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T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, June 22, 2026, Vol. 27, No. 123
Headlines
A R G E N T I N A
TELECOM ARGENTINA: Fitch Affirms 'B-/B' IDRs, Outlook Stable
B A H A M A S
FTX GROUP: Exec's Wife Must Face Campaign Finance Charges
FTX GROUP: Trust Drops $1B Ch. 11 Clawback Against Genesis Digital
B E R M U D A
SEADRILL LIMITED: Moody's Upgrades CFR to Ba3, Outlook Stable
B R A Z I L
BADESC: Fitch Affirms 'BB/B' IDRs, Outlook Stable
BRAZIL: Lula Signs Decree to Freeze Illegal Betting Platform Funds
DESENVOLVE SP: Fitch Affirms 'BB/B' Foreign Currency IDRs
RELIZ TECHNOLOGY: Gets Final OK to Use Cash Collateral
M E X I C O
GRUPO TELEVISA: Moody's Cuts CFR to Ba2 & Alters Outlook to Stable
P A R A G U A Y
FRIGORIFICO CONCEPCION: Fitch Lowers LongTerm IDRs to 'CC'
P U E R T O R I C O
PHOENIX FUND: Seeks to Extend Plan Exclusivity to Sept. 21
T R I N I D A D A N D T O B A G O
[] Moody's Takes Actions on 2 Trinidad & Tobago Non-Financial Cos.
V E N E Z U E L A
CITGO PETROLEUM: Venezuela Wins Bid to Delay Hearing in Sale Case
V I R G I N I S L A N D S
IDC OVERSEAS: Fitch Affirms 'B' LongTerm IDRs, Outlook Stable
X X X X X X X X
LATAM: Exports from Latin America and the Caribbean Rise 15.7%
- - - - -
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A R G E N T I N A
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TELECOM ARGENTINA: Fitch Affirms 'B-/B' IDRs, Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed Telecom Argentina S.A.'s (Telecom)
ratings, including its Long-Term Foreign Currency (FC) Issuer
Default Rating (IDR) at 'B-', Long-Term Local Currency (LC) IDR at
'B', and senior unsecured notes at 'B' with a Recovery Rating of
'RR3'. The Rating Outlook is Stable.
Telecom's ratings reflect Fitch's expectation that the company will
continue mitigating inflationary pressures while maintaining its
strong market position and solid credit profile. Despite
macroeconomic instability in Argentina, where the majority of
Telecom's operations and assets are located, the company has
historically managed to pass on most inflation effects to
consumers, alleviating some macroeconomic risks. For rated
Argentine corporates whose LC IDR exceeds their FC IDR, Fitch
aligns the foreign-currency issue rating with the issuer's LC IDR.
In these cases, Fitch assigns Recovery Ratings of 'RR3', allowing
for a one-notch uplift from the FC IDR.
Telecom's robust financial and operational profile is supported by
strong cash flow generation, a relatively conservative capital
structure, and competitive strengths in both fixed and mobile
services. The acquisition of Telefonica Moviles Argentina's (TMA)
operation will consolidate Telecom's market position, improve
network quality and reduce competition, with minimal impact on its
financial structure.
Key Rating Drivers
Country Ceiling Limits FC Ratings: Telecom's Long-Term FC IDR is
limited by Argentina's 'B-' Country Ceiling. Fitch believes any
default by the company would likely stem from transfer and
convertibility restrictions rather than a significant decline in
operational performance.
Strong Operator, Weak Operating Environment: Telecom is Argentina's
leading integrated operator, with strong competitive positions in
both fixed and mobile services. Following the TMA transaction in
2025, the company is consolidated but operates independently,
pending the regulator's final decision. Targeted margin initiatives
at both entities support Fitch's projected consolidated EBITDA
margin of around 32% between 2026 and 2028, according to Fitch
calculations. Telecom has historically adjusted service prices to
offset rising costs.
However, Argentina's Operating Environment (OE) limits Telecom's
ratings and reflects Argentina's current macroeconomic conditions.
Fitch expects inflation to continue rising and FX depreciation to
continue, but at a slower pace, in the short to medium term. A
sustained decline in inflation and easing of FX controls could
further support company's performance.
Solid Financial Structure: Telecom's financial structure is among
the strongest Fitch-rated telecom companies in the region. Fitch
expects debt/EBITDA of about 1.3x and cash flow from operations
(CFO)-capex/debt of about 7.0% in 2026, improving through 2028 to
about 1.2x and the mid-teens, respectively. Free cash flow (FCF)
margins are projected from slightly negative to 2%, reflecting
capex intensity of 20%-21% of revenue and dividend payments of
around USD300 million. Capex is focused primarily on accelerating
5G and fiber-to-the-home deployment, developing a digital ecosystem
for the business-to-business segment and upgrading TMA's network to
industry standards.
Stand-Alone Credit Profile (SCP) Pre-OE Limited by Financial
Flexibility: Telecom's pre-OE SCP is negatively impacted by
Argentina's weak Financial Access score and the company's exposure
to FX volatility. Telecom is largely exposed to foreign exchange
(FX) risk. Approximately 80% of debt is USD-denominated, while the
company generates most revenue in local currency, exposing cash
flow to currency fluctuations. USD-denominated assets provide a
partial offset. However, Telecom has demonstrated access to both
local and, more recently, international financial markets,
including USD-denominated notes due in 2029 and 2036 to refinance
the TMA transaction.
Peer Analysis
Telecom's ratings compare with those of Argentine issuers YPF S.A.
(YPF; B-/Stable) and Arcor S.A.I.C. (Arcor; B/Stable), which
experience rating constraints from the difficulties of operating in
Argentina despite their solid business and capital structures.
Arcor's ratings are higher than those of YPF and Telecom because it
has operations in Brazil and holds cash abroad in its foreign
subsidiaries.
Telecom's business and financial profile are similar or superior to
regional investment-grade telecom companies like Empresa Nacional
de Telecomunicaciones S.A. (BBB-/Stable). Telecom also has a
similar or stronger capital structure, market position or service
diversification than telecoms players rated in the 'BB' range, like
Telefonica Moviles Chile S.A (BB-/Stable), Colombia
Telecomunicaciones S.A E.S.P. BIC (BB+/Stable) or Empresa de
Telecomunicaciones de Bogota (BB/Stable).
Fitch’s Key Rating-Case Assumptions
- The company is able to pass on most of the impacts of inflation
to consumers each year;
- Low-single -digit growth of mobile subscribers and fixed
broadband subscribers;
- Fitch includes TMA's operations
- EBITDA margins around 31% to 32%
- Capital intensity of about 20% in the medium term
- Annual dividend payments around USD300 million.
Corporate Rating Tool Inputs and Scores
Fitch scored the issuer as follows, using its Corporate Rating Tool
(CRT) to produce the Standalone Credit Profile (SCP):
Business and financial profile factors (assessment, relative
importance): management ('bbb', Lower), sector characteristics
('bb+', Moderate), market and competitive positioning ('bbb+',
Moderate), diversification and asset quality ('bb+', Moderate),
company operational characteristics ('bbb', Moderate),
profitability ('bbb', Moderate), financial structure ('bbb+',
Moderate), and financial flexibility ('bb-', 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.
The governance assessment of 'good' has no impact.
The operating environment assessment of 'b-' results in an
adjustment of -2 notch(es).
The other risk elements adjustment applies and results in an
adjustment of -1 notch(es).
The SCP is 'b'.
To derive the Long-Term IDR:
For the LC IDR, Fitch made no adjustments to the SCP, resulting in
a LC IDR of 'B'.
For the FC IDR, Country Ceiling considerations apply and result in
an adjustment of -1 notch(es), resulting in a FC IDR of 'B-'.
Recovery Analysis
For going-concern EBITDA, Fitch assumes Telecom would be unable to
pass on to consumers a significant percentage of Argentina's
projected inflation, while the company's expenses would rise with
inflation. Under this scenario, EBITDA margins drop significantly.
EBITDA reflects the consolidated operation of TMA. Fitch uses a 4x
multiple, lower than the average telecom enterprise value-to-EBITDA
multiple of 5x to 7x, to apply a discount for Argentine assets.
Although Fitch's recovery methodology suggests a Recovery Rating of
'RR2' for Telecom, the methodology also applies a standard cap of
'RR4' for instrument ratings in Argentina. Fitch applies
country-specific caps to instrument ratings for a given
jurisdiction, reflecting its view that average recoveries could be
lower in regimes that are debtor-friendly and/or have weak
enforceability and higher in regimes that are creditor-friendly
and/or have strong enforceability. The caps limit the assignment of
higher Recovery Ratings for obligations of issuers that are
incorporated or whose assets or cash flows are in less
creditor-friendly jurisdictions.
Local Currency IDR and Security Ratings: For rated Argentine
corporates whose LC IDR exceeds their FC IDR, Fitch aligns the
foreign-currency issue rating with the issuer's LC IDR as it
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 of 'RR3',
above Argentina's Recovery Rating of 'RR4', allowing for a
one-notch uplift from the FC IDR.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Telecom's FC IDR is bound by Argentina's 'B-' Country Ceiling;
therefore, a downgrade of the Argentina Country Ceiling would
result in a downgrade of Telecom.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Telecom's FC IDR is bound by Argentina's 'B-' Country Ceiling;
therefore, an upgrade of the Argentine sovereign rating and
concurrent upgrade of the Argentine Country Ceiling or an increase
in the company's geographical diversification would result in an
upgrade of Telecom;
Telecom's LC IDR is constrained by the weak Argentine operating
environment; therefore, a decrease in macroeconomic turmoil could
result in an upgrade of Telecom.
Liquidity and Debt Structure
Telecom maintains sufficient liquidity, with ARS771 billion in cash
available and investments against ARS760 billion in short-term debt
as of December 2025. The company also possesses ample borrowing
capacity in local capital markets. The majority of Telecom's cash
and debt is denominated in U.S. dollars. The new unsecured notes
for USD681 million were used to refinance bank loans for USD182
million used to acquire TMA, for 2026 notes, and for other bank
loans.
While Telecom has smaller operations outside of Argentina in
Paraguay, Uruguay, Chile and the U.S., Fitch does not view these
operations as substantial enough to bypass the Argentine Country
Ceiling (B-).
Telecom's refinancing risk is deemed manageable. The company's
liquidity and financial flexibility are bolstered by strong cash
flow, which Fitch expects to sufficiently cover capital
expenditure. Telecom also has a longstanding track record of
refinancing and rolling over bank debt and loans from international
agencies, such as the International Finance Corporation and
Inter-American Development Bank (IDB).
Issuer Profile
Telecom is the largest integrated telecommunications services
provider in Argentina, offering broadband, pay TV and fixed and
mobile telecommunications services throughout the country. The
company also has smaller operations in Paraguay, Uruguay, Chile and
the U.S.
Summary of Financial Adjustments
Lease adjustments are included in the EBITDA calculation.
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 Telecom Argentina S.A..
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Telecom Argentina S.A.
LT IDR B- Affirmed B-
LC LT IDR B Affirmed B
senior unsecured LT B Affirmed RR3 B
=============
B A H A M A S
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FTX GROUP: Exec's Wife Must Face Campaign Finance Charges
---------------------------------------------------------
Hailey Konnath at law360.com reports that a New York federal judge
on June 17, 2026 refused to throw out an indictment accusing crypto
lobbyist Michelle Bond of campaign finance crimes, rejecting her
argument that prosecutors previously promised her husband, a former
FTX executive, that his guilty plea would mean she's in the clear.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9, 2022, struck a deal to
sell itself to its giant rival Binance, but Binance walked away
from the deal amid reports on FTX regarding mishandled customer
funds and alleged US agency investigations. SBF agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
billion in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year.
According to Reuters, SBF shared a document with investors on Nov.
10, 2022, showing FTX had $13.86 billion in liabilities and $14.6
billion in assets. However, only $900 million of those assets were
liquid, leading to the cash crunch that ended with the company
filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims
agent, maintaining the page
https://cases.ra.kroll.com/FTX/Home-Index
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
FTX GROUP: Trust Drops $1B Ch. 11 Clawback Against Genesis Digital
------------------------------------------------------------------
Clara Geoghega at law360.com reports that the recovery trust
created under former crypto platform FTX Trading Ltd.'s Chapter 11
plan walked away from a $1.15 billion fraudulent transfer lawsuit
it launched last fall in Delaware bankruptcy court against crypto
mining firm Genesis Digital Assets Ltd.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9, 2022, struck a deal to
sell itself to its giant rival Binance, but Binance walked away
from the deal amid reports on FTX regarding mishandled customer
funds and alleged US agency investigations. SBF agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
billion in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year.
According to Reuters, SBF shared a document with investors on Nov.
10, 2022, showing FTX had $13.86 billion in liabilities and $14.6
billion in assets. However, only $900 million of those assets were
liquid, leading to the cash crunch that ended with the company
filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims
agent, maintaining the page
https://cases.ra.kroll.com/FTX/Home-Index
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
=============
B E R M U D A
=============
SEADRILL LIMITED: Moody's Upgrades CFR to Ba3, Outlook Stable
-------------------------------------------------------------
Moody's Ratings upgraded Seadrill Limited's (Seadrill) Corporate
Family Rating to Ba3 from B1 and the Probability of Default Rating
to Ba3-PD from B1-PD. The SGL-1 Speculative Grade Liquidity rating
was unchanged. At the same time, Moody's assigned a B1 rating to
the proposed backed senior unsecured notes due 2034 issued by
Seadrill Finance Limited. Proceeds from the offering will be used
to fully redeem the company's $575 million B2 senior secured
second-lien notes due 2030, which remains unchanged and will be
withdrawn upon redemption. The rating outlook remains stable for
both issuers.
"The upgrade reflects Seadrill's strong earnings growth, solid
contract backlog, and continued commitment to maintain financial
discipline," stated Thomas Le Guay, a Moody's Ratings Vice
President. "Seadrill will benefit from gradually increasing demand
for offshore drilling and continue growing its earnings into 2027,
with a simplified capital structure and longer maturity profile."
RATINGS RATIONALE
Seadrill's Ba3 CFR is supported by its high-quality offshore rig
fleet that has significant collateral value and competitive
advantages; its substantial backlog of $3.1 billion as of May 11,
2026 providing good medium term cash flow visibility; its operating
track record as one of the leading contract drillers serving the
offshore oil and gas industry; and low financial leverage of 2.1x
Moody's-adjusted debt / EBITDA for the twelve months to March 31,
2026. Moody's expects Seadrill to continue to sustain its stated
conservative financial policies, including holding net leverage
under 1.0x in the current market conditions, maintaining strong
liquidity and managing shareholder distributions, growth spending
and potential acquisitions prudently. Offshore rig demand and day
rates are expected to remain resilient through 2027 amid
constrained oil supply from the Middle East and heightened focus on
energy security globally.
Seadrill's CFR is constrained by its significant exposure to
re-contracting risks and the capital-intensive nature of its
operations, including a very high fixed cost base. Offshore rig
utilization and dayrates are inherently cyclical and sensitive to
upstream capital spending. Oil and gas prices need to stay above
mid-cycle levels to attract continued upstream investment and allow
Seadrill to successfully recontract its fleet over time.
The new senior unsecured notes are rated B1, one notch below the
Ba3 CFR, given their subordinated position within Seadrill's
capital structure relative to the $225 million secured revolving
credit facility (unrated). The revolver has a priority secured
claim over substantially all of Seadrill's assets. The notes are
fully and unconditionally guaranteed on a senior unsecured basis by
all of Seadrill's subsidiaries that are also guarantors under the
secured revolving credit facility. Seadrill's $50 million senior
unsecured convertible notes (unrated) due 2028 issued at Seadrill
Limited rank junior to the senior unsecured notes given the absence
of guarantee from Seadrill Finance Limited.
Seadrill's SGL-1 rating reflects very good liquidity through 2027.
As of March 31, 2026, the company had $304 million of available
cash and cash equivalents and $178 million of availability under
its $225 million revolving credit facility which was recently
upsized and extended to June 2031. Moody's expects Seadrill to
generate small positive free cash flow in 2026 after funding for
periodic surveys and rig mobilization costs and meaningfully higher
levels of free cash flow in 2027. Moody's expects Seadrill to
remain comfortably in compliance with its covenants through 2027,
including Consolidated Total Net Leverage Ratio below 3.0x and
Interest Coverage Ratio above 2.5x.
The stable outlook reflects Seadrill's significant revenue backlog,
low leverage and very good liquidity.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade would require Seadrill to generate consistent positive
free cash flow, to maintain a high fleet utilization and a robust
backlog in a supportive industry environment, while sustaining
Debt/EBITDA below 1.5x.
The ratings could be downgraded if earnings and backlog decline
materially, if Seadrill generates negative free cash flow or the
debt/EBITDA ratio rises above 2.5x in a challenging industry
environment. Any large leveraging acquisition or shareholder
distribution could also trigger a downgrade.
Seadrill Limited is a large international provider of offshore
contract drilling services to the oil and gas industry. Seadrill's
active rig fleet is comprised of 14 high-quality modern rigs,
including 10 owned drillships, 2 managed drillships, 1
semi-submersible and 1 jack-up. The company had $2.5 billion of
contracted backlog as of as of August 06, 2025.
The principal methodology used in these ratings was Oilfield
Services published in October 2025.
The net effect of any adjustments applied to rating factor scores
or scorecard outputs under the primary methodology(ies), if any,
was not material to the ratings addressed in this announcement.
===========
B R A Z I L
===========
BADESC: Fitch Affirms 'BB/B' IDRs, Outlook Stable
-------------------------------------------------
Fitch Ratings has affirmed Agencia de Fomento do Estado de Santa
Catarina S.A. - Badesc's (Badesc) Long-Term Local and Foreign
Currency Issuer Default Ratings (IDRs) at 'BB', Short-Term IDR's at
'B' and Shareholder Support Rating (SSR) at 'bb'. Fitch also
affirmed the company's Long-Term National Rating at 'AAA (bra)' and
Short-Term National Rating at 'F1+(bra)'. The Rating Outlook for
the Long-Term IDR's and National Rating remain Stable.
Key Rating Drivers
Ratings Driven by SSR: Badesc's ratings are driven by the SSR,
which reflects Fitch's opinion of the State of Santa Catarina's
ability and propensity to provide support if needed. The ability
assessment reflects Fitch's opinion of the the shareholder's credit
quality. The propensity assessment is driven by Badesc's core role
in Santa Catarina's development and economic growth.
Public Mission Role: Badesc's SSR is strongly influenced by its
core role in promoting the State of Santa Catarina's economic
growth and social development. Its strategy aligns with regional
development objectives and regional government policy. The
institution focuses on microfinance, local corporations and
financing municipalities' development projects and initiatives.
Fitch also considers Badesc's size relative to Santa Catarina's
financial capacity, the high reputational risk and the high level
of operational integration between the two entities.
Stable Financial Profile: Badesc's financial profile is stable.
However, because its ratings are based on support from its parent,
its financial performance is only moderately important to Fitch's
assessment of support propensity.
Adequate Delinquency, Good Profitability: In 2025, Badesc reported
loan growth of 11% from 2024, driven by the expansion of its
private-sector portfolio. Asset quality metrics were satisfactory
during the year. Impaired loans were 6.5%, and the coverage ratio
was 65.2%. Fitch expects Badesc to maintain adequate asset quality
metrics. Profitability remains good, reflected in a high pre-tax
profit-to-average assets ratio of 10.4% at end-2025 and four
year-average of 9.19%. Fitch expects profitability to remain good
in 2026.
Robust Capitalization, Strong Liquidity: Badesc has a comfortable
capital structure. Its Fitch debt-to-tangible equity ratio was a
low 0.62x at YE 2025, while the Common Equity Tier 1 ratio also
remained strong at 69.3%. Both metrics were stable over the past
year. Badesc's liquidity position is strong. Excluding capital,
Badesc's main funding source consists of federal government credit
lines provided through government entities and funds. These lines
are well matched to the related loan portfolio. The entity is also
diversifying its funding sources domestically and internationally
to support future growth.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
IDRs, SSR and National Ratings
- The ratings could be affected by a negative change in Fitch's
assessment of Santa Catarina's credit quality.
- If Fitch perceives a decrease in the entity's strategic
importance to policy role from Santa Catarina.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
IDRs and SSR
- The IDR and SSR are currently at the sovereign level with a
limited upside potential.
National Ratings
- The National Scale Ratings of Badesc are at the highest level on
the national scale; therefore, they cannot be upgraded.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Agencia de Fomento do
Estado de Santa Catarina S.A.
– Badesc
LT IDR BB Affirmed BB
ST IDR B Affirmed B
LC LT IDR BB Affirmed BB
LC ST IDR B Affirmed B
Natl LT AAA(bra) Affirmed
AAA(bra)
Natl ST F1+(bra) Affirmed
F1+(bra)
Shareholder Support bb Affirmed bb
BRAZIL: Lula Signs Decree to Freeze Illegal Betting Platform Funds
------------------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that Brazilian
President Luiz Inacio Lula da Silva has signed a decree allowing
the government to freeze funds from companies operating illegal
online betting platforms, with the money to be directed to
public security actions, he said in a social media post.
Finance Minister Dario Durigan said next to Lula that frozen
funds would be sent to the Justice Ministry for legal review
before being directed to the National Public Security Fund,
according to globalinsolvency.com.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian
general election. He was sworn in on January 1, 2023, as the 39th
president of Brazil, succeeding Jair Bolsonaro.
In October 2024, Moody's Ratings upgraded the Government of
Brazil's long-term issuer and senior unsecured bond ratings to Ba1
from Ba2, the senior unsecured shelf rating to (P)Ba1 from (P)Ba2;
and maintained the positive outlook. S&P Global Ratings raised on
Dec. 19, 2023, its long-term global scale ratings on Brazil to
'BB' from 'BB-'. Fitch Ratings affirmed on Dec. 15, 2023, Brazil's
Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with
a Stable Outlook. DBRS' credit rating for Brazil was last reported
at BB with stable outlook at July 2023.
DESENVOLVE SP: Fitch Affirms 'BB/B' Foreign Currency IDRs
---------------------------------------------------------
Fitch Ratings has affirmed Desenvolve SP - Agencia de Fomento do
Estado de Sao Paulo S.A.'s (Desenvolve SP) Long- and Short-Term
Local and Foreign Currency Issuer Default Ratings (IDRs) at 'BB'
and 'B', respectively, and the Shareholder Support Rating (SSR) at
'bb'. Fitch has also affirmed the Long- and Short-Term National
Ratings at 'AAA(bra)' and 'F1+(bra)', respectively. The Rating
Outlook for the Long-Term IDRs and National Rating is Stable.
Key Rating Drivers
Ratings Driven by SSR: Desenvolve SP's IDRs and national ratings
are driven by its SSR of 'bb'. The SSR is based on Fitch's
assessment of expected support from the agency's parent, the State
of São Paulo (São Paulo, IDRs 'BB'/Stable, National Ratings
'AAA(bra)'/Stable). Fitch's assessment of São Paulo's capacity to
provide support reflects its credit quality while its propensity to
support is mainly driven by Desenvolve SP's core role for the
development and economic growth of Sao Paulo.
Public Mission Role: Fitch considers Desenvolve SP a core
subsidiary of the state, and its SSR is highly influenced by its
public mission role. Desenvolve SP promotes the State of Sao
Paulo's economic growth and social development. Its strategy is
aligned with regional development objectives and is highly
influenced by regional government policy. Desenvolve SP is focused
on microfinance and local corporations, as well as financing
municipalities' development projects and initiatives.
Stable Financial Profile: Desenvolve SP's financial profile remains
stable. Although its ratings are based on support from its parent,
its financial performance is only moderately important to Fitch's
assessment of support propensity.
Improving Asset Quality, Strong Profitability: Desenvolve SP's
impaired loans/gross loans ratio fell to 7.3% in 2025, from 9.7% a
year earlier, extending the recovery trend following the
delinquency peak in 2023, which was driven by loans originated
during the pandemic period. Loan loss reserve coverage also
improved materially, rising to 105% from 65%, strengthening the
entity's provisioning buffer against remaining asset-quality
pressures. The strong profitability reflects higher income on
loans, gains with securities and fee income. Loan loss provisions
fell by half, reflecting the recovery of loan activity.
Comfortable Capitalization Metrics, High Liquidity: Desenvolve SP's
capitalization remains strong. Despite dividend distributions
during the year, debt/tangible equity remained low at 0.2x while
its Common Equity Tier 1 ratio stood at 70.2% at end-December 2025.
The entity also maintains a highly liquid balance sheet, funded
predominantly by equity, on-lending from official entities and
multilateral institutions, with funding well matched to the
corresponding loan portfolio.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
IDRs, SSR and National Ratings
The ratings could be affected by a reduction of propensity or
capacity from São Paulo to provide support, although Fitch does
not anticipate such a change.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
IDRs, SSR
The IDR and SSR are at the same level as the sovereign with limited
upgrade potential.
National Ratings
Desenvolve SP's National Ratings are at the highest level on the
national scale; therefore, they cannot be upgraded.
Public Ratings with Credit Linkage to other ratings
Desenvolve SP's ratings are driven by the SSR of the State of São
Paulo (BB/Stable)
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Desenvolve SP – Agencia de
Fomento do Estado de Sao Paulo S.A.
LT IDR BB Affirmed BB
ST IDR B Affirmed B
LC LT IDR BB Affirmed BB
LC ST IDR B Affirmed B
Natl LT AAA(bra) Affirmed
AAA(bra)
Natl ST F1+(bra) Affirmed
F1+(bra)
Shareholder Support bb Affirmed bb
RELIZ TECHNOLOGY: Gets Final OK to Use Cash Collateral
------------------------------------------------------
Reliz Technology Group Holdings, Inc. and affiliates received final
approval from the U.S. Bankruptcy Court for the District of
Delaware for authority to use cash collateral.
Under the final order, the Debtors are authorized to use up to $6
million in cash collateral to support ongoing business operations,
including vendor payments and administrative expenses.
The Debtors' right to use cash collateral terminates at 11:59 p.m.
(New York time) on August 1, unless extended by order or consent of
Celsius Network Ltd., the Debtors' pre-bankruptcy secured lender;
or upon entry of a court order terminating use due to
noncompliance.
As protection for any diminution in the value of its collateral,
Celsius will receive valid, perfected replacement liens on the
Debtors' assets, including pre-petition collateral and its
proceeds, subject only to prior senior liens on the pre-petition
collateral. The replacement liens do not apply to any Chapter 5
claims or causes of action. Celsius is also entitled to a
superpriority administrative claim.
The order additionally imposes extensive reporting obligations on
the Debtors, including weekly disclosures regarding cash balances,
cryptocurrency holdings, asset sales, intercompany transactions
exceeding $100,000, and litigation involving digital assets.
Separate professional fee escrows must also be maintained for
estate professionals and committee professionals.
The order preserves all parties' rights to challenge the validity,
amount, perfection, priority, or scope of the secured party's
claims and liens, while authorizing the debtors to continue using
cash collateral under the approved final terms.
The order is available at https://shorturl.at/93Fqa from
PacerMonitor.com.
About Reliz Technology Group Holdings Inc.
Reliz Technology Group Holdings Inc. together with affiliates Reliz
Ltd., Reliz Technologies LLC, and Reliz CI Ltd., operates the
BlockFills digital-asset trading and liquidity platform, offering
institutional clients spot and derivatives trading, collateralized
lending, and mining solutions. Founded in 2017, the group
aggregates liquidity from a global network of exchanges and market
makers, integrating smart order routing, trade reconciliation, and
risk management through a multi-asset technology platform with FIX
API connectivity and white-label software. Headquartered in
Chicago, Illinois, it also maintains offices in London, Dubai, Sao
Paulo, and the Cayman Islands.
Reliz and three affiliates sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 26-10371) on
March 15, 2026. In the petition signed by Joseph Perry, interim
chief executive officer, Reliz disclosed assets of between $50
million and $100 million and liabilities of between $100 million
and $500 million.
Judge Thomas M Horan oversees the cases.
The Debtors tapped McDermott Will & Schulte, LLP as bankruptcy
counsel; Katten Muchin Rosenman, LLP as bankruptcy-co-counsel;
Berkeley Research Group, LLC as financial advisor; and Verita
Global, LLC as claims agent.
===========
M E X I C O
===========
GRUPO TELEVISA: Moody's Cuts CFR to Ba2 & Alters Outlook to Stable
------------------------------------------------------------------
Moody's Ratings has downgraded Grupo Televisa, S.A.B.
("Televisa")'s corporate family rating, senior unsecured ratings
and senior unsecured shelf ratings to Ba2 and (P)Ba2 from Ba1 and
(P)Ba1, respectively. The outlook was changed to stable from
negative.
The downgrade reflects Televisa's slower than expected execution,
evidenced by limited improvements in revenue, profitability and
market share in the core business, which is the broadband business.
The rating action also reflects Moody's expectations that
Televisa's credit metrics and business profile is more aligned with
those of its Ba2-rated peers.
The stable outlook reflects Moody's expectations that Televisa's
credit profile will be supported by a disciplined cost management
and low single digit growth in the Cable broadband business with at
least flat EBITDA and EBITDA margins above 40%, as adjusted by
Moody's. Moody's also expects the maintenance of positive free cash
flow (FCF) despite the company's high capex plan to expand fiber
coverage.
RATINGS RATIONALE
Televisa's ratings reflect Moody's expectations of stabilization in
credit metrics and the maintenance of positive FCF despite an
increase in capex related to the expansion of fiber coverage in the
next two years targeting 100% by 2027, and supported by the lack of
dividend payment in 2026.
Moody's expects the company's topline to continue showing negative
growth in the next three years, driven by the secular decline in
its direct-to-home (DTH) Sky business in Mexico, which consolidated
RGU's declined 27.6% on a year over year basis in March 2026.
Nonetheless, the DTH business represents 18% of the consolidated
revenues, down from 27% in 2023.
Moreover, Televisa's growth in the broadband business has been
negative since 2023. Although the company reported positive growth
in the last two quarters, 0.8% in 4Q 2025 and 1.4% in 2026%; this
growth is below the industry growth trend with 5.6% in 2024 and
2.6% in September 2025 as per the telecom regulator in Mexico. This
slower growth will continue putting pressure on the company's
market share in broadband, which was 19.8% as of September 2025,
down from 21.5% in September 2024 and from its 26.6% peak in
September 2020. Moody's believes that it will take some time before
the company can consolidate the positive growth trend and benefit
from the investments planned in 2026 and 2027.
Televisa's Ba2 ratings are supported by the company's track record
of conservative financial policies including strong liquidity,
positive FCF and a comfortable maturity profile. The ratings also
incorporate Moody's expectations that Televisa's Moody's-adjusted
gross leverage will be around 3.5x driven by some debt reduction
and a stable EBITDA generation.
The Ba2 ratings also take into consideration Televisa's market
position in Mexico, with a 19.8% market share in broadband and a
leading position in pay-TV with a 57% market share as of December
2025, per the telecom regulator; and the long-term potential of the
company's 44.3% stake in TelevisaUnivision, Inc., the controlling
company of Univision Communications Inc. (TelevisaUnivision, B2
stable).
Conversely, Televisa's Ba2 ratings incorporate limited growth in
the broadband business, where the company has been growing below
the industry levels; its geographic concentration in Mexico; the
competitive environment in the Cable business; a capital-intensive
business; and the company's smaller operating scale than that of
other rated peers.
The company's liquidity is strong, supported by $2.9 billion in
available liquidity; including $2.0 billion in cash, $500 million
committed credit facility and $400 million in equity issued in
early June 2026. Proceeds from this issuance will be used for
general corporate purposes including strategic M&A opportunities,
capex or debt reduction.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Televisa executes on its strategy,
with operating metrics including churn and ARPU stable and
broadband market share showing a steady positive growth and aligned
with the industry growth. Positive pressure would require a
sustained organic revenue, the maintenance of EBITDA margin -as
adjusted by Moody's- above 40% and positive FCF. Quantitatively,
positive pressure could arise if Moody's-adjusted leverage ratio is
sustained below 3.25x, and its RCF / Net debt above 35%, while the
company maintains a strong liquidity on a sustained basis.
The ratings could be downgraded if the erosion of margins and
operating cash flow resumes, or if there is a significant decline
in subscribers or market position due to competition or operating
disruption, particularly in the broadband business. Moody's could
downgrade Televisa's ratings if there is any deterioration in the
company's liquidity profile including sustained negative FCF due to
lower profitability, competitive pressures, aggressive debt-funded
M&A, or due to a material impact related to the FIFA matter.
Quantitatively, negative pressure could also arise if the company
fails to maintain its Moody's adjusted leverage below 4.0x and
RCF/net debt is not maintained above 25%.
Grupo Televisa, S.A.B. is a telecom company comprised by a cable
business (Izzi brand) and DTH business (Sky brand) satellite
operator in Mexico. For the 12 months that ended March 2026,
Televisa's revenue was $3.2 billion, and the company reported 15.7
million revenue-generating units (RGUs) in the Cable business,
passing 20 million homes, and 3.4 million RGUs in the Sky
business.
The principal methodology used in these ratings was
Telecommunications Service Providers published in December 2025.
The net effect of any adjustments applied to rating factor scores
or scorecard outputs under the primary methodology(ies), if any,
was not material to the ratings addressed in this announcement.
===============
P A R A G U A Y
===============
FRIGORIFICO CONCEPCION: Fitch Lowers LongTerm IDRs to 'CC'
----------------------------------------------------------
Fitch Ratings has downgraded Frigorifico Concepcion S.A.'s (FriCon)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
to 'CC' from 'CCC'. Fitch also downgraded FriCon's senior secured
notes due in 2028 to 'CC' with a Recovery Rating of 'RR4' from
'CCC'/'RR4'.
The downgrade to 'CC' reflects Fitch's view that a default of some
kind appears more probable for FriCon in the near term. The company
recently announced that it has retained legal and financial
advisors to achieve a comprehensive resolution of its obligations
in all relevant jurisdictions. Market conditions also appear more
challenging than the previous review, given refinancing risks and
tight liquidity.
Key Rating Drivers
Limited Financial Flexibility: FriCon faces higher refinancing
risk, which has increased over the last few months. The company's
senior secured notes matures in July 2028, but short-term debt must
be rolled over with local banks in Bolivia, Paraguay and Brazil.
Higher risk aversion and tighter financing conditions in the global
debt markets also increase uncertainty around FriCon's ability to
refinance a sizable amount of debt. The company has retained
financial and legal advisors in order to help them in this task and
to assist with its capital structure review.
Cash Flow Recovery is Limited: Fitch forecasts EBITDA of about
USD120 million in 2026 and positive FCF of about USD57 million.
Positive FCF depends on maintaining adequate operational margins,
reducing capex to maintenance levels of about USD15 million per
year and improving working capital. This may be challenging in the
current macro environment.
Peer Analysis
FriCon's 'CC' rating reflects the company's limited financial
flexibility due to heightened refinancing risk and severe liquidity
pressure, amid challenges from optimizing working capital dynamics
and CFO.
Fitch’s Key Rating-Case Assumptions
- Revenues of around USD1.9 billion in 2025 and in 2026;
- Capex of about USD15 million in 2026 and 2027;
- No dividends for the next couple of years.
Corporate Rating Tool Inputs and Scores
Fitch scored the issuer as follows, using its Corporate Rating Tool
(CRT) to produce the Standalone Credit Profile (SCP):
Business and financial profile factors (assessment, relative
importance): management ('bb-', Moderate), sector characteristics
('bb+', Lower), market and competitive positioning ('b+',
Moderate), diversification and asset quality ('bb', Moderate),
company operational characteristics ('bb-', Moderate),
profitability ('b+', Moderate), financial structure ('ccc+',
Moderate), and financial flexibility ('ccc-', 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.
B+ to CC considerations apply in its analysis and results in an
adjustment of -2 notch(es).
The governance assessment of 'some deficiencies' has no impact.
The operating environment assessment of 'bb+' has no impact.
The SCP is 'cc'.
To derive the Long-Term IDR:
Fitch made no adjustments to the SCP, resulting in a Local and
Foreign Currency IDR of 'CC'.
Recovery Analysis
The recovery analysis assumes that FriCon would be reorganized as a
going-concern (GC) in bankruptcy rather than liquidated. Fitch has
assumed a 10% administrative claim. The GC EBITDA is about USD126
million.
An EV multiple of 5x EBITDA is applied to the GC EBITDA to
calculate a post-reorganization EV. Fitch uses a multiple of 5x
that reflects the sector dynamics and the company's business
profile as a mid-sized company with strong growth prospects and
good operating margin.
The above assumption results in a recovery rate assumption within
the 'RR1' range for the senior secured debt. Due to the 'RR4' cap
for Brazil's and Paraguay corporates, Fitch limits the recovery for
the senior secured bond at 'RR4' despite a higher projected
recovery.
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Failure to meet interest payment;
- A Fitch-defined default process has commenced;
- Announcement of a Distressed Debt Exchange (DDE) or any type of
debt restructuring.
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- An upgrade is not anticipated in the short term.
Liquidity and Debt Structure
FriCon's liquidity is weak, reflecting low levels of cash and cash
equivalents relative to short-term debt. FriCon's financial
flexibility depends on local bank credit lines to refinance
short-term debt, which must be rolled over every year.
As of December 2025 (latest public information available), cash on
hand was USD23 million, and short-term debt totaled USD269 million.
Out of this amount, USD72 million corresponded to long-term debt
amortizations. Total debt was USD842 million, comprised of USD284
million senior secured notes due in 2028, local notes and bank
debt.
Issuer Profile
Frigorifico Concepcion S.A. is a family-owned meatpacker business
founded in 1997 and based in Concepcion, Paraguay. The company
operates in Paraguay, Bolivia, and Brazil.
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 Frigorifico Concepcion S.A..
ESG Considerations
Frigorifico Concepcion S.A. has an ESG Relevance Score of '4' for
Waste & Hazardous Materials Management; Ecological Impacts due to
land use and supply chain management, as the company is exposed to
cattle sourcing and must monitor direct and indirect suppliers in
South America, and it is also exposed to export bans on the beef
sector, which has a negative impact on the credit profile, and is
relevant to the rating[s] in conjunction with other factors.
Frigorifico Concepcion S.A. has an ESG Relevance Score of '4' for
Governance Structure due to ownership concentration. The
shareholder's strong influence on management could result in
decision making that is detrimental to the company's creditors,
which has a negative impact on the credit profile, and is relevant
to the rating[s] in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Frigorifico Concepcion S.A.
LT IDR CC Downgrade CCC
LC LT IDR CC Downgrade CCC
senior secured LT CC Downgrade RR4 CCC
=====================
P U E R T O R I C O
=====================
PHOENIX FUND: Seeks to Extend Plan Exclusivity to Sept. 21
----------------------------------------------------------
Driven, P.S.C., the appointed receiver for The Phoenix Fund LLC,
asked the U.S. Bankruptcy Court for the District of Puerto Rico to
extend Debtor's exclusivity periods to file a plan of
reorganization and obtain acceptance thereof to Sept. 21 and Nov.
20, 2026, respectively.
The Receiver, which did not come into possession of the Fund's
assets, books, and records until after March 11, 2026, explains
that it is not dealing with a single-asset estate or a
straightforward operating business. Conversely, the Fund's
liquidation requires the Receiver to evaluate a complex investment
structure, multiple portfolio companies, secured and unsecured
claims, substantial intercompany activity, insider transactions,
potential avoidance actions, potential alter ego claims, and
possible additional bankruptcy filings for entities under the
Fund's control.
The Receiver claims that the ultimate purpose of the endeavors is
for the obtainment of assets and information which the Receiver
deems is critical to make an accurate assessment of the value of
the Estate's assets, all of which will be devoted to repayment of
its claims under a chapter 11 liquidation plan. Under these
circumstances, requiring the Receiver to file a plan by June 23,
2026, would force plan formulation before the Receiver completes
the analysis necessary to propose a reliable and value-maximizing
liquidation strategy.
The Receiver asserts that that the requested extension is not the
result of delay or inaction. To the contrary, as is evident from
the case record, the Receiver has made substantial progress in a
compressed period of time. The requested extension preserves,
rather than delays, the plan process. It gives the Receiver a
reasonable period to turn the work already performed into a
disclosure statement and plan grounded in palpable facts, claims,
assets, and causes of action that will drive recoveries.
The Receiver further asserts that it is seeking an extension solely
to obtain a reasonable opportunity to complete the investigation,
valuation, claims review, liquidity analysis, and plan formulation
work that must occur before the filing of a meaningful disclosure
statement and plan, not to pressure any creditor.
Rather than causing prejudice to creditors, extending the
Receiver's exclusivity period will preserve an orderly path towards
a realistic plan, avoid premature or duplicative plan litigation,
and allow the Receiver to continue administering the Estate for the
benefit of all parties in interest.
Conversely, the termination of the Receiver's exclusivity period
would not provide any benefit to any party in interest. Instead,
such course of action would likely introduce competing strategies
before the Receiver has completed essential work that is necessary
to fully ascertain the Estate's assets, claims, causes of action
and the Fund's affiliate/insider and subsidiary structure, a result
that would be inconsistent with the sole purpose of exclusivity.
The Phoenix Fund LLC is represented by:
Luis C. Marini Biaggi, Esq.
Ignacio J. Labarca-Morales, Esq.
Marini Pietrantoni Muniz, LLC
250 Ave. Ponce de Leon, Suite 900
San Juan, PR 00918
Telephone: (787) 705-2173
Facsimile: (787) 936-7494
Email: lmarini@mpmlawpr.com
About The Phoenix Fund LLC
The Phoenix Fund LLC is a Puerto Rico based private equity firm
formed in 2018 and headquartered in Guaynabo, Puerto Rico. The
company focuses on making strategic equity and debt investments in
privately held businesses in Puerto Rico and international
markets.
Phoenix Fund LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.P.R. Case No. 26-00712) on February 23,
2026.
Honorable Bankruptcy Judge Enrique S. Lamoutte Inclan handles the
case. In its petition, the Debtor reports estimated assets between
$500 million and $1 billion and estimated liabilities between $100
million and $500 million.
The Debtor is represented by Alexis Fuentes Hernandez, Esq. of
Fuentes Law Offices, LLC.
Acrecent Financial, as secured creditor, is represented by Brian
K.
Tester, Esq. and Paul R. Cortés-Rexach, Esq.at McCONNELL
VALDÉS, LLC.
Driven, P.S.C., as receiver, is represented by Luis C.
Marini-Biaggi, Esq. and Ignacio J. Labarca-Morales, Esq. at MARINI
PIETRANTONI MUÑIZ LLC.
FCS Advisors, LLC d/b/a Brevet Capital Advisors, as secured
lender,
is represented by:
Margarita Mercado Echegaray, Esq.
Sonia Torres, Esq.
DLA Piper (Puerto Rico) LLC
B7 Tabonuco Street, Suite 1501
Guaynabo, Puerto Rico 00968-3349
Telephone: (787) 945-9122
Email: margarita.mercado@us.dlapiper.com
sonia.torres@us.dlapiper.co
-and-
Jamila Justine Willis, Esq.
Malithi P. Fernando, Esq.
DLA Piper LLP (US)
1251 Avenue of the Americas
New York, New York 10020
Telephone: (212) 335-4500
Facsimile: (212) 335-4501
Email: jamila.willis@us.dlapiper.com
malithi.fernando@us.dlapiper.com
=====================================
T R I N I D A D A N D T O B A G O
=====================================
[] Moody's Takes Actions on 2 Trinidad & Tobago Non-Financial Cos.
------------------------------------------------------------------
Moody's Ratings has taken rating actions on two non-financial
companies operating in Trinidad and Tobago. These actions follow
Moody's rating action on the Government of Trinidad & Tobago ("TT"
or "Trinidad & Tobago"), where Moody's affirmed the Ba2 ratings and
revised the outlook to stable from negative.
Heritage Petroleum Company Limited's (Heritage) b2 baseline credit
assessment (BCA), Ba3 Corporate Family Rating (CFR) and Ba3 rating
of the backed senior secured notes were affirmed, and the rating
outlook was changed to stable from negative.
Port of Spain Waterfront Development Limited's (POSWDL) caa2 BCA,
Ba2 CFR and Ba2 senior secured rating of the global notes were
affirmed, and the rating outlook was changed to stable from
negative.
RATINGS RATIONALE
The change in Trinidad & Tobago's outlook to stable reflects an
improvement in near-term external risks, supported by more
favorable oil and gas price assumptions and a more supportive
external financing profile until new gas projects come onstream
toward end-2027. Improved terms of trade support the sustainability
of the de facto peg to the US dollar and reduce the need for
foreign-exchange sales, underpinning Moody's expectations that
foreign-exchange reserves will remain broadly stable at levels
consistent with the Ba2 rating.
Accordingly, the companies' stable outlook reflects the
stabilization in government liquidity and external risks, which
supports the continued capacity of the government to provide
support to Heritage and POSWDL during the transition period ahead
of new hydrocarbon projects. Governance risk remains a relevant
consideration in the rating action.
Heritage Petroleum Company Limited
Heritage's b2 BCA reflects the company's small oil and gas
production and asset base and its adequate reserve life although
relatively small in scale compared to peers. The company's BCA is
constrained by the fact that in order to maintain an annual reserve
replacement rate of above 100% to protect cash generation, Heritage
will have to manage its operating costs prudently and work with
Joint Venture partners to grow efficiently. Additionally,
Heritage's execution risk is high because of the operating
challenges inherent to underground natural resources, besides the
capital intensity and the commodity nature of the oil and gas E&P
business.
Heritage's Ba3 ratings take into consideration Moody's joint
default analysis, which includes the rating agency's assumptions of
high government support in case of need and high default
correlation between Heritage and the Government of Trinidad &
Tobago, resulting in two notches of uplift from the company's b2
BCA.
The stable outlook on Heritage aligns with the stable outlook on
Trinidad & Tobago, reflecting the importance of the sovereign's
credit strength to the company's ratings, and is underpinned by
Moody's expectations that the company's operating and financial
profile will remain strong and supportive of its credit metrics
over the next 12–18 months.
Port of Spain Waterfront Development Limited
POSWDL's Ba2 ratings and caa2 BCA reflect that its primary income
source is the semiannual fixed rent paid by the Government of
Trinidad & Tobago under the Sub-Lease Agreement, which will cover
the leasehold interest in the land and improvements. The rent
payment was structured to cover the debt service and the
operational and transactional expenses of POSWDL.
POSWDL's Ba2 ratings take into consideration of Moody's joint
default analysis, which includes the rating agency's assumptions of
fully government's support in case of need and very high default
correlation between POSWDL and the Government of Trinidad & Tobago,
resulting in six notches of uplift from the company's caa2 BCA.
The stable outlook on POSWDL coincides with the stable outlook on
Trinidad & Tobago given that its credit quality is closely linked
to that of the Government of Trinidad & Tobago.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Heritage Petroleum Company Limited
Moody's could upgrade Heritage's ratings if the company manages to
increase its production and reserve life efficiently, with a
minimal deterioration in its financial metrics. Specifically, if
its total debt/proved and developed reserves remain consistently
below $6 per barrel of oil (bbl), and its EBITDA/interest expense
remains above 5x on a sustained basis.
Additionally, an upgrade of the Government of Trinidad and Tobago's
rating would provide an uplift to the company's ratings.
Moody's could downgrade Heritage's ratings if the company's
retained cash flow (funds from operations less dividends)/total
debt declines to around 15%; its interest coverage, measured as
EBITDA/interest expense, falls below 2.5x, with limited prospects
of a quick turnaround; or its liquidity deteriorates, coupled with
a slow execution of its growth plans.
In addition, Moody's could downgrade Heritage's ratings because of
a decline in the likelihood of the government of Trinidad and
Tobago providing extraordinary support to the company; or a
downgrade of the government's Ba2 rating.
Port of Spain Waterfront Development Limited
Because debt payments depend on the government's ability and
willingness to continue budgeting and appropriating obligations
annually, POSWDL's rating is closely linked to the sovereign
rating. As a result, an upgrade would occur only if the Government
of Trinidad & Tobago's rating is upgraded.
The rating could be downgraded if the sovereign rating falls below
Ba2 or if the government fails to honor any payment obligations on
time. POSWDL's BCA could also be downgraded if the company issues
unsecured debt or if changes to the transaction structure weaken
enhancements, such as removing cross-default clauses.
The principal methodologies used in rating Heritage Petroleum
Company Limited were Independent Exploration and Production
published in February 2026.
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.
=================
V E N E Z U E L A
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CITGO PETROLEUM: Venezuela Wins Bid to Delay Hearing in Sale Case
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Caroline Simson at law360.com reports that the Third Circuit has
agreed to a two-month postponement of oral arguments in Venezuela's
challenge of a Delaware judge's order greenlighting the nearly $6
billion sale of Citgo to satisfy billions of dollars of the
country's debt, days after Caracas announced that it was switching
counsel.
About Citgo Petroleum
Citgo Petroleum Corporation is a United States-based refiner,
transporter and marketer of transportation fuels, lubricants,
petrochemicals and other industrial products. Based in Houston,
Texas, Citgo is majority-owned by PDVSA, a state-owned company of
the Venezuelan government (although due to U.S. sanctions, in
2019, they no longer economically benefit from Citgo.)
As reported in the Troubled Company Reporter-Latin America in
September 2025, Fitch Ratings affirmed the Long-Term Issuer
Default Rating (IDR) of CITGO Petroleum Corp. (CITGO, or Opco) at
'B' with a Stable Outlook and CITGO Holding, Inc. (Holdco) at
'CCC+'. Fitch also affirmed Opco's existing senior secured notes
and industrial revenue bonds at 'BB' with a Recovery Rating of
'RR1'.
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IDC OVERSEAS: Fitch Affirms 'B' LongTerm IDRs, Outlook Stable
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Fitch Ratings has affirmed IDC Overseas, Ltd.'s (IDC) Long- and
Short-Term Issuer Default Ratings (IDRs) at 'B'. The Rating Outlook
for the Long-Term IDR is Stable.
Key Rating Drivers
Ratings Based on Standalone Credit Profile (SCP): Fitch reassessed
IDC as an investment company. While this did not result in any
rating changes, it did lead to changes in the implied scores for
certain key rating drivers. IDC's ratings are based on its SCP and
reflect its moderate geographic diversification through a
multi-jurisdictional investment portfolio, limited franchise, and
portfolio risks that are partially mitigated by diversification
across projects and geographies. The ratings also incorporate the
company's favorable profitability, moderate leverage, and
relatively concentrated long-term funding structure.
Business Profile Reflects Small Scale: Fitch revised IDC's business
profile score to 'b' from 'b-', in line with its implied score
range for investment companies. IDC's size remains modest relative
to its more established international investment company peers,
which constrains its business profile assessment. At the end of
2025, the company reported an investment portfolio of USD392
million and total assets of USD466 million, compared with a
four-year average from 2022 to 2025 of USD379 million. Although
Fitch believes IDC could continue expanding its investment base
over the medium term through portfolio appreciation and execution
of investment initiatives, its franchise is likely to remain
modest.
Corporate Governance Constrained by Key Person Risk: Fitch views
the company's management team as having adequate industry
experience. Its assessment of management and strategy is
constrained by the perceived key person risk associated with the
CEO and founder, as well as by the lack of independent
representation on the company's governing bodies.
Modest Risk Controls: Fitch considers the absence of robust formal
investment or liquidity policies as a constraint to risk profile
assessment. The investment portfolio remains the company's main
source of risk, and its diversified characteristics mitigate
overall exposure.
Asset Quality Supported by Diversification: Adequate asset
performance is reflected in the company's stable profitability and
its diversified investment portfolio across both funds and
geographic regions, which helps mitigate market and concentration
risk. However, the assessment remains constrained by the higher
risk profile of the company's underlying investments, which are
less liquid investments primarily concentrated in venture capital
and private equity assets.
Good Profitability, Although Exposed to Market Valuations: Fitch
revised IDC's profitability score to 'bb' from 'b' with a Stable
trend, reflecting a revised assessment approach for investment
companies. IDC has maintained favorable profitability although
earnings remain largely driven by unrealized valuation gains from
its investment portfolio, while more recurring sources such as
dividends, management fees and interest income continue to
represent a limited share of revenue. Fitch also considered the
company's four-year average ROA of 6.7% and ROE of 19.2%, which
reflect consistent profitability over time.
Moderate Leverage: IDC's leverage is commensurate with its current
ratings, although it remains higher than that of other investment
companies in Latin America. At year-end 2025, debt-to-tangible
equity was 1.2x, slightly above 1.1x at year-end 2024. Fitch
expects this metric to remain below 1.5x in the near term, as the
company has no plans for additional debt issuance.
Liquidity Position Adequate for Near-Term Needs: The funding and
liquidity score is assessed at 'b-', above its implied category,
reflecting IDC's limited near-term cash flow needs. As of December
2025, the company's core ratio of one-year upstream dividends and
interest income to one-year holding company interest expense was
0.2x, reflecting the modest contribution of these income sources to
total cash inflows. As of the same date, cash represented 0.6x of
the short-term debt. Fitch also views the company's long-term debt
maturity profile as a positive. Fitch will continue to monitor
IDC's financial flexibility, including its ability to meet
obligations and refinance debt at maturity.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Deterioration in the quality of IDC's portfolio investments or
its financial profile, reflected in significant and sustained
impacts on profitability or sustained losses;
- Tangible leverage consistently above 1.5x;
- Significant pressures in the funding profile that increase
liquidity and refinancing risks.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Significant strengthening of IDC's business profile, reflected in
sustained growth of its investment portfolio accompanied by a
strengthening of its corporate governance;
- Increases in recurring income, particularly from interest and
dividends, together with tangible leverage sustained below 1.5x.
ADJUSTMENTS
The Sector Risk Operating Environment score has been assigned below
the implied score due to the following adjustment reason(s):
Regional, industry or sub-sector focus (negative).
The Funding, Liquidity and Coverage score has been assigned above
the implied score due to the following adjustment reason(s):
Business model/funding market convention (positive).
ESG Considerations
IDC has an ESG Relevance Score of '4' for Governance Structure due
to the key person risk related to the CEO and founder as well as
the lack of independent members in its governance bodies, which
Fitch views as below international standards. This 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
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IDC Overseas, Ltd. LT IDR B Affirmed B
ST IDR B Affirmed B
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LATAM: Exports from Latin America and the Caribbean Rise 15.7%
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The value of goods exported from Latin America and the Caribbean
grew by 15.7% year-on-year in the first quarter of 2026, building
on 7.8% growth in 2025, according to the latest edition of "Trade
Trends Estimates – Latin America and the Caribbean," a report by
the Inter-American Development Bank (IDB).
The increase reflects faster growth in both export volumes and
prices. Regional export growth was driven primarily by mining
products, particularly gold and copper, and strong performance in
agribusiness products such as soybeans, coffee, and meat. Oil
exports also contributed significantly.
"The region continues to strengthen its export performance and is
demonstrating a growing capacity to adapt, even amid an uncertain,
volatile global trade environment," said Paolo Giordano, principal
economist in the IDB's Productivity, Trade, and Innovation Sector
and coordinator of the report.
This export momentum creates an opportunity to advance reforms that
boost productivity and competitiveness, diversify participation in
international markets, and strengthen resilience to external
shocks.
The region's trade outlook remains positive despite a highly
uncertain environment. Changes in global prices could place
additional pressure on countries that import energy and food, while
benefiting commodity exporters. However, higher fertilizer and
transportation prices could impact production and marketing costs,
creating both opportunities and risks for the region’s export
performance in the coming months.
Total imports in Latin America and the Caribbean grew by an
estimated 6.7% in 2025 and 9.7% year-on-year in the first quarter
of 2026. This acceleration was driven mainly by purchases from
outside the region, while intraregional trade expanded more
moderately.
Commodity prices followed divergent trends in 2026, reflecting
growing fragmentation and shifts in global supply and demand.
*********
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