260623.mbx

260623.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 Tuesday, June 23, 2026, Vol. 27, No. 124 Headlines A R G E N T I N A ARCOR SAIC: Fitch Hikes LongTerm Local Currency IDR to 'B+' ARGENTINA: IDB OKs $550MM Guarantee to for Security & Justice B A H A M A S FTX GROUP: Trust Cleared For $600MM Disputed Claim Fund Reduction B E R M U D A SEADRILL LIMITED: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable C O L O M B I A EMPRESA DE TELECOMUNICACIONES: Fitch Lowers LongTerm IDR to 'BB-' PROMIGAS SA: Moody's Rates Up to $1BB Sub. Capital Notes 'Ba1' PROMIGAS: Fitch Rates Up to USD1-Bil. Subordinated Notes 'BB(EXP)' J A M A I C A JAMAICA: Secures US$2.1 Million Grant From Green Climate Fund M E X I C O DEL MONTE: Minority Lenders Can't Stay DIP Rollup Fight P U E R T O R I C O DEMAR INSTALADORA: Gets U.S. Recognition of Mexican Bankruptcy Case INTERNATIONAL LAND: Issues $385,000 Convertible Note and Warrant X X X X X X X X LATAM: IFC Commits US$15BB to Caribbean Community Resilience Fund - - - - - ================= A R G E N T I N A ================= ARCOR SAIC: Fitch Hikes LongTerm Local Currency IDR to 'B+' ----------------------------------------------------------- Fitch Ratings has upgraded Arcor S.A.I.C.'s Long-Term Local Currency (LC) Issuer Default Rating (IDR) to 'B+' from 'B'. Fitch also affirmed the company's Long-Term Foreign Currency (FC) IDR at 'B' and its senior unsecured notes at 'B+' with a Recovery Rating of 'RR3'. The Rating Outlook is Stable. The LC IDR reflects Argentina's upgrade to 'B-'/Stable, which has improved Arcor's business and operating environment. Arcor's ratings reflect its strong South American confectionery market position, recognized brands and vertically integrated operations. They also reflect temporarily high leverage, balanced by diversified funding sources. The Long-Term FC IDR is one notch above Argentina's Country Ceiling of 'B-'. Fitch expects Arcor to service hard-currency debt with offshore cash, export proceeds and cash flow from subsidiaries outside Argentina. The Recovery Rating of 'RR3' reflects above-average recovery prospects in a default. Historical Argentine distressed debt exchanges without principal reductions support the rating. Key Rating Drivers LC IDR and Security Ratings: Fitch LC IDR upgrade to 'B+' reflects the company's financial strength, exposure to the local economy and manageable debt profile, consistent with the higher rating category. Following the upgrade of Argentina's sovereign rating to 'B-' from 'CCC+', Argentina's sovereign rating is no longer consistent with a distressed environment. For rated Argentine corporates whose LC IDR exceeds their FC IDR, Fitch aligns the FC issue rating with the issuer's LC IDR because exchange and capital controls, rather than issuer-specific credit weakness, would most likely drive an FC default or default-like process, based on historical precedents in Argentina. In these cases, Fitch assigns Recovery Ratings above Argentina's 'RR4'. This allows a one-notch uplift from the FC IDR. Strong Business Position: Arcor is a leading Latin American producer of confectionary and cookie products. The company operates in consumer foods (70% of its revenue), packaging (18%) and agribusiness (12%). Its vertical integration ensures the input quality and availability. Arcor's good brand recognition and distribution network support its leading market shares in chocolates, candies, cookies and packaging in Argentina, its main market. Its brand portfolio reaches consumers in more than 100 countries. Mastellone's Ownership Transition: In March 2026, Arcor and Danone acquired control of Mastellone Hermanos through the acquisition of the remaining 51% stake via Bagley and the subsequent creation of a 50:50 dairy joint venture. Fitch views the transaction could support operating stability and strategic development, given the new shareholders' scale and industry experience. After Mastellone's shareholders' meeting, the JV will be consolidated and Arcor will continue to hold a 50% stake in the new JV and will account for this investment under the equity method. Dairy JV Supports Business Profile: Fitch expects the new dairy JV between Arcor and Danone to strengthen Arcor's business profile by combining Danone Argentina's dairy operations, Mastellone Hermanos, and Logística La Serenísima into a single platform. The transaction will result in equal ownership and shared control by Arcor and Danone. Fitch believes the JV could enhance scale, logistics integration and product diversification. Fitch will monitor execution risks and the transaction's impact on leverage, liquidity and financial flexibility. Higher Leverage Following Mastellone Acquisition: Fitch expects Arcor's leverage to increase temporarily following the acquisition of the remaining 51% stake in Mastellone. The transaction will likely require additional debt, pressuring credit metrics in the near term. Fitch projects EBITDA leverage and EBITDA net leverage to remain around 3.5x and 3.2x, respectively and gradually recover in the medium term after integration synergies materialize. Arcor has shown operational resilience and continued access to local funding sources. The company has already refinanced a portion of its 2026 short-term maturities through local bond issuances. FC IDR Above Country Ceiling: Arcor's applicable Country Ceiling is Argentina's 'B-', reflecting its primary operations there. The company's Long-Term FC IDR is one notch above the Country Ceiling because offshore cash, export-related cash generation and offshore operating EBITDA are expected to cover hard currency debt service for at least 12 months. Fitch's framework allows an FC IDR above the Country Ceiling when recurring offshore cash flow or liquidity covers hard-currency debt service. A one-notch uplift may apply if coverage is 1.0x to 1.5x for at least 12 months and remains through the forecast period. Geographic Concentration: Arcor's operations are concentrated in Argentina (B-/Stable), which accounts for about 67% of its sales and close to 85% of EBITDA. This exposes the company to inflation and sovereign-related risks like currency depreciation. The remaining 33% of sales are generated in Brazil (BB/Stable), the Andean region (Chile, Peru and Ecuador), and other Latin American countries, as well as the U.S. and Africa. This geographic distribution was unchanged in 1Q26. Challenging Operating Environment: Fitch expects Arcor to maintain a prudent operational and financial strategy amid Argentina's constrained but improving operating environment. In 2025, the company's results continued to reflect peso volatility. This increased production costs and supported price adjustments in consumer food products, Arcor's largest business segment, which accounted for 70% of total sales. Fitch will assess the company's ability to balance capex and liquidity needs while keeping leverage consistent with the current rating. Fitch expects leverage to recover following a temporary increase associated with the Mastellone acquisition. Peer Analysis Arcor has lower scale compared to other packaged food companies like Kraft Heinz Company (BBB/Negative), Grupo Bimbo, S.A.B. de CV (BBB+/Stable) or Alicorp S.A.A (BBB/Stable), which have broader diversification and global presence. Arcor's operations are concentrated in Argentina. However, it has grown organically and inorganically and entered into partnerships to expand its regional presence. Fitch estimates that Arcor's EBITDA leverage and EBITDA net leverage will average around 3.5x and 3.2x, respectively over the rating horizon. This is comparable to investment-grade peers such as Kraft Heinz Company (BBB/Negative), Bimbo and Alicorp, which have EBITDA leverage ratios in a similar range. In terms of profitability, Arcor's projected EBITDA margins of around 8.6% are lower than the 12% expected for Bimbo and Alicorp and the 20% range of Kraft. Fitch’s Key Rating-Case Assumptions Revenue growth driven by inflation and real GDP growth; EBITDA to remain around USD320 million per year from 2026 to 2028; Capex to be around USD110 million per year from 2026 to 2028; Debt to EBITDA and Net debt-to-EBITDA ratio around 3.8x and 3.4x in 2026 and then trend lower; Dividend payment of around USD20 million per year from 2026 to 2028. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('bbb', Lower), sector characteristics ('bb', Moderate), market and competitive positioning ('bb+', Moderate), diversification and asset quality ('bb-', Higher), company operational characteristics ('bbb', Moderate), profitability ('b', Higher), financial structure ('bb-', Moderate), and financial flexibility ('bb-', Moderate). 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 have no impact. The governance assessment of 'good' has no impact. The operating environment assessment of 'b' results in an adjustment of -1 notch(es). The SCP is 'b+'. To derive the Long-Term IDR: 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 Fitch's criteria consider a bespoke recovery analysis for issuers with 'B+' IDRs and below. The bespoke recovery analysis assumes that Mastellone would be considered a going concern (GC) in bankruptcy and that the company would be reorganized rather than liquidated. GC Assumptions: - A 10% administrative claim; - The GC EBITDA is estimated at ARS305,219 million. The GC EBITDA estimate is a discount of 40% from Fitch's forecast 2026 EBITDA. It assumes further peso devaluation and potential stress to Arcor's cash generation in the event of a reorganization; - The enterprise value to EBITDA multiple of 5x. Fitch applies a waterfall analysis to the post-default enterprise value based on the relative claims of debt in the capital structure. With these assumptions, Fitch's waterfall analysis results in a 'RR3' Recovery Rating for the senior unsecured notes. Following the upgrade of Argentina's sovereign rating to 'B-' from 'CCC+', Argentina's sovereign rating is no longer considered to be consistent with a distressed environment. Under the country groups specified in Fitch's "Country-Specific Treatment of Recovery Ratings Criteria," Argentina falls under group D, where Recovery Ratings are capped at 'RR4'. Fitch believes, based on its bespoke recovery analysis, that Arcor's recovery prospects comfortably exceed the range implied for an 'RR4' under the criteria. In addition, given that capital controls remain in place in Argentina, Fitch believes that a default or default-like process would more likely occur due to capital controls rather than idiosyncratic corporate reasons. Based on historical precedents, Fitch has observed that recoveries from defaults driven by capital controls in Argentina have exceeded the 'RR4' threshold. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage ratio above 4.0x on a sustained basis; - Exports, cash abroad and committed bank lines not covering the hard currency debt service by 1.0x to 1.5x over 12 months could lead to a downgrade of the FC IDR; - Sustained deterioration in profitability. - A downgrade of Argentina's Country Ceiling would likely lead to a negative action on the FC IDR or Outlook. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of Argentina's sovereign rating would lead to an upgrade of Arcor's FC IDR, given the high level of cash generated from Argentine operations; - A sustained EBITDA leverage ratio below 2.5x; - FCF remaining neutral to positive on a sustained basis. Liquidity and Debt Structure As of March 2026, Arcor had approximately ARS486 billion (USD352 million) in cash and cash equivalents, and short-term debt of ARS686 billion (USD498 million). The company has ample access to bank lines for export financing and local capital market funding, including U.S. dollar-linked local issuances to refinance its 2026 short-term maturities. As of March 2026, 63% of Arcor's total debt was denominated in U.S. dollars, 26% in Argentine pesos, and the remainder in Brazilian reais and other currencies. Issuer Profile Arcor is a leading Latin American confectionery and cookie producer. Consumer foods generate 70% of revenue, packaging 18%, and agribusiness 12%. It operates plants and distribution centers across Latin America and Angola, leads Argentina's market, and maintains a broad global sales network. 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 Arcor. 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 ----------- ------ -------- ----- Arcor S.A.I.C. LT IDR B Affirmed B LC LT IDR B+ Upgrade B senior unsecured LT B+ Affirmed RR3 B+ ARGENTINA: IDB OKs $550MM Guarantee to for Security & Justice ------------------------------------------------------------- The Board of Executive Directors of the Inter-American Development Bank (IDB) approved a guarantee of up to $550 million to strengthen security and justice policies in Argentina and improve the country’s access to capital markets. The IDB guarantee is the first to support this type of reform in Argentina. It will also enable the country to mobilize $1.2 billion in private financing, helping improve access to international capital markets, in line with the objectives of the fiscal sustainability plan agreed with the International Monetary Fund (IMF). The financing will support the Proactive Security and Justice Policies program (PROSEJUS), a set of reforms by the Argentine government aimed at reducing impunity for crimes associated with criminal organizations. The program seeks to strengthen the country’s security and justice system to enhance the effectiveness of criminal prosecution, criminal investigation, and the recovery of illicit assets. Framed within the IDB’s Alliance for Security, Justice, and Development, the project adopts a comprehensive approach that includes a results-based program to strengthen the capabilities of federal security forces, as well as criminal investigation and intelligence. According to IDB estimates, the direct cost of crime and violence in the country is equivalent to about 3.9% of GDP, exceeding the regional average. PROSEJUS will contribute to sustainable economic growth in Argentina by reducing impunity and lowering crime and violence associated with organized crime, while strengthening trust in public institutions. 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 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. The upgrade reflects the launch of a new IMF program, among other things. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. Moody's Ratings, in January 2025, raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. ============= B A H A M A S ============= FTX GROUP: Trust Cleared For $600MM Disputed Claim Fund Reduction ----------------------------------------------------------------- Vince Sullivan at law360.com reports that the FTX Recovery Trust received approval from a Delaware bankruptcy court to reduce the funds in a disputed claims reserve by $600 million after the trust processed thousands of claims that were either allowed or modified. 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: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed Seadrill Limited's and Seadrill Finance Limited's (Seadrill) Long-Term Issuer Default Rating (IDR) at 'B+'. Fitch has also affirmed the RCF at 'BB+' with a Recovery Rating of 'RR1' and the senior secured second lien note at 'BB-'/'RR3'. Fitch has also assigned a new 'BB-'/'RR3' rating to Seadrill Finance Limited's proposed senior unsecured notes issuance. The Rating Outlook is Stable. Proceeds from the notes are expected to be used to redeem the existing second lien secured notes and for general corporate purposes. The second lien notes will be withdrawn following repayment. Seadrill's rating reflects its low leverage, strong liquidity profile, and well-positioned ultra-deepwater fleet. These strengths are offset by volatility in utilization and day rates inherent to the offshore drilling market. The Stable Outlook reflects an expectation of conservative financial management along with broadly improved to stable day rates in the near term. Key Rating Drivers Conservative Financial Policy: Seadrill's conservative financial policy supports the rating. The company prioritizes balance sheet strength with a net leverage at or below 1.0x and no near-term maturities. Seadrill has used equity funding for growth and used divestitures to reduce debt and fund share repurchases. The company paused shareholder returns in 2025 amid market uncertainty. Fitch expects returns to increase as conditions improve and the company transitions to positive FCF. Fitch expects Seadrill to maintain a disciplined, conservative approach to capital allocation. Backlog Supports Revenue Visibility: Seadrill's backlog of $3.1 billion (as of May 11) supports revenue visibility within the volatile offshore drilling market. As of the Q1 results, the company expects to convert $844 million of this backlog into revenue through the remainder of 2026, $862 million in 2027, and $436 million in 2028 and thereafter. The company has added $860 million of backlog from multiple contract awards or extensions between February and May 2026. Fitch expects Seadrill to continue to be able to win contracts at supportive rates given tight supply in the global offshore market. Favorable Long-Term Contracts, Pricing: Fitch views Seadrill's ability to secure new contracts and renegotiate existing contracts at higher day rates as a credit positive. Tightening conditions in the offshore drilling market are expected to support day rates over the near to medium term as utilization nears 100%, available capacity remains very limited, and no new build activity is expected. Average drillship day rates have increased to $343,000/day in 1Q26, from $319,000/day in 1Q25, supporting elevated earnings potential in 2026 and beyond. Strong Offshore Ultra-Deepwater Fleet: Seadrill's large and diverse offshore fleet supports the rating. The company owns 15 rigs including 10 drillships and two semi-submersible rigs, two harsh-environment semi-submersible rigs, and one harsh-environment jack-up rig. The company also manages two rigs on behalf of Sonangol EP. Seadrill operates in all major offshore oil and gas basins including the Gulf of Mexico (Gulf of America), Brazil, West Africa, the North Sea and Southeast Asia. Customer Concentration: Seadrill's backlog is significantly concentrated with Petroleo Brasileiro S.A. (Petrobras; BB/Stable), ConocoPhillips (A/Stable) and Equinor ASA. Concentration risk is offset due to the credit strength and long-term relationships of these counterparties. Seadrill aims to expand its ultra-deepwater opportunities within the Golden Triangle to achieve economies of scale through rig clustering in these regions. Peer Analysis Seadrill is the smallest offshore company in terms of revenue and EBITDA compared to peers Noble Corporation plc (BB-/Stable) and Valaris Limited (B+/RWN). Fitch expects Seadrill to have similar margins to Valaris, but lower margins than Noble Corp. Seadrill is forecast to have the lowest leverage out of its offshore peers throughout the forecast period. Seadrill's onshore peers include Nabors Industries, Ltd. (B/Stable) and Precision Drilling Corporation (BB-/Positive), which are more stable than the offshore segment. Nabors is larger than Seadrill and has higher margins but is significantly more leveraged. Fitch expects Precision to generate similar revenue, margins and leverage compared to Seadrill over the forecast period. Fitch’s Key Rating-Case Assumptions - Brent oil price at $87 per barrel (bbl) in 2026, $65/bbl in 2027 and $60/bbl thereafter; - Revenue growth in 2026 and 2027 supported by recent contracts and supportive day rates and then trending in line with Fitch's price deck in outer years; - EBITDA margins maintained in the mid- to high 20% range driven by renegotiated contracts at favorable rates; - Capex in line with management expectations; - No mergers and acquisitions or dividends. 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 (b+, Higher), diversification and asset quality (b+, Moderate), company operational characteristics (b, Higher), profitability (bb, Moderate), financial structure (bbb-, Lower), and financial flexibility (bbb, Moderate). - The quantitative financial subfactors are based on custom CRT financial period parameters: 5% weight for the historical year 2025, 5% for the forecast year 2026, 15% for the forecast year 2027, 25% for the forecast year 2028 and 50% for the forecast year 2029. - The Governance assessment of 'good' has no impact. - The Operating Environment assessment of 'a-' has no impact. - The SCP is 'b+'. To derive the Long-Term IDR: - Application of Fitch's "Parent and Subsidiary Linkage Rating Criteria" results in a same credit profile for both parent and subsidiary approach. Recovery Analysis Key Recovery Rating Assumptions The recovery analysis assumes that Seadrill Limited would be reorganized as a going concern (GC) in bankruptcy rather than liquidated. Fitch assumes a 10% administrative claim. GC Approach Seadrill's GC EBITDA of $150 million reflects Fitch's estimate of a sustainable, post-reorganization EBITDA level and forms the basis of the enterprise valuation. For commodity price-sensitive issuers at a cyclical peak, Fitch's GC EBITDA assumption reflects a normalization from peak commodity prices toward mid-cycle conditions, as well as heightened competitive pressures. The GC EBITDA assumption also captures the company's emergence from a prolonged period of weak commodity prices, which materially constrained cash flow generation through lower day rates and reduced rig utilization. In addition, the assumption reflects customer losses and margin pressure as exploration and production companies curtailed spending. Fitch increased the GC EBITDA assumption to $150 million from $125 million to reflect improved offshore drilling market conditions. The increase is supported by tightening supply/demand dynamics, as rig retirements and scrapping have reduced available capacity and supported day rates. An enterprise value multiple of 5.5x EBITDA is applied to the GC EBITDA to calculate a post-reorganization enterprise value. The choice of this multiple considered the following factors: - The historical bankruptcy case study exit multiples for peer energy oilfield service companies have a wide range with a median of 6.5x. The oil field service subsector ranges from 2.2x to 17.0x due to the more volatile nature of EBITDA swings in a downturn. - Fitch used a multiple of 5.5x to estimate the enterprise value of Seadrill due to concerns of a downturn with a longer duration, a high exposure to offshore drilling rigs that can see meaningful volatility in demand and continued capital investment to reactivate rigs. Liquidation Approach The liquidation estimate reflects Fitch's assessment of the value of balance sheet assets that can be realized in sale or liquidation during bankruptcy or insolvency proceedings and distributed to creditors. Fitch assigns standard discounts to the liquidation value of the company's cash, accounts receivable, inventory and property, plant and equipment (PP&E). Despite the material write-down on the company's PP&E, Fitch still uses a 20% liquidation value based on the company's 1Q26 book value due to the high uncertainty of asset valuations during a downturn. The first lien secured RCF is assumed to be fully drawn upon default and holds the most senior position among the claims. The proposed unsecured notes are capped at 'RR3', given the 'B+' IDR. The Recovery Rating on the proposed unsecured notes assumes that the second line notes are repaid and will no longer be in the capital structure. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Deteriorating market fundamentals, such as decreasing day rates and offshore rig utilization; - A significant increase in gross debt; - Weakening liquidity; - Mid-cycle EBITDA leverage above 3.0x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Sustainably stronger offshore drilling market fundamentals including high day rates, longer contracts and a growing backlog; - A track record of conservative financial policy that keeps gross debt in check; - Mid-cycle EBITDA leverage below 2.0x. Liquidity and Debt Structure Seadrill has comfortable liquidity with $304 million of unrestricted cash and $178 million of availability on its RCF that expires in 2028. Fitch expects FCF generation to turn positive in 2026, which will further support liquidity. Following the announced refinancing transaction, the maturity schedule for the company is extended and Fitch views refining risk as limited for the company. Issuer Profile Seadrill Limited is an ultra-deepwater offshore drilling contractor that owns and operates drillships, semi-submersible rigs and jack-up rigs for operations in shallow-, mid-, deep- and ultra-deepwater areas, as well as in benign and harsh environments. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The Climate.VS for 2035 for Seadrill Limited is 60. Offshore drilling operations, as well as their onshore counterparts, face the risk of regulatory scrutiny and environmental regulations. Oilfield services also face risks related to emission production, personnel safety, environmental disasters, and other catastrophic events. Seadrill's varying operational basins offer a degree of geographic diversification, which may minimize localized regulatory impact. Key transition risks arise from potential reductions in oil and gas demand, as well as decreased demand for oilfield services. These risks are driven by policies designed to reduce the use of oil and gas in the global economy and, in the shorter term, by policies designed to limit greenhouse gas emissions from oil and gas production. Currently, these risks do not materially influence the rating due to the very long-term time frame of the transition and uncertainty about the extent and nature of changes, as well as how markets and companies will respond to them. Seadrill has one of the youngest and most technologically advanced fleets globally. It took numerous steps to mitigate risks by using technologies to measure data and in turn improve operational uptime, reduce emissions, and optimize fuel consumption. Seadrill reports Scope 1, 2 and 3 emissions through ESG reports and is committed to reduce its environmental impact, although it has not yet set reduction targets. ESG Considerations Seadrill Limited has an ESG Relevance Score of '4' for Waste & Hazardous Materials Management; Ecological Impacts due to the risk that a possible offshore oil spill may affect the drilling company, which has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Seadrill Finance Limited LT IDR B+ Affirmed B+ senior secured LT BB+ Affirmed RR1 BB+ sr secured 2nd lien LT BB- Affirmed RR3 BB- senior unsecured LT BB- New Rating RR3 Seadrill Limited LT IDR B+ Affirmed B+ =============== C O L O M B I A =============== EMPRESA DE TELECOMUNICACIONES: Fitch Lowers LongTerm IDR to 'BB-' ----------------------------------------------------------------- Fitch Ratings has downgraded the Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) of Empresa de Telecomunicaciones de Bogotá S.A. E.S.P. (ETB) to 'BB-' from 'BB'. Fitch has also downgraded ETB's Long-Term National Scale Rating to 'A+(col)' from 'AA-(col)'. In addition, Fitch has placed all of ETB's ratings on Rating Watch Negative (RWN). The downgrade and RWN reflect delays in ETB's debt refinancing and weakening financial flexibility. The company negotiated a standstill agreement with its bank creditors while it seeks a syndicated loan to refinance its debt. ETB must complete this process by the end of July 2026. Failure to complete the refinancing process could lead to a multi-notch downgrade due to weaker financial flexibility. Key Rating Drivers Extended Refinancing Risk: ETB's protracted refinancing indicates a weakening in its financial flexibility. The company signed a standstill agreement with four banks — representing 100% of its financial debt — in February 2026, later extended to end-July 2026. The agreement aims to secure a syndicated loan to refinance its debt. ETB pays interest but defers principal under this agreement. Cash at March 2026 totaled COP38,765 million, of which COP25,698 million was restricted, compared to short-term debt of COP280,449 million. Interest payments related to bank debt and district's dividend liability of about COP38,000 million in 2Q26 further strains liquidity. Negative FCF: Fitch expects ETB's FCF to remain negative over the rating horizon, with margins of about -2.0% to -2.5% of revenue. Fitch projects capex intensity will decline to around 15% of revenues, down from a peak of 30%, after the completion of the company's network buildout. ETB now focuses on maintenance capex and IT services growth, which require less investment. Fitch's assumptions include interest-only payments on the bank's debt and dividends to Distrito de Bogotá in 2026-2027 and a COP90 billion payment to Comcel S.A. during 2025- 2028. Intense Competition: Fitch expects ETB's competitive position to remain under pressure as integrated operators Claro and Tigo push strategies to retain and grow subscribers in Bogotá. The Coltel-Tigo consolidation reshapes sector dynamics through scale, investment savings, and operating synergies. ETB is Colombia's fourth-largest fixed broadband operator with around 6% market share and ranks third in Bogotá after Claro and Coltel with around 23% broadband share. The company leads fiber to the home (FTTH) in the city with around 40% of residential subscribers. Stable Leverage Expectation: Fitch expects gross and net leverage to remain at about 2.0x and 1.9x, respectively, over the medium term, with cash flow from operations (CFO) minus capex-to-debt staying in neutral-to-positive territory. Gross leverage improved to 2.0x at LTM 1Q26 from a peak of 2.7x at LTM 2Q24. Fitch's forecast reflects expected revenue growth and EBITDA margin expansion supported by a cost-saving plan focused on operational efficiencies. Lower capex intensity will partially offset otherwise negative FCF generation. Business-to-Business (B2B) Growth Focus: Enterprise and government connectivity and IT services will mainly drive revenue growth. Fitch expects B2B, wholesale, government, and digital centers to make up about 55% of 2026 revenue, with average annual growth above 5% over the rating horizon. Government technology, education technology, Centros Digitales (digital centers), wholesale services and the Internet Social project support this trajectory. In the home segment, Fitch expects about 100,000 additional FTTH connections by 2028. Standalone Rating: ETB is rated on a standalone basis as any recurring support from the District of Bogotá, its controlling shareholder, is unlikely. Fitch views the district's decisions to restructure ETB's dividend liability, extend the debt term and include a grace period to capital, respectively, as extraordinary support for the company's cash position. No Country Ceiling and/or operating environment constraints applied to these ratings. Peer Analysis ETB is rated two notches below Colombia Telecomunicaciones S.A. E.S.P. (ColTel; BB+/Stable), which has greater scale, broader diversification, a growing fixed operation, and a strong mobile footprint in Colombia. ColTel carries higher leverage than ETB but benefits from its parent linkage with Millicom International Cellular S.A (Millicom; BB+/Stable). UNE EPM Telecomunicaciones S.A. (Tigo UNE; BB+ /Stable) has a stronger business profile than ETB due to its larger scale and diversification and stronger financial profile with lower leverage. In fixed broadband, ColTel is the second operator after Claro nationwide, with about 34% market share, followed by Tigo UNE at about 25% and ETB at about 6%. In Bogotá, Claro leads with about 45%, followed by ColTel at about 25% and ETB at about 23%. ETB leads in FTTH connections, followed by ColTel with about one-third of subscribers. ColTel and ETB operate FTTH networks, while Tigo UNE's network is based on hybrid fiber coaxial (HFC). Chilean peers Telefónica Móviles Chile S.A. (TMCH; BB-/Stable) and Empresa Nacional de Telecomunicaciones S.A. (Entel; BBB-/Stable) have stronger market positions, diversification, and scale than ETB. ETB's leverage is similar to Entel and lower than TMCH. This comparative context supports ETB's lower rating relative to more diversified and larger peers, while noting ETB's competitive position in FTTH and its smaller scale. Fitch’s Key Rating-Case Assumptions - Total revenue growth of 8% in 2026 and the low to mid-single digits over the rating horizon due to an increase in B2B revenues; - EBITDA margin of around 25% in 2026-2028 period; - Home business with a decline in ARPU of around 10% in 2026 that stabilizes in the following years, with growth of 100,000 clients by 2028; - Capex intensity with an average of around 15% in 2026-2028; - No cash tax payments over the rating horizon due to the effects of the financial stability agreement in place until 2029; - Dividends paid throughout the rating horizon defined with shareholders; - Completed Refinancing process before Standstill deadline; - Payments to Claro of COL90 billion in three 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 ('bbb', Lower), market and competitive positioning ('bb', Higher), diversification and asset quality ('b+', Moderate), company operational characteristics ('bbb-', Moderate), profitability ('bb', Moderate), financial structure ('bb', Moderate), and financial flexibility ('b', Higher). The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the latest historical year 2025, 40% for the forecast year 2026 and 40% for the forecast year 2027. The governance assessment of 'good' has no impact. The operating environment assessment of 'bb' has no impact. The SCP is 'bb-'. To derive the Long-Term IDR: For the LC IDR, Fitch made no adjustments to the SCP, resulting in a LC IDR of 'BB-'. For the FC IDR, the application of Fitch's Government Related Entities Rating Criteria results in a standalone approach resulting in a FC IDR of 'BB-'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Failure to complete the bank debt refinancing prior to the expiration of the standstill agreement or any missed interest payment; - Deterioration of financial flexibility. - Persistent negative FCF. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The Rating Watch Negative could be removed upon the successful closure of ETB's bank debt refinancing. Liquidity and Debt Structure ETB's liquidity is weak. As of March 2026, available cash and equivalents of COP13,067 million covered less than 5% of short-term debt of COP280,449 million. The current standstill agreement with banks allows the deferral of principal payments but requires quarterly interest payments of approximately COP38,000 million on bank debt and dividend obligations. Fitch expects ETB to refinance its bank obligations through a syndicated loan. The company's debt consists primarily of bank loans with limited capital-markets exposure, which facilitates direct negotiation with creditors. ETB has also negotiated with the Bogotá District to reduce its dividend obligation and limit 2025-2026 payments to interest only on deferred dividends, preserving near-term liquidity. Under the standstill terms, uncommitted facilities are capped at COP80,000 million for confirming and factoring lines and COP25,000 million for overdraft. Issuer Profile ETB is an integrated Colombian telecommunication company 86.36% owned by the District of Bogota. The company's main services include fixed voice traditional services (local and long distance), broadband and subscription TV services on its fiber network. Summary of Financial Adjustments - Lease adjustments over debt and 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 Empresa de Telecomunicaciones de Bogota, S.A., E.S.P. 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 ----------- ------ ----- Empresa de Telecomunicaciones de Bogota, S.A., E.S.P. LT IDR BB- Downgrade BB LC LT IDR BB- Downgrade BB Natl LT A+(col) Downgrade AA-(col) PROMIGAS SA: Moody's Rates Up to $1BB Sub. Capital Notes 'Ba1' -------------------------------------------------------------- Moody's Ratings assigned a Ba1 rating to Promigas S.A. E.S.P.'s (Promigas) subordinated capital notes due 2056 for up to $1.0 billion, co-issued jointly and severally with Gases del Pacifico S.A.C., Gases del Norte del Peru S.A.C. and Promigas Perú S.A. (the Notes). At the same time, Moody's affirmed the Baa3 Issuer Rating and senior unsecured notes rating. The outlook was changed to stable from negative. The assigned rating is based on preliminary documentation. Moody's do not anticipate changes in the main conditions that the notes will carry. Should issuance conditions and/or final documentation deviate from the original ones submitted and reviewed, Moody's will assess the impact that these differences may have on the rating and act accordingly. RATINGS RATIONALE The Ba1 rating assigned to the subordinated capital notes is one notch below Promigas' Baa3 Issuer Rating, given that the Notes will be direct, unconditional, unsecured and subordinated obligations of the co-issuers on a joint and several basis, and subordinated in right of payment to all present and future senior indebtedness. Under a joint and several structure, Moody's assess the instrument at the level of the strongest obligor, which is Promigas. The Notes have equity-like features qualifying them for Basket 'M' treatment under Moody's Hybrid Equity Credit methodology, which translates into 50% equity credit and 50% debt for leverage calculations, subject to a cap of 30% of total adjusted equity. Key features include: (i) optional interest deferral that does not constitute a default or breach of obligations; (ii) a 30-year stated maturity (2056); (iii) step-ups of 25 basis points at year 10.5 and 75 basis points at year 20.5, both below the 100 basis points threshold; and (iv) a fixed-to-floating reset at year 5.5 that preserves the same credit spread. Proceeds of approximately $992 million will refinance existing indebtedness across the four co-issuers, replacing short- and medium-term bank debt with a single long-duration subordinated instrument. The refinancing covers obligations at Promigas ($627 million), Gases del Pacífico ($154 million), Gases del Norte ($179 million) and Promigas Perú ($32 million). The transaction improves the company's financial flexibility by reducing near-term refinancing needs and extending the weighted-average debt maturity. The outlook change to stable from negative reflects the improvement in Promigas' liquidity and debt maturity profile resulting from the hybrid issuance. The negative outlook, assigned in September 2025, was driven by tight liquidity amid upcoming debt maturities and the absence of committed credit facilities. The proposed hybrid Notes issuance eliminates approximately $1 billion of near-to-medium-term maturities. The application of 50% equity credit reduces adjusted debt by approximately $500 million, improving credit metrics that had weakened following the Zelestra acquisition. Promigas completed the acquisition of Zelestra's Latin American renewable energy platform on May 28, 2026 for approximately $500 million, funded through committed bank facilities. The portfolio adds 1,273 megawatts of operating and under-construction solar and battery storage assets across Chile (A2 stable), Peru (Baa1 stable) and Colombia (Baa3 stable), along with a pipeline of projects under development comprising another 2,250 megawatts. The acquisition expands Promigas' footprint into Chile, which represents over 50% of the acquired portfolio, improving the consolidated credit profile by adding more business and geographic diversification to the revenue mix. However, the acquisition also increased consolidated debt by approximately $1.45 billion, comprising $500 million of acquisition financing and approximately $950 million of project-level debt. Although Zelestra's debt is structured as non-recourse project finance with ring-fencing, Moody's assess credit metrics on a fully consolidated basis given Promigas' full ownership and operational control, its co-debtor status on the $300 million syndicated facility and the existence of certain cross-default provisions related to indebtedness incurred by Promigas in connection with the project companies under construction. As a result, credit metrics will remain under pressure through at least 2027 as projects ramp up, with gradual improvement expected from 2028 as Zelestra generates incremental cash flow Consolidated credit metrics will remain under pressure through at least 2027 as Zelestra's projects ramp up and the capital structure is optimized. The pace of recovery will also depend on the timely entry into commercial operation of projects currently under construction and in backlog, successful execution of related financings and the continued stable performance of Promigas' core gas and regulated businesses. The assigned ratings incorporate Moody's forward looking view of a gradual improvement in credit metrics from 2028 onwards, as incremental cash generation from Zelestra's portfolio begins to offset the currently high consolidated debt burden. RATING OUTLOOK The stable outlook reflects improved liquidity following the hybrid issuance and the company's broader refinancing strategy, as well as continued diversification into higher-rated jurisdictions including Chile and Peru. The outlook assumes that Promigas will maintain adequate liquidity buffers and stable cash flow generation from its core regulated gas businesses, and that consolidated credit metrics will gradually improve over the medium term as Zelestra projects reach commercial operation. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade Promigas' ratings if the company maintains cash interest coverage above 3.5x on a sustained and projected basis, along with CFO pre-working capital to debt above 15%. An upgrade would also require Moody's continued assessment that government or regulatory interference remains immaterial to the company's credit profile and that the company does not face liquidity pressures. Moody's could downgrade Promigas' ratings if cash interest coverage remains below 2.5x or CFO pre-working capital to debt stays below 10% on a sustained basis. Downward pressure could also arise from delays in Zelestra's ramp-up, unfavorable regulatory developments, or a deterioration in liquidity buffers to address upcoming maturities in a timely manner. A higher concentration of debt at Promigas or the co-issuers' entity level without a corresponding increase in intrinsic cash flow generation, could lead to a view of stronger structural subordination to subsidiaries' debt and put pressure on the rating. COMPANY PROFILE Headquartered in Barranquilla, Colombia, Promigas S.A. E.S.P. is an integrated energy services group and the only company in Colombia operating across natural gas transportation, distribution, LNG regasification and energy solutions. The company controls approximately 3,300 km of pipeline infrastructure, transporting close to half of Colombia's (Baa3 stable) natural gas supply, and serves more than 7.5 million connected customers across Colombia and Peru (Baa1 stable). Its operations are regulated by the Comision de Regulacion de Energia y Gas (CREG) in Colombia and OSINERGMIN in Peru. Promigas also holds a 40% stake in Gas Natural de Lima y Callao S.A. (Calidda, Baa2 negative), Peru's largest gas distributor. Following the acquisition of Zelestra in May 2026, the company expanded into utility-scale renewable energy generation and battery storage across Chile, Peru and Colombia, with approximately 1,273 megawatts in operation and construction and 2,250 megawatts in development. LIST OF AFFECTED RATINGS Issuer: Promigas S.A. E.S.P. Assignments: Subordinate, Assigned Ba1 Affirmations: LT Issuer Rating, Affirmed Baa3 Senior Unsecured, Affirmed Baa3 Outlook Actions: Outlook, Changed To Stable From Negative The principal methodology used in these ratings was Regulated Electric and Gas Utilities published in August 2024. PROMIGAS: Fitch Rates Up to USD1-Bil. Subordinated Notes 'BB(EXP)' ------------------------------------------------------------------ Fitch Ratings has assigned Promigas' (BBB-/Stable) and co-issuers Gases del Pacifico S.A.C., Gases del Norte del Peru S.A.C. and Promigas Peru S.A. proposed up to US1.0 billion subordinated notes an expected 'BB(EXP)' rating. The final rating is contingent on the receipt of final documents conforming to information received by Fitch. The notes will be rated two notches below Promigas' current 'BBB-' rating, reflecting deep subordination, long-term maturity, limited events of default and optional coupon deferral. Deferred interest would remain cumulative. The notes will be non-callable for at least five years. Fitch expects to assign 50% equity credit under its Corporate Hybrid Treatment methodology. Proceeds will be used to refinance bank debt at Promigas and its Peru subsidiaries. Promigas' ratings reflect its strong business position in Colombia's regulated and monopolistic natural gas transportation and distribution sectors. The credit metrics from the Zelestra acquisition for about USD460 million reflect the equity credit, which keeps leverage close to 4.0x over the rating horizon. Key Rating Drivers Equity Credit Preserves Leverage: The proposed issuance is expected to preserve Promigas's leverage following the acquisition. Leverage should remain broadly stable despite the additional USD460 million raised to fund the transaction, reflecting Fitch's 50% equity credit treatment to the proposed hybrid issuance. Proceeds will be used for refinancing existing bank debt at Promigas and Peru's subsidiaries. Fitch expects EBITDA gross leverage to remain close to 4x for the next three years. The equity-like features of the hybrid instrument support Promigas' capital structure, reflecting the company's financial discipline, consistent growth strategy, stable cash flow generation and strong revenue visibility. Deep Subordination: The proposed notes are rated two notches below Promigas' 'BBB-' Issuer Default Rating. The notes would be structurally subordinated to all existing and future unsecured and unsubordinated debt, providing loss-absorption capacity for more senior obligations. The notes rank senior only to the claims of equity shareholders. Equity Treatment: The securities qualify for 50% equity credit because they meet Fitch's criteria for deep subordination, remaining effective maturity of at least five years, full discretion to defer coupons for at least five years and limited events of default. These equity-like characteristics give Promigas financial flexibility after the acquisition. Cumulative Coupon: Coupon deferral is cumulative and compounded, supporting 50% equity treatment under Fitch's criteria. Despite the 50% equity treatment, Fitch treats coupon payments as 100% interest. Deferred coupons become mandatorily payable in certain events, including following the declaration of a cash dividend. Peer Analysis Promigas' ratings are one notch below Gas Natural de Lima y Callao (Calidda; BBB/Stable), which benefits from a more conservative capital structure and maintain main operations in Peru, which has a stronger operating environment. Promigas has the same rating as Transportadora de Gas Internacional S.A. ESP (TGI) (BBB-/Stable) and Grupo Energia Bogota S.A. E.S.P. (GEB; BBB-/Stable) reflecting a similar operating environment and similarly strong business profile. Fitch’s Key Rating-Case Assumptions - Unaltered Ring Fenced Structure for Zelestra. - New debt of USD500 million to acquire Zelestra. - Average EBITDA of COP2.6 trillion in the next five years; - Average cash dividends received from non-controlled companies of COP230 billion during the rating horizon; - Average capex of COP800 million between 2026 and 2030; - Interest rates of 9.0%; - The company refinance debt maturities; - Neutral FCF over the rating horizon. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('bbb', Lower), sector characteristics ('bbb', Moderate), market and competitive positioning ('bbb', Moderate), diversification and asset quality ('bbb-', Moderate), company operational characteristics ('bbb', Moderate), profitability ('bbb', Higher), financial structure ('bbb', Moderate), and financial flexibility ('bb-', Moderate). Assessments of the quantitative financial subfactors include bespoke calculations. The governance assessment of 'good' has no impact. The operating environment assessment of 'bb' has no impact. The SCP is 'bbb-'. To derive the Long-Term IDR: BBB-, Outlook Stable. Fitch made no adjustments to the SCP, resulting in an IDR of 'BBB-'. RATING SENSITIVITIES Promigas Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - Changes in the acquisition financial strategy leading to leverage ratios above 4.5x on a sustained basis. - Changes in acquired assets ring-fenced characteristics leading to debt consolidation. - Significantly lower tariffs that pressure cash flow generation; - Material cost overruns or project delays that pressure Promigas' credit metrics. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Fitch considers a positive rating action unlikely in the near term given elevated capex and leverage expectations over the rating horizon; - Gross leverage levels below 3.5x on a sustained basis. Liquidity and Debt Structure Promigas' liquidity is supported by cash on hand, stable CFO, and reliable access to long-term local and international financing. As of March 2026, cash of about COP0.9 trillion and CFO of COP1,2 trillion covered its short-term maturities. Fitch considers refinancing risk to be low due to Promigas' strong market access. The company also holds COP2.5 trillion in uncommitted credit lines available for additional liquidity. The financial strategy that combines additional debt and equity to fund acquisition could improve capital structure by reducing maturities and projected liquidity for the next three years. Issuer Profile Promigas is an operating holding company that participates in the natural gas transportation and distribution business, as well as in electricity distribution, in Colombia. The company also participates in the natural gas distribution business in Peru. 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. ESG Considerations Promigas S.A. E.S.P. has an ESG Relevance Score of '4' for Exposure to Social Impacts due to social resistance and delays in environmental licenses that can lead to project delays and higher costs. This 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 ----------- ------ Gases del Pacifico S.A.C. Subordinated LT BB(EXP) Expected Rating Promigas S.A. E.S.P. subordinated LT BB(EXP) Expected Rating Promigas Peru S.A. subordinated LT BB(EXP) Expected Rating Gases del Norte del Peru S.A.C. subordinated LT BB(EXP) Expected Rating ============= J A M A I C A ============= JAMAICA: Secures US$2.1 Million Grant From Green Climate Fund ------------------------------------------------------------- RJR News reports that Jamaica is to benefit from a boost in climate financing, following approval of the US$2.1 million grant from the Green Climate Fund. The funding was secured through the Caribbean Community Climate Change Centre, and is aimed at strengthening the country's ability to respond to climate change, according to RJR News. The grant will help Jamaica improve access to international climate financing and develop a pipeline of projects to protect the economy, environment and livelihoods, the report notes. It comes as the country continues to recover from Hurricane Melissa, which left damage estimated at nearly 57 per cent of GDP, highlighting the urgent need for large scale climate funding, the report relays. Climate Change Minister Matthew Samuda said the funding is critical to building resilience in the aftermath of the storm, the report discloses. Jamaica is the first CARICOM country to secure approval under the Green Climate Fund's new readiness strategy launched in 2024, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. =========== M E X I C O =========== DEL MONTE: Minority Lenders Can't Stay DIP Rollup Fight ------------------------------------------------------- Alex Wittenberg at law360.com reports that a group of minority lenders to Del Monte failed to persuade a New Jersey bankruptcy judge to stay an adversary proceeding centered on the canned food company's Chapter 11 financing, one month after the judge denied their breach of contract claim in the case. About Del Monte Founded in 1886 and headquartered in Walnut Creek, California, the Del Monte business has been a cornerstone of American grocery stores for more than 130 years. Del Monte Foods has been driven by its mission to nourish families with earth's goodness. As the original plant-based food company, Del Monte is always innovating to make nutritious and delicious foods more accessible to consumers across its portfolio of beloved brands, including Del Monte, Contadina, College Inn, Kitchen Basics, JOYBA, Take Root Organics and S&W. On the Web: http://www.delmontefoods.com/or http://www.joyba.com/ On July 1, 2025, Del Monte Foods Corporation II, Inc. and 17 affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. D.N.J. Lead Case No. 25-16984) to address $1.235 billion in funded debt obligations. At the time of the filing, the Debtors listed $1 billion to $10 billion in both assets and liabilities. Judge Michael B. Kaplan presides over the case. The Debtors tapped Herbert Smith Freehills Kramer (US), LLP and Cole Schotz P.C. as legal counsel; Jonathan Goulding, managing director at Alvarez & Marsal North America, LLC, as chief restructuring officer; and Stretto, Inc. as claims and noticing agent. The U.S. Trustee for Regions 3 and 9 appointed an official committee to represent unsecured creditors. The committee hired Morrison & Foerster LLP as counsel; Province, LLC as financial advisor; Kelley Drye & Warren LLP as co-counsel; and Stifel, Nicolaus & Co., Inc. as investment banker. ===================== P U E R T O R I C O ===================== DEMAR INSTALADORA: Gets U.S. Recognition of Mexican Bankruptcy Case ------------------------------------------------------------------- Clara Geoghegan of Law360 Bankruptcy Authority reports that DEMAR Instaladora secured Chapter 15 recognition of its Mexican bankruptcy case after a Texas judge determined that the foreign proceeding qualified for protection under U.S. insolvency law. The marine oil rig services provider sought recognition to shield its assets and facilitate a coordinated restructuring effort. The court's order extends bankruptcy protections to the debtor in the United States and halts two lawsuits that were pending against the company. DEMAR maintained that the litigation threatened to disrupt the restructuring process and could lead to inconsistent outcomes for stakeholders, the report relays. By recognizing the Mexican proceeding as the primary forum for resolving creditor claims, the court reinforced Chapter 15's goal of promoting cooperation in cross-border insolvencies. The ruling enables DEMAR to continue its restructuring efforts while limiting creditor actions outside the foreign proceeding, according to Law360. About DEMAR Instaladora y Constructora SA de CV DEMAR Instaladora y Constructora S.A. de C.V. is an energy infrastructure and construction company based in Mexico that focuses on engineering, procurement, construction and maintenance services for the petroleum industry. Established in 1990, the company supports both offshore and land-based oil and gas projects and is recognized as a contractor for PEMEX operations. DEMAR Instaladora y Constructora SA de CV sought relief under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 26-90523) on May 6, 2026. Honorable Bankruptcy Judge Christopher M. Lopez handles the case. The Debtor is represented by Juan Jose Mendoza, Esq. of Sequor Law, PA. INTERNATIONAL LAND: Issues $385,000 Convertible Note and Warrant ---------------------------------------------------------------- International Land Alliance, Inc. announced in a regulatory filing that it entered into a Securities Purchase Agreement transaction with an accredited investor pursuant to which the Company issued to Investor a convertible promissory note in the aggregate principal amount up to $385,000 and a warrant to purchase 48,125 shares of Company common stock. The Note: (1) has an original discount of $35,000, (2) accrues annual interest at 10%, (3) has a maturity date 12 months from issuance, and (4) is convertible at any time by Investor into shares of Company common stock at a conversion price equal to the lesser of (a) $6.00 per share, or (b) 65% of the lowest traded price during 20 trading days immediately preceding the respective conversion date, subject to adjustment. The Warrant is initially exercisable at an exercise price equal to $10.00 per share (subject to adjustments), with a term of 5 years from issuance, and a cashless exercise option. The shares issuable pursuant to the Note and Warrant carry registration rights. About International Land International Land Alliance Inc. is a Wyoming corporation incorporated in 2013 and based in San Diego. The company is a residential land development company with target properties in northern Baja California, Mexico, and Southern California. Its activities include acquiring properties, obtaining zoning and other entitlements, improving infrastructure and amenities, and selling plots to homebuyers, retirees, investors and commercial developers. In an audit report dated April 27, 2026, the company's auditor Bush & Associates CPA LLC included a going concern paragraph, stating that International Land suffered recurring losses and negative cash flows from operations in recent years and depended on debt and equity financing to fund operations. The auditor said those conditions raised substantial doubt about the company's ability to continue as a going concern. As of March 31, 2026, International Land reported total assets of $32.47 million, total liabilities of $22.04 million and total stockholders' equity of $9.80 million. Cash was $15,635, current assets were $691,556 and current liabilities were $22.04 million. =============== X X X X X X X X =============== LATAM: IFC Commits US$15BB to Caribbean Community Resilience Fund ----------------------------------------------------------------- RJR News reports that the International Finance Corporation (IFC) says access to long-term financing remains one of the biggest obstacles to private sector growth across the Caribbean. According to the private sector arm of the World Bank, domestic credit in the region remains relatively low compared with the size of regional economies, leaving businesses struggling to access the funding needed to expand and invest, the report notes. The IFC says the financing gap across the Caribbean is estimated at more than US$22 billion, according to RJR News. In response, the corporation has committed US$15 million to the Caribbean Community Resilience Fund, helping to move the fund closer to its target size of over US$75 million, the report relays. The IFC says the investment will consist of a US$5 million senior note and a $10 million promissory note, the report says. Under the agreement, 70 per cent of the funds capital will be directed to medium-sized enterprises, while the remaining 30 per cent will support resilience and sustainability projects throughout the Caribbean, the report notes. The IFC says the investment is intended to expand access to financing, stimulate private sector growth and strengthen the region's economic resilience, the report discloses. ********* 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 * * *