260619.mbx

260619.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 Friday, June 19, 2026, Vol. 27, No. 122 Headlines A R G E N T I N A ARGENTINA: Chevron Among Drillers to Feed Shale NGL Venture ARGENTINA: Inflation Slowed to Monthly 2.1% in May, Reports INDEC ARGENTINA: Inflation Slows to Eight-Month Low in Win for Milei B E R M U D A SEADRILL LTD: S&P Affirms 'B+' LongTerm ICR, Outlook Stable M E X I C O FINANCIERA INDEPENDENCIA: Fitch Affirms 'BB' IDR, Outlook Stable P U E R T O R I C O IES ELEVATOR: Hires Manuel Feliciano Rios as Financial Consultant INCAR GROUP: Unsecured Creditors to Split $500,000 in Plan PUERTO RICO: 1st Cir. Says Bankruptcy Doesn't Shield Officials S T . V I N C E N T A N D T H E G R E N A D I N E S ST. VINCENT & GRENADINES: IMF Says Economy Has Shown Resilience T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: Moody's Alters Outlook on 'Ba2' Rating to Stable X X X X X X X X LATAM: World Bank Warns of Slower Growth Across Region - - - - - ================= A R G E N T I N A ================= ARGENTINA: Chevron Among Drillers to Feed Shale NGL Venture ----------------------------------------------------------- Jonathan Gilbert at Bloomberg News reports that Chevron Corp and two other major Argentine shale producers will sign contracts to supply a natural gas liquids project, a move that all but assures the US$3-billion plan goes ahead, according to people familiar with the matter. Chevron, the US supermajor that’s eyeing a ramp-up in the Vaca Muerta shale basin, will partner with state-run YPF SA and private energy firm Pluspetrol SA, to sign contracts with TGS SA, a gas company leading the project, according to Bloomberg News. It is seen as crucial to avoiding infrastructure bottlenecks in the booming shale patch, Bloomberg News notes. "Chevron confirms it is close to finalising agreements related to a gas processing and natural gas liquids infrastructure project in Vaca Muerta, alongside other industry participants," the company said in an email, the report relays. YPF declined to comment. Pluspetrol declined to comment. TGS didn’t immediately reply to a request for comment. The three drillers will fill roughly 80 percent of the project's capacity and signing the contracts is a step that goes hand in hand with TGS giving it the green light, known as the final investment decision, said one of the people, the report says. The project will turn natural gas – much of it so-called associated gas that comes out of oil wells – into liquids like butane and propane for export, the report discloses. TGS will pay for some of the US$3-billion investment itself, with the rest financed by banks that are close to agreeing terms, the report notes. The liquids project is one of several processing and pipeline export ventures that are set to turn Argentina's shale industry into a global energy provider over the coming years, the report says. Chevron's bet on Argentina goes far beyond the gas liquids project, the report relates. It recently applied to President Javier Milei's signature investment program, which includes tax breaks, for a US$13.8 billion oil drilling venture, the report notes. It marks some of the most significant US investment in Argentina since Milei took office, the report adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country’s economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) — with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Fitch Ratings, on May 5, 2026, upgraded Argentina's Long-Term Foreign Currency and Local Currency Issuer Default Rating (IDR) to 'B-' from 'CCC+'. The rating Outlook is Stable. S&P Global Ratings, on Dec. 17, 2025, raised its local currency sovereign credit ratings on Argentina to 'CCC+/C' from 'SD/SD'. S&P also raised its long-term foreign currency sovereign credit rating to 'CCC+' from 'CCC' and affirmed its 'C' short-term foreign currency rating. The outlook on the long-term ratings is stable. In addition, S&P raised its issue ratings on local currency bonds to 'CCC+' from 'CCC'. Its 'B-' transfer and convertibility assessment is unchanged. Moody's Ratings, on July 17, 2025 upgraded the Government of Argentina’s long-term foreign currency and local currency issuer ratings to Caa1 from Caa3 and changed the outlook to stable from positive. The upgrade reflects its view that the extensive liberalization of exchange and (to a lesser extent) capital controls, alongside a new International Monetary Fund (IMF) program, support the availability of hard currency liquidity and ease pressure on external finances. This reduces the likelihood of a credit event. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024, and confirmed such ratings in November 2025. ARGENTINA: Inflation Slowed to Monthly 2.1% in May, Reports INDEC ----------------------------------------------------------------- Buenos Aires Times reports that inflation slowed in May to 2.1 percent, according to the INDEC national statistics bureau, decelerating for a second consecutive month. It is the lowest monthly figure for Argentina since last September and confirms an inflationary slowdown after consumer prices soared 3.4 percent in March, according to Buenos Aires Times. The news is a boost for President Javier Milei, which made tackling consumer price hikes one of the centrepieces of his administration. Overall, inflation fell by half a point from the preceding month, the report notes. According to INDEC, consumer prices have increased by 14.7 percent in the first five months of the year and have risen 33.2 percent over the past 12 months, the report relays. Leading the hikes was communications, which rose an average 3.4 percent, mainly due to a surge in telephone costs, the report says. Education was the second-highest category with 2.9 percent, the report discloses. Healthcare (up 2.6 percent), housing and utilities (2.6 percent), food and non-alcoholic beverages (2.5 percent) and goods and services (2.4 percent) all recorded above-average increases, the report notes. The categories recording the lowest increases were alcoholic beverages and tobacco (up 0.8 percent) and clothing and footwear (0.3 percent), the report relays. According to INDEC, seasonal prices soared 3.5 percent, with a notable rise for vegetables, with regulated prices rising 2.4 percent and core inflation of 1.9 percent, the report says. Most market analysts had anticipated a monthly reading of around 2.3 percent for May. Consultancy firms generally opted for a figure of between 2.1 and 2.4 percent, the report discloses. Battle Against Inflation Curbing inflation is a key objective of Milei, who took office in December 2023 with promises to revive the economy by slashing public spending, the report notes. The President cheered the latest INDEC measurement, praising the work of Economy Minister Luis Caputo in a post on social media, the report says. He noted that core inflation had dropped below the two-percent threshold, the report relays. Argentina recorded its first budget surplus in a decade in 2024 thanks to austerity cuts, but the collateral damage was a loss of purchasing power, jobs and consumer spending, the report discloses. Milei devalued the peso by more than 50 percent, cut spending and froze budgets, driving annual inflation down from 211.4 percent in December 2023 to 117.8 percent in December 2024, the report relays. Argentina’s economy expanded last year after two years of contraction, the report discloses. However, the growth was uneven, with some sectors – such as financial services, agriculture and mining – expanding, while others – like manufacturing and retail trade – slowing, the report says. Unemployment remains concerning, increasing by 1.1 percentage points to 7.5 percent over the past year, not including the large number of people informally employed across the country, the report notes. Purchasing Power For many Argentines, the difference between INDEC’s reading and everyday prices remains substantial, the report relays. A report published in May by the University of Buenos Aires (UBA) notes that between November 2023 and April 2026, those living on the minimum wage lost 39.3 percent of its purchasing power, Buenos Aires Times says. “There are certain kinds of purchases that give you a moment of optimism – something you haven’t bought for a while and hoped would have gone up in price but hasn’t, or a service that’s stayed the same for months,” says Horacio Barros, a 41-year-old music producer, on the streets of Buenos Aires, the report notes. “When you try to give in to that optimism, you realise you’ve run out of money sooner than you did last month,” he added. INDEC’s analysts said that a family of four needed 1,498,741 pesos in May to be classified as above the poverty line, a two-percent increase on the previous month, the report says. The monthly change in the basic food basket (CBA) in May was 2.4 percent. The total basic basket (CBT) rose by two percent, the report adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country’s economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) — with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Fitch Ratings, on May 5, 2026, upgraded Argentina's Long-Term Foreign Currency and Local Currency Issuer Default Rating (IDR) to 'B-' from 'CCC+'. The rating Outlook is Stable. S&P Global Ratings, on Dec. 17, 2025, raised its local currency sovereign credit ratings on Argentina to 'CCC+/C' from 'SD/SD'. S&P also raised its long-term foreign currency sovereign credit rating to 'CCC+' from 'CCC' and affirmed its 'C' short-term foreign currency rating. The outlook on the long-term ratings is stable. In addition, S&P raised its issue ratings on local currency bonds to 'CCC+' from 'CCC'. Its 'B-' transfer and convertibility assessment is unchanged. Moody’s Ratings, on July 17, 2025 upgraded the Government of Argentina’s long-term foreign currency and local currency issuer ratings to Caa1 from Caa3 and changed the outlook to stable from positive. The upgrade reflects its view that the extensive liberalization of exchange and (to a lesser extent) capital controls, alongside a new International Monetary Fund (IMF) program, support the availability of hard currency liquidity and ease pressure on external finances. This reduces the likelihood of a credit event. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024, and confirmed such ratings in November 2025. ARGENTINA: Inflation Slows to Eight-Month Low in Win for Milei -------------------------------------------------------------- Manuela Tobias at Bloomberg News reports that Argentina's inflation slowed to the lowest level since September in a victory for President Javier Milei following a surge in March due to the Iran war-related energy shock. Consumer prices rose 2.1 percent last month compared with April, below the 2.4 percent median estimate of economists surveyed by Bloomberg. From a year ago, inflation picked up marginally to 33.2 percent from 32.4 percent, according to data published by the INDEC national statistics bureau, according to Bloomberg News. Economy Minister Luis Caputo had said at a business conference that analysts expected inflation to slow again in May, after another slowdown in April, Bloomberg News says. Telecoms saw the biggest price increases on higher phone costs, followed by education, Bloomberg News notes. The positive print comes after Milei scored a rating upgrade from S&P Global Ratings, the second such upgrade this year after Fitch Ratings, bringing Argentina one step closer to regaining access to international capital markets, Bloomberg News relays. Dollar bonds jumped across the curve, with longer-dated securities rising more than two cents on the dollar, Bloomberg News discloses. In more good news for Milei, child poverty fell to 42.3 percent in the second half of last year, compared with 52.7 percent the previous year, according to UNICEF, Bloomberg News notes. Economists surveyed by the Central Bank in May forecast a 2026 year-end inflation rate of 30.5 percent and growth of 2.9 percent, revised up from 2.8 percent the previous month, Bloomberg News adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country’s economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) — with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Fitch Ratings, on May 5, 2026, upgraded Argentina's Long-Term Foreign Currency and Local Currency Issuer Default Rating (IDR) to 'B-' from 'CCC+'. The rating Outlook is Stable. S&P Global Ratings, on Dec. 17, 2025, raised its local currency sovereign credit ratings on Argentina to 'CCC+/C' from 'SD/SD'. S&P also raised its long-term foreign currency sovereign credit rating to 'CCC+' from 'CCC' and affirmed its 'C' short-term foreign currency rating. The outlook on the long-term ratings is stable. In addition, S&P raised its issue ratings on local currency bonds to 'CCC+' from 'CCC'. Its 'B-' transfer and convertibility assessment is unchanged. Moody’s Ratings, on July 17, 2025 upgraded the Government of Argentina’s long-term foreign currency and local currency issuer ratings to Caa1 from Caa3 and changed the outlook to stable from positive. The upgrade reflects its view that the extensive liberalization of exchange and (to a lesser extent) capital controls, alongside a new International Monetary Fund (IMF) program, support the availability of hard currency liquidity and ease pressure on external finances. This reduces the likelihood of a credit event. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024, and confirmed such ratings in November 2025. ============= B E R M U D A ============= SEADRILL LTD: S&P Affirms 'B+' LongTerm ICR, Outlook Stable ----------------------------------------------------------- S&P Global Ratings affirmed its 'B+' long-term issuer credit rating on offshore drilling company Seadrill Ltd. S&P has also assigned a new 'BB-' issue rating and '2' (85% rounded recovery expectation) recovery rating to the proposed senior unsecured notes issued by Seadrill Finance Ltd. of up to $600 million. S&P has affirmed the 'BB' issue rating on the company's $575 million second lien senior secured notes and maintained the recovery rating at '1' (95% rounded recovery expectation). S&P anticipates withdrawing the ratings on these notes at settlement. The stable outlook reflects S&P's expectation that Seadrill will preserve the headroom under the rating in the coming 12 months, supported by healthy industry conditions. Seadrill is refinancing its capital structure, comprising $575 million secured notes due in 2030, with a new unsecured bond of up to $600 million due in 2034, proceeds of which will be used to repay the current bond outstanding. This will extend its maturity wall and improve its liquidity profile while moderately increasing its gross adjusted debt to $670 million pro forma the bond, up from $633 million as of March 30, 2026. S&P said, "We therefore continue to anticipate that the company will have a relatively sound rating leeway in the current market conditions under our revised base case, and we expect Seadrill's adjusted debt to EBITDA to remain defensive at 1.5x-2.0x in 2026-2027, versus the 1.9x in 2025. "We expect Seadrill will post healthy credit metrics in 2026-2027, supported by an increase in reported EBITDA to $400 million-$450 million, from $353 million in 2025, on the back of improving industry conditions and protracted strong fleet utilization, which reached 99% on March 30, 2026 (excluding the three cold stacked rigs). Refinancing gives long-dated maturity and strengthens financial flexibility. S&P said, "Following the refinancing, we estimate our adjusted debt at $670 million, consisting of the new up to $600 million senior unsecured notes, $50 million unsecured convertible bond due in 2028, and smaller adjustments like leases and pension obligations. Our adjusted debt is on a gross basis, in line with our approach to similarly rated peers in the industry. At the same time, we estimate available cash of about $400 million (on a pro-forma basis), supporting a comfortable liquidity cushion, especially considering our expectation that free operating cash flow (FOCF) should be positive in 2026 at $75 million-$125 million." The new proposed capital structure consists of the following instruments: -- $225 million senior secured first-lien revolving credit facility (RCF) due August 2028 (undrawn); -- The proposed up to $600 million senior unsecured notes due June 2034; and -- $50 million unsecured convertible bond due August 2028. S&P said, "We anticipate Seadrill will benefit from increasing day rates in 2026 and 2027, but demand dynamics will depend on oil and gas capital expenditure (capex). We continue to expect sustained drilling activity in Seadrill's key offshore markets of the Gulf of Mexico, Brazil, and West Africa, sustained by high oil and gas prices amid continued geopolitical turbulence." At the same time, we anticipate relatively stable supply and demand as the risk from unit additions remains limited (only one newbuild unit in yards globally could be delivered in the near to midterm), while offshore capex and project sanctioning compared with previous years remains stable. Although a few of Seadrill's rigs are approaching the end of their contracts, S&P understands tender activity is robust and could result in near-term contracting. For example, Seadrill was in past months awarded multiple contracts in the Gulf of Mexico, Brazil, and Angola. This added over $860 million to its backlog, which now stands at $3.1 billion, up from $2.4 billion at year-end 2025, providing solid visibility in revenue for the remainder of 2026 and 2027. S&P said, "We forecast revenue will steadily increase in 2026 to about $1.5 billion (compared with $1.4 billion in 2025), supported by high economic utilization rates above 90% under our updated base case and robust day rates in the offshore market. Additionally, we expect company-reported EBITDA to increase to about $400 million in 2026 compared with $353 million in 2025, reflecting Seadrill's operational efficiencies and the favorable market environment. "We believe Seadrill's credit metrics are commensurate with the rating and are supported by its prudent approach to maintaining strong liquidity and relatively low leverage. However, in our base-case assessment we do see the potential for high volatility that could arise if a severe downturn in the oil and gas industry hits demand. Seadrill has outlined a financial strategy to keep its net leverage, based on its own definition, below 1x during favorable market conditions, and to cap it at 2x during downturns, all while ensuring a minimum cash reserve of $250 million. As of end-2025, S&P Global Ratings-adjusted debt to EBITDA (based on gross debt) was 1.9x, little changed from 1.7x at end-2024, and we anticipate it will be about 1.5x in 2026. Seadrill has stated it will prioritize liquidity and low leverage above growth investments and shareholder distributions, but we note that the company has financial flexibility thanks to its relatively low leverage and cash balance. "The stable outlook reflects our expectation that Seadrill will benefit from the improving offshore drilling market over the next 12 months, leading to comfortable headroom under the rating. "We expect Seadrill will post S&P Global Ratings-adjusted EBITDA $400million-$450 million in 2026, higher than the $329 million in 2025. This should result in $75 million-$125 million positive FOCF in 2026 and funds from operations (FFO) to debt of 45%-50%, which we view as commensurate with the current rating. "We might downgrade Seadrill if its credit metrics weakened, with FFO to debt declining below 30% and no expectation of a near-term recovery." This could result from the following: -- Reduced demand for offshore drilling, likely because of lower exploration and production industry capex amid low oil and gas prices; -- A deviation from the company's financial policy, with reported net debt to EBITDA rising above 2x; or -- Continually negative FOCF, ultimately resulting in weakening liquidity headroom. S&P could upgrade Seadrill if it demonstrates improved operating results that support FFO to debt sustainably above 60%. An upgrade would also hinge on the following: -- Strong positive FOCF, highlighting the company's ability to reduce debt over time; -- A longer track record of applying the financial policy, including capital allocation priorities (capex, dividends, and acquisitions); and -- At least adequate liquidity, supported by diverse liquidity sources. =========== M E X I C O =========== FINANCIERA INDEPENDENCIA: Fitch Affirms 'BB' IDR, Outlook Stable ---------------------------------------------------------------- Fitch Ratings has upgraded Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R.'s (Findep) and Apoyo Economico Familiar, S.A. de C.V., Sociedad Financiera de Objeto Multiple, E.N.R. (AEF) National Long-Term Rating to 'A+(mex)' from 'A(mex)' and National Short-Term Rating to 'F1+(mex)' from 'F1(mex). The Outlook of the Long-Term ratings is Stable. The agency has also affirmed Findep's Long-Term Local and Foreign Currency Issuer Default Ratings (IDRs) at 'BB' and the senior unsecured long-term debt rating at 'BB' and the Short-Term Local and Foreign Currency IDRs at 'B'. The Rating Outlook of the long-term ratings is Stable. The upgrade of the national ratings reflects the entity's greater relative strength than rated Mexican peers, driven by an improved business profile and funding, liquidity, and coverage factor scores. Findep's ratings also reflect its robust total net operating income and sound liquidity coverage metrics. Key Rating Drivers Business Model Focused on Microfinance Segment: Findep's IDRs are based on its standalone credit profile (SCP) which reflects its well-established franchise, its specialization in unsecured loans in the microfinance sector and its geographical diversification through its presence in some U.S. regions. The ratings also reflect its higher risk profile, high non-performing loan (NPL) metrics, robust liquidity coverage, low tangible leverage and strong profitability despite recent pressures. Geographical Diversification Supports SROE: The sector risk operating environment (SROE) score of 'bbb-' with a negative trend is above that of Mexican finance and leasing companies' (FLCs) at 'bb+' with a negative trend, and captures the company's operations in the U.S. through its subsidiary Apoyo Financiero Inc. (AFI). The negative trend on the SROE reflects macroeconomic pressures that may affect the entity's growth and asset quality. Stable Business Profile: Fitch raised Findep's business profile score to 'bb+' from 'bb'. Fitch's assessment reflects Findep's strong pricing structure, which has led to robust total net operating income despite adverse macroeconomic conditions. As of December 2025, Findep's four-year average total net operating income was close to USD268 million, which is higher than several Fitch-rated non-bank financial institutions in Latin America. The assigned score is below the implied due to Findep's focus on a high-risk segment of the population underserved by commercial banks. High Risk Profile Drives Elevated Delinquency Metrics: Asset quality score of 'b' is below the implied score within the 'bb' category due to Findep's high charge-offs, which are unfavorable compared with most rated Mexican NBFIs. As of March 2026, Findep exhibited a stable and high delinquency metric. The ratio of stage 3 loans to the total loan portfolio was 5.6% (5.9% as of December 2025). Net charge-offs remained high and represented 18.5% of the average gross loan portfolio. Fitch expects asset quality to remain under control following the entity's recent actions to strengthen its underwriting standards. High but Declining Profitability: A declining loan portfolio resulted in lower interest income on loans, which pressured profitability metrics. As of March 2026, pre-tax income represented around 7.4% of average assets, compared with a four-year average of 8.6%. This level remains commensurate with an implied score in the 'a' category. Fitch adjusted the assessment to a final score of 'bbb-' by applying a negative deviation for revenue diversification, reflecting Findep's concentration of loan interest income. Fitch expects this level to be sustained, supported by Findep's plans to keep impairment charges and operating expenses under control and to reduce financing costs. These measures are expected to offset likely revenue pressure. Low and Stable Tangible Leverage: The score for capitalization and leverage is 'bb+', below the implied score within the 'bbb' category, due to Findep's greater exposure to segments with a higher risk profile. Findep maintained a low and stable tangible leverage, supported by good earnings generation. As of March 2026, the core metric of total funding to tangible equity was 1x, slightly lower than 1.2x at December 2025. Fitch estimates that tangible leverage will remain low because of steady earnings generation and a growing capital base. Increased Funding, Liquidity and Coverage Score: Fitch raised the score of funding, liquidity and coverage to 'bb+' from 'bb', reflecting the company's proven high cash generation and sound maturity management. These factors resulted in strong liquidity coverage metrics. As part of its operations, the entity is reducing funding costs, which could change its funding structure. Fitch believes Findep's funding structure is exposed to market sentiment, as around 59% of its total debt as of March 2026 consisted of issuances in the international debt market. At March 2026, the entity had an unsecured debt-to-total debt ratio of close to 56%. Liquidity coverage is sound, as unrestricted cash covered short-term debt by 25x. Liquidity management is supported by quarterly loan collections of more than MXN2,000 million. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A ratio of cash and undrawn committed credit facilities to short-term funding sustained below 0.5x, together with a significant reduction in the unsecured debt share to consistently below 40% of total debt; - A weaker assessment of multijurisdictional SROE; - Significant asset quality deterioration and a sustained, significant decline in profitability, with the pre-tax-profit-to-total-assets ratio falling to and remaining consistently below 6%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A significant improvement in the entity's business profile with a meaningful increase in TNOI, while maintaining profitability and tangible leverage in line with recent metrics, as well as increased funding flexibility and liquidity coverage above 1x; - A sustained improvement in asset quality, with a significant reduction in charge-offs. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS Debt Rating: Findep's global debt issuance rating is in line with Findep's LT IDR, as the debt is senior unsecured. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The senior unsecured debt rating will mirror any changes to Findep's IDRs. It could be downgraded below Findep's IDRs if the level of unencumbered assets substantially deteriorates, subordinating bondholders to other debt. SUBSIDIARY AND AFFILIATE RATINGS: KEY RATING DRIVERS Subsidiary Ratings: AEF national ratings are equalized with Findep's, driven by Fitch's assessment under a group rating approach, given the company's large size relative to the consolidated group and its strong integration within the group. As of March 2026, AEF accounted for around 23% of Findep's consolidated total assets. SUBSIDIARY AND AFFILIATE RATINGS: RATING SENSITIVITIES AEF's national ratings will move in tandem with Findep's national ratings, which is consistent with the group rating approach. ADJUSTMENTS The Business Profile score has been assigned below the implied score due to the following adjustment reason: Business model (negative). The Asset Quality score has been assigned below the implied score due to the following adjustment reason: Loan charge-offs, depreciation or impairment policy (negative). The Earnings & Profitability score has been assigned below the implied score due to the following adjustment reason: Revenue diversification (negative). The Capitalization & Leverage score has been assigned below the implied score due to the following adjustment reasons: Risk profile and business model (negative). The Funding, Liquidity & Coverage score has been assigned below the implied score due to the following adjustment reason: Funding flexibility (negative). Summary of Financial Adjustments Prepaid expenses and other deferred assets were reclassified as intangibles and deducted from equity to reflect their low loss absorption capacity. Interest expenses related to leases were deducted from interest expenses and reclassified as other operating expenses. Public Ratings with Credit Linkage to other ratings AEF's ratings are linked to Financiera Independencia's ratings. ESG Considerations Financiera Independencia, S. A. B. de C. V., Sociedad Financiera de Objeto Multiple, Entidad No Regulada has an ESG Relevance Score of '4' for Exposure to Social Impacts due to the fact that its business model (individual loans to unbanked, low-income segments) is exposed to shifts of consumer or social preferences or to measures that the government could take to increase financial inclusion, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Financiera Independencia, S. A. B. de C. V., Sociedad Financiera de Objeto Multiple, Entidad No Regulada has an ESG Relevance Score of '4' for Customer Welfare - Fair Messaging, Privacy & Data Security because its business model has high lending rates to unbanked, lower-income segments of the population, exposing Findep to relatively high regulatory, legal and reputational risks, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Financiera Independencia, S. A. B. de C. V., Sociedad Financiera de Objeto Multiple, Entidad No Regulada LT IDR BB Affirmed BB ST IDR B Affirmed B LC LT IDR BB Affirmed BB LC ST IDR B Affirmed B Natl LT A+(mex) Upgrade A(mex) Natl ST F1+(mex) Upgrade F1(mex) senior unsecured LT BB Affirmed BB Apoyo Economico Familiar S. A. de C. V., Sociedad Financiera de Objeto Multiple, E. N. R. Natl LT A+(mex) Upgrade A(mex) Natl ST F1+(mex) Upgrade F1(mex) ===================== P U E R T O R I C O ===================== IES ELEVATOR: Hires Manuel Feliciano Rios as Financial Consultant ----------------------------------------------------------------- IES Elevator Group Corp. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Manuel Feliciano Rios, CPA, a professional practicing in San Juan, Puerto Rico, as financial consultant. The firm will render these services: (a) strategic counseling and advice; (b) pro forma modeling preparation; (c) financial/business assistance; (d) prepare documentation as requested for and during the Debtor's Chapter 11 case; and (e) as well as recommendations and financial/business assessments regarding issues specifically related to the Debtor. Mr. Feliciano Rios will be paid at his hourly rate of $165, plus expenses. The consultant received a retainer of $1,000 from the Debtor. Mr. Feliciano Rios disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The consultant can be reached at: Manuel E. Feliciano Rios, CPA 1519 Ave. Ponce De Leon Suite 605 San Juan, PR 00909 Telephone: (787) 586-0316 Email: manuel.felicianocpa@yahoo.com About IES Elevator Group Corp. IES Elevator Group Corp. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 26-01519) on April 1, 2026, with $0 to $50,000 in assets and $500,001 to $1 million in liabilities. The Debtor tapped Jesus Enrique Batista Sanchez, Esq., at The Batista Law Group, PSC as counsel and Manuel E. Feliciano Rios, CPA, as financial consultant. INCAR GROUP: Unsecured Creditors to Split $500,000 in Plan ---------------------------------------------------------- INCAR Group LLC filed with the U.S. Bankruptcy Court for the District of Puerto Rico a Disclosure Statement in support of Plan of Reorganization dated May 26, 2026. The Debtor is a limited liability company organized under the laws of Puerto Rico. The Debtor has been engaged in the ownership, management, operation, or development of commercial real property and related business activities. The Chapter 11 case was caused principally by collection activity and the challenged judicial sale or transfer affecting the Debtor's two principal real property assets. The Debtor contends that Pedro Correa Amil, Lisa Martínez Mangual, PLCA Investment Corp., and related parties obtained or attempted to obtain value from the Debtor's real property rights through a judicial-sale process or related transaction shortly before the bankruptcy case. The Debtor filed this Chapter 11 case to preserve estate value, protect the creditor body, prosecute or preserve estate claims, and propose a reorganization that may pay allowed claims in full if the disputed property rights are restored to the Debtor or the estate. The Plan is based on the Debtor's effort to recover and monetize disputed real property rights presently involved in an adversary proceeding. The Debtor does not ask the Court to adjudicate the adversary proceeding through confirmation. Instead, the Plan preserves that litigation and establishes how claims will be treated if the Debtor recovers the right to sell, mortgage, refinance, convey, or otherwise monetize one or both recovered real properties. The Plan uses a conservative funding projection. Although the Debtor has identified valuation materials reflecting values higher than the amount needed to pay allowed claims, the Plan assumes only $1,000,000 in estimated net proceeds from monetization of the recovered real properties. That figure is not a concession of value. It is a conservative feasibility assumption used to show that the Plan can pay allowed claims in full even if actual monetization produces materially less than the Debtor's asserted full valuation. From the assumed $1,000,000 in net proceeds, the Debtor projects total Plan payments of approximately $574,148, including principal payments of approximately $553,104 and projected 4% interest of approximately $21,044. Under that projection, the Debtor would retain an estimated surplus of approximately $425,852, subject to actual results, claim allowance, transaction costs, taxes, disputed-claim reserves, Court orders, and implementation risks. Class 4 consists of all allowed non-priority general unsecured claims. Class 4 is impaired because the Plan modifies the timing and source of payment. The Debtor's schedules and filed claims reflect total general unsecured claims of approximately $778,307. The Debtor does not concede that the full amount is allowed. The Debtor estimates allowed Class 4 claims at approximately $485,728, subject to claim objections, allowance, reconciliation, settlement, and further order of the Court. Each holder of an allowed Class 4 claim shall receive payment in full of the allowed amount of such claim, plus projected 4% interest. The projected total payment to allowed Class 4 claims is approximately $505,157. The Plan funding projection assumes that the Debtor will prevail in the pending adversary proceeding or otherwise recover the right to monetize the recovered real properties. The projection further assumes estimated net proceeds of $1,000,000. This $1,000,000 figure is conservative. It is not a concession that the recovered real properties are worth only $1,000,000. The conservative projection is used to demonstrate that the Plan can pay allowed claims in full even if actual monetization produces materially less than the Debtor's asserted full valuation. A full-text copy of the Disclosure Statement dated May 26, 2026 is available at https://urlcurt.com/u?l=SYHfrv from PacerMonitor.com at no charge. Counsel to the Debtor: Carlos A. Ruiz Rodriguiez LCDO. Carlos Alberto Ruiz, LLC P.O. Box 1298 Caguas, PR 00726 Telephone: (787) 286-9775 Facsimile: (787) 747-2174 Email: carlosalbertoruizquiebras@gmail.com About INCAR Group LLC INCAR Group LLC is a construction contractor based in Cidra, Puerto Rico. INCAR Group LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-03067) on July 1, 2025. In its petition, the Debtor estimated assets up to $50,000 and estimated liabilities between $500,000 and $1 million. The Debtor is represented by Carlos A. Ruiz Rodriguez, Esq. PUERTO RICO: 1st Cir. Says Bankruptcy Doesn't Shield Officials -------------------------------------------------------------- Carolyn Muyskens at law360.com reports that the First Circuit ruled that Puerto Rico's financial restructuring does not protect government officials from being sued in their personal capacities for alleged civil rights violations, rejecting the arguments of the territory's financial oversight board. About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico PROMESA petition is available at http://bankrupt.com/misc/1701578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agencies; Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case Web site https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. =========================================================== S T . V I N C E N T A N D T H E G R E N A D I N E S =========================================================== ST. VINCENT & GRENADINES: IMF Says Economy Has Shown Resilience --------------------------------------------------------------- The Executive Board of the International Monetary Fund (IMF) completed the Article IV Consultation for St. Vincent and the Grenadines. The authorities need more time to consider the publication of the Staff Report prepared for this consultation. St. Vincent and the Grenadines' economy has shown resilience in the face of repeated shocks, but vulnerabilities remain significant. Over the past six years, the country has been hit by the pandemic and two major natural disasters and is now facing an oil price shock stemming from the war in the Middle East. Consequently, the fiscal position has deteriorated markedly: deficits have widened and public debt has risen by 45 percentage points of GDP since 2019, with roughly half of the increase occurring in the last two years, to 113 percent of GDP in 2025. Growth moderated to 3.7 percent in 2025 as the post-pandemic rebound faded, although tourism and construction remained strong. Inflation continued to ease, averaging 0.9 percent, reflecting the unwinding of earlier external price shocks and smaller contributions from food, transport, and housing. The current account deficit widened to 20 percent of GDP in 2025, mainly driven by construction-related imports and increased profit repatriation by hotels, despite strong growth in tourism receipts. The fiscal deficit was 12 percent of GDP in 2025, 9 percentage points above its 2019 level. Bank credit to households and micro firms has been insufficient amid a fast expansion by credit unions and is projected to slow further as rising bank exposure to government debt crowds out private sector lending. Looking ahead, growth is expected to slow further in 2026-27, reflecting higher oil prices, a weaker global outlook, and the normalization of construction activity, before stabilizing at 2.7 percent over the medium term. Inflation is projected to rise sharply, reaching 2.9 percent by end-2026 due to higher commodity prices, before easing to around 2 percent. The current account deficit is projected to remain large, at around 20 percent of GDP in 2026, and narrow only gradually to 17 percent of GDP by 2031. Risks to the outlook are tilted to the downside. The country has been at high risk of debt distress since 2016, with fiscal indicators weakening further in recent years. The country is highly exposed to natural disasters, which could have significant fiscal impacts. Externally, a more prolonged war in the Middle East would further weaken growth, worsen the terms of trade, and raise inflation. A strong and sustained policy effort, centered on fiscal consolidation and supported by structural and financial sector reforms that support growth, is needed to reduce debt and strengthen resilience. Executive Board Assessment Executive Directors agreed with the thrust of the staff appraisal. They noted that the economy faces a challenging economic environment. Repeated external shocks have widened fiscal deficits, placed public debt on an unsustainable path, and increased external imbalances, while the war in the Middle East has worsened the near‑term outlook. Against this background, Directors welcomed the authorities’ commitment to tackling high and rising debt. They encouraged them to swiftly translate this commitment into concrete and feasible measures to reduce debt, while complementing them with growth‑promoting structural reforms. Most Directors called for urgent, upfront, and sustained fiscal consolidation to restore debt sustainability; while a few Directors would favor a more gradual adjustment to mitigate the social and economic impact. Directors agreed that the fiscal adjustment should rely primarily on expenditure rationalization, while protecting the vulnerable and safeguarding health and education spending. On the revenue side, preserving and broadening the tax base, enhancing tax administration, and carefully designing the planned citizenship‑by‑investment (CBI) program will also be important. Noting the recent emergency package to mitigate the impact from the war in the Middle East, Directors stressed that any support measures should remain timebound, well‑targeted, and calibrated. Directors supported the authorities’ plan to update the Fiscal Responsibility Framework, which would help anchor fiscal consolidation. Noting that fiscal consolidation alone will not be sufficient to restore debt sustainability, Directors called for a comprehensive strategy that also includes stronger public debt management, growth‑promoting structural reforms, and support from multilateral and bilateral partners. Directors stressed the importance of advancing structural reforms to boost growth and employment, improve debt dynamics, and reduce external imbalances. They agreed that the energy transition would lower electricity costs, reduce exposure to volatile energy prices, and strengthen resilience. Directors noted that improving the business environment would further support private sector development. They welcomed the authorities’ commitment to addressing skills mismatches and enhancing data adequacy. Directors stressed the importance of continued capacity building to support the authorities’ efforts. Directors recommended stronger oversight of credit unions and reforms to support adequate credit growth by strengthening existing intermediation channels. They also agreed that reducing the sovereign‑bank nexus through fiscal consolidation would support private credit growth. While supporting the authorities’ financial development goals, Directors encouraged careful consideration of the establishment of a national development bank given the associated fiscal risks. They welcomed continued efforts to strengthen the AML/CFT framework, including to mitigate risks associated with the planned CBI program. It is expected that the next Article IV consultation with St. Vincent and the Grenadines will be held on the standard 12‑month cycle. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: Moody's Alters Outlook on 'Ba2' Rating to Stable ------------------------------------------------------------------- Moody's Ratings has changed the Government of Trinidad & Tobago's outlook to stable from negative and affirmed the Ba2 long-term local and foreign currency issuer and senior unsecured ratings. The change in outlook to stable from negative reflects improved near-term external prospects, driven by higher projected oil and gas prices and a more favorable external maturity profile following an Eurobond issuance that supported the partial redemption of the $1 billion bond maturing in August 2026. Moody's expects higher projected oil and gas prices to boost export receipts, supporting the sustainability of the de facto peg to the US dollar and reducing the need for foreign-exchange reserve sales amid reduced capital outflows related to external debt service over the next two years. Together, these factors support Moody's projections that foreign-exchange reserves will remain between $3.5 billion and $4 billion, a level that provides adequate external debt-service and import coverage in the face of structural balance of payments pressures that Moody's expects to persist until new gas projects come onstream toward end-2027. The affirmation of the Ba2 ratings reflects a balance between Trinidad & Tobago's structural constraints as a mature hydrocarbon producer and its credit-supportive buffers and institutions. A secular decline in energy output constrains trend growth, revenue capacity and external accounts, but these pressures are partly offset by high income levels, political stability and moderate policy adjustment capacity. Fiscal risks from a high debt burden are mitigated by sizable financial buffers, notably the Heritage and Stabilization Fund (HSF), which provides a fiscal financing backstop and helps absorb shocks. Moody's expects these buffers to remain sufficient to mitigate fiscal and external vulnerabilities over the medium term, despite persistent energy-related structural challenges. Local currency (LC) and foreign currency (FC) country ceilings remain unchanged at Baa2 and Ba1, respectively. The three-notch gap of the LC ceiling at Baa2 with the sovereign rating reflects the economy's significant exposure to the hydrocarbon sector with spillovers to activity in the non-energy sector, balanced by moderate exposure to domestic and geopolitical risk. The FC ceiling remains at Ba1. The two-notch gap with the LC ceiling captures potential transfer and convertibility risks reflected in the track record of balance of payments weakness over the past few years, which has contributed to reported foreign exchange supply constraints and may affect the import capacity of small and medium-sized businesses. RATINGS RATIONALE RATIONALE FOR THE STABLE OUTLOOK HIGHER ENERGY PRICES AND IMPROVED MATURITY PROFILE REDUCE NEAR-TERM EXTERNAL RISKS UNTIL GAS PRODUCTION INCREASES IN LATE 2027 Moody's expects higher oil and gas prices over 2026–27 to support Trinidad & Tobago's balance of payments by lifting export receipts and foreign-exchange inflows. This improvement helps mitigate the secular decline in liquid foreign-exchange reserves (defined as gross reserves minus gold and SDR) that Moody's expects to persist until new gas projects come onstream toward the end of 2027. In Moody's baseline, reserve levels stabilize at about $3.5-$4 billion during 2026, close to the $4 billion Moody's estimated as of April 2026, providing full annual external debt-service coverage and import coverage at about four months, which is sufficient to avoid high balance of payments and external vulnerability pressures up to 2027, when hydrocarbon production increases and boosts foreign-exchange reserves. The improved terms of trade also support the sustainability of the de facto peg to the US dollar, reducing pressures for foreign-exchange sales to address reported domestic FX liquidity supply constraints. Proactive liability management has further reduced external vulnerability. In January 2026, the government issued a $1 billion eurobond and redeemed almost $600 million out of the $1 billion bond maturing in August 2026. This transaction smoothed the external repayment profile, reduced near-term amortizations and extended maturities, thereby lowering rollover risk and projected capital outflows over the next two years. Nevertheless, despite Moody's expectations of a stronger current account, structural balance of payments pressures will likely persist via the financial account, reflecting profit repatriation by energy companies, transfer pricing practices and other financial account leakages. This underscores that, for a mature hydrocarbon producer like Trinidad & Tobago, production volumes matter more than prices to stabilize the external position. When production has been declining, as is currently the case, Moody's do not expect higher prices alone to sustainably generate sufficient inflows to stabilize the external position in a durable way. Moody's, however, expect a meaningful boost to oil and gas production from late 2027, following final investment decisions taken on several large upstream projects, which would lift production for several years. Natural gas output is projected to increase as new fields come onstream, including Manatee, Ginger and Aphrodite, which combined will lift production toward around 3.0–3.5 billion cubic feet per day (bcfd) from 2.5 bcfd currently. Crude oil production is also expected to recover gradually, reversing part of the decade-long decline. This anticipated production ramp-up will structurally elevate export receipts, support trend growth and help rebuild foreign exchange reserves, strengthening the credit profile. RATIONALE FOR THE Ba2 AFFIRMATION The affirmation of the Ba2 rating balances Trinidad & Tobago's comparatively high income levels and substantial fiscal buffers, including the HSF and estimated cash/cash equivalent reserves totaling about 32% of GDP in fiscal 2025 (ending in September 2025), against a high government debt burden at 84% of GDP and moderate capacity for monetary and fiscal policy adjustment. While fiscal risks are mitigated by these buffers, the credit profile remains exposed to the economy's dependence on price and output developments in the energy sector, which accounted for about 25% of nominal GDP on average over the past five years, 35% of fiscal revenue and 80% of exports. Trinidad & Tobago's fiscal profile has deteriorated over the past decade in line with weakening trend growth and energy revenue, and Moody's projects the adjusted general government debt-to-GDP ratio (defined as central government debt plus non-self serviced government guaranteed debt of SOEs and statutory bodies) to peak at about 85% in fiscal 2026 before declining thereafter. Despite an increase in the debt burden and a tighter liquidity environment, the government's debt affordability has not worsened materially since it benefits from low-cost financing options. These include withdrawals from the HSF of about $370 million (1.4% of GDP) in fiscal 2024 and $410 million (1.6% of GDP) in fiscal 2025 as a result of significant energy revenue underperformance relative to the budget target. In addition, the government has resorted to central bank overdrafts over the past few years. Over the next two years, Moody's expects the interest-to-revenue ratio to remain below 14%, in line with rating peers. ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) RISKS Trinidad & Tobago's ESG Credit Impact Score at CIS-4 reflects the credit profile's exposure to environmental risk derived from carbon transition risk as a mature carbon producer amid contained physical climate and water management risks. Trinidad & Tobago's (T&T) E-5 assessment is driven by carbon transition risk. T&T is a mature hydrocarbon producer facing a natural production decline, with proven gas reserves covering about 11 years of production. Based on final investment decisions taken, Moody's expects new gas projects come onstream at the end of 2027 and expand gas production by about 25%. T&T's Atlantic LNG infrastructure also underpins the government's regional hub strategy aimed at collecting and re-exporting gas from new regional producers. However, the overall weak energy production trend weighs on T&T's growth outlook and on the ability to replenish the economy's foreign exchange reserve buffers that have declined over the past decade. Exposure to social risks at S-3 indicates that social considerations historically have not materially impacted Trinidad & Tobago's credit profile, supported by an ample social safety net and a "very high" tier ranking in the Human Development Index.The government has also been able to lower the recorded homicide rate to 27 per 100,000 people in 2025 from a peak of 45.7 in 2024 as a result of stronger security measures adopted under prolonged states of emergency first implemented in December 2024. The influence of governance on Trinidad & Tobago's credit profile is moderate (G-3 issuer profile score) but benefits from significant efforts in recent years to improve data reporting and reduce data limitations and institutional constraints that limit the government's capacity to execute fiscal policy. GDP per capita (PPP basis, US$): 35,956 (2025) (also known as Per Capita Income) Real GDP growth (% change): 0.5% (2025) (also known as GDP Growth) Inflation Rate (CPI, % change Dec/Dec): 0.4% (2025) Gen. Gov. Financial Balance/GDP: -4.6% (2025) (also known as Fiscal Balance) Current Account Balance/GDP: 4.8% (2025) (also known as External Balance) External debt/GDP: 62.9% (2025) Economic resiliency: ba1 Default history: At least one default event (on bonds and/or loans) has been recorded since 1983. On June 09, 2026, a rating committee was called to discuss the rating of the Trinidad & Tobago, Government of. The main points raised during the discussion were: The issuer's economic fundamentals, including its economic strength, have not materially changed. The issuer's institutions and governance strength have not materially changed. The issuer's fiscal or financial strength, including its debt profile, has not materially changed. The issuer's susceptibility to event risks has not materially changed. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Prospects of a sustained, medium term increase in hydrocarbon output that leads to a more permanent rebuilding of foreign-exchange reserves, sustainably reducing external vulnerability, would support a higher rating. A sustained decline in the debt-to-GDP ratio, underpinned by credible fiscal consolidation and structural non-energy revenue gains, would also be credit positive. A shift toward reduced economic energy sector dependence would also support an upgrade. Downward pressure could arise if foreign-exchange reserves decline consistently below $3.5 billion, undermining confidence in the capacity to stabilize external accounts and the sustainability of the de facto peg to the US dollar. Although not Moody's baseline, in a worst-case scenario where the pace of drawdown accelerates and reserves fall below three months of imports, or where the expected price uplift or production ramp-up in 2027 fails to provide a sufficient backstop, a multi-notch downgrade could result over time. Failure to implement fiscal reforms, leading to persistent deficits and a debt burden rising significantly above current debt levels, would signal weaker institutions and governance effectiveness, consistent with a lower rating. The principal methodology used in these ratings was Sovereigns published in May 2026. The weighting of all rating factors is described in the methodology used in this credit rating action, if applicable. 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. =============== X X X X X X X X =============== LATAM: World Bank Warns of Slower Growth Across Region ------------------------------------------------------ Buenos Aires Times reports that the World Bank revised down its 2026 growth forecast for Latin America and the Caribbean to 2.2 percent in 2026, citing the weakening global economy amid energy-related uncertainty. The report explained that the figure reflects "still weak domestic demand and reduced momentum in the global economy," according to Buenos Aires Times. The region is expected to strengthen gradually again in 2027 (2.5 percent) and 2028 (2.8 percent), "as monetary policy is eased and global conditions improve," according to the institution’s experts, the report notes. "Investment is expected to be a key driver of the medium-term recovery, accelerating during 2027-28 as monetary easing gathers pace," they added. Against this backdrop of relative sluggishness, Argentina stands out, with growth of 3.6 percent over the 2026–28 period, "driven by exports, but constrained by restrictive domestic monetary and fiscal policies," the report relays. Brazil is expected to grow by 1.9 percent this year, while Colombia is forecast to expand by 2.3 percent, supported by their status as oil exporters, the report discloses. Mexico has also remained relatively insulated from the energy price crisis, but uncertainty surrounding negotiations over its free trade agreement with the United States and Canada is weighing on the outlook, and the country is expected to grow by only 1.3 percent this year, the report notes. "The rise in oil prices will increase import costs and intensify inflationary pressures in net energy-importing countries. However, economies such as Chile and Peru will benefit in part from elevated metals prices," the report noted, Buenos Aires Times relays. Central America and the Caribbean, sub-regions that import more energy than they export, remain exposed to external volatility. Only remittances and relatively stable domestic demand are sustaining growth, the report says. "Labour market challenges persist across the region, reflecting weak formal job creation, high levels of informality and modest income growth, which continue to affect productivity, consumption and poverty reduction," the World Bank concluded, the report adds. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2026. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *