of imports), ample to support the exchange rate peg.
Fiscal performance continued to be strong, with the fiscal primary
surplus reaching 4.2 percent of GDP in FY2025/26, and high
corporate income tax revenues enabling an expansion of public
investment in infrastructure and resilience.
"Looking ahead, growth is expected to remain positive in 2026,
though at a more moderate rate, as external headwinds are partly
offset by tourism-related construction and rising public
investment. Higher commodity prices are expected to place upward
pressure on inflation and the current account deficit, although
international reserves are projected to remain ample. External
conditions are expected to normalize thereafter, but the outlook
remains subject to unusually high uncertainty, with risks tilted to
the downside.
"Barbados made strong progress in implementing its first two BERT
plans, supported by previous Fund arrangements. A gradual and
sustained improvement in the fiscal accounts helped put public debt
on a firm downward path, while important structural fiscal measures
were implemented, including state-owned enterprise (SOE) and
pension reforms. International reserves were rebuilt and in 2025
Barbados successfully returned to international capital markets.
Important steps were also taken to build resilience under the
Resilience and Sustainability Facility.
"Building on previous achievements, the new precautionary SBA will
support the BERT 2026 Plan's transformation agenda by helping
maintain prudent macroeconomic management. Fiscal policy will
continue balancing debt sustainability with development needs. This
will require sustaining strong primary fiscal balances to keep
public debt on track to reach the 60 percent of GDP target by
FY2035/36, while maintaining fiscal space for critical investment,
resilience, and social spending. Any fiscal measures responding to
external shocks should be temporary, targeted to the most
vulnerable, and consistent with the fiscal anchor. Disciplined
fiscal policy will also help to maintain ample international
reserves and support the exchange rate peg, which remains an
essential anchor for macroeconomic stability.
"Steadfast implementation of structural reforms will help further
build policy credibility and strengthen policy frameworks and
institutions. The SBA will support efforts to enhance: public
financial management, including the fiscal framework, management of
public-private partnerships and SOE oversight; revenue policy and
administration; productivity and competitiveness; climate
resilience; financial supervision; and the AML/CFT framework. The
structural reform agenda will be supported by technical assistance
from the Fund and other partners.
"The team would like to thank the authorities and other
counterparts for their hospitality and the constructive and candid
policy dialogue."
As reported in the Troubled Company Reporter-Latin America, S&P
Global Ratings raised, on Oct. 24, 2025, its long-term local and
foreign currency sovereign credit ratings on Barbados to 'B+' from
'B' and affirmed its 'B' short-term ratings. The transfer and
convertibility assessment is 'B+'.
===============
C O L O M B I A
===============
GRUPO CIBEST: Moody's Alters Outlook on 'Ba2' Issuer Rating to Pos.
-------------------------------------------------------------------
Moody's Ratings has affirmed all ratings and assessments assigned
to Bancolombia S.A. (Bancolombia) and GRUPO CIBEST S.A. (Grupo
Cibest or Cibest), including Bancolombia's Baa3 and Prime-3 long-
and short-term local and foreign currency bank deposit ratings and
ba1 baseline credit assessment (BCA) and adjusted BCA, and Cibest's
Ba2 and Not Prime long and short-term local and foreign currency
issuer ratings. Moody's have also affirmed Bancolombia's long- and
short-term local and foreign currency Counterparty Risk Ratings
(CRR) at Baa3 and Prime-3, respectively, as well as its long- and
short-term Counterparty Risk Assessments at Baa3(cr) and
Prime-3(cr), respectively, and its Ba3 (hyb) subordinated debt
ratings.
The outlook on Bancolombia's long-term deposits remain stable,
while the outlook on Grupo Cibest's long-term issuer ratings was
changed to positive, from stable.
RATINGS RATIONALE
AFFIRMATION OF BANCOLOMBIA'S RATINGS WITH STABLE OUTLOOK
The affirmation of Bancolombia's ba1 BCA reflects the bank's strong
and resilient earnings generation, sound access to stable and
low-cost core deposits, which are supported by its leading
franchise in Colombia. These strengths continue to underpin the
bank's resilient credit profile despite a still-challenging
operating environment in Colombia, and have supported performance
that is stronger than that of other large Colombian banks. If
profitability is sustained at currently strong levels and the bank
shows further gradual improvements in asset quality, its credit
profile could be consistent with a higher BCA.
The affirmation of Bancolombia's Baa3 long-term deposit ratings
reflects (i) the affirmation of the ba1 BCA and (ii) Moody's
assessments of a very high probability of government support, given
the bank's systemic importance. This continues to result in a
one-notch uplift from the bank's BCA. The stable outlook on the
deposit ratings mirrors the outlook on the Government of Colombia's
bond rating, as the deposit ratings are already aligned with the
sovereign rating. Therefore, they would not be upgraded even if the
bank's BCA were to improve.
Bancolombia's profitability is strong and above that of most
domestic peers, reflecting both cyclical and structural factors. On
the cyclical side, the structure of the bank's balance sheet allows
assets to reprice faster than liabilities, enabling Bancolombia to
benefit from the upward interest rate cycle that has prevailed in
Colombia, especially since 2022. The bank benefits from broader
access to low-cost deposits than its peers, which supports a
greater ability to sustain margins. Between 2021 and 2025, net
income to tangible assets ranged between 1.5% and 2.2%, reflecting
resilient revenue generation and a normalization of credit costs,
while many domestic peers struggled to maintain profitability and,
in some cases, reported losses.
Asset quality continues to be a negative credit driver for
Bancolombia, although it has shown clear signs of stabilization.
Stage 3 loans declined to 5.1% of gross loans as of December 2025,
from a peak of 8.6% in 2020. This improvement has been driven by
better performance in the consumer portfolio since the second half
of 2024, as well as the corporate restructuring in 2025 that
resulted in the spin-off of subsidiaries with weaker asset quality,
especially Banistmo, S.A. (Banistmo). Earnings quality and capital
remain partially protected by adequate loan-loss reserves, which
covered 104% of Stage 3 loans as of December 2025, a level that
remains above that of most local peers.
Bancolombia's capitalization is moderate by global standards but
commensurate with the bank's BCA, supported by a long-track record
of strong internal capital generation. As of December 2025,
tangible common equity to risk-weighted assets stood at 12.1%, up
from 11.4% in 2024. Following dividend payments in the first
quarter of 2026, Moody's estimates this ratio declined to around
11%, broadly in line with the bank's historical average and stated
risk appetite. While dividend payments are expected to limit
capital build-up, strong and recurring earnings generation provides
ample capital replenishment capacity to support growth, leading to
overall stable capital levels.
The bank's funding profile remains a key credit strength, stemming
from its steady and ample deposit base in Colombia. The bank had a
market share of total deposits in Colombia of close to 26% in
December 2025, and above 30% when only considering demand
deposits.
AFFIRMATION OF GRUPO CIBEST'S RATING AND CHANGE IN OUTLOOK TO
POSITIVE
Cibest's Ba2 issuer ratings are anchored in the credit strength of
its main operating subsidiary, Bancolombia, whose ba1 BCA underpins
the group's credit profile. The one-notch differential reflects the
structural subordination of the holding company's obligations to
those of its operating subsidiaries, as not all upstreamed
resources may be readily available to the holding company under
stress.
Cibest's double leverage stood at around 101% at the end of 2025,
which remains consistent with the current notching relative to
Bancolombia. The expected sale of its Panamanian subsidiary
Banistmo is likely to lead to a temporary reduction in double
leverage; however, Moody's expects leverage to return broadly to
current levels as Cibest redeploys capital through investments in
subsidiaries and the execution of its announced share buyback
program.
The positive outlook on Cibest reflects potential improvement in
Bancolombia's BCA in the next 12 to 18 months. If such improvement
materializes in a BCA upgrade, it could result in an upgrade of
Cibest's issuer ratings.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Upward pressure on Bancolombia's BCA could stem from sustained
strong profitability, continued gradual improvements in asset
quality, and stable capital, funding, and liquidity profiles,
particularly if accompanied by a more predictable operating
environment following the electoral cycle in Colombia this year. An
upgrade of the BCA would be unlikely to result in an upgrade of the
bank's long-term deposit ratings, as these benefit from an uplift
due to government support and are already at the level of the
sovereign, leading to a stable outlook on these ratings. However, a
BCA upgrade would lead to an upgrade of the bank's Ba3 (hyb)
subordinated debt rating as it does not benefit from government
support. In addition, deposit ratings could be positively impacted
by an upgrade of Colombia's sovereign debt rating, which as of now
has a stable outlook.
Downward pressure on the bank's deposit ratings could arise from a
downgrade of Colombia's sovereign rating. The BCA would face
negative pressure if an unexpected deterioration in credit
fundamentals were to materially weaken earnings generation and
capital. However, even in the event of a BCA downgrade, the bank's
long-term deposit ratings could remain unchanged, supported by
Moody's assumptions of very high government support.
In turn, Cibest's ratings would mirror the movements of
Bancolombia's BCA, and therefore the positive outlook reflects
upward pressure stemming from the potential improvement in the
bank's BCA in the next 12 to 18 months.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Banks published
in November 2025.
The net effect of any adjustments applied to rating factor scores
or scorecard outputs under the primary methodology(ies), if any,
was not material to the ratings addressed in this announcement.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: U.S. Treasury Delegation Pushes Fin. Inclusion
------------------------------------------------------------------
Dominican Today reports that Central Bank of the Dominican Republic
Governor Hector Valdez Albizu met with a delegation from the U.S.
Treasury Department's Office of Technical Assistance to explore new
areas of cooperation aimed at expanding financial inclusion,
increasing access to productive credit, and strengthening financial
stability in the Dominican Republic.
During the meeting, Valdez Albizu highlighted the importance of
technical support for developing financing tools that benefit
micro, small, and medium-sized enterprises (MSMEs), including
initiatives related to factoring, financial leasing, and lending
backed by movable assets, according to Dominican Today. He said
these measures could help broaden access to credit and support the
growth of a key sector of the Dominican economy, the report notes.
The discussions also addressed potential assistance in updating the
country’s regulatory framework, including bank resolution
mechanisms, contingency funds, oversight of virtual assets, and
systemic risk monitoring, the report relays. U.S. officials said
they will evaluate the feasibility of a technical assistance
program aligned with the Central Bank’s institutional objectives
and practical reform priorities, 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.
=====================
P U E R T O R I C O
=====================
SPANISH BROADCASTING: Milbank & Richards Layton Advise Noteholders
------------------------------------------------------------------
An ad hoc group of noteholders to Spanish Broadcasting System, Inc.
and its debtor-affiliates, represented by Milbank LLP and Richards,
Layton & Finger, P.A. as counsel, filed with the United States
Bankruptcy Court for the District of Delaware, a Verified Statement
pursuant to Federal Rule of Bankruptcy Procedure 2019 to inform the
Court of the Group's current members and the nature and amount of
claims they held in the Debtors' cases.
The Ad hoc group holds 9.750% senior secured notes due 2026 issued
by Spanish Broadcasting System, Inc. under an Indenture, dated as
of February 17, 2021, among Spanish Broadcasting System, Inc., as
issuer, the guarantors from time to time party thereto, and
Wilmington Trust, National Association, as trustee and collateral
agent (as amended or supplemented from time to time).
According to the Group's Verified Statement:
12345678901234567890123456789012345678901234567890123456
123456789012345678901234567890123456789012345678901234567890123456
1. In March 2026, the Ad Hoc Committee retained Milbank as counsel
with respect to the Senior Secured Notes. In May 2026, the
Ad Hoc Committee retained RLF to act as Delaware counsel.
2. As of the date of this Verified Statement, Counsel
represents the Ad Hoc Committee and does not represent or
purport to represent any entities other than the Ad Hoc
Committee in connection with the Debtors' chapter 11 cases.
In addition, neither the Ad Hoc Committee nor any member
of the Ad Hoc Committee represents or purports to represent
any other entities in connection with these cases.
3. The members of the Ad Hoc Committee have indicated to
Counsel that they hold disclosable economic interests or act
as investment managers or advisors to funds and/or accounts
that hold disclosable economic interests in relation to the
Debtors.
4. Nothing contained in this Verified Statement should be
construed as a limitation upon, or waiver of, any rights of
any member of the Ad Hoc Committee to assert, file, and/or
amend
any claim or proof of claim filed in accordance with applicable
law and any orders entered in these cases.
5. The information contained herein is provided only for the
purpose of complying with Bankruptcy Rule 2019 and is not
intended for any other use or purpose.
6. Counsel reserves the right to amend this Verified Statement as
may be necessary in accordance with the requirements outlined
in Bankruptcy Rule 2019.
The names, addresses, nature, and amount of all disclosable
economic interests of each present member of the Ad Hoc Committee
in relation to the Debtors, are:
1. ALGEBRIS (UK) LIMITED
First Floor, 11 Waterloo Place
SW1Y 4AU, London, UK
Aggregate Principal Amount
of Senior Secured Notes
$1,450,000
Aggregate Amount of
Class A Common Shares
-
2. ALGEBRIS (UK) LIMITED
First Floor, 11 Waterloo Place
SW1Y 4AU, London, UK
Aggregate Principal Amount
of Senior Secured Notes
$5,702,000
Aggregate Amount of
Class A Common Shares
-
3. ALTERNATIVE CREDIT INCOME FUND
650 Madison Ave, 3rd Floor
New York, NY 10028
Aggregate Principal Amount
of Senior Secured Notes
$3,000,000
Aggregate Amount of
Class A Common Shares
-
4. BOF VI CREDIT I, LLC
Bayside Capital, LLC
1450 Brickell Ave, 31st Floor
Miami, FL 33131
Aggregate Principal Amount
of Senior Secured Notes
$31,100,000
Aggregate Amount of
Class A Common Shares
-
5. BRIGADE CAPITAL MANAGEMENT, LP
399 Park Ave, 16th Floor
New York, NY 10022
Aggregate Principal Amount
of Senior Secured Notes
$130,383,000
Aggregate Amount of
Class A Common Shares
-
6. CONCISE CAPITAL MANAGEMENT, LP
777 Brickell Ave, Suite 630
Miami, FL 33131
Aggregate Principal Amount
of Senior Secured Notes
$26,679,000
Aggregate Amount of
Class A Common Shares
-
7. HF FUND LP
180 Lakeview Avenue, Suite 800
West Palm Beach, FL 33401
Aggregate Principal Amount
of Senior Secured Notes
$4,035,000
Aggregate Amount of
Class A Common Shares
-
8. MAN INVESTMENT PARTNERS (US) LP
299 Park Avenue
New York, NY 10171
Aggregate Principal Amount
of Senior Secured Notes
$61,989,000
Aggregate Amount of
Class A Common Shares
219,329
9. METLIFE INVESTMENT MANAGEMENT
MetLife Investment Management
2381 Rosecrans Avenue, Suite 320
El Segundo, CA 90245
Aggregate Principal Amount
of Senior Secured Notes
$17,826,000
Aggregate Amount of
Class A Common Shares
-
10. NEWPORT GLOBAL ADVISORS LP
9006 Forest Crossing, Suite D
The Woodlands, TX 77381
Aggregate Principal Amount
of Senior Secured Notes
$7,612,000
Aggregate Amount of
Class A Common Shares
250,000
11. PACIFIC INCOME ADVISERS, INC.
2321 Rosecrans Ave., Suite 1260
El Segundo, CA 90245
Aggregate Principal Amount
of Senior Secured Notes
$4,635,000
Aggregate Amount of
Class A Common Shares
-
Total Aggregate Principal Amount
of Senior Secured Notes:
$294,411,000
Total Aggregate Amount of
Class A Common Shares
469,329
Counsel to the Ad Hoc Committee:
Michael J. Merchant, Esq.
Amanda R. Steele, Esq.
James F. McCauley, Esq.
RICHARDS, LAYTON & FINGER, P.A.
One Rodney Square
920 N. King Street
Wilmington, DE 19801
Tel: (302) 651-7700
Fax: (302) 651-7701
E-mail: merchant@rlf.com
steele@rlf.com
mccauley@rlf.com
- and -
Michael Price, Esq.
Andrew Harmeyer, Esq.
Brian Kinney, Esq.
MILBANK LLP
55 Hudson Yards
New York, NY 10001
Tel: (212) 530-5000
Fax: (212) 530-5219
E-mail: mprice@milbank.com
aharmeyer@milbank.com
bkinney@milbank.com
About Spanish Broadcasting System, Inc.
Spanish Broadcasting System, Inc. (Spanish Broadcasting) owns and
operates radio stations in addition to the AIRE radio network,
digital interactive services, and live events focused on Spanish
language content.
Spanish Broadcasting System, Inc. and several affiliates sought
relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del.
Case No. 26-10737) on May 11, 2026. In its petition, the Debtor
reports $100 million to $500 million in both assets and
liabilities.
The Hon. Bankruptcy Judge Brendan Linehan Shannon handles the
jointly administered cases.
The Debtors retained as Chief Restructuring Officer, Jesse York, of
the firm Riveron Management Services, LLC; GLC Advisors & Company
as investment banker; the law firms of Fried, Frank, Harris,
Shriver & Jacobson LLP and Morris, Nichols, Arsht & Tunnell LLP as
restructuring counsel; and Kroll Restructuring Administration LLC
as notice, claims and administrative agent.
An ad hoc group of noteholders to Spanish Broadcasting System, Inc.
is represented by Milbank LLP and Richards, Layton & Finger, P.A.
as counsel.
* * *
The Debtors filed a plan of reorganization and disclosure statement
together with their Chapter 11 petitions. The Confirmation
Hearing, at which time this Court will consider, among other
things, the adequacy of the Disclosure Statement and confirmation
of the Plan, will be held on June 25, 2026, at 10:00 a.m.
(Prevailing Eastern Time). Any objections to adequacy of the
Disclosure Statement and confirmation of the Plan must have been
received by June 18.
=====================================
T R I N I D A D A N D T O B A G O
=====================================
NATIONAL GAS: Moody's Withdraws 'Ba2' Corporate Family Rating
-------------------------------------------------------------
Moody's Ratings has withdrawn the Ba2 corporate family rating, ba2
baseline credit assessment (BCA) and Ba2 senior unsecured notes of
National Gas Company of Trinidad and Tobago ("NGC"). Prior to the
withdrawal, the outlook was negative.
RATINGS RATIONALE
Moody's have decided to withdraw the rating(s) because of
inadequate information to monitor the rating(s), due to the
issuer's decision to cease participation in the rating process.
National Gas Company of Trinidad and Tobago (NGC), headquartered in
Point Lisas, Trinidad, is a diversified natural gas transmission
and distribution company with exploration and production
operations. The company was formed by the Government of Trinidad
and Tobago in 1975, and is 100% owned by the government.
NGC is Trinidad and Tobago's sole purchaser, transporter and
distributor of natural gas to the domestic natural gas-based energy
sector and is also the government's designated agent to promote and
facilitate natural gas-based investments in the country. The
company has equity stakes in Phoenix Park Gas Processors Ltd.,
which owns and operates Trinidad and Tobago's sole cryogenic gas
processing plant, and in Atlantic LNG Company of Trinidad and
Tobago, which is a supplier of liquefied natural gas (LNG) to
global markets. NGC, through its downstream subsidiary NGC
Petrochemicals Limited (NPL), also has a 20% shareholding in the
Caribbean Gas Chemical Ltd's Methanol and Dimethyl Ether
Petrochemical Complex.
More than 70% of NGC's gas sales volume is directed to the domestic
petrochemical industry (ammonia and methanol), with the remaining
sold to the domestic power (19%), steel (7%) and other
petrochemical and light industrial customers (less than 5%). NGC
owns around 1,000 kilometers of both offshore and onshore
pipelines, with a maximum capacity of 4.4 billion cubic feet per
day (bcf/d).
=================
V E N E Z U E L A
=================
CITGO PETROLEUM: Company's Value Increased, Venezuela Insists
-------------------------------------------------------------
Marianna Parraga of Reuters reports that lawyers representing
Venezuela told a U.S. court last week that the value of
Venezuela-owned U.S. refiner Citgo Petroleum has increased since
the sale of its parent company was ordered late last year, which
should prevent the execution of the process.
A Delaware judge in November approved a $5.9 billion bid for
Citgo's parent company PDV Holding from Amber Energy, an affiliate
of hedge fund Elliott Investment Management, following a
court-organized auction of shares to pay creditors, Reuters
relates.
The sale is still awaiting approval from the U.S. Treasury
Department, and a U.S. appeals court is weighing a request by
Venezuela and some rival bidders to suspend the sale over the
company's valuation and an alleged conflict of interest
involving firms advising the Delaware court.
"In the months since the sale hearing, the value of publicly
traded refiners has increased significantly," lawyer Alexandra
Cumings said in a May 12 letter submitted to Delaware Judge Leonard
Stark, which was unsealed on May 14, Reuters notes.
Using the most conservative valuation discussed in court, Citgo
should now be valued at $15.1 billion, Cumings wrote, saying the
sale should not be executed at the $5.9 billion price now. "Such an
outcome is plainly unfair - to CITGO, to the Venezuelan people,
and to the out-of-the-money creditors," she said, Reuters cites.
Oil assets are being valued more expensively in part because
of a 50% surge in prices since the U.S.-Israeli joint attacks on
Iran kicked off a war - now in its third month - that has
restricted global energy supplies, the report avers.
In an opinion article published last month by the Wall Street
Journal, Gregory Goff, the chief executive of Elliott's
affiliate Amber Energy, said the company had an $11
billion investment plan for Citgo and added the U.S. government
should allow the sale to close as soon as possible, Reuters cites.
Lawyers representing Venezuela say Citgo should play a key role
in the restructuring of the country's $150 billion debt, recently
announced by interim President Delcy Rodriguez, instead of
being auctioned to pay a handful of creditors.
Cumings said Goff's opinion article violated a confidentiality
agreement under which Citgo shared strategic information with
bidders during the auction process, Reuters points out. Her letter
also raised conflict-of-interest issues, saying some of the
firms that advised court-appointed special master Robert Pincus,
who oversaw the auction, also worked for Elliott.
Elliott has denied the accusations, according to Reuters.
Pincus and Judge Stark have not weighed in on the back-and-forth
between the parties, Reuters adds.
About Citgo Petroleum
Citgo Petroleum Corporation is a United States-based refiner,
transporter and marketer of transportation fuels, lubricants,
petrochemicals and other industrial products. Based in Houston,
Texas, Citgo is majority-owned by PDVSA, a state-owned company of
the Venezuelan government (although due to U.S. sanctions, in 2019,
they no longer economically benefit from Citgo.)
As reported in the Troubled Company Reporter-Latin America in
September 2025, Fitch Ratings affirmed the Long-Term Issuer
Default Rating (IDR) of CITGO Petroleum Corp. (CITGO, or Opco) at
'B' with a Stable Outlook and CITGO Holding, Inc. (Holdco) at
'CCC+'. Fitch also affirmed Opco's existing senior secured notes
and industrial revenue bonds at 'BB' with a Recovery Rating of
'RR1'.
*********
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.
.
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