260610.mbx

260610.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, June 10, 2026, Vol. 27, No. 115 Headlines A R G E N T I N A RAIZEN SA: Mercuria to Buy Argentina Fuel Assets in US$1.4-BB Deal TRANSPORTADORA DE GAS: Fitch Hikes Local Currency IDR to 'B' B A H A M A S BAHAMAS: Could Face Higher Tariffs For Exports to United States B R A Z I L AZUL SA: Plans Further Frequency Cuts as Fuel Shock Bites INTERCEMENT PARTICIPACOES: Fitch Assigns 'B-' LongTerm IDRs LATAM AIRLINES: Brazil Unit Trims Capacity Plans on Fuel Costs C H I L E ENEL AMERICAS: S&P Affirms 'BB+' ICR, Outlook Stable G U A T E M A L A GUATEMALA: Has Strong Macroeconomic Fundamentals, IMF Says P A N A M A PROMERICA FINANCIAL: Fitch Affirms B+ LongTerm IDR, Outlook Stable P U E R T O R I C O CLEARSEA CORP: Hires Homel Antonio Mercado Justiniano as Counsel DYNAMIC AUTO: Hires Jose M Prieto Carballo as Legal Counsel - - - - - ================= A R G E N T I N A ================= RAIZEN SA: Mercuria to Buy Argentina Fuel Assets in US$1.4-BB Deal ------------------------------------------------------------------ Buenos Aires Times reports that lobal trading house Mercuria Energy Group Ltd. has reached a deal to acquire one of Argentina's biggest refineries and a network of hundreds of petrol stations from Brazil’s struggling Raizen SA. The acquisition, valued at US$1.42 billion, comes after fierce competition from rival trader Vitol Group and caps drawn-out negotiations that involved Mercuria’s minority partner in Argentina, business magnate Jose Luis Manzano, and Raizen’s creditors including BTG Pactual Holding SA, according to Buenos Aires Times. "Mercuria believes Argentina represents an important energy market with strong long-term fundamentals and significant opportunities for operational growth and investment,” the company said in a statement, the report notes. The deal is a triumph for President Javier Milei, who is up for re-election next year and is keen to show that his free-market reforms can lure foreign direct investment, the report relates. Mercuria’s bet on Argentina comes as commodity trading houses increasingly look to downstream oil facilities as a way to keep up the windfall profits they booked during an energy crisis earlier this decade, the report says. Mercuria, via its subsidiaries Latam Downstream Holdings Ltd and Silver Projects I S.A.U, takes control of the Dock Sud refinery on the outskirts of Buenos Aires, the third biggest in Argentina, and about 700 gas stations accounting for roughly one fifth of nationwide fuel sales. It’s expected to close in the current crop year, pending regulatory approvals, according to a statement obtained by the news agency. The deal creates a third integrated oil producer in Argentina – those that both drill for crude and refine it, the report says. State-run YPF SA is the biggest, followed by Pan American Energy Group, which is half-owned by British oil major BP Plc, the report notes. Mercuria, via its subsidiary Phoenix Global Resources Plc, where businessman Manzano is also a partner, produces much less crude than YPF or Pan American, the report says. But it is set to invest billions of dollars over the coming years to ramp up output in Argentina’s burgeoning Vaca Muerta shale patch, the report discloses. Founded in 2004 and run by Swiss oil traders Marco Dunand and Daniel Jaeggi, Mercuria is one of biggest traders of energy behind the likes of Trafigura Group, Gunvor and Vitol Group. Historically though, it has lagged its competition in respect to asset investments but has recently begun a concerted push into physical markets particularly in South America. Raizen, a biofuels joint venture of Shell Plc and Cosan SA, has garnered informal support from a majority of its creditors for a final restructuring plan under an out-of-court debt rework, people familiar with the matter said, the report relays. Asset sales, including the Argentine unit, is part of the plan, the company said, the report notes. Raizen has a 65 billion-real (US$12.9-billion) debt load, a consequence of some failed bets in ethanol and aviation fuel, plus high interest rates and weaker-than-expected harvests, the report adds. About Raizen SA Raizen Group, a Brazil-based integrated energy and agribusiness company, operates in ethanol, sugar, and bioenergy production, as well as fuel, biofuel, and lubricant distribution, and during the 2024-crop year sold more than 3.4 billion liters of fuel, produced over 3 billion liters of ethanol, and generated 1.9 GWh of renewable energy. The company, which employs more than 34,000 staff alongside 2,000 apprentices, interns, and service providers nationwide, is ranked as Brazil's second-largest energy and fuel distributor and third-largest non-financial enterprise by net revenue, supplying infrastructure including gas stations, transportation networks, hospitals, and thermoelectric plants. Raizen's financial performance has been affected by macroeconomic downturns, rising interest rates, climate-related crop reductions, and commodity market volatility, which have influenced liquidity and leverage. Raizen sought relief under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 26-10528) on March 12, 2026. Nine affiliates that concurrently filed voluntary petitions for relief under Chapter 15 of the Bankruptcy Code: Debtor Case No. ------ -------- Raizen S.A. (Lead Case) 26-10528 Raizen Energia S.A. 26-10529 Raizen Centro-Sul Paulista S.A. 26-10530 Raizen Fuels Finance S.A. 26-10531 Blueway Trading Importacao e Exportacao S.A. 26-10532 Raizen Caarapo Acucar e Alcool Ltda. 26-10533 Raizen North America, Inc. 26-10534 Raizen Centro-Sul S.A. 26-10535 Raizen Trading S.A. 26-10536 Honorable Bankruptcy Judge Lisa G. Beckerman handles the case. The Debtors' foreign representative is Lorival Nogueira Luz, Jr., Esq. The foreign representative's counsels include Luke A. Barefoot, Esq., David Z. Schwartz, Esq., and Richard C. Minott, Esq. of CLEARY GOTTLIEB STEEN & HAMILTON LLP. TRANSPORTADORA DE GAS: Fitch Hikes Local Currency IDR to 'B' ------------------------------------------------------------ Fitch Ratings has upgraded Transportadora de Gas del Sur S.A.'s (TGS) Long-Term Local-Currency (LC) Issuer Default Ratings (IDRs) to 'B' from 'B-'. Fitch also affirmed TGS's Long-Term Foreign Currency (FC) IDR at 'B-' and its senior unsecured notes at 'B' with a Recovery Rating of 'RR3'. The Outlook is Stable. The LC IDR upgrade reflects the recent upgrade of Argentina to 'B-'/Stable, which has improved TGS's business and operating environment. TGS ratings are underpinned by the company's robust business profile, which is characterized by a strong market position as the largest provider of gas transportation services in Argentina and its low leverage level. Key Rating Drivers Local Currency IDR and Security Ratings: TGS's 'B' LC IDR reflects its 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. Strategic Asset for Argentina: TGS transports about 60% of Argentina's domestic natural gas consumption through its 9,248 km pipeline network, underscoring its strategic importance. The company operates across four segments: natural gas transportation (NGT), Liquids Production and Commercialization (LPC), midstream, and telecommunications through Telcosur S.A. Fitch expects the LPC and midstream segments to account around 56% of total EBITDA over 2026-2028, supporting revenue from non-regulated segments and hard-currency cash flow generation. Negative Free Cash Flow: Fitch expects FCF to remain negative in 2026-2028 due to TGS's sizable expansion plan, including about USD580 million during 2026 and 2027 for the GPM expansion and about USD3 billion during 2026-2030 for the Tratayén NGL project. Cash flow from operations should remain robust, about USD560 million 2026, fully covering annual maintenance capex of around USD90 million. Expansion capex is expected to be funded partly with incremental debt. Fitch does not expect dividends during 2026-2028 given the elevated capex program. Capex Supports Growth in Non-Regulated Segments: Expansion capex is primarily focused on the midstream segment and infrastructure developments in Vaca Muerta, which should strengthen TGS's business profile and competitive position. Midstream revenue is expected to increase from 2027 following the start-up of the GPM expansion. As this segment generates U.S. dollar-denominated revenue, it should further reduce TGS's reliance on ARS-denominated regulated revenue from the NGT segment. Capital Structure: Fitch expects EBITDA leverage to increase to around 3.5x in 2027 as TGS funds its expansion plan. EBITDA is projected at about USD663 million in 2026 and USD713 million in 2027, supported by growth projects including the GPM expansion. Fitch anticipates TGS EBITDA interest coverage will remain above 4.0x during 2026-2028. Manageable Regulatory Exposure: The NGT segment is regulated by ENARGAS, which oversees tariff setting and revisions. The LPC segment is regulated by the Secretariat of Energy with respect to domestic LPG volumes to ensure local supply. In January 2025, the Secretariat eliminated maximum sale prices for products sold under the Hogar Program. The midstream and telecommunications segments are unregulated. Peer Analysis TGS is similar to other midstream companies in Latin America, such as GNL Quintero S.A. (GNLQ; A-/Stable), Transportadora de Gas del Peru (TGP; BBB+/Stable), Transportadora de Gas Internacional S.A. ESP (TGI; BBB-/Stable), and Oleoducto Central S.A. (OCENSA; BB/Stable) in that it benefits from stable and predictable cash flows. All the companies are characterized by manageable business risk due to solid contractual structures and low exposure to commodity price or volume risk. Fitch considers TGS's operating environment to be challenging due to Argentina's economic issues and regulatory unpredictability. However, the company's financial profile remains strong, with leverage at 1.5x LTM as of March 2026. Fitch's Key Rating-Case Assumptions - NGT segment EBITDA near USD300 million in 2026, increasing to USD320 in 2027, with GPM expansion COD in May 2027; - LPC segment EBITDA near USD240 million in 2026 (excluding insurance inflows related to Cerri complex incident) due to higher fuel prices, decreasing to around USD200 million in 2027; - Midstream segment EBITDA in 2026 in line with 2025, increasing USD70 million in 2027 with GPM expansion; - 2026 Capex of USD1.1 billion. (USD90 million maintenance capex, USD500 million GPM expansion, USD500 million related to the Tratayen NGL project); - 2027 Capex of USD990 million. (USD90 million maintenance capex, USD80 million GMP expansion, USD800 million Tratayen NGL project); - Minimum cash balance of USD80 million; - No meaningful expiration of any firm contract over the rating horizon; - Dividend distributions in the absence of expansion projects. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('bbb', Lower), sector characteristics ('bbb', Moderate), market and competitive positioning ('bbb', Moderate), diversification and asset quality ('bbb', Moderate), company operational characteristics ('bbb-', Moderate), profitability ('bb', Moderate), financial structure ('a', Moderate), and financial flexibility ('b', Higher). The quantitative financial subfactors are based on custom CRT financial period parameters: 10% weight for the historical year 2025, 30% for the forecast year 2026, 30% for the forecast year 2027 and 30% for the forecast year 2028. 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: Fitch has made no adjustments to the SCP, resulting in a LC IDR of B Country Ceiling considerations apply and result in an adjustment of -1 notch to the FC IDR. Recovery Analysis Key Recovery Rating Assumptions - The recovery analysis assumes that TGS 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 ARS618,354 million. The GC EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level on which Fitch bases the valuation of TGS. - 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 TGS'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 - A downgrade to Argentina's sovereign rating and/or changes in Argentina's operating environment; - Amendments to capital control rules that weaken the company's ability to access capital and refinance debt; - A worsening regulatory environment; - An increase in commodity exposure, a decline in competitive position and/or heightened re-contracting risk that results in more volatile operating cash flow and a weaker financial profile. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of Argentina's sovereign rating and/or changes in Argentina's operating environment; - An improved regulatory framework; - The establishment of a tariff framework with automatic inflation adjustments. Liquidity and Debt Structure TGS maintains a strong liquidity position, primarily driven by internally generated cash flows. As of March 2026, the company had a total of ARS363.3 billion in available cash and cash equivalents. During the same period, total debt was ARS1,535 billion. ARS665 billion was from the 2031 senior unsecured notes and ARS672.4 billion was from the 2035 senior unsecured notes. The remainder was from loans with local banks. All the company's debt is USD denominated. Issuer Profile TGS is the largest natural gas transporter in Argentina, transporting roughly 60% of the gas consumed domestically through more than 9,248 km of gas pipelines. The company's operations include natural gas transportation services, liquids production and commercialization, midstream services, and telecommunications. 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 Transportadora de Gas del Sur S.A. (TGS). 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 ----------- ------ -------- ----- Transportadora de Gas del Sur S.A. (TGS) LT IDR B- Affirmed B- LC LT IDR B Upgrade B- senior unsecured LT B Affirmed RR3 B ============= B A H A M A S ============= BAHAMAS: Could Face Higher Tariffs For Exports to United States --------------------------------------------------------------- RJR News reports that the Bahamas and Guyana could be hit with a proposed 12.5% tariff on exports to the United States under a trade action being considered by the Office of the United States Trade Representative, the USTR. The USTR said it has determined that The Bahamas has failed to impose and effectively enforce a prohibition on goods produced with forced labor, according to RJR News. The proposal forms part of a Section 301 investigation covering 60 economies that Washington says maintain policies that distort global trade and place US producers at a disadvantage, the report notes. According to the USTR, The Bahamas and Guyana were among dozens of jurisdictions that participated in consultations after the investigation was launched in March, the report relays. Following those consultations and a review of public comments and government submissions, the agency concluded that The Bahamas and several other countries had not effectively enforced a ban on imports made with forced labor, the report adds. =========== B R A Z I L =========== AZUL SA: Plans Further Frequency Cuts as Fuel Shock Bites --------------------------------------------------------- globalinsolvency.com, citing Reuters, reports that Brazilian airline Azul is stepping up capacity cuts amid higher jet fuel prices linked to the Iran war, and the carrier will continue to trim flying to protect cash ‌in an uncertain environment, CEO John Rodgerson said. Rodgerson told Reuters that the industry's largest companies were reducing capacity to better align with demand at higher cost levels, and Azul would follow suit, going beyond earlier cuts as the conflict drags on, according to globalinsolvency.com. About Azul S.A. Headquartered in Barueri near the City of Sao Paulo, Brazil, Azul S.A. is a Brazilian airline founded by David Neeleman in 2008. The company is the largest airline in Brazil by number of cities covered and departures, serving more than 160 destinations with an operating fleet of 168 aircraft and operating more than 900 flights daily. Azul S.A. and affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-11176) on May 28, 2025, listing up to $10 billion in both assets and liabilities. Judge Sean H. Lane oversees the case. The Debtors tapped Davis Polk & Wardwell LLP and Togut, Segal & Segal LLP as counsel. On June 13, 2025, the United States Trustee for Region 2 appointed the Committee under section 1102 of the Bankruptcy Code. On December 19, 2025, Judge Lane entered an order confirming the company's overwhelmingly consensual plan of reorganization. On February 20, 2026, Azul completed its restructuring and emerged from bankruptcy. As reported in the Troubled Company Reporter-Latin America on March 17, 2026, Fitch Ratings has assigned Azul a final 'B-' Foreign and Local Currency Issuer Default Ratings (IDRs) and National Long-Term Rating of 'BBB-(bra)'. The Rating Outlook is Stable. Fitch has also assigned Azul Secured Finance LLP's senior secured USD1.375 billion exit finance notes a final 'B-' rating with a Recovery Rating of 'RR4'. These actions follow the completion of Azul's Chapter 11 process. INTERCEMENT PARTICIPACOES: Fitch Assigns 'B-' LongTerm IDRs ----------------------------------------------------------- Fitch Ratings has assigned InterCement Participacoes S.A. - Em Recuperacao Judicial (InterCement) a Long-Term Foreign and Local Currency Issuer Default Rating (IDR) of 'B-'. Fitch has also assigned a 'B-' rating with a Recovery Rating of 'RR4' to the Tranche A and Tranche B senior secured notes due in 2031 issued by InterCement Financial Operations BV and guaranteed by InterCement, InterCement Brasil S.A. (ICB), and InterCement Trading e Inversiones S.A. Fitch has also assigned InterCement a Long-Term National Scale Rating of 'BB+(bra)'. The Outlook on the corporate ratings is Stable. The ratings reflect an adequate post-restructuring capital structure, with forecast debt/EBITDA of 3.0x, excluding restructuring expenses. Proceeds from Loma Negra will repay the Loma Negra-linked instruments, which have no recourse to InterCement. Elevated contingency claims and InterCement's recent restructuring constrain the ratings. The Stable Outlook reflects no new debt, stable margins in Brazil, and no amortizations over the next four years. Key Rating Drivers Restructuring Completed: InterCement's completed restructuring supports a sounder capital structure and reduces refinancing risk. In April, creditors became the new shareholders and the company had total debt of USD1,156 million. Of this, USD700 million will be repaid solely with proceeds from Loma Negra or the sale of InterCement's Loma Negra shares, with no recourse to InterCement, except for up to USD70 million that may convert into new notes due 2035, when Loma Negra is sold. The new capital structure should allow InterCement to focus on its Brazilian operations. EBITDA leverage is forecast at about 3.0x over the rating horizon, excluding restructuring expenses. With no additional debt needs, coverage should also improve. Elevated Contingencies: InterCement faces legal processes that could result in large payments and weaker cash flow. The company does not have provisions for most of these contingencies, which could total BRL16.9 billion. Some cases could take years to resolve, and the final amount could be lower. Still, the risk of a large payment in any one year could pressure cash flow and liquidity and could result in volatile FCF. The new notes include a pay-in-kind (PIK) option at the company's discretion from 2026 to 2028, which could help preserve liquidity against this risk. Strong Brazil Position: InterCement's business profile is supported by its position as one of Brazil's three largest cement producers, with a broad network of plants and distribution centers. This footprint supports scale and regional access. However, concentration in Brazil limits diversification and leaves operating performance and cash flow exposed to domestic economic conditions. Gradual Improvement: Fitch forecasts stronger operating performance, supported by pricing initiatives to mitigate higher costs and a gradual recovery in the domestic market. Volume growth should remain in the low single digits through 2028. EBITDA is forecast at about BRL800 million in 2026 and BRL950 million by 2028, with EBITDA margins around 23%. Capex is forecast at about BRL1,500 million over the next three years, focused on regulatory spending and gradual reactivation of idle capacity. No dividends are assumed over the rating horizon. Competitive Industry: InterCement operates in a highly competitive market and competes with larger global and regional peers. This pressure is partly offset by its broad distribution network. Entry barriers remain high due to costly land transport, permitting hurdles, high capital needs for new plants and strict environmental rules. Still, intense price competition during periods of weak demand remains a key risk. Peer Analysis Fitch compares InterCement with other Latin American peers such as GCC, S.A.B. de C.V.'s (BBB/Stable), Votorantim Cimentos S.A. (BBB/Stable) and Cemex, S.A.B. de C.V. (BBB-/Positive). These companies have a larger scale and geographic and product diversification, while InterCement's concentration makes it more vulnerable to Brazilian economic cycles. InterCement has lower financial flexibility than peers, which have extensive and proven access to different sources of funding. Fitch forecasts EBITDA leverage to be around 3x during the rating horizon, compared to Votorantim's and Cemex's EBITDA net leverage around 1.5x, and GCC to be negative. Fitch’s Key Rating-Case Assumptions - Volume growth in line with Brazilian GDP growth. Prices adjusted by inflation; - No new debt needed; - No dividend payments in the rating horizon; - Capex of BRL1.4 billion in the next 3 years; - Restructuring expenses excluded from EBITDA. 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 ('b', Higher), sector characteristics ('bb-', Moderate), market and competitive positioning ('b+', Moderate), diversification and asset quality ('b', Moderate), company operational characteristics ('bb', Lower), profitability ('ccc+', Moderate), financial structure ('b+', Moderate), and financial flexibility ('b', Higher). The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the latest historical year 2025, 40% for the forecast year 2026 and 40% for the forecast year 2027. Assessments of the quantitative financial subfactors also include bespoke calculations. 'B+' to 'CC' considerations apply in its analysis and result in an adjustment of -1 notch. The governance assessment of 'good' has no impact. The operating environment assessment of 'bb' has no impact. The SCP is 'b-'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in a Foreign and Local Currency IDR of 'B-'. Recovery Analysis The recovery analysis assumes that InterCement would be considered a going concern in bankruptcy and that the company would be reorganized rather than liquidated. Fitch has assumed a 10% administrative claim. InterCement's going concern EBITDA is USD100 million, which incorporates the company's EBITDA post-restructuring, adjusted by lease expenses, plus a discount of 20%. The going-concern EBITDA estimate reflects Fitch's view of a sustainable, post reorganization EBITDA level, upon which Fitch bases the valuation of the company. The enterprise value (EV)/EBITDA multiple applied is 5.0x, reflecting InterCement's strong market position in Brazil. Fitch applies a waterfall analysis to the post-default EV based on the relative claims of the debt in the capital structure. The debt waterfall assumptions consider the company's total debt. These assumptions result in a good to superior Recovery Rating for the secured debt, but due to the soft cap of Brazil at 'RR4', InterCement's senior secured debt is rated 'B-'/'RR4'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Liquidity pressures above its expectation due to the company's contingencies; - Significant deterioration of EBITDA margins or market share due to market conditions; - Interest coverage below 2.0x; - Debt to EBITDA ratio above 5x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Lower uncertainty related to the company's contingencies; - Successful execution of the company's proposed business plan; - Neutral to positive FCF; - Interest coverage above 3.0x. Liquidity and Debt Structure The company has adequate liquidity after the restructuring process, which included USD110 million of new money. The company faces no debt amortization until 2031, and its only commitments are the interest payment of the new debt and eventual payment of contingencies. The company has a pay-in-kind option at issuer election from 2026 to 2028, which could support the liquidity in the case of contingencies above initial expectations. Issuer Profile InterCement is a Brazilian company that has operations in several Brazilian states, using the Cauê, Goiás and Zebu bands. It supplies various types of customers, ranging from large and small retailers to big construction works and industries that need a quality product coupled with high levels of service. Date of Relevant Committee 25 May 2026 MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The Climate.VS for 2035 is 51 out of 100. InterCement derives 100% of its revenue from cement. The elevated long-term climate transition risk for cement reflects the major changes that will take place in the production process and the high ongoing regulatory risk. Required operational advances and continued technological innovation will lead to cost increases and investments, which may disrupt the sector long-term profitability. Cement's higher vulnerability mainly stems from its high direct (Scope 1) carbon emission footprint. Most cement emissions arise from the manufacturing process. Production of other heavy building materials has a high environmental footprint but generates significantly fewer direct (Scope 1) greenhouse gas emissions compared with cement production. InterCement bases its decarbonization strategy on preferred use of alternative fuels, and it aims to reach 40% use of alternative fuels by 2027 Fitch will continue to monitor the company's success in implementing this strategy and the impact on its credit profile. Any potential future impact on the rating may differ from the illustrative rating impact in the Climate.VS framework, reflecting the evolution of Fitch's assessment of the global risks, action the entity might take to adapt to or mitigate the exposure, and any other relevant factors. ESG Considerations InterCement Participacoes S.A. has an ESG Relevance Score of '4' for Governance Structure due to limited board independence arising from shareholders being the same as creditors, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. InterCement Participacoes S.A. has an ESG Relevance Score of '4' for Management Strategy due to the recent history of judicial restructuring, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery ----------- ------ -------- InterCement Financial Operations BV senior secured LT B- New Rating RR4 InterCement Participacoes S.A. - Em Recuperacao Judicial LT IDR B- New Rating LC LT IDR B- New Rating Natl LT BB+(bra) New Rating LATAM AIRLINES: Brazil Unit Trims Capacity Plans on Fuel Costs -------------------------------------------------------------- globalinsolvency.com, citing Reuters, reports that LATAM Airlines' Brazilian unit is expected to trim capacity by about 3% in July compared with its initial plans for the period due to ‌rising fuel costs, CEO Jerome Cadier told Reuters. The move would repeat a reduction seen in June and is likely to persist into the third quarter, Cadier said in an interview on the sidelines of the International Air Transport Association's annual general meeting in Rio de Janeiro, according to globalinsolvency.com. ========= C H I L E ========= ENEL AMERICAS: S&P Affirms 'BB+' ICR, Outlook Stable ---------------------------------------------------- S&P Global Ratings affirmed its 'BB+' ratings on Enel Americas S.A. and on its senior unsecured notes. At the same time, S&P kept its 'bbb-' stand-alone credit profile unchanged. The outlook on Enel Americas remains stable and mirrors the one on Colombia, as the company's assets in the country generated about 40% of the consolidated EBITDA in 2025 and the sovereign rating acts as a ceiling for the rating. S&P revised downward its assessment of Enel Americas' group status to 'strategically important' from 'highly strategic'. The relative importance of Enel Americas S.A. to the parent has been declining in recent years due to the latter's repositioning toward Europe and North America, with most of the capital expenditure for renewables and grids allocated to this region under the 2026-2028 investment plan. S&P therefore expects the contribution of Latin American assets to the group to stabilize or gradually decline over the long term. As a result, S&P revised downward Enel Americas' group status to a weaker category. Liquidity flexibility remains a key pilar to maintain the rating on Enel Americas above that on the relevant sovereign. That reflects a significant shift in the overarching corporate strategy of the parent company, Enel SpA (BBB/Positive/A-2), which is increasingly pivoting its capital allocation toward more stable, hard-currency markets in Europe and North America. S&P thinks the revised group status aligns more with the parent's strategic shift that started in 2023, which emphasizes reducing risk and enhancing value through concentration in European grids (Italy and Spain). These markets benefit from stronger regulatory environments and are less exposed to currency volatility than Latin America. The trend in the group's multiyear planning cycles shows that the share of total capex dedicated to Latin America is decreasing compared with that for Europe and North America. For the 2026-2028 plan, we expect Enel SpA to allocate approximately 83% of its EUR53 billion total capex to Europe and North America (EUR43 billion, compared with EUR33 billion in the 2025-2027 plan), leaving 17% for Latin America (EUR9 billion, compared with EUR10 billion in the 2025-2027 plan – 80% dedicated to Enel Americas). S&P said, "Consequently, we expect the regional contribution to the group's revenue to stabilize or gradually decline over the long term, even as Enel Americas maintains sufficient investment to sustain and modernize its existing asset base. This strategic realignment suggests that, although Latin America continues to offer growth opportunities and given its 23% contribution to 2025 consolidated EBITDA, it is no longer the primary focus of the group's capital deployment strategy. "Liquidity flexibility is a key pillar to maintain the rating on Enel Americas above that on the sovereign. We consider the entity's ability to withstand sovereign-level stress by focusing on its liquidity flexibility. We identify that the primary driver for the rating to pass the sovereign stress test is the company's ability to maintain a liquidity sources-to-uses ratio above 1.0x in a hypothetical scenario of sovereign default. A critical component of this liquidity flexibility is the EUR1 billion revolving credit line maintained at the Enel Americas' level in Chile, which the group is working to increase to EUR2 billion. "We view this liquidity buffer as a vital safeguard that provides the necessary flexibility to manage regional volatility and meet debt obligations despite the sovereign constraints. In addition, the entity's stand-alone credit profile (SACP) remains at 'bbb-', supported by strong credit metrics and low consolidated leverage, with adjusted debt to EBITDA expected at about 1.5x over 2026-2028. We also consider its geographical diversification across Brazil, Colombia, and Central America will continue to offset weaker profits of its Argentinian concession. "We kept Enel Americas' 'bbb-' SACP unchanged based on our expectation that the company will continue executing its $7.9 billion 2026-2028 investment plan without weakening its financial performance. We expect Enel Americas to continue to fund most of its roughly $2.6 billion annual capex with its own cash flow, while strengthening the resilience of its grid that will consume 86% of capex. However, the large capex will result in the free operating cash flow shortfall of $600 million - $800 million in 2026 and 2027. However, even in this scenario, net debt to EBITDA will remain below 1.5x and funds from operations (FFO) to debt above 45% on a consistent basis. In our base case, we do not assume additional share buyback at Enel Americas' level, after the $470 million completed in 2025. "Enel Sao Paulo's concession remains a key risk. Despite the relatively low leverage metrics, we continue to monitor several operational and regulatory risks that could affect the credit profile, particularly regarding service quality and regulatory relations in Brazil. Most notably, the administrative process initiated by the Agencia Nacional de Energia Eletrica in April 2026, regarding the Enel Sao Paulo's concession, introduces a layer of uncertainty since this entity represented 20% of the group's EBITDA in 2025. We think this process, which could lead to a recommendation for early concession termination, increases both reputational and operational risk for the Brazilian business. While we view the likelihood of an actual early termination as low, given the lengthy regulatory timelines and the company's ongoing legal challenge to the regulatory review, we will continue to monitor the scrutiny from regulators. In our base case scenario, we assume Enel Americas will continue to operate its Sao Paulo concession at least until the end of the concession period, in 2028. "We expect the company's ongoing investments in grid resilience and smart meter deployment to mitigate these operational pressures over the medium term. However, any deterioration in regulatory standing or a failure to meet service quality benchmarks could trigger a downgrade, particularly if it dents the substantial EBITDA contributions from the Brazilian grid business. "The stable outlook on Enel Americas mirrors the one on our sovereign rating on Colombia, as the company's assets in the country generated 40% of its EBITDA in 2025. The outlook also incorporates our view that the company will maintain relatively low leverage with net debt to EBITDA below 2.0x and FFO to debt above 45% in the next two years, and maintain its liquidity flexibility to be rated above its weighted country risk of exposure, supported by a EUR 1 billion revolving credit line. "We could lower the ratings on Enel Americas in the next 12 months following a similar action on Colombia, as Enel Americas can be rated up to two notches above the weighted country risk." Absent cross-default or cross acceleration clauses linked to the loss of a material concession on the debt instruments within the group, S&P could downgrade the company's SACP in the unlikely event of an early termination of its concession of Enel Sao Paulo, the main contributor to the Brazilian operations (about 20% of 2025 consolidated EBITDA), or if the company is unable to renew its concessions for an additional 30 years, reducing its portfolio diversification. In addition, S&P could downgrade the SACP on Enel Americas if its leverage metrics increase, with net debt to EBITDA above 2x and/or FFO to debt is lower than 40% in a scenario of a financial policy change, where investments are funded by substantial additional debt, while it increases shareholders payout. A downgrade could be triggered by weaker liquidity, with the cushion of sources over uses dropping below 20%, or if it no longer benefits from the resources under the revolving credit line at the holding company level, which provides liquidity cushion under the sovereign stress tests run for entities rated above the sovereign. An upside is limited by the Colombia sovereign rating, currently at BB-/Stable. ================= G U A T E M A L A ================= GUATEMALA: Has Strong Macroeconomic Fundamentals, IMF Says ---------------------------------------------------------- An International Monetary Fund (IMF) mission led by Mr. Alex Culiuc visited Guatemala City during May 27 - June 5, 2026 for the 2026 Article IV consultation. At the end of the visit, the mission issued the following statement: Resilience Under Headwinds And Uncertainty Guatemala continues enjoying strong macroeconomic fundamentals. Driven by robust private consumption and a positive fiscal impulse, 2025 real GDP grew 4.3 percent, above expectations. At 1.7 percent, end-2025 inflation was well below the central bank’s target. The current account surplus widened to 4.7 percent of GDP and international reserves increased to US$32.7 billion, both reflecting record-high remittances. Banguat has kept its policy rate unchanged at 3.5 percent since February 2026 amid uncertainty surrounding commodity prices. The overall 2025 fiscal deficit increased to 1.9 percent of GDP, but short of the budgeted 3.8 percent, mainly on account of modest capital spending execution. Guatemala retains favorable market access, with central government debt at 27 percent of GDP. The oil price shock is disrupting what started as a very strong year. The 4.4 percent expansion in Q1 economic activity pointed to a solid 2026. However, the mission forecasts—under highly uncertain oil price projections—that the effects of the War in the Middle East will moderate growth to 3¾ percent this year. Beyond 2026, growth is expected to rebound as the oil shock dissipates and higher public investment and reforms begin to yield returns. Anchored inflation expectations give confidence that end-2026 headline inflation should remain—barring severe shocks—within Banguat’s 4±1 percent target band. The fiscal deficit is projected to undershoot the budgeted 3.6 percent of GDP in 2026, and—under staff’s revenue projections—stabilize around 2½ percent of GDP in the medium term. The current account surplus will narrow as remittances growth moderates and private investment strengthens. The balance of risks is tilted to the downside. External risks include prolonged high energy prices, and changes affecting migration and remittances. On the upside, oil prices could come down faster, and the Guatemala-U.S. trade agreement could anchor bilateral relationships in the face of evolving U.S. trade policy. Domestically, implementation constraints and likely pre-electoral pressures are balanced by the timely appointments to key judicial positions, which could reduce drag on reforms and boost investor confidence. A severe El Nino is a considerable near-term risk. Raising Infrastructure Investment The authorities’ ambitious infrastructure agenda holds the promise to unlock higher private investment and growth and, thereby, contribute to external rebalancing. The strategy—combining a temporary increase in capex, higher transfers to departmental development councils (CODEDEs), government-to-government contracts (starting with the U.S. Army Corps of Engineers), and multiple legislative reforms—would benefit from: -- Reducing bottlenecks and improving project preparation and execution by implementing outstanding recommendations in the 2023 Public Investment Management Assessment. -- Streamlining public procurement. The draft Public Procurement law holds the promise of eliminating red tape while maintaining adequate safeguards and ensuring transparency. -- Resolving the impasse over the operationalization of the priority infrastructure law. Should this involve legal amendments, they should also ensure that the funding structure of the Directorate for Priority Road Infrastructure does not aggravate already high budget rigidities. -- Mobilizing greater private sector participation in infrastructure investment by advancing the ports and airports laws, and fully operationalizing the PPP law. While justified by regional infrastructure and social disparities, CODEDEs allocations would benefit from review and improvements. The rapid expansion of CODEDE transfers—driven by large extraordinary allocations and rollover of unexecuted funds—has stretched the government’s planning, control, and monitoring capacity and risks crowding out other priority spending. Going forward, (i) extraordinary allocations should be contained and better-targeted, (ii) continuity of projects should rely on a multi-year pipeline instead of the rollover of unexecuted funds, (iii) project selection should draw on strategic guidance and coordination, including at the departmental level, and (iv) oversight capacity by Comptroller General’s office and the Secretariat for Executive Coordination of the Presidency should be strengthened further. Addressing Fiscal Challenges The oil price shock calls for better targeted social safety nets. In the absence of reliable means-testing capacity, temporary and contained universal fuel subsidy is preferable to earlier-considered alternatives. However, universal subsidies are regressive and weaken price signals. Expanding the coverage and quality of the social registry is critical to enable more targeted responses going forward. An investment-friendly consolidation should commence in the medium term. The latest Medium-Term Fiscal Framework (MTFF) sees deficits converging to 2 percent by 2031 on account of optimistic revenue mobilization gains and falling investment, coupled with rising current spending. In staff’s view, bringing down deficits should rely on tax policy reforms, while keeping capex at elevated levels and accommodating adequate, well-targeted social spending. Closing social and infrastructure gaps requires higher fiscal revenues. Despite measurable gains by the Tax Administration (SAT)—in tax compliance, digitalization, tax refund governance, and customs modernization—tax revenues have been hovering near 12 percent of GDP for decades. Converting ongoing and planned SAT’s efforts into higher revenues requires (i) avoiding measures (such as elimination of taxes, introduction of special tax regimes) that further erode the tax base, (ii) limiting domestic and cross-border tax arbitrage, and, ultimately, (iii) undertaking comprehensive tax reforms to rationalize tax expenditures, broaden the tax base and raise tax rates (from extremely low levels, especially for income taxation). Relevant policy analysis should commence promptly. Ongoing efforts to improve quality of public spending should continue. Better coordination among MinFin, line ministries, and SEGEPLAN, and stronger alignment between development plans, budget allocations and multiannual targets, would improve spending efficiency, targeting, and value-for-money in investment and social programs. Credible medium-term fiscal planning can deliver predictability of public finances without resorting to costly and stifling revenue earmarking. Aggravated by segmented treasury balances and legal constraints on short-term debt, earmarking leads to excessive long-term borrowing and large non-remunerated government deposits. To maintain predictability of spending, MTFFs should build on—and also inform—multi-year sectoral strategies and spending plans. Improved treasury-debt management coordination and greater reliance on domestic financing—as reflected in MinFin’s latest medium-term debt strategy—would reduce currency risks to debt sustainability, deepen local financial markets, and lower Banguat’s sterilization costs, whose balance sheet is backstopped by the state. A new organic budget law could enable needed reforms while preserving legally-mandated allocations. Reinforcing Monetary And Financial Frameworks The monetary policy stance is appropriate. Banguat’s cautious approach to policy easing has, in hindsight, proven appropriate amid heightened uncertainty surrounding commodity prices and external conditions. Well-anchored inflation expectations point to continued policy credibility, while ample reserve buffers provide Banguat with room for maneuver in conducting monetary policy less dependent of U.S. Fed policy movements. The mission welcomes efforts to improve monetary policy communication and the operational framework. To address communication challenges associated with de facto exchange rate stability under an inflation targeting regime, Banguat could convey more transparently objectives underlying its FX market participation. While the mission supports the latest use of the international reserves accumulation rule in the current high-remittances environment, Banguat should strive to further demystify it in the eyes of market participants. Recent reforms to the operational framework—including narrowing the policy corridor and streamlining term-deposit maturities—are welcome, and should be complemented by strengthening collateral infrastructure, including through a central securities depository. Together with initiatives aimed at further strengthening MinFin-Banguat coordination, these measures will improve monetary policy transmission and liquidity management, reducing pressures on Banguat’s balance sheet. This, in turn, would create scope to gradually lower reserve requirements and improve reserve remuneration. The mission encourages fast-tracking a new secondary markets law. It would help mobilize domestic savings (thus reducing external imbalances), strengthen monetary policy transmission, enhance financial sector competition and deepen domestic financial markets. The law would also enable erecting the financial infrastructure needed to accommodate potential capital inflows should Guatemala attain investment-grade status. A new e-money law would provide the necessary regulatory foundation for fintech development and broaden access to formal financial services. Enhanced regulation and supervision will help safeguard financial stability. The banking system remains sound, with strong capital and liquidity buffers and solid profitability. Adopting IFRS accounting would improve transparency and comparability, while the ongoing gradual shift to expected loss provisioning would further increase the system’s resilience. These changes should be accompanied by bolstering supervisory capacity, revamping the 2002 Law on Banks and Financial Groups, and continuing investments in cybersecurity resilience. Advancing Financial Integrity, Governance And Structural Reforms The mission welcomes the Congressional passage of the AML/CFT law, a crucial step in improving financial integrity. A law fully aligned with FATF standards, quickly followed by the swift approval and implementation of accompanying regulations, should well-position the country for GAFILAT’s 2027 mutual assessment. Good governance and structural reforms will promote investment and inclusive growth. The establishment of the National Anti-Corruption Commission, the code of ethics, the Integrity and Corruption Prevention Strategy 2025–32, should be followed up by advancing pending legislation on beneficial ownership transparency, whistleblower protection, and public procurement. Reductions of non-tariff barriers, agreed under the trade agreement with the U.S., should improve the business environment. Reducing informality would foster more inclusive and sustainable growth. =========== P A N A M A =========== PROMERICA FINANCIAL: Fitch Affirms B+ LongTerm IDR, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed Promerica Financial Corporation's (PFC) Long-Term Issuer Default Ratings (IDR) at 'B+' and Short-Term IDR at 'B'. Fitch has also affirmed PFC's Viability Rating (VR) at 'b+', Government Support Rating (GSR) at 'No Support' (ns) and senior secured debt rating at 'B+' with a Recovery Rating of 'RR4'. The Rating Outlook for the Long-Term IDR is Stable. Key Rating Drivers Intrinsic Profile Drives Ratings: PFC's IDRs are driven by its intrinsic credit profile, as reflected in its VR of 'b+'. Fitch assesses PFC on a consolidated basis across its operations in nine countries. The VR reflects the group's strong business profile, which counterbalances its higher risk profile and exposure to low-rated operating environments (OEs) in Latin America. It also reflects consistent consolidated financial performance, underpinned by controlled asset-quality metrics, moderate earnings generation supporting reasonable capitalization, and a sound funding and liquidity profile driven by a stable deposit base. Blended OE Constrained by Lower-Rated Jurisdictions: Fitch's OE assessment for PFC reflects the group's geographic diversification across nine Latin American countries and is calculated as a weighted average of assets of its operating jurisdictions. Although OE conditions for banks have improved in some countries in 2025 and 2026, and the group has a strong presence in relatively less risky OEs, PFC's blended OE score of 'b+' remains constrained by meaningful exposure to lower-rated markets, with more than 50% of assets in OEs within the 'b' category. Further expansion in less risky jurisdictions could be positive for the rating over time. Business Profile Supported by Strong Regional Franchise: PFC's business profile is as a key rating strength. Its 'bb' score reflects the group's established regional franchise across Central America and Ecuador, meaningful market positions in several small and midsize banking systems, diversified universal business and sound execution in managing a multijurisdictional banking group. Geographic diversification supports revenue generation and loan portfolio dispersion, although these benefits are partly offset by concentration in higher-risk OEs. In 1Q26, consolidated total operating income was USD466 million and was up 7% year over year. This was comparable to peers with a similar score and continued to reflect stable revenue generation for its rating category. For 2022-2025, average total operating income was USD1,546 million. Adequate Risk Profile and Asset Quality: PFC's asset quality score of 'b+' reflects resilient consolidated metrics, supported by proven underwriting standards and increased reserve coverage, despite exposure to higher-risk OEs. The group's risk profile is aligned with this assessment and benefits from improved risk distribution across consolidated assets. The Stage 3 loans/gross loans ratio was 2.1% at 1Q26 and 2.4% at YE25, remaining broadly stable through 2022-2025 and in line with some regional peers. Fitch expects effective risk controls and the group's established presence and deep knowledge in its core markets to continue supporting asset-quality metrics below 3%. Moderate Profitability: PFC's consolidated profitability remains constrained by sensitivity to asset-quality risks and operating conditions across its markets. Operating profit/risk-weighted assets was a modest but stable 1.3% at YE25, broadly in line with the 2022-2025 average of 1.4% and comparable with some similarly rated regional peers. Stable net interest income, good operating efficiency, and diversified revenue sources partly offset still-high impairment charges. Capitalization Favored by Additional Buffers: PFC's capitalization remains appropriate and stable, and Fitch expects the group to maintain capital levels in line with its 'b' score over the rating horizon, supported by consistent internal capital generation despite dividend payments. CET1/RWA was 9.2% in 1Q26 and 9.1% at YE25 (2024: 9.0%), which is modest relative to similarly rated regional banks. Nevertheless, capital buffers are further supported by non-core loss-absorption items, resulting in a total capital ratio of 12.8% at 1Q26. Good Funding Profile: The group's funding remains largely deposit-based and consistent with its operating model. The consolidated loan-to deposit ratio was 92.2% and 93.4% in 1Q26 and 2025, respectively, levels relatively similar to that of regional peers. Access to diversified local funding sources across its banking subsidiaries further supports liquidity. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - The VR and IDR could be negatively affected by a sustained decline in the CET1 ratio below 8%, and a reduction in subsidiary dividends to PFC that pressures its debt service capacity; - The ratings could also be pressured by a materially weaker assessment of PFC's multijurisdictional OE, especially in its largest markets, although this is not reflected in Fitch's baseline scenario. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The ratings could be upgraded if the OE score improves and PFC maintains a strong business profile. Fitch believes that an organic improvement of the OE score of 'b+' is unlikely in the foreseeable future, given its sizeable presence in jurisdictions with an OE score in the low 'b' category. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Senior Debt: PFC's USD225 million senior notes are rated in line with its Long-Term IDR. This reflects Fitch's view that the notes' default risk and expected average recovery rate are the same as the group's. Although the notes are senior secured, Fitch does not believe the collateral mechanism would materially enhance recoveries. In accordance with Fitch's criteria, recovery prospects for the notes are average, as reflected in the Recovery Rating of 'RR4'. No Government Support: The 'ns' GSRs reflect that external support is possible but cannot be relied upon. This reflects the banking system's large size relative to Panama's economy and the country's weak support stance, as it lacks a lender of last resort. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES The ratings of the senior debt would be downgraded or upgraded based on changes to PFC's IDR. Because the GSR is already at the lowest level of its scale, there is no downside potential for the GSR. An upgrade of the GSR is unlikely because Panama is a dollarized country with no lender of last resort. VR ADJUSTMENTS The operating environment score of 'b+' is below the 'bbb' category implied score due to the following adjustment reason: geographical scope (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 Recovery Prior ----------- ------ -------- ----- Promerica Financial Corporation LT IDR B+ Affirmed B+ ST IDR B Affirmed B Viability b+ Affirmed b+ Gov't Support ns Affirmed ns sr secured LT B+ Affirmed RR4 B+ ===================== P U E R T O R I C O ===================== CLEARSEA CORP: Hires Homel Antonio Mercado Justiniano as Counsel ---------------------------------------------------------------- Clearsea Corp seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Antonio Mercado Justiniano, an attorney at law and resident of Mayaguez, Puerto Rico, as counsel. The firm will provide these services: a. prepare documents of the Debtor and other necessary information, including Schedules and Statement of Financial Affairs; b. prepare the Debtor's statements of organization, records and reports required by the Bankruptcy Code and the Federal Rules of Bankruptcy; c. prepare applications and proposed orders to be submitted to the Court; d. identify and prosecute claims and causes of action available to the Debtor-in-Possession on behalf of the estate; e. examine proofs of claim filed and to be filed in the case and prepare possible objections to such claims; f. advise the Debtor-in-Possession and prepare documents in connection with the ongoing operation of the Debtor; g. advise the Debtor-in-Possession and prepare documents in connection with the liquidation of the assets of the estate, if needed, including analysis and collection of outstanding receivables and possible motions for sale; and h. assist and guide the Debtor in the discharge of duties imposed by the Bankruptcy Code and the Federal Rules of Bankruptcy, dispositions of the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure. Mr. Mercado Justiniano agreed on a flat fee base of $6,000 out of which the Debtor has already paid $4,000 and owes the remaining $2,000. The Debtor also paid the filing fee of $1,738. In addition, the professional will seek reimbursement for its out-of-pocket expenses. Mr. Mercado Justiniano, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Homel Antonio Mercado Justiniano, Esq. Mayaguez, PR 00680 Telephone: (787) 831-2577 (787) 805-2945 Facsimile: (787) 805-2545 Cell: (787) 364-3188 E-mail: hmjlaw2@gmail.com About Clearsea Corp Clearsea Corp filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 66-0987871) on May 20, 2026. The Debtor hires Homel Antonio Mercado Justiniano, Esq. as counsel. DYNAMIC AUTO: Hires Jose M Prieto Carballo as Legal Counsel ----------------------------------------------------------- Dynamic Auto Work Inc seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Jose M Prieto Carballo as legal counsel. The firm will provide these services: a. advise debtor with respect to its duties, powers and responsibilities in this case under the laws of the United States and Puerto Rico in which the debtor in possession conducts its operations, do business, or is involved in litigation. b. advise debtor in connection with a determination whether a reorganization is feasible and, if not, help debtor in the orderly liquidation of its assets. c. assist the debtor with respect to negotiations with creditors for the purpose of arranging the orderly liquidation of assets and/or for proposing a viable plan of reorganization. d. prepare on behalf of the debtor the necessary complaints, answers, orders, reports, memoranda of law and/or any other legal papers or documents. e. appear before the bankruptcy court, or any court in which debtors assert a claim interest or defense directly or indirectly related to this bankruptcy case. f. perform such other legal services for debtors as may be required in these proceedings or in connection with the operation of/and involvement with debtor's business, including but not limited to notarial services. g. employ other professional services, if necessary. The firm will be paid at these rates: Jose M Prieto Carballo, Esq. $200 per hour The firm will be paid a retainer in the amount of $8,217. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. In addition, the firm will seek reimbursement for its out-of-pocket expenses. Jose M Prieto Carballo, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Jose M Prieto Carballo, Esq. JPC LAW OFFICE P.O. Box 363565 San Juan, P.R. 00936-3565 Telephone: (787) 607-2066 Email: jpc@jpclawpr.com About Dynamic Auto Work Inc. Dynamic Auto Work Inc filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 26-02281MCF) on May 19, 2026. The Debtor hires JPC Law Office as counsel. ********* 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. 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