260629.mbx

260629.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 Monday, June 29, 2026, Vol. 27, No. 128 Headlines A R G E N T I N A ARGENTINA: Approves Dollar Borrowing Amid Multilateral Loan Talks PLUSPETROL SA: Fitch Affirms 'BB' LongTerm IDRs, Outlook Stable PLUSPETROL SA: Moody's Rates Up to $500MM New Unsec. Notes 'B1' B A H A M A S FTX GROUP: Exec's Wife Gets Trial Date in Campaign Finance Case B E R M U D A BORR IHC: Fitch Rates Sr. Secured Notes Due 2032 & 2034 'B-' C A Y M A N I S L A N D S BCP VII JADE: S&P Affirms 'B' ICR & Alters Outlook to Stable D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: OECS Seeks Expanded Trade to Cut Import Costs H A I T I [] Justices Let Trump End Temporary Status for Haiti, Syria J A M A I C A LEISURE INVESTMENTS: Ex-CEO Cites Mexico Ruling in Ch. 11 Fight P U E R T O R I C O PUERTO RICO: PROMESA Turns 10, New Start, Unclear Future - - - - - ================= A R G E N T I N A ================= ARGENTINA: Approves Dollar Borrowing Amid Multilateral Loan Talks ----------------------------------------------------------------- globalinsolvency.com, citing Bloomberg News, reports that Argentina's government authorised up to US$5 billion in new dollar-denominated borrowing as the country looks to secure funding backed by multilateral institutions ahead of upcoming debt payments. The decree, signed by President Javier Milei and Cabinet members, establishes a legal framework for future financing transactions, with contracts governed by New York law and subject to the jurisdiction of US courts, according to globalinsolvency.com. 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. PLUSPETROL SA: Fitch Affirms 'BB' LongTerm IDRs, Outlook Stable --------------------------------------------------------------- Fitch Ratings has affirmed Pluspetrol S.A.'s (PPSA) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB' with a Stable Rating Outlook, and affirmed PPSA's senior unsecured notes due in 2031 and 2032 at 'BB'. The ratings reflect PPSA's midsized business and adequate financial profile, with expected production of 147,000 boe/d in 2027 and gross leverage below 3.0x. PPSA's Foreign Currency IDR is four notches above Argentina's Country Ceiling (B-) due to projected hard-currency debt service coverage above 1.5x over the next three years, supported by offshore cash and export receipts. A fully available USD500 million subordinated committed credit line from sister company Pluspetrol Resources Corporation S.A. further supports financial flexibility and strengthens PPSA's ability to service hard-currency debt. The facility also underscores the strategic importance of PPSA's assets to the Pluspetrol Group. The Stable Outlook reflects Fitch's expectation that PPSA will maintain coverage above 1.5x and leverage below 3.0x. Key Rating Drivers Midstream Capacity Supports Growing Scale: Fitch expects PPSA's production to reach 147,000 boe/d by 2027, split roughly evenly between oil and gas, implying a 37% CAGR from 2025. PPSA should also maintain a 1P reserve life index above seven years, supporting an operating profile consistent with the midpoint of the 'BB' category. Growth is anchored by its core shale asset, Bajo del Choique/La Invernada, which produced 29,704 boe/d in 1Q26, about 35% of total output. Stakes in Oldeval (32.9%) and the VMOS pipeline (14.5455%) add diversification and secure 80,000 boe/d of transport capacity, aiding volume growth and export market access. Adequate Leverage Profile: Fitch expects both gross and net EBITDA leverage to remain below 3.0x over the rating horizon despite an accelerated capex plan. Fitch forecasts FCF will remain negative over the next three years as the company executes a capex-intensive growth plan of around USD5.0 billion over that period. Fitch views this spending as strategic and discretionary, as the company has no committed capex obligations on its concessions and can adjust the program to reflect market conditions. Improving Profitability: Fitch estimates EBITDA to reach USD1.2 billion on revenue of USD2.0 billion in 2026, a significant increase from 2025, driven by higher oil prices, larger production scale and rising export volumes. Higher scale and improved realizations should strengthen margins, internal cash flow generation and hard-currency cash flows. The stronger earnings profile should enhance PPSA's financial flexibility despite negative FCF associated with its elevated growth capex plan over 2026-2028. Rating Above the Country Ceiling: PPSA's cash flow is concentrated in Argentina (B-), but its Long-Term FC IDR is not constrained by the Country Ceiling. Fitch expects PPSA to maintain adequate hard-currency liquidity to service external debt through export revenue, cash held abroad and a foreign-currency debt service coverage ratio above 1.5x over the rating horizon. PPSA also has a committed USD500 million subordinated credit line from Pluspetrol Group, which Fitch views as meaningful financial support and evidence of the strategic importance of its Argentine assets. Peer Analysis PPSA's ratings compare to those of Pan American Energy S.L. (PAE; BB-/Stable) and Vista Energy Argentina S.A.U. (Vista Argentina; BB-/Stable) as all their operations are concentrated in Argentina. PAE and Vista Argentina have access to hard-currency cash and cash flows that enables them to be rated three notches above the Country Ceiling of Argentina. PPSA has material financial support from a related party that grants it an additional notch differential in comparison. In terms of operational scale, PPSA's expected production of approximately 110,000 boe/d is lower than Vista Argentina's of 150,000 boe/d and PAE's 222,000 boe/d. In terms of 1P reserves, PPSA's 406 million boe sits at the lower end of the 'BB' category and is lower than Vista Argentina's 588 million boe and PAE's 1.5 billion boe. Fitch expects PPSA's EBITDA leverage to be below 3.0x over the rating horizon. Compared to its peers, Fitch expects the average leverage of these E&P companies to be below 2.0x over the next three years. Fitch’s Key Rating-Case Assumptions - Average Brent prices from 2026 to 2029 (USD/bbl): 87, 65, 60, 60; - Average daily production from 2026 to 2029 (kboe/d): 110, 147, 181, 216; - Oil sales consider discount to Brent of $8/bbl; - COGS of $25/boe between 2026 and 2029; - Royalties of $5/boe between 2026 and 2028; - Capex of USD1.5 billion in 2026 and annual average of USD1.8 billion between 2027 and 2029; - 1P Reserve replacement ratio of 100% in 2026; - Average rate of 8.5% for rollover of short-term debt; - No dividend payments. 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 (bb-, Moderate), profitability (bb-, Moderate), financial structure (bbb-, Higher), and financial flexibility (bb, Moderate). - The quantitative financial subfactors are based on custom CRT financial period parameters: 20% weight for the forecast year 2026, 40% for the forecast year 2027 and 40% for the forecast year 2028. - The Governance assessment of 'good' has no impact. - The Operating Environment assessment of 'b+' results in an adjustment of -1 notch. - The SCP is 'bb'. - Fitch made no adjustments to the SCP, resulting in a Local Currency IDR of 'BB'. - Country Ceiling considerations apply and result in no adjustment to the Foreign Currency IDR as per Fitch's "Corporate Rating Criteria." PPSA's Foreign Currency IDR can be rated up to 4 notches above Argentina's country ceiling of 'B-'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Material decline in export revenue; - Downgrade of Argentina's Country Ceiling; - Debt/EBITDA and net debt/EBITDA ratios above 3.5x and 3.0x, respectively, on a sustained basis; - Major operational disruptions at key assets, resulting in a significant reduction in production; - EBITDA margin erosion due to higher operating costs. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - For the IDRs: Further improvement of Argentina's operating environment (OE) as long as the pre-OE SCP remains above 'BB'; - For the pre-OE SCP: Increasing production to more than 175 kboe/d and 1P reserves of 1.5 billion boe. Liquidity and Debt Structure PPSA had USD376 million in cash and equivalents plus short-term investments in financial assets of USD350 million while having USD252 million in short-term debt as of 1Q26. PPSA, like other E&Ps in Argentina, has taken advantage of local capital markets to access cheap financing to fund its operations. Fitch believes PPSA can comfortably service debt with cash on hand and cash flows through the rating horizon in the event the company faces a challenging financing environment due to Argentina's capital controls. Also, the subordinated committed credit line of up to USD500 million enhances the company's financial flexibility. The rating case assumes PPSA's FCF will be negative through the rating horizon. Issuer Profile PPSA a midsize O&G producer with average production of 98,700 boe/d as of 1Q26. PPSA ranks as the fourth and sixth largest oil and gas operator in Vaca Muerta, respectively, and the second largest company in Vaca Muerta by acreage. Summary of Financial Adjustments - Shareholder loans in the amount of ARS990 billion were classified as equity by the end of 2025; - ARS8.6 billion in Argentine national treasury dollar-linked bills were excluded from cash and equivalents and reclassified as short-term investments by the end of 2025. 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 PPSA is 58. While elevated, this score does not affect the current ratings given the long-term horizon over which the transition is expected to occur. Any potential future rating impact may change over time, reflecting developments in Fitch's assessment of these risks. 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 ----------- ------ ----- Pluspetrol S.A. LT IDR BB Affirmed BB LC LT IDR BB Affirmed BB senior unsecured LT BB Affirmed BB PLUSPETROL SA: Moody's Rates Up to $500MM New Unsec. Notes 'B1' --------------------------------------------------------------- Moody's Ratings assigned a B1 rating to Pluspetrol S.A.'s (Pluspetrol) proposed senior unsecured notes for up to $500 million. The outlook is stable. Net proceeds from the proposed issuance will be used for investments in fixed assets located in Argentina, working capital, refinancing or repayment of existing indebtedness in an amount of up to 40% of the proceeds, capital contributions to subsidiaries or related companies, and other general corporate purposes. The rating of the proposed notes assumes that the final transaction documents will not be materially different from draft legal documentation reviewed by us to date and assume that these agreements are legally valid, binding and enforceable. RATINGS RATIONALE Pluspetrol's B1 rating reflects its strong competitive position in Argentina's oil and gas sector, supported by a high-quality asset base and significant growth potential in production and reserves. These strengths are expected to sustain cash flow generation and credit metrics over 2026–28 in line with the B1 rating category. The company also benefits from an experienced management team with a solid track record in developing both conventional and unconventional resources. Pluspetrol's high exposure to Argentina's operating environment constrains its credit profile, as its creditworthiness remains closely linked to that of the sovereign. Nonetheless, the ratings are positioned three notches above Argentina's sovereign rating (Government of Argentina Caa1 stable), reflecting the company's relatively solid standalone credit metrics, increasing revenue diversification through exports, and support from Pluspetrol Resources Corporation S.A. The company's support provides an additional layer of credit strength. Pluspetrol Resources Corporation S.A. has demonstrated its capacity and willingness to support the company, including through the establishment of a $500 million subordinated committed credit facility that is fully available as of right now. This facility supports ongoing asset development and expected debt service obligations, enhancing Pluspetrol's financial flexibility and its ability to manage foreign currency debt. At the same time, the rating incorporates the company's asset and production concentration in Argentina, as well as exposure to the country's regulatory environment. These risks are partially mitigated by growing export exposure, which represented around 34% of revenues in the first quarter of 2026. Additionally, the company remains exposed to commodity price volatility, with revenues primarily driven by crude oil (approximately 80%) and, to a lesser extent, natural gas (around 20%). Pluspetrol's credit profile is underpinned by its strong growth trajectory. The company plans to expand production from approximately 94 Mboe/d after royalties currently to more than 150 Mboe/d after royalties by 2028, primarily driven by developments in the Bajo del Choique concession and La Calera within Vaca Muerta. Pluspetrol has adequate liquidity. The company reported $524 million in cash and equivalents as of March 2026, and Moody's expects it to generate sufficient cash flow from operations through 2026 to cover interest payments of approximately $200 million and debt amortizations of around $305 million. However, given its ambitious capex program, Moody's expects Pluspetrol to fund these investments through additional debt. Liquidity is further supported by the parent company, which maintains significant foreign currency cash reserves abroad and has the capacity to provide support if needed. The stable outlook reflects Moody's expectations that the company´s credit metrics and operations will remain robust through the next 12-18 months. Additionally, the company's creditworthiness cannot be completely de-linked from the credit quality of the Argentine government, where it generates the bulk of its revenue, and thus its ratings and outlook incorporate the risks that it shares with the sovereign, in line with Moody's cross-sector rating methodology, Impact of Sovereign Credit Quality on Issuer Ratings, published in May 2026. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING An upgrade of Pluspetrol's rating is contingent upon its relative positioning in the event of an upgrade of the Government of Argentina's credit rating. Additionally, an upgrade will be supported by increasing production or by growth and diversification of operations outside Argentina while maintaining a good liquidity position. The rating could be downgraded if the government of Argentina's Caa1 rating is downgraded. Also, a downgrade could be triggered by reduced liquidity at Pluspetrol and/or Pluspetrol Resource Corporation S.A., coupled with a significant deterioration in credit metrics. The principal methodology used in this rating was 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. PROFILE Pluspetrol S.A. is one of the leading oil and gas companies in Argentina, with high-quality assets spanning approximately 565,000 net acres nationwide, including the Vaca Muerta shale play, the largest shale oil and gas development outside of North America. The company holds four exploration permits and fifteen exploitation concessions, positioning it as the fourth largest oil operator and the sixth largest gas operator in Argentina. Pluspetrol is controlled by Pluspetrol Resources Corporation S.A, a holding company incorporated under the laws of the Netherlands, which develops, invests, and operates businesses related to the production, transport, distribution, and commercialization of oil and gas across several Latin American countries. ============= B A H A M A S ============= FTX GROUP: Exec's Wife Gets Trial Date in Campaign Finance Case --------------------------------------------------------------- Pete Brush at law360.com reports that a Manhattan federal judge scheduled a November trial for crypto-lobbyist Michelle Bond, as she seeks to beat charges alleging she agreed with her husband, jailed former FTX executive Ryan Salame, to take illegal campaign cash from the bankrupt exchange. About FTX Group 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 ============= BORR IHC: Fitch Rates Sr. Secured Notes Due 2032 & 2034 'B-' ------------------------------------------------------------ Fitch Ratings has assigned Borr IHC Limited and Borr Finance LLC's jointly issued USD1.1 billion 8.75% senior secured notes due 2032 and USD935 million 9% senior secured notes due 2034 final senior secured ratings of 'B-'. The Recovery Rating is 'RR4'. The notes are guaranteed by Borr Drilling Limited which has a Long-Term Issuer Default Rating (IDR) of 'B-' with a Stable Outlook. Proceeds will repay the company's existing senior secured bonds, cover fees and expenses, and be retained as balance sheet cash. The 'B-' IDR reflects the inherent cyclicality of the offshore drilling market and high leverage. Rating strengths include the company's moderate scale, the geographic diversification of its high-specification and high-quality jack-up rigs fleet, some near-term revenue visibility from its contracted order backlog and proactive liquidity management. Fitch expects EBITDA leverage will remain within the rating sensitivities over the next four years. Key Rating Drivers Acquisition Increases Leverage: The acquisition of five jack-up rigs from Noble in January 2026 was funded largely by senior secured debt, including a USD165 million tap on the company's existing 2030 notes and USD150 million six-year senior secured vendor financing. Two of the acquired rigs with long-term contracts are under the restricted group, backing Borr's super senior revolving credit facility (RCF), senior secured RCF, and senior secured bonds. Three uncontracted rigs are pledged to the vendor financing facility until they are put on contracts and can be rolled into the broader restricted group through additional bond issues. Borr's EBITDA leverage was at 4.5x in 2025 and Fitch expects it to rise towards the negative sensitivity of 5.5x in 2026, before settling to 4.4x on average during 2027-2029. This improvement will be driven by earnings recovery and contractual amortisation of its senior secured notes. Healthy earnings generation, low capex and the absence of dividends may enable some discretionary gross debt reduction, but Fitch does not include this in its rating case. Active Liquidity Management: The proposed senior secured notes will extend the nearest large debt maturities into 2032 from 2028 while annual bond amortisations will be slightly above USD100 million. Borr plans to refinance all outstanding USD1.1 billion 2028 notes and USD385 million outstanding 2030 notes with two new notes of USD800 million each, maturing in 2032 and 2034. It also plans to merge its two current RCFs into one super senior RCF and extend its maturity accordingly. Borr has recently refinanced most of its 2028 convertible notes with a similar instrument with 2033 maturity, increasing the outstanding convertibles amount by USD104 million. Fitch expects Fitch-defined free cash flow (FCF) to remain positive during 2026-2029, due to low maintenance capex and no further shareholder distributions, comfortably covering debt amortisation. Any excess cash will further strengthen liquidity. Limited Impact from Iran Conflict: Borr has four contracted rigs and one non-contracted rig in the Middle East region, out of 29 total rigs. All four rigs have returned to full operations while the contract for one of the rigs recently expired, having suspended operations at the start of the Iran conflict. The company expects that with the reopening of the Strait of Hormuz contracting activity in the region will recover and more rigs will be required than previously. Some Revenue Visibility: Borr's backlog was USD1.2 billion in March 2026. At that date, 71% of fleet availability was covered by firm contracts at an average day rate of USD137,000 for 2026 and 29% was covered at USD142,000 for 2027. Fitch expects Borr's rig utilisation to remain adequate. However, Fitch expects some of the rigs to be acquired to have low near-term utilisation, particularly as all five will have lower utilisation than Borr's existing fleet. Fitch assumes the new rigs will be able to secure similar day rates to Borr's existing fleet, at about USD125,000/day on average through to 2029 for new contracts. Uncontracted Rigs Excluded from Recoveries: Three of the five rigs to be acquired are uncontracted and will initially be excluded from the collateral package backing the company's RCFs and bond and instead be pledged to the USD150 million vendor loan. Its IDR analysis is based on a consolidated approach as Fitch believes the acquired rigs are strategic and their associated opex and debt service will be funded by the broader Borr group. However, Fitch excludes from its recovery analysis the vendor loan and the EBITDA and asset values associated with these three rigs. High-Specification Jack-Up Fleet: Borr's jack-up fleet, after the acquisition from Noble, remains among the newest on the market, with an average age of about 9.4 years. Fitch expects the fleet of high-specification rigs to have fairly low run-rate capex requirements averaging about USD65 million a year, with assets able to service complex projects in a variety of geographies. Fitch expects the company's assets to be sought by customers looking to develop higher complexity, shallow-water projects where the efficiency and technical specifications of rigs are vital. This should partly insulate it against competition from standard-spec rigs and allow for more resilient day rates. Mixed Customer Base: Borr has healthy customer and geographic diversification, but retains some exposure to Petroleos Mexicanos (PEMEX, BB+/Stable), which has a weak financial profile and has suspended rigs and delayed payments to Borr in the past, as well as some privately-owned independent upstream producers. This is partly offset by strong relationships with other, higher quality customers, such as Saudi Arabian Oil Company (A+/Stable), QatarEnergy (AA/Rating Watch Negative), PTT Exploration and Production Public Company Limited (BBB+/Negative), and European oil and gas majors. Peer Analysis Fitch rates Borr one notch below Viridien S.A. (B/Stable) due to similar order book volatility, but Fitch expects the latter to generate stronger FCF and maintain lower leverage and generally greater rating headroom. This is offset by Borr's higher EBITDA and access to more varied funding sources. Fitch rates Borr two notches below Valaris Limited (B+/Rating Watch Negative) due to the latter's higher mid-cycle EBITDA, stronger liquidity, and lower mid-cycle leverage, alongside a more diversified asset base. This is partly offset by Borr's higher EBITDA margins. Fitch placed Valaris's rating on Rating Watch Negative following the announcement that it will be acquired by Transocean Ltd., potentially leading to a weaker combined credit profile. Fitch’s Key Rating-Case Assumptions - Utilisation rate averaging 85% for 2026-2029 - Day rates averaging around USD130,000 for 2026-2029 - EBITDA margin averaging about 44% for 2026-2029 - Capex averaging USD65 million a year for 2026-2029 - No dividend payments - Contractual amortisation of senior secured bonds and repayment of the outstanding 5% convertibles in 2028 Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('bb', Lower), sector characteristics ('bb-', Moderate), market and competitive positioning ('b', Moderate), diversification and asset quality ('b+', Moderate), company operational characteristics ('b-', Higher), profitability ('bb', Lower), financial structure ('b-', Higher), and financial flexibility ('b', Moderate). The quantitative financial subfactors are based on custom CRT financial period parameters: 10% weight for the historical year 2025, 10% for the forecast year 2026, 30% for the forecast year 2027, 30% for the forecast year 2028 and 20% for the forecast year 2029. B+ to CC considerations apply in its analysis and result in no adjustment. The governance assessment of 'good' has no impact. The operating environment assessment of 'bbb-' has no impact. The SCP is 'b-'. Recovery Analysis The recovery analysis assumes that Borr would be liquidated in a bankruptcy rather than reorganised as a going concern. This is driven by Borr's new assets, with several decades of useful life left and no large investment needs. Other oilfield services companies in its rating universe, such as Valaris, have assets that are older, have less useful remaining life or require more substantial investments leading to lower asset valuations, although EBITDA generation within its forecast horizon may be similar to or even higher than that of Borr. For the purpose of the recovery calculation, Fitch includes going-concern EBITDA attributable only to the existing rig fleet and the two newly acquired contracted rigs, which are pledged to the restricted group backing the bonds and RCFs. The other three rigs are pledged to the vendor financing facility, which constitutes a separate creditor group. Fitch therefore only includes asset values associated with the contracted rigs in its calculation of liquidation value. Fitch assumes the new USD250 million super senior secured RCF is fully drawn. The new super senior RCF will be senior to the existing and new senior secured bonds. The senior unsecured convertible bonds of USD344 million in total are subordinated to the senior secured bonds. Its waterfall analysis, after a deduction of 10% for administrative claims, led to a waterfall-generated recovery computation in the 'RR4' band, indicating a 'B-' instrument rating. While not applicable at present, Borr's revenue base is strongly concentrated in countries under Country Group D, which would cap the Recovery Rating at 'RR4'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Weakening liquidity and increasing refinancing risk - EBITDA interest coverage below 1.5x on a sustained basis - EBITDA gross leverage above 5.5x on a sustained basis - Significant deterioration in the tenor, quality, or size of contract backlog or failure to maintain adequate fleet utilisation Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA gross leverage below 3.5x on a sustained basis - EBITDA interest coverage above 3x on a sustained basis - Maintaining adequate liquidity with no near-term refinancing risk Liquidity and Debt Structure Borr's liquidity is adequate, with cash and equivalents of USD246 million at end-1Q26 versus USD129 million short-term debt. At end-3M26, the company had USD234 million of availability under its RCFs, and sufficient positive FCF to cover the contractual amortisation of its senior secured notes. Following the redemption of its 2028 and 2030 notes as a result of the refinancing, it will have no major maturities until 2032 and thereafter, apart from the contractual amortisation of about USD101 million after refinancing. Issuer Profile Borr is a contract drilling company operating a fleet of jack-up drilling rigs. Date of Relevant Committee 22 May 2026 MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals Borr's Climate.VS for 2035 is 60, suggesting high exposure to climate-related risks. This is the average for pure oilfield services providers. Key transition risks arise due to the oilfield services sector's reliance on exploration activities and oil and gas project capex, which may begin to structurally reset to substantially lower levels when oil and gas companies accelerate the shift in their business models towards low-carbon options. This risk does not have an immediate material influence on the rating given the long timescale over which the transition may take place, uncertainty regarding the extent and nature of changes, and the reaction of markets and companies. Borr's fleet as one of the youngest in the industry is a positive as modern rigs are less carbon-intensive, per barrel extracted, than older assets. However, its offshore focus and limited diversification into other business segments adds to the overall Climate.VS. Any potential future impact on the rating may differ from the illustrative rating impact in the Climate.VS framework, reflecting the evolution of Fitch's assessment of the global risks, action the entity might take to adapt to or mitigate the exposure, and any other relevant factors. ESG Considerations 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 ----------- ------ -------- ----- Borr Finance LLC senior secured LT B- New Rating RR4 B-(EXP) Borr IHC Limited senior secured LT B- New Rating RR4 B-(EXP) =========================== C A Y M A N I S L A N D S =========================== BCP VII JADE: S&P Affirms 'B' ICR & Alters Outlook to Stable ------------------------------------------------------------ S&P Global Ratings revised its outlook on Cerdia's immediate parent, BCP VII Jade Topco (Cayman) Ltd., to stable from positive and affirmed its 'B' issuer credit rating. At the same time, S&P affirmed its 'B' issue-level rating on the company's senior notes due in 2031. The '3' recovery rating indicates its expectation of about 55% recovery in the event of a payment default. The stable outlook reflects S&P's expectation that Cerdia's operating performance will remain in line with S&P's operating base-case forecast, resulting in S&P Global Ratings-adjusted leverage of about 5.4x in fiscal 2026 and positive free operating cashflow (FOCF). S&P said, "The operating performance of Switzerland-based producer of acetate filter tow and acetate flakes, Cerdia, has been softer than we previously expected because of customer destocking and intensified industry competition. "We revised down our forecast for fiscal 2026 and now expect our adjusted leverage to be about 5.4x, versus our previous forecast of 4.0x-4.5x. "We revised the outlook to stable because we expect that Cerdia's S&P Global Ratings-adjusted leverage will not stay below 4.5x in 2026 and 2027. We project S&P Global Ratings-adjusted leverage will be about 5.4x in 2026, which is above our prior expectation of 4.0x-4.5x and above our 4.5x upside threshold. Given the increasing industry competition and the company's performance in the first quarter 2026, we believe that customers destocking and pressure on pricing will weigh on profitability and will lead the leverage to worsen to 5.4x in 2026 and peak at 5.6x in 2027, from 4.2x at end 2025. Additionally, we now expect FOCF of about $45 million-$50 million for 2026, below our prior expectation of about $80 million. The lower cash flow forecast mainly includes the impact of lower profitability, since other cash elements remain in line with our previous base case." Cerdia's revenue declined by 19.3% in 2025, driven by customers destocking for filter tow and acetate flakes. Company's adjusted EBITDA reached $266.8 million, down by 11.2% compared with 2024. Revenue continues to decline in the first quarter of 2026, contracted by 21.8% versus the same period in 2025. S&P said, "The revenue decline is more important than our initial expectations, due to intensifying industry competition and pressure on selling prices rather than a progressive price normalization. Additional industry capacity has been added in China, leading to increasing competition. We expect some closures in Europe that may partly offset new capacity. Our adjusted EBITDA is expected to decrease to around $200 million in 2026. Longer term, we believe Cerdia's end-market demand will remain fairly resilient, as the structural decline in standard markets, notably in developed economies, should be mitigated by some growth in specialty products and emerging markets. We expect the impact of new capacities and destocking to remain until at least mid-2027." Superior profitability, even in downcycle conditions, and limited expansion capital expenditure (capex) continue to support Cerdia's strong FOCF. S&P said, "We anticipate FOCF will remain positive at $40 million-$50 million in 2026-2027, compared with $107 million in 2025. We understand that Cerdia will continue focusing on strategic projects to optimize and improve production efficiency and to improve energy efficiency at its plant in Germany. The biomass plant was commissioned in March 2026, reducing the natural gas consumption. We forecast $35 million-$40 million of capex per year, mainly related to maintenance capex, which we view as protective for credit metrics." S&P said, "We expect any shareholder distributions to be prudent, given the current decline in EBITDA. Following significant dividends of $59 million in 2024 and $80 million in 2025, we expect no more than $60 million distribution in total between 2026 and 2027 as allowed by the debt documentation, which we forecast will be lower in our base case. We expect the company to use positive discretionary cash flow (DCF) to deleverage the capital structure. Consequently, DCF is expected at $30 million-$50 million in 2027-2028." Cerdia has successfully implemented strategic inventory management to mitigate ongoing geopolitical volatility The ongoing war in the Middle East contributes to volatile currency movements and increased market uncertainty, which has hit supply chain operations. In response to such geopolitical conflicts and ongoing supply chain uncertainties, Cerdia has made strategic decisions to maintain elevated inventory levels to safeguard operational continuity and preserve supply reliability. The stable outlook reflects S&P's expectation that Cerdia's operating performance will remain in line with our base-case forecast, resulting in S&P Global Ratings-adjusted leverage of about 5.4x in 2026 and significant positive FOCF. This reflects resilient volumes despite negative price effects from overcapacities in acetate tow, and a prudent approach to investments and shareholder remunerations. S&P could lower the rating over the next 12 months if: -- Cerdia undertook a significant releveraging transaction such that adjusted debt to EBITDA deteriorated markedly above 6x without recovery prospects; -- Filter tow prices declined significantly or if Cerdia lost an important customer, leading to substantial pressure on profitability and weaker FOCF turning neutral or negative; or -- Funds from operations (FFO) cash interest coverage deteriorating to below 2x without improvement prospects. S&P could raise the rating if Cerdia builds a track record of stronger leverage metrics and its owners committed to maintain such leverage. Under this scenario, Cerdia would maintain adjusted debt to EBITDA below 4.5x. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: OECS Seeks Expanded Trade to Cut Import Costs ----------------------------------------------------------------- Dominican Today reports that the Organisation of Eastern Caribbean States (OECS) is considering deeper trade ties with the Dominican Republic and Panama as part of efforts to lower consumer prices across the Eastern Caribbean. Speaking after the OECS Summit in Antigua and Barbuda, Prime Minister Gaston Browne announced that the organization has requested a temporary suspension of the Common External Tariff (CET) to facilitate greater imports from non-CARICOM markets, according to Dominican Today. The proposal aims to give member states access to more affordable goods and food products amid rising living costs, the report notes. Browne highlighted Panama’s role as one of the hemisphere’s largest commercial hubs and said the Dominican Republic could become a key supplier of competitively priced food and consumer goods, the report says. He noted that many products imported through traditional channels become more expensive before reaching Caribbean consumers, making direct trade with regional partners an attractive alternative, the report discloses. To advance the initiative, the OECS has asked its commission to conduct a study identifying products that can be sourced at lower costs from the Dominican Republic, the report notes. The organization also plans to engage with the Caribbean Community (CARICOM) on suspending the tariff framework, the report says. The move could strengthen trade between the Dominican Republic and Eastern Caribbean nations while helping reduce import costs and improve food security across the region, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCR-LA reported in April 2019 that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Standard & Poor's credit rating for Dominican Republic was raised to 'BB' in December 2022 with stable outlook. Moody's credit rating for Dominican Republic was last set at Ba3 in August 2023 with the outlook changed to positive. Fitch, in December 2023, affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' and revised the outlook to positive. ========= H A I T I ========= [] Justices Let Trump End Temporary Status for Haiti, Syria ----------------------------------------------------------- Britain Eakin at law360.com reports that the U.S. Supreme Court on June 25 gave the green light to the Trump administration to move forward with ending temporary protected status (TPS) for Haitians and Syrians, ruling that courts are barred from reviewing such determinations. Although lower courts have found that the Homeland Security secretary did not follow the proper procedural requirements laid out in the Immigration and Nationality Act when ending TPS, the justices said in a 6-3 ruling that courts lack power to review any TPS-related determination under the law's judicial review bar, law360.com relays. Writing for the majority, Justice Samuel Alito also said in a consolidated case that an equal protection claim that the terminations were based on racial animus stemming from disparaging comments about TPS and Haitians made by President Donald Trump and former Homeland Security Secretary Kristi Noem was unlikely to succeed, law360.com adds. In a concurring opinion, Justice Clarence Thomas said the equal protection claim also fails because "aliens have no equal protection rights against the federal government," law360.com adds. In a dissent, Justice Elena Kagan said the majority was mistaken that the court does not allow review of whether the Homeland Security secretary followed the proper procedures, law360.com cites. Justices Sonia Sotomayor and Ketanji Brown Jackson joined the dissent. The justices' decision undoes rulings from federal judges in New York and Washington, D.C., which halted Noem's termination of TPS for Haiti and Syria during litigation. law360.com relays that the June 25 decision could immediately impact roughly 350,000 Haitians and 6,000 Syrians who hold TPS status and could lose their work permits and removal protection. The decision could also potentially impact hundreds of thousands of other TPS holders from the more than a dozen countries whose protected status was terminated by the Trump administration. The consolidated cases are Mullin et al. v. Doe et al., case number 25-1083, and Trump et al. v. Miot et al., case number 25-1084, in the Supreme Court of the United States. The federal government is represented by D. John Sauer of the U.S. Solicitor General's Office. Doe is represented by Ahilan T. Arulanantham, co-director of the UCLA School of Law's Center for Immigration Law and Policy. Miot is represented by Geoffrey M. Pipoly of Bryan Cave Leighton Paisner LLP. The TPS holders are represented by the International Refugee Assistance Project, Muslim Advocates, Van Der Hout LLP, the American Civil Liberties Union, the ACLU of Northern California, the Miñana Center for Immigration Law and Policy at the UCLA School of Law, the National Day Laborer Organizing Network, Just Futures Law, Bryan Cave Leighton Paisner, Kurzban Kurzban Tetzeli & Pratt and Giskan Solataroff & Anderson. ============= J A M A I C A ============= LEISURE INVESTMENTS: Ex-CEO Cites Mexico Ruling in Ch. 11 Fight --------------------------------------------------------------- Jarek Rutz of Law360 Bankruptcy Authority reports that the ex-CEO of Dolphin Co., a marine park operator, has urged a Delaware bankruptcy judge to dismiss the Chapter 11 proceedings involving Leisure Investments Holdings LLC or impose a stay on certain parts of the case. The request is based on arguments that the current bankruptcy action lacks proper grounds. According to the motion, the former executive claims that elements of the case conflict with prior rulings and should not move forward as currently structured. The filing seeks either full dismissal or partial relief to limit ongoing litigation. The request places the restructuring case under additional scrutiny as stakeholders await the court's response. The outcome may determine whether the Chapter 11 process continues in full or is significantly curtailed, the report relays. About Leisure Investments Holdings Leisure Investments Holdings LLC and affiliates are operating under the name "The Dolphin Company," manage over 30 attractions, including dolphin habitats, marinas, water parks, and adventure parks, located in eight countries across three continents. Their primary operations are based in Mexico, the United States, and the Caribbean, with locations in Jamaica, the Cayman Islands, the Dominican Republic, and St. Kitts. These attractions are home to approximately 2,400 animals from more than 80 species of marine life, including a variety of marine mammals such as dolphins, sea lions, manatees, and seals, as well as birds and reptiles. As of 2023, the marine mammal population at the Debtors' parks includes roughly 295 dolphins, 51 sea lions, 18 manatees, and 18 seals. Leisure Investments Holdings LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case 25-10606) on March 31, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100 million and $500 million each. Honorable Bankruptcy Judge Laurie Selber Silverstein handles the case. The Debtors tapped Robert S. Brady, Esq., Sean T. Greecher, Esq., Allison S. Mielke, Esq., and Jared W. Kochenash, Esq. as counsels. The Debtors' restructuring advisor is RIVERON MANAGEMENT SERVICES, LLC. The Debtors' Claims & Noticing Agent is KURTZMAN CARSON CONSULTANTS, LLC d/b/a VERITA GLOBAL. ===================== P U E R T O R I C O ===================== PUERTO RICO: PROMESA Turns 10, New Start, Unclear Future -------------------------------------------------------- Rick Archer at law360.com reports that as the 10th anniversary of a law meant to restructure Puerto Rico's more than $70 billion in government debt approaches, experts say it remains to be seen if reform efforts stick - and what the long-term economic situation for the island will be. About Puerto Rico PREPA is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico PROMESA petition is available at http://bankrupt.com/misc/1701578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agencies; Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case Web site https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. ********* S 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. 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