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260727.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, July 27, 2026, Vol. 27, No. 148 Headlines A R G E N T I N A ARGENTINA: Moody's Ups Issuer Ratings to B3, Alters Outlook to Pos. COMPANIA GENERAL: S&P Upgrades ICR to 'B-', Outlook Stable B A H A M A S FTX GROUP: Kroll Can Arbitrate Some Data Claims, Ax Others B O L I V I A BOLIVIA: IDB OKs $204.2MM Financing to Support Energy Investments B R A Z I L AMBIPAR PARTICIPACOES: Seeks Switch to Chapter 15 in Texas BRAZIL: Economy Has Shown Remarkable Resilience, IMF Says C O L O M B I A DISTRITO ESPECIAL: Fitch Rates $350M New Sr. Unsec Bond 'BB(EXP)' D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Faces US$1.5MM Losses w/ Mango Import Ban DOMINICAN REPUBLIC: To Block Imports Linked to Forced Labor E C U A D O R CUENCA DPR: Fitch Affirms 'B' Rating on Three Loans, Outlook Stable H O N D U R A S HONDURAS: S&P Assigns 'BB-' Issue Rating to $815.7 Million Bond P A N A M A [] Los Dorados Commences Chap. 11 Bankruptcy in N.Y. P U E R T O R I C O ROYAL PRODUCT: Hires Juan C Bigas Law Office as Counsel - - - - - ================= A R G E N T I N A ================= ARGENTINA: Moody's Ups Issuer Ratings to B3, Alters Outlook to Pos. ------------------------------------------------------------------- Moody's Ratings has upgraded the Government of Argentina's long-term local and foreign-currency issuer ratings to B3 from Caa1 and changed the outlook to positive from stable. The upgrade reflects Moody's assessments that Argentina's default risk has declined materially as macroeconomic stabilization has advanced beyond the initial adjustment phase into a more durable improvement in credit fundamentals, a sign of improving governance. Sustained fiscal surpluses, declining inflation and continued economic liberalization strengthen policy credibility and reduce macroeconomic volatility. At the same time, prospects for Argentina's external position have improved markedly, supported by stronger export performance and rising foreign direct investment in the energy and mining sectors, alongside improved access to external financing. The positive outlook reflects Moody's views that Argentina's credit profile may strengthen further as structural improvements in external finances combine with ongoing macroeconomic stabilization. While political risks ahead of the 2027 general election remain, Moody's considers that the range of policy outcomes has narrowed relative to previous cycles, increasing the probability of policy continuity and sustained gains in external liquidity and debt payment capacity. Argentina's local currency country ceiling was raised to Ba3 from B1, while its foreign currency country ceiling was raised to B1 from B2. The three-notch gap between the local currency ceiling and the B3 sovereign rating balances the increasing predictability of government actions and institutions and a decreased footprint of the government in the economy and the financial system, against lingering political risks and slowly improving external imbalances. The one-notch gap between the foreign currency ceiling and local currency ceiling reflects improved policy effectiveness and relatively low external indebtedness, balanced by low capital account openness. RATINGS RATIONALE RATIONALE FOR THE UPGRADE TO B3 MACROECONOMIC STABILIZATION IS BECOMING ENTRENCHED THROUGH SUSTAINED FISCAL DISCIPLINE AND STRUCTURAL REFORMS Argentina's macroeconomic adjustment has evolved into a more comprehensive normalization process, underpinned by sustained fiscal surpluses and a decisive shift toward stabilizing economic and monetary policy. The fiscal surplus serves as the central anchor of the stabilization program, supporting disinflation, reducing financing vulnerabilities and strengthening policy credibility. Unlike previous stabilization attempts that relied heavily on temporary measures or short-term external inflows, the current adjustment is underpinned by a sustained correction of fiscal imbalances, the elimination of monetary financing and market distortions, a progressive normalization of monetary and exchange rate arrangements, and real investment inflows. The combination of these policies has significantly reduced macroeconomic volatility, strengthened confidence and created conditions for a gradual recovery in private sector activity while avoiding a resurgence of the imbalances that culminated in the 2023 balance of payments crisis. Policy credibility is reinforced by institutional and balance sheet improvements across the public sector. The recapitalization of the central bank and reduction of intra-public sector liabilities strengthen policy flexibility, while declining inflation supports a recovery in real incomes and confidence. Structural reforms, including labor market changes and deregulation across key sectors, are improving the business environment and promoting a gradual rebalancing in the composition of investment and economic activity, towards a more private sector led economic growth model. These developments support a moderate recovery in economic activity. Moody's expects GDP growth around 3.4% in 2026 and 3.5% in 2027. STRUCTURAL IMPROVEMENTS IN EXTERNAL FINANCES SIGNIFICANTLY STRENGTHEN REPAYMENT CAPACITY Argentina's external position has improved substantially and is increasingly characterized by structural gains in foreign exchange generation. Historically, external imbalances, reserve losses and recurrent balance of payments crises represented the sovereign's principal source of vulnerability, repeatedly constraining economic growth and limiting repayment capacity. Export performance has strengthened across a broad base, including agriculture, manufacturing and services, while the energy sector has transitioned from a source of external pressure to a growing surplus. The improvement in external accounts reflects both the success of the macroeconomic adjustment and a profound transformation underway in the country's export sector. Large-scale investments in hydrocarbons, mining and infrastructure are underpinning this transformation. The RIGI incentive regime, aimed at attracting large scale long-term investment into sectors capable of materially increasing export capacity, has catalyzed substantial investment flows, with a pipeline of projects amounting to $141.7 billion (approximately 20% of GDP), of which $45 billion is in the process of being completed. These investments are financed largely through long-term project finance structures, reducing reliance on sovereign borrowing while generating sustained foreign exchange inflows. Additionally, improvements in the composition of external financing toward foreign direct investment, multilateral support and private sector borrowing enhance foreign exchange availability and strengthen the sovereign's capacity to meet external obligations. Reserve accumulation has strengthened meaningfully in 2026, with the central bank purchasing more than $11 billion in foreign exchange through mid-year without generating exchange rate pressures. Although reserve buffers remain relatively weak, the improvement in underlying external dynamics and financing capacity has reduced balance of payments risks and alleviated concerns about debt servicing pressures, particularly in 2026 and 2027. RATIONALE FOR THE POSITIVE OUTLOOK The positive outlook reflects prospects that the ongoing strengthening of Argentina's macroeconomic framework and external position may continue over the medium term as the benefits of macroeconomic stabilization increasingly intersect with the structural improvement in the country's external accounts leading to an improvement in reserve accumulation. In this scenario, external vulnerability, government liquidity risks and the strength of the government finances may improve to a level consistent with a higher rating. Fiscal discipline, declining inflation and increasing policy credibility are likely to continue, while large-scale investments in energy and mining are likely to translate into sustained gains in export capacity and foreign exchange earnings. Continued macroeconomic adjustment will be needed until a larger share of the external sector projects materialize in 2027, as, despite the recent improvements, external buffers are not yet robust enough to withstand a political or balance of payments shock. Although uncertainty related to the policy direction following the 2027 general election persists, the range of potential policy outcomes has narrowed compared with previous electoral cycles. Growing social acceptance of fiscal discipline, broader political support for macroeconomic stability, and the increasing economic importance of large-scale extractive investments suggest that future administrations will face stronger incentives to preserve many of the core elements of the current policy framework, supporting continued improvements in external liquidity and repayment capacity. Political risk nonetheless remains a key constraint on the rating. A shift in the political landscape following the 2027 election could alter the policy trajectory, and the election of a more interventionist administration that partially reverses recent reforms would risk reintroducing distortions in investment, trade, foreign exchange and fiscal management. Such a shift would likely weaken investor confidence, slow investment inflows and constrain the accumulation of external buffers, gradually eroding the credit gains achieved during the current adjustment. ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG) CONSIDERATIONS Argentina's credit impact score of CIS-4 indicates that ESG considerations, particularly weak governance, are material to the rating and weigh on the sovereign's credit profile. Argentina's E-3 exposure to environmental risks is relatively limited and arises from physical climate risks, carbon transition, water stress and threats to natural capital. Heat and water risks present credit challenges for the foreseeable future given the economy's heavy reliance on the agricultural sector that is the main earner of foreign currency for the country through the export of cereals and grains. Argentina's S-3 exposure to social risks has declined as a result of a decline in poverty levels and a March 2026 labor market reform that reshaped the country's employment framework and introduced the most significant changes to labor relations in decades. Although social challenges remain, largely as a result of a still somewhat rigid labor market, high inflation and wealth disparities within Argentine society, social tensions remain in check and have not led to large nation-wide demonstrations that in the past hindered policy effectiveness. The rebalancing of the economy should support real wage growth in the export sector, with lingering social risks in the domestic and service-oriented economy. Favorable demographics and comparatively strong educational outcomes help contain social risks. Argentina's governance issuer profile is scored at G-4. Governance risks weigh on Argentina's credit profile due to long-standing challenges that have in the past led to inconsistent policymaking and debt defaults. Policy effectiveness, budget management in particular, has improved under the current government; however, increasing credibility will require sustaining a track record of better governance through multiple government administrations. GDP per capita (PPP basis, US$): 31,484 (2025) (also known as Per Capita Income) Real GDP growth (% change): 4.5% (2025) (also known as GDP Growth) Inflation Rate (CPI, % change Dec/Dec): 31.5% (2025) Gen. Gov. Financial Balance/GDP: 0.2% (2025) (also known as Fiscal Balance) Current Account Balance/GDP: -1.1% (2025) (also known as External Balance) External debt/GDP: 46.6% (2025) Economic resiliency: ba2 Default history: At least one default event (on bonds and/or loans) has been recorded since 1983. On July 16, 2026, a rating committee was called to discuss the rating of the Argentina, Government of. The main points raised during the discussion were: The issuer's economic fundamentals, including its economic strength, have materially increased. The issuer's institutions and governance strength have materially increased. The issuer's fiscal or financial strength, including its debt profile, has not materially changed. The issuer has become less susceptible to event risks. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Argentina's ratings could be upgraded if investment inflows into the energy, mining and other export-oriented sectors remain within the economy and translate into a sustained accumulation of international reserves, stronger external debt-service coverage and a material strengthening of external repayment capacity. Upward pressure could also emerge if continued progress in eliminating economic distortions and advancing market-oriented policies supports the rebalancing of the economy, boosts competitiveness and investment, and further entrenches macroeconomic stability. Argentina's ratings could face downward pressure if there were a material weakening of the macroeconomic stabilization program or if political developments led to a significant reversal of reforms that have supported investment and export growth. Similarly, renewed balance of payments pressures, a sustained interruption in reserve accumulation, or evidence that foreign exchange inflows are insufficient to meet rising external financing needs could also lead to a downgrade. The principal methodology used in these ratings was Sovereigns published in May 2026. The weighting of all rating factors is described in the methodology used in this credit rating action, if applicable. Argentina's "baa1" economic strength is set below the initial score of "a3" to reflect Moody's views that the country's comparatively high wealth levels and large economic size overstate the strength and resilience of the economy. Argentina's "b3" institutions and governance strength is set below the initial score of "ba3" to reflect the sovereign's history of defaults. This leads to a final scorecard-indicated outcome of B1-B3, compared to an initial scorecard-indicated outcome of Ba3-B2. The assigned rating is within the final scorecard-indicated outcome. COMPANIA GENERAL: S&P Upgrades ICR to 'B-', Outlook Stable ---------------------------------------------------------- S&P Global Ratings raised its issuer credit and issue-level ratings on Argentina-based oil and gas exploration and production company Compania General de Combustibles S.A. (CGC) to 'B-' from 'CCC+'. The stable outlook reflects CGC's lower refinancing risk, alongside S&P's expectation that favorable commodity prices and ongoing cost-reduction initiatives will enable the company to continue improving profitability and reduce S&P Global Ratings-adjusted debt to EBITDA to around 3x in the next two years. The upgrade reflects improvements in CGC's credit metrics and a reduction in refinancing risk thanks to liability management. CGC has successfully executed liability management, reducing overall refinancing risk. The integration of production from Aguada del Chañar, the implementation of a comprehensive efficiency plan, and higher oil prices have improved the company's performance. The company's operating performance has improved amid much more favorable oil prices with Brent projected at approximately $110 per barrel (bbl) for the remainder of 2026, compared with S&P's $60/bbl assumption at the beginning of the year. Also, CGC's efficiency plan allowed it to capture significant synergies within its core conventional assets. In addition, since late 2025, the company has strengthened its maturity profile by reducing refinancing pressure thanks to the following factors: -- The issuance of $300 million, 11.875% senior notes due 2030 in the U.S. in November 2025; -- The opportunistic exchange of $149 million of 2026 dollar-linked notes for cash and new Series 39 notes due 2027 in December 2025; -- The refinancing of $151.2 million of syndicated debt in February 2026; -- The issuance of $55.2 million 9.5% Series 40 two-year local notes in March 2026; and -- The add-on of $200 million to the 2030 notes in May 2026, bringing the total issuance to $500 million. These actions have enabled CGC to cover the remaining 2026 maturities and substantially improve the visibility of the 2027 maturity profile. S&P expects output volumes to range from 43 thousand barrels of oil equivalent per day (kboe/d) to 46 kboe/d in the next two years, given a strategic shift toward oil production that's likely to accelerate with the development of Aguada del Chañar (ADCh). Following the March 21, 2025, farm-in agreement with YPF S.A. to acquire a 49% interest in the ADCh block in Vaca Muerta, CGC has been able to incorporate unconventional crude production to compensate for the natural decline in its mature gas assets. S&P said, "While we expect total production to slip in the near term due to lower gas volumes in the Austral Basin, this is a deliberate result of the company's decision to optimize resource allocation and concentrate on core and more efficient oil-producing assets. We anticipate that production will reach approximately 46 kboe/d in 2026 and 43 kboe/d in 2027 and rise to approximately 48 kboe/d and 50 kboe/d in 2028 and 2029, respectively, as the Aguada del Chañar assets reach plateau. As a result, by 2027, we expect the production mix to reach approximately 60% oil and 40% gas, and about 25% corresponding to shale." Strong oil prices and CGC's ongoing efficiency plan are improving profitability and reducing leverage. CGC has made a significant progress in implementing an integrated efficiency plan to enhance its conventional portfolio, which included operational and procedural optimization, reorganization of administrative functions, and the insourcing of services. This plan delivered $97 million in savings in 2025 despite high inflation and foreign-exchange volatility in Argentina. Consequently, the company's S&P Global Ratings-adjusted EBITDA (including midstream dividends and certain restructuring expenses) rose to $287 million and margin to 30% in 2025 from 25% in 2024. S&P said, "For 2026, we forecast additional savings of approximately $76.1 million. This, combined with higher oil prices and lower lifting costs because of the development of ADCh, will enable S&P Global Ratings-adjusted EBITDA (including midstream dividends) to jump to approximately $600 million in 2026 and $522 million in 2027, with EBITDA margins improving to approximately 55% in both years. As a result, we expect S&P Global Ratings-adjusted debt to EBITDA to improve to around 3x in 2026 and 2027 from 6x in 2025, while funds from operations (FFO) to debt to strengthen to 25%-26% during the same period." CGC has optimized its investment plan to balance growth and cash flow. Given favorable prices for 2026, management has made the strategic decision to accelerate certain investments, pulling forward a portion of the 2027 capital expenditure (capex) budget into the current year. S&P said, "We now expect capex of about $305 million in 2026 and $314 million in 2027, mostly related to the development of ADCh. However, we believe the company's higher EBITDA will continue to support free operating cash flow." The stable outlook on CGC reflects its reduced refinancing risk and improved profitability and leverage metrics amid strong oil prices and significant cost savings. S&P forecasts that the company will refinance its debt while maintaining FFO to debt of 25%-30% and S&P Global Ratings-adjusted debt to EBITDA of around 3x through 2027. S&P said, "We could lower our ratings on CGC in the next 12 months if its liquidity weakens, or if we come to view that its leverage is well above 5x and cash flow become unsustainable over the long term. This would most likely occur if commodity prices decline sharply below our price deck assumptions and profitability weakens, or if the company is unable to continue accessing markets to refinance its upcoming maturities. "We could raise the ratings if the company continues improving its operating performance, providing confidence that it will maintain S&P Global Ratings-adjusted debt to EBITDA below 3x and FFO to debt increases above 30% in more normalized oil price scenarios, while it maintains comfortable liquidity cushion. This could occur if oil prices remain stronger for longer amid structural industry shifts, production outperform our expectations, or CGC reduces debt. An upgrade would also require the company's ability to withstand a sovereign stress scenario." ============= B A H A M A S ============= FTX GROUP: Kroll Can Arbitrate Some Data Claims, Ax Others ---------------------------------------------------------- Bonnie Eslinger at law360.com reports that bankruptcy claims agent Kroll Restructuring Administration LLC should be able to arbitrate claims over a 2023 data breach affecting FTX Trading customers, but claims from a BlockFi user should be tossed, according to recommendations from a Texas magistrate judge. 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 O L I V I A ============= BOLIVIA: IDB OKs $204.2MM Financing to Support Energy Investments ----------------------------------------------------------------- The Board of Executive Directors of the Inter-American Development Bank (IDB) approved a $204.2 million financing package to support energy investments in Bolivia's Northern Amazon Region (NAB). The package consists of a Specific Investment Loan (ESP) of $142.2 million, financed with the Bank’s Ordinary Capital resources; and a $60 million loan, together with a $2 million non-reimbursable investment grant, financed through the Climate Investment Funds (CIF), to strengthen energy security in the region. The IDB-supported program, framed within the Bank's regional initiative Amazonia Forever, leverages regional energy integration to provide more reliable and lower-cost electricity services for households and businesses in the region by diversifying power generation, modernizing infrastructure, and improving the efficiency of distribution systems. The program is part of the IDB's South Connection initiative and includes investments in electricity interconnections with Brazil that will connect the isolated system of the city of Cobija to the distribution system of the Brazilian state of Acre, and the isolated systems of the cities of Guayaramerín and Riberalta to the distribution system of the Brazilian state of Rondônia. The plan will also finance investments in the three Bolivian cities to improve electricity distribution networks, modernize control systems, implement cybersecurity measures, and introduce smart metering. To reduce diesel use in isolated systems serving more remote communities, solar photovoltaic generation plants and energy storage systems will be incorporated. Residents of Riberalta, Guayaramerín, and Cobija, as well as remote communities in the departments of Beni and Pando -- representing a combined population of 209,000 people -- will directly benefit from the program through more reliable, affordable, and sustainable electricity services. The country will also benefit from reduced fiscal expenditures associated with diesel purchases for electricity generation. The $142.2 million IDB loan has a repayment term of 23.5 years, a 7-year grace period, and an interest rate based on SOFR. The $60 million Clean Technology Fund Parallel Fund loan has a repayment term of 30 years, an 8.5-year grace period, and an interest rate of 1.33%. As reported in the Troubled Company Reporter - Latin America on March 25, 2026, S&P Global Ratings raised its long-term foreign and local currency sovereign credit ratings on Bolivia to 'CCC+' from 'CCC-'. The outlook on the long-term ratings is stable. S&P also affirmed its 'C' short-term foreign and local currency sovereign credit ratings. At the same time, S&P revised its transfer and convertibility assessment to 'CCC+' from 'CCC-'. =========== B R A Z I L =========== AMBIPAR PARTICIPACOES: Seeks Switch to Chapter 15 in Texas ---------------------------------------------------------- Marco Schaden of Latin Lawyer reports that Ambipar, a Brazilian provider of environmental and waste management services, has asked a Texas bankruptcy court to halt its Chapter 11 proceedings and instead recognize its ongoing Brazilian insolvency case through Chapter 15. The company said the Brazilian recuperacao judicial should become the primary restructuring forum, replacing the parallel U.S. bankruptcy process. The company launched simultaneous restructuring cases in Brazil and the United States as part of an effort to address its global debt obligations. According to court filings, the Chapter 11 filing was intended to complement the Brazilian proceedings while preserving restructuring options for stakeholders with U.S. interests, the report relays. By seeking Chapter 15 recognition, Ambipar aims to have the U.S. court recognize and enforce the Brazilian court-supervised restructuring rather than continue administering a standalone Chapter 11 case. Such recognition is designed to improve coordination between jurisdictions and reduce conflicts between parallel insolvency proceedings, according to Latin Lawyer. The proposed transition may simplify the restructuring process, although creditors have raised concerns over whether suspending Chapter 11 serves their best interests. The court will ultimately determine whether the company's request advances an efficient and equitable resolution for all parties involved, the report states. About Ambipar Participacoes e Empreendimentos S.A. Business Description: Ambipar provides environment management and integrated environmental solutions. The company's services include waste management, water and effluent management, waste-to-energy, decarbonization, emergency response, industrial services, environmental consulting, remediation, and port and offshore support. Ambipar serves sectors including agribusiness, food and beverage, mining, chemicals and petrochemicals, oil and gas, construction, pharmaceuticals, railways, telecommunications, and steel and metallurgy, and operates across more than 40 countries on six continents. Ambipar Participacoes e Empreendimentos S.A. and affiliates sought relief under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 26-90710) on July 9, 2026. Honorable Bankruptcy Judge Alfredo R. Perez handles the case. The Debtors are represented by Jason S Brookner, Esq. of Gray Reed. The Debtors foreign representative is Thiago da Costa Silva. BRAZIL: Economy Has Shown Remarkable Resilience, IMF Says --------------------------------------------------------- The Executive Board of the International Monetary Fund (IMF) completed the Article IV Consultation for Brazil. The authorities have consented to the publication of the Staff Report prepared for this consultation. Brazil's economy has shown remarkable resilience despite a series of shocks, and is relatively cushioned from global oil price increases stemming from the war in the Middle East by its status as a net oil exporter and the high share of electricity from renewable energy sources. The 2026 Financial Sector Assessment Program (FSAP) found that the financial sector remains resilient with systemic risks contained. Growth is projected to rise to 2.4 percent in 2026, amid positive terms of trade associated with higher global oil prices and fiscal support, before easing in 2027 on account of still‑restrictive monetary conditions aimed at returning inflation to target. Over the medium term, growth is forecasted to recover to 2.5 percent, supported by the normalization of monetary policy and structural factors, notably the implementation of the efficiency-enhancing VAT reform approved in 2023, and the acceleration in hydrocarbon production. Inflation is expected to reach 5.6 percent by end-2026, before gradually converging to the 3 percent target by mid-2028. Risks to the growth outlook are tilted to the downside amid heightened global uncertainty. The main risk is an escalation of geopolitical tensions, especially in the Middle East, which could increase inflation and, through tighter financial conditions and lower global demand, reduce economic activity. Global trade tensions could weigh on foreign investment and trade. Domestically, a weaker‑than‑envisaged fiscal effort could increase uncertainty and add to inflationary pressures, resulting in higher borrowing costs and, ultimately, weaker growth. Upside risks to growth include stronger-than-expected household consumption in the context of a still tight labor market and, over the medium term, from faster implementation of productivity-enhancing reforms and the ecological transformation. Executive Board Assessment Executive Directors welcomed Brazil's continued economic resilience, despite the challenging external environment, alongside declining poverty and inequality. Positively noting Brazil's strong buffers and policy frameworks, Directors encouraged the authorities to strengthen fiscal sustainability, ensure inflation converges to target, and advance structural reforms to boost inclusive growth. Directors commended the authorities' ongoing efforts and welcomed their continued commitment to improving the fiscal position over the medium term. They broadly agreed that, amid persistent fiscal pressures and elevated interest costs, a more ambitious fiscal effort would help place public debt on a firm downward path and create space for priority investments. Saving oil‑related revenue windfalls, reducing spending rigidities, enhancing expenditure efficiency, and phasing out inefficient tax expenditures—while protecting targeted social spending—would support these objectives. Directors also saw merit in strengthening the fiscal framework, including through comprehensive spending limits, a binding medium‑term debt anchor, and linking spending growth to structural revenues. Incorporating oil price volatility considerations into the fiscal framework would also be important. Directors commended the Central Bank of Brazil's commitment to price stability and agreed that a slower normalization of monetary policy than expected before the Middle East war was appropriate. They stressed that monetary policy should remain data‑dependent and flexible amid elevated global uncertainty. Directors also noted that a stronger fiscal stance would support disinflation and pave the way for lower interest rates. They agreed that the flexible exchange rate regime and adequate international reserves remain important shock absorbers. Directors recommended phasing out the multiple currency practice and exchange restriction arising from the financial transaction tax. Directors welcomed that the financial system remains resilient, with banks well‑capitalized, liquid, and systemic risks contained. They encouraged further strengthening banking and securities market supervision, including by completing the bank resolution framework and enhancing supervisory capacity. Directors welcomed the authorities’ deployment of the macroprudential toolkit and supported additional steps to address rising household indebtedness. They also welcomed the authorities’ efforts to strengthen crypto asset regulation and address cybersecurity risks. Directors welcomed the authorities’ progress in their structural reform agenda. They agreed that continued implementation of the landmark 2023 VAT reform, improvements in the business environment, stronger governance, and greater labor force participation, particularly among women, would help raise productivity and medium‑term growth. Directors also emphasized continuing to strengthen anti‑corruption and AML/CFT frameworks and advancing skills development and AI adoption. They positively noted Brazil’s leadership in the climate agenda and encouraged continued implementation of the Ecological Transformation Plan. Directors also welcomed progress in deepening and diversifying trade linkages, including through recent trade agreements, and commended Brazil’s commitment to multilateralism and its important role in supporting an open, rules‑based trading system. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian general election. He was sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. In October 2024, Moody's Ratings upgraded the Government of Brazil's long-term issuer and senior unsecured bond ratings to Ba1 from Ba2, the senior unsecured shelf rating to (P)Ba1 from (P)Ba2; and maintained the positive outlook. S&P Global Ratings raised on Dec. 19, 2023, its long-term global scale ratings on Brazil to 'BB' from 'BB-'. Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable Outlook. DBRS' credit rating for Brazil was last reported at BB with stable outlook at July 2023. =============== C O L O M B I A =============== DISTRITO ESPECIAL: Fitch Rates $350M New Sr. Unsec Bond 'BB(EXP)' ----------------------------------------------------------------- Fitch Ratings has assigned an expected long-term rating of 'BB(EXP)' to Distrito Especial Industrial y Portuario de Barranquilla's (Barranquilla) USD350 million proposed senior unsecured bond. Key Rating Drivers The notes' expected rating is at the same level as Barranquilla's Long-Term Foreign Currency Issuer Default Rating (IDR) of 'BB' as they will constitute senior, direct, general, unconditional and unsecured obligations of Barranquilla and will rank pari passu in right of payment with Barranquilla's other external unsecured obligations. Barranquilla intends to use the net proceeds from the sale of the notes to repay existing internal indebtedness of the District. The term sheet of this bond is: Coupon: 7.35% Principal Repayment: Bullet (Single payment at maturity) Maturity: 5 years Use of Proceeds: Repay existing internal indebtedness (refinancing) Listing: Singapore Stock Exchange (Rule 144A / Regulation S) Cross Default: Yes, with any external indebtedness exceeding USD25 million or its equivalent in other currencies. On May 15, 2026, Fitch Affirmed Barranquilla's IDR. For details, please see "Fitch Affirms Barranquilla's IDR at 'BB'; Outlook Stable". Issuer Profile Barranquilla is the capital of the department of Atlantico and Colombia's fourth-largest city, with around 1,3 million inhabitants. Its value added per capita is slightly above the national average RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade of Barranquilla's Long-Term Foreign Currency IDR would be reflected in the notes' rating. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of Barranquilla's Long-Term Foreign Currency IDR would be reflected in the notes' rating. Public Ratings with Credit Linkage to other ratings The bond rating is linked to the rating of Barranquilla's Long-Term Foreign Currency IDR. ESG Considerations Fitch does not provide ESG relevance scores for Distrito Especial Industrial y Portuario de Barranquilla. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. Entity/Debt Rating ----------- ------ Distrito Especial Industrial y Portuario de Barranquilla senior unsecured LT BB(EXP) Expected Rating =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Faces US$1.5MM Losses w/ Mango Import Ban ------------------------------------------------------------- Dominican Today reports that mango producers in the Dominican province of Peravia are facing an estimated US$1.5 million (about RD$90 million) in losses after the United States suspended imports of Dominican mangoes following the detection of fruit fly-related phytosanitary issues. The measure has disrupted exports during the final stretch of the harvest and affected around 100 producers in Bani, while also causing domestic mango prices to fall by about 50%, according to German Baez, president of the Banileja Association of Mango Producers (Abapromango), according to Dominican Today. Baez said the suspension halted shipments from one of the country's six packing facilities, including 55 containers of the Mingolo variety scheduled for July and August and a separate order of 30 containers of Keitt mangoes destined for U.S. importer Woodman, the report notes. Sector sources familiar with a U.S. plant health inspection report said the ban followed the discovery of significant weaknesses in the country's phytosanitary monitoring system, the report relays. According to the report, inspectors found inconsistencies between field conditions and official reports, including insect traps showing fruit fly activity despite reports indicating no presence of the pest, the report says. Inspectors also documented improperly maintained traps and poor orchard sanitation, including large quantities of rotting fruit left on the ground, which can accelerate the spread of fruit flies, the report notes. Producers argue that they warned authorities about contamination hotspots as early as last year but that preventive measures were not implemented, the report discloses. They also blamed staffing shortages and inadequate resources for plant health technicians, alleging that some were owed months of back pay and lacked transportation support, the report says. The crisis has raised concerns about the financial stability of the sector, the report relays. During this year's Expo Mango Banilejo, the Agricultural Bank reported outstanding loans totaling RD$496.4 million to mango producers in Peravia, the report notes. Growers fear prolonged export restrictions could make it difficult to meet those obligations and affect hundreds of families that depend on mango production, the report says. Despite the setback in the U.S. market, producers noted that exports of Keitt and Kent mangoes to Europe remain unaffected, with shipments expected to reach 9 million boxes this year, the report discloses. The Ministry of Agriculture has responded by launching a 12-month Integrated Management Plan based on Good Agricultural Practices and Integrated Pest Management, the report notes. The initiative, which will run from July 2026 to July 2027, aims to control the fruit fly population, strengthen phytosanitary surveillance, and restore confidence among international trading partners, the report says. Meanwhile, producer organizations are urging authorities to adopt additional measures, including improved monitoring systems, georeferenced pest traps, community cleanup campaigns to remove fallen fruit, and greater support for processing mangoes into value-added products such as juices, pulp, and preserves to reduce dependence on the U.S. export market, 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. DOMINICAN REPUBLIC: To Block Imports Linked to Forced Labor ----------------------------------------------------------- Dominican Today reports that the Dominican Republic has strengthened its fight against forced labor by issuing a new decree that authorizes Customs officials to block imports linked to labor exploitation. Under Decree No. 502-26, the government established an administrative procedure to prevent, identify, and restrict the importation of goods, products, and merchandise produced wholly or partially through forced labor, reinforcing the country's commitment to human rights and international trade standards, according to Dominican Today. The measure grants the General Directorate of Customs (DGA) the authority to prohibit the entry of products when evidence indicates they were manufactured using forced labor, the report notes. The restrictions also apply to shipments already in transit, at Dominican ports, or under any customs procedure before their final entry into the country, the report says. In addition to blocking imports, Customs may order the re-export, destruction, or other legally authorized disposal of prohibited goods, the report relates. The agency must also maintain an official registry of all products denied entry under the new rules, the report discloses. The decree promotes closer international cooperation by encouraging information sharing and the adoption of best practices with foreign authorities to identify goods potentially produced through forced labor, the report notes. It also requires coordination among the DGA, the Ministry of Labor, the Public Ministry, the Ministry of Industry, Commerce and MSMEs, the Ministry of Foreign Affairs, and other government agencies to strengthen oversight of international trade, 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. ============= E C U A D O R ============= CUENCA DPR: Fitch Affirms 'B' Rating on Three Loans, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed the outstanding series of loans issued by Cuenca DPR at 'B'. The Rating Outlook is Stable. Entity/Debt Rating Prior ----------- ------ ----- Cuenca DPR 2021-1 G2706*AA4 LT B Affirmed B 2023-1 G2706*AB2 LT B Affirmed B 2025-1 LT B Affirmed B Transaction Summary The future flow program is backed by U.S. dollar-denominated existing and future diversified payment rights (DPRs) originated by Banco del Austro. Citibank N.A. processes 100% of DPR flows in the U.S. as the sole designated depository bank (DDB) in this transaction. Citibank executed an account agreement (AA) irrevocably obligating the bank to make payments to an account controlled by the transaction trustee. Fitch's rating addresses timely payment of interest and principal on a quarterly basis. KEY RATING DRIVERS Future Flow Rating Driven by Originator's Credit Quality: The rating of this future flow transaction is tied to the credit quality of the originator, Banco del Austro S.A (Austro). On March 6, 2026, Fitch upgraded Austro's Long-Term Issuer Default Rating (IDR) to 'B-' from 'CCC+' and its Viability Rating (VR) to 'b-' from 'ccc+'. Fitch also assigned a Stable Rating Outlook. The rating action followed Fitch's upgrade of Ecuador's IDR, which raised the bank's OE score to 'b-', aligning with the sovereign rating and reflecting the bank's focus on the domestic market. Austro's ratings reflect its moderate franchise and midsize bank business model, stable asset quality. OE risk from credit concentration in Cuenca, stable margins that support profitability growth, lower capitalization and strong liquidity supporting funding stability. Notching Differential Limited by Going Concern Assessment (GCA) Score: Fitch uses a GCA score to gauge the likelihood that the originator of a future flow transaction will remain in operation through the transaction's life. Fitch's Financial Institutions (FI) group assigns Austro a 'GC3' GCA score, which reflects its position as the seventh-largest bank in Ecuador by total assets, with a market share slightly above 4% as of June 2026. Although Austro's business model is adequately diversified, it does not hold a relevant product leadership position within Ecuador, which is also reflected in the GCA score. Several Factors Limit Notching Uplift from IDR: The 'GC3' score allows for a maximum uplift of two notches from the bank's IDR, pursuant to Fitch's future flow methodology. However, the uplift is limited to one notch above Austro's IDR due to various factors, including DDB concentration risk and Fitch reserving the maximum uplift to transactions with originators rated at the lowest end of the rating scale. Moderate Future Flow Debt Relative to Balance Sheet: Fitch estimates that Austro's future flow debt accounts for about 2.8% of its total funding and 28.2% of non-deposit funding, based on outstanding DPR program loan balances as of June 2026 and utilizing March 2026 financials. The current levels do not constrain the notching uplift. Coverage Levels Commensurate with Assigned Rating: Based on average rolling quarterly DDB flows from June 2021 to May 2026 and the maximum periodic debt service over the life of the program, including Fitch's interest rate stress, the projected quarterly debt service coverage ratio (DSCR) is 33.3x. The transaction could also withstand about a 97% decrease in flows and still meet the maximum quarterly debt service. Fitch will continue to monitor flow performance. Structure Reduces Potential Redirection/Diversion Risk: The structure mitigates certain sovereign risks by collecting cash flows offshore until the periodic debt service amount is reached. Fitch considers diversion risk partially mitigated by the AA signed by the sole DDB, Citibank. However, because Citibank processes all DPR flows, the transaction faces greater diversion risk than other Fitch-rated DPR programs in the region. This limits the overall notching differential. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - The transaction's rating is sensitive to Austro's credit quality. A one-notch downgrade of Austro's rating would constrain the transaction's rating. - The transaction's rating also depends on the continued operation of the DPR business line, reflected in the GCA score; a change in Fitch's view of the GCA score could affect the rating. - The transaction's rating is sensitive to the performance of the securitized business line. The projected quarterly DSCR is approximately 33.3x, including Fitch's interest rate stress, allowing for a significant decline in cash flows without affecting the rating. However, substantial additional declines in flows could result in a negative rating action. Fitch will review any changes in these variables in a rating committee to assess the impact on the transaction's ratings. - The transaction remains exposed to the economic and political environment of the home country. Political risks and sovereign interference may rise with a sovereign downgrade, but the transaction structure and enhancements mitigate these risks to a level consistent with the assigned rating. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The originator's rating and Austro's operating environment are the main constraints on the program rating. If upgraded, Fitch will assess whether to maintain the current uplift or adjust it based on criteria USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS The future flow ratings are driven by the credit risk of Austro as measured by its Long-Term IDR. 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. =============== H O N D U R A S =============== HONDURAS: S&P Assigns 'BB-' Issue Rating to $815.7 Million Bond --------------------------------------------------------------- S&P Global Ratings assigned its 'BB-' issue rating to Honduras' $815.7 million bond due 2036 with a 6.4% interest rate. The rating on the bond is the same as the long-term foreign currency sovereign credit rating on Honduras (BB-/Stable/B). As part of the transaction, the government used $615.7 million to roll over debt and had previously announced a cash tender offer to repurchase an outstanding sovereign bond maturing in 2027. The 'BB-' long-term ratings on Honduras reflect the country's comparatively low per capita GDP and its weak institutions. On the other hand, the country has maintained low fiscal deficits and a favorable debt profile, with most sovereign debt coming from official sources at concessional conditions. Remittances, which account for 30% of GDP, have proved to be a source of external inflows of hard currency into the country, which have also translated into higher domestic consumption. The stable outlook incorporates S&P's view of lower political uncertainty in Honduras following last year's tight elections. It also incorporates the significant shift in government policies, focusing on fiscal consolidation and productive relationships with the private sector, multilateral lending institutions, and the U.S. =========== P A N A M A =========== [] Los Dorados Commences Chap. 11 Bankruptcy in N.Y. ---------------------------------------------------- On July 9, 2026, Los Dorados Cargo Inc. filed for Chapter 11 Small Business bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of New York. According to the court filing, the debtor reports estimated liabilities of $1 million to $10 million and between 1 and 49 creditors. According to the Office of the United States Trustee, the Section 341(a) Meeting of Creditors will be conducted by telephone on August 10, 2026, at 12:00 p.m. Parties may participate by calling (888) 330-1716 (U.S. toll-free) or (713) 353-7024 (international) with Access Code 1165157. About Los Dorados Cargo Inc. Los Dorados Cargo Inc. is an Elmhurst, New York-based international freight forwarding and courier services provider. The company offers cross-border shipping and logistics solutions, serving customers in more than a dozen Latin American countries, including Panama, Peru, and Venezuela, while also operating a courier location in Jackson Heights, New York. Los Dorados Cargo Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-43341) on July 9, 2026. In its petition, the debtor reported estimated assets of $0 to $50,000 and estimated liabilities of $1 million to $10 million. Honorable Bankruptcy Judge Elizabeth S. Stong handles the case. The debtor is represented by Pankaj Malik, Esq., of PM Law PC. ===================== P U E R T O R I C O ===================== ROYAL PRODUCT: Hires Juan C Bigas Law Office as Counsel ------------------------------------------------------- Royal Product Group LLC seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Juan C Bigas Law Office as counsel. The firm will represent or perform services for the estate. The firm will be paid at these rates: Juan C. Bigas Valdedon $350 per hour The firm received an advance retainer in the amount of $10,000. In addition, the firm will seek reimbursement for its out-of-pocket expenses. Mr. Valedon disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Juan C Bigas Valedon, Esq. Juan C Bigas Law Office 569 Cesar Gonzalez Juan C. Bigas Valdedon Law Office P.O. Box 7011 Ponce, PR 00732-7011 Tel: (787) 259-1000 Fax: (787) 842-4090 About Royal Product Group LLC Royal Product Group LLC is a Ponce, Puerto Rico-based manufacturer of sanitary paper products serving the personal hygiene market. The company manufactures products primarily under the Gala Diapers and Gala Adult Care brands from its production facility in Ponce. Its product portfolio includes adult diapers, wet wipes, bed pads, pet pads, and sanitary towels. The manufacturer has also been a member of the Asociacion Hecho en Puerto Rico and has employed an estimated 50 to 100 workers. Royal Product Group, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. P.R. Case No. 26-02805) on June 19, 2026, with $100,001 to $500,000 in both assets and liabilities. Juan Carlos Bigas Valedon, Esq., at Juan C Bigas Law Office represents the Debtor as bankruptcy counsel. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2026. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. 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