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260728.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, July 28, 2026, Vol. 27, No. 149 Headlines A R G E N T I N A ARGENTINA: Economy Shrank Again in May Amid Uneven Recovery PROVINCE OF CORDOBA: Fitch Affirms B- Long-Term IDR, Outlook Stable PROVINCE OF NEUQUEN: Fitch Rates USD500M Sr. Unsec. Notes 'B-(EXP)' B R A Z I L CONSTELLATION OIL: Fitch Hikes LongTerm IDR to 'B+', Outlook Stable GEOMETRICA PAR: Fitch Affirms 'BB+' Rating on $350M Sr. Sec. Notes PETROLEO BRASILEIRO: Taps William Vella Nozaki as New Chief RELIZ TECHNOLOGY: Seeks to Extend Plan Exclusivity to Oct. 11 D O M I N I C A N R E P U B L I C AES ESPANA: Fitch Rates Proposed USD500M Sr. Unsec. Notes 'BB-' J A M A I C A BANK OF JAMAICA: Incurs $4.6BB Net Loss for January 1 to July 8 JAMAICA: Tourism Interest Still Strong Despite Hurricane Blow P U E R T O R I C O TOWERS ELECTRONICS: Hires Olga Velez as Accountant - - - - - ================= A R G E N T I N A ================= ARGENTINA: Economy Shrank Again in May Amid Uneven Recovery ----------------------------------------------------------- Manuela Tobias at Bloomberg News reports that Argentina's economy contracted for a second straight month in May, underscoring a trend of uneven growth more than halfway through President Javier Milei's term. Economic activity fell 0.5 percent from April, below the 0.2 percent rise estimated by Bloomberg Economics, according to government data published Wednesday, July 22. From a year ago, the gross domestic product proxy grew 0.2 percent, below the 2.5 percent median estimate of economists surveyed by Bloomberg. Agriculture and mining led growth on an annual basis, while manufacturing and retail fell, according to Bloomberg News. Earlier indicators had already previewed an uneven performance across the economy, with exports expanding while weak imports and tax revenues point to tepid domestic demand, Bloomberg News notes. Moody's Ratings became the third and final major credit rating company to lift the country's credit score, strengthening the case for Argentina's return to international debt markets, Bloomberg News says. Inflation also slowed for a third straight month in June to the lowest level since August in another win for Milei, Bloomberg News relays. "Another monthly contraction in May reflects volatile Argentine activity data more than a fundamental shift in the country's growth trajectory. "The data support our view that the agriculture- and mining-led expansion will remain solid, rather than spectacular. Strength in these sectors continues to be offset by weakness in manufacturing, limiting positive spillovers to the broader economy," said Jimena Zuniga, Argentina Economist for Bloomberg. Argentina's gross domestic product grew 0.7 percent in the first quarter, more than expected, compared with the previous quarter on consumer spending - but the weakest performance was in employment-rich sectors, Bloomberg News says. Argentine GDP is forecast to expand for the second straight year in 2026, driven by record exports from energy, agriculture and mining, Bloomberg News notes. Yet unemployment continues to rise as the formal labor force sheds nearly half a million jobs, Bloomberg News discloses. "Investors remain concerned that uneven growth could eventually lead to a political shift next year," Morgan Stanley analysts led by Fernando Sedano wrote in a July 10 note, Bloomberg News relays. "We keep thinking growth dynamics will become gradually less heterogeneous, as construction activity edges up and as consumers’ sentiment improves through a recovery in real wages and, later this year, a modest resumption of credit," he added. Economists surveyed by the Central Bank in June forecast a 2026 year-end inflation rate of 30 percent, down from 30.5 percent, in the previous survey, with growth of three percent, Bloomberg News adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country’s economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) — with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Moody's Ratings, on July 21, 2026, 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. Fitch Ratings, on May 5, 2026, upgraded Argentina's Long-Term Foreign Currency and Local Currency Issuer Default Rating (IDR) to 'B-' from 'CCC+'. The rating Outlook is Stable. S&P Global Ratings, on Dec. 17, 2025, raised its local currency sovereign credit ratings on Argentina to 'CCC+/C' from 'SD/SD'. S&P also raised its long-term foreign currency sovereign credit rating to 'CCC+' from 'CCC' and affirmed its 'C' short-term foreign currency rating. The outlook on the long-term ratings is stable. In addition, S&P raised its issue ratings on local currency bonds to 'CCC+' from 'CCC'. Its 'B-' transfer and convertibility assessment is unchanged. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024, and confirmed such ratings in November 2025. PROVINCE OF CORDOBA: Fitch Affirms B- Long-Term IDR, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed Province of Cordoba's (Cordoba) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B-'. The Outlook is Stable. Cordoba's Standalone Credit Profile (SCP) remains assessed at 'b-'. The affirmation considers the province's favorable liquidity coverage ratio, which remains solid in the rating horizon (2021-2025) and averages 3.8x, as well as in Fitch's rating case for 2026-2028, where it averages 2.7x. Cordoba's liquidity position buffers the lower operating balance in YE 2025 and the actual debt service coverage ratio (ADSCRs) is expected below 1x in the next 12-24 months (2027: 0.8x). The Stable Outlook reflects Fitch's expectations that Cordoba's 'aa' financial profile will remain commensurate with its ratings over the 2026-2028 rating case. Key Rating Drivers Standalone Credit Profile — SCP at 'b-': Cordoba's SCP remains assessed at 'b-', which combines a 'Vulnerable' risk profile and a financial profile of 'aa' category under Fitch's rating case scenario. The SCP positioning also reflects a comparison with its national and international peers in the same rating category. Risk Profile — 'Vulnerable': The 'Vulnerable' assessment reflects the sovereign's weak external liquidity position and persistent economic vulnerabilities, rather than Argentina's implied operating environment of 'bb'. The risk profile reflects the combination of six 'Weaker' key risk factors, as outlined below. Revenue Robustness: 'Weaker' The assessment reflects the weak and complex nature of the national fiscal framework, as well as Cordoba's dependence on a 'B-' sovereign counterparty risk for transfers that accounted for 43.5% of its total revenue in 2025. Federal coparticipation transfers to the provinces have not been interrupted to date, in accordance with the law. However, some sovereign actions, including the implementation and subsequent reversal of tax exemptions have affected transfer performance in recent years. Operating revenue is mainly composed of transfers (47.2%) and local taxes (29.2% in 2025), including turnover tax (impuesto sobre los ingresos brutos), other taxes and stamp duties. In 2025, federal non-earmarked transfers (coparticipation) decreased by 3% in real terms amid an average annual inflation rate of 44.5%, moderating from historically high 236.8% in 2024. As of March 2026, coparticipation transfers decreased 7.8%, considering an average inflation of 32.7%. Revenue Adjustability: 'Weaker' Cordoba's ability to generate additional revenue in response to possible economic downturns is limited, as is the case for all Fitch-rated Argentine local and regional governments (LRGs). Fitch considers that local revenue adjustability is low and constrained by the country's high, distortive tax burden, weak macroeconomy, and structurally high inflation, which also affects affordability. Fitch also believes the fiscal revenue framework in Argentina is weak. Argentina's macroeconomic performance has been characterized by pronounced volatility, which Fitch views as an additional consideration supporting the assessment of this key rating factor (KRF) as 'Weaker'. This reflects the still-fragile operating environment, notwithstanding the rebound in real GDP growth to 4.3% in 2025 and Fitch's forecast of 3.0% growth in 2026. Expenditure Sustainability: 'Weaker' Argentine LRGs face high expenditure responsibilities amid structurally high inflation. The country's fiscal framework remains imbalanced in terms of revenue-expenditure decentralization, underpinning Fitch's 'Weaker' assessment of expenditure sustainability. At YE 2025, the province's consolidated operating margin, including the Social Security Institute, declined to 5.5% from 12.0% at YE 2024, mainly due to higher operating expenditure driven by increased demand for public services. Cordoba has a track record of prudent budgetary performance and planned opex and capex increases while preserving good liquidity. Staff expenditure remained low at 34.8% of total expenditure, with a still-controlled trajectory, even as it increased in real terms in 2025 amid decelerating inflation and still-lagged expenditure adjustments. As of March 2026, the province's operating balance stands slightly 2025 levels, at 16.5% of operating revenues (March 2025: 15.9%). Fitch estimates that the operating margin will average around 7.7% towards 2026-2028. Cordoba did not transfer its pension scheme to the nation. Federal funding to mitigate provincial pension deficits is subject to yearly budgetary allocation, which is unpredictable and discretionary. The province has held an agreement with the national government since 2025, although discussions on the outstanding deficit balance remain ongoing. In recent years, the province has also implemented reforms to ease the pension burden through increased contributions and reduced pension mobility. Fitch will continue to monitor developments in this area. Expenditure Adjustability: 'Weaker' For Argentine subnationals, infrastructure needs and expenditure responsibilities are deemed high, with leeway to cut expenses viewed as low amid an adverse macroeconomic context. National capex is low and insufficient, shifting capex burdens to LRGs. In 2025 capex, decreased to 10.7% of total expenditure, driven by increases in other expenses such as goods and services. However, the province plans to increase capex levels in real terms in 2026-2027, supported by recent debt issuances. Cordoba's capex works include several sectors, with some of the main works focusing on highway route connectivity, road infrastructure, education and water infrastructure. Liabilities and Liquidity Robustness: 'Weaker' Unhedged foreign-currency debt exposure remains a key structural weakness in the assessment of this KRF, alongside weaknesses in the national framework for debt and liquidity management and the limited development of the local capital market. It also considers Argentina's 'B-' sovereign rating and sovereign's 2020 debt restructuring, which is significantly limited LRGs' access to external markets for several years. At YE 2025, direct debt increased 54% to ARS3,337 billion (2024: ARS2,155.6 billion) due to currency depreciation and the issuance of USD725 million of senior unsecured notes due 2032 in the international market. This transaction included a concurrent tender offer to repurchase existing notes, which reduced near-term refinancing risks. Following the issuance of the bond, Cordoba demonstrated its renewed capacity to issue long-term debt. In 2025, around 82.7% of direct debt was denominated in foreign currency, unhedged, mainly in USD, which is a rating risk in the current macroeconomic environment. The environment has improved but remains volatile. However, 93.55% of its total debt has fixed interest rates. As of March 2026, direct debt totaled ARS4,275 billion (around USD3,094 million) following the issuance of an additional USD800 million of senior unsecured notes due 2035, which was similarly paired with a debt repurchase operation. Through the 2025 and 2026 issuances and related liability management exercises, the province accessed the international market and became the first LRG (in 2025) to do so in several years. By retiring near-term obligations with these new, longer-dated instruments, Cordoba smoothed its amortization schedule and lengthened its debt maturity profile. During 2024-2025 Cordoba issued securities in the local market (Class 2, Class 4, Class 5, and Class 6) which had an outstanding of ARS616 billion as of March 2026 (equivalent to USD446 million), maturing in 2027 and representing more than half of debt capital maturities in that year. Fitch considers that if market conditions allow, these could be rolled over. Still, current liquidity levels mitigate the estimated lower actual debt service coverage ratio in that year under Fitch's rating case scenario. Liabilities and Liquidity Flexibility: 'Weaker' Fitch views Argentina's national framework for liquidity support and funding available to subnationals as 'Weaker', given the absence of formalized emergency liquidity support or bailout mechanisms. Cordoba's consolidated cash positions and investments totaled ARS1,519 billion in 2025. As of March 2026, total cash and investments stood at around ARS2,712 billion, equivalent to around USD1,963 million. Cordoba has shown historically good liquidity coverage metrics (calculated as the current operating balance plus previous year unrestricted cash divided by current debt service) averaging 3.8x over the last five years (2025: 1.7x). Financial Profile: 'aa' category Fitch, considering the current sovereign 'B-' rating level, is only projecting a rating case for YE 2026-2028. Financial profile metrics are analyzed to evaluate province of Cordoba-specific debt repayment capacity and its liquidity position over the next 12-24 months. Although Cordoba's operating balance decreased in YE 2025 relative to 2024, the Province has a track record of prudent budgetary performance and maintains a relevant cash position that buffers lower envisaged ADSCRs in Fitch's rating case from 2026-2028. Fitch classifies Cordoba as a Type B LRG and uses the payback ratio as a primary metric. Under Fitch's rating case scenario (2026-2028), Fitch expects Cordoba's debt payback ratio (net debt/operating balance; the primary financial profile metric) to be close to 3.2x by 2027 (YE 2025: 3.0x), consistent with a financial profile assessment in the 'aaa' category. This is offset by an actual debt-service coverage ratio below the 'aaa' category threshold. This results in an overall financial profile in the 'aa' category. The ADSCR below 1x (2027: 0.8x) is mitigated by liquidity coverage levels expected to average 2.7x throughout 2026-2028. Other Rating Factors: Fitch does not apply any asymmetric risk or extraordinary support from the upper-tier government. Debt Ratings: Fitch has also affirmed Cordoba's step-up USD510.0 million senior unsecured notes due 2027, step-up USD450.0 million senior unsecured notes due 2029, USD725 million senior unsecured notes due 2032, and USD800 million senior unsecured notes due 2035 at 'B-'. These notes are rated at the same level as the province's IDRs. Peer Analysis: Compared with national peers, Cordoba has a proven track record of prudent budgetary execution and maintains a robust financial profile within the 'aa' category, the same category as the Province of Santa Fe. However, while Cordoba's SCP is 'b-', Santa Fe's is 'b'. Compared with the City of Buenos Aires (CBA), Cordoba and Santa Fe each have a financial profile of 'aa', compared with 'aaa' for CBA, which has an SCP of 'bb-'. Santa Fe and Buenos Aires also have stronger ADSCRs and liquidity coverage ratios than Cordoba. Compared to Neuquen, which also has an SCP of 'b-', Cordoba has a more prudent budgetary track record. However, Neuquen currently benefits from positive local economic dynamism linked to hydrocarbon royalty exploitation, which structurally benefits its budgetary performance and therefore results in stronger ADSCRs. Although Kaduna State in Nigeria has an SCPs of 'b' despite a worse financial profile, this is due to a better sovereign context of 'B'. Issuer Profile Cordoba is in the central region of Argentina. It is the second-most populated province, with around 3.9 million inhabitants in 2025, an unemployment rate of 8.8% in 2025. Cordoba contributes approximately 8.0% of national GDP. Cordoba's economy is diversified and is based on primary and industrial goods, as well as services. Key Assumptions Qualitative Assumptions Risk Profile: 'Vulnerable' Revenue Robustness: 'Weaker' Revenue Adjustability: 'Weaker' Expenditure Sustainability: 'Weaker' Expenditure Adjustability: 'Weaker' Liabilities and Liquidity Robustness: 'Weaker' Liabilities and Liquidity Flexibility: 'Weaker' Financial Profile: 'aa' Asymmetric Risks (Notches): N/A Budget Loans (Notches): N/A Ad-Hoc Support (Notches): N/A Floor: N/A Cap (FC IDR): N/A Cap (LC IDR): N/A Quantitative assumptions - Issuer Specific Fitch's rating action is driven by the following assumptions for reference metrics under Fitch's 2026-2028 rating case scenario: - Payback ratio: 3.2x; - Actual debt service coverage ratio: 0.8x; - Fiscal debt burden: 22.3%. Fitch's rating case is a through-cycle scenario that incorporates a combination of revenue, cost and financial risk stresses. It is based on 2021-2025 figures and projected 2026-2028 ratios. The key assumptions for the scenario include the following: - Average operating revenue growth of 24.6% for 2026-2028; assuming slightly above average inflation in the medium term. - Average operating expenditure growth of 23.4% for 2026-2028; assuming growth in line with average inflation in the medium term. - Average capital expenditure/total expenditure levels of around 9.6%; aligned with the province's capex and financing sources. - Additional debt in 2026 considers debt incurred as of March 2026. - Cost of debt considers non-cash debt movements due to currency depreciation with an average exchange rate of ARS1,559 per U.S. dollar for 2026 (year end 1,668), ARS1,818 for 2027 (year end 1,968), and ARS2,096 for 2028 (year end 2,224); - Consumer price inflation (annual average % change) of 31.8% for 2026, 25.0% for 2027, and 17.5% for 2028. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade of Argentina's rating coupled with non-compliance with Fitch's LRGs criteria conditions to remain rated in 'B-' (above the sovereign); - The IDRs could be downgraded if the estimated actual DSCR drops below 1.0x in tandem with a liquidity coverage ratio below 1.0x underpinned by lower operating margins and unrestricted cash, regardless of whether the payback ratio remains below 5x. In this case the rating would be guided directly by rating definitions Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of Argentina's IDR could positively benefit Cordoba's IDRs if the SCP is raised to 'b' given that the entity's financial profile remains robust compared to peers. Summary of Financial Adjustments As of YE 2025, Fitch considers liquidity investments from a 'B-'counterparty in the province's total cash. Cordoba's financials include consolidated information from its Social Security Institution. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for Cordoba. ESG Considerations Cordoba has an ESG Relevance Score of '4' for Creditor Rights given that the province's 2021 DDE remains relevant to the rating horizon in conjunction with other factors. This is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Cordoba, Province of LT IDR B- Affirmed B- LC LT IDR B- Affirmed B- senior unsecured LT B- Affirmed B- PROVINCE OF NEUQUEN: Fitch Rates USD500M Sr. Unsec. Notes 'B-(EXP)' ------------------------------------------------------------------- Fitch Ratings has assigned the expected long-term rating of 'B-(EXP)' to the Province of Neuquen's proposed senior unsecured notes of up to USD500 million. The notes are denominated in dollars and, according to the preliminary documents, will bear a fixed interest rate to be determined at issuance. The notes will have an amortization structure with three annual payments. Interest will be payable semiannually, and the notes will mature in up to eight years. The notes will be a direct, unconditional, unsecured and unsubordinated general obligations of the province and will rank pari passu with its other unsecured obligations in right of payment. The notes will be governed by and construed in accordance with the laws of the State of New York. The final rating is contingent upon Fitch's receipt of all final documents that conform to information already received, as well as final pricing and the financial close of the proposed notes. Under the Program for the Financing of Infrastructure and Debt Repayment of Neuquen created pursuant to Provincial Laws No. 3434, No. 3449, No. 3540 and No. 3545, and Provincial Decree No. 419/26, Neuquen intends to use the net proceeds of the notes after deducting commissions, fees and expenses payable by the Province, as follows: up to USD350 million for the total or partial financing of public works including public infrastructure projects, in accordance with Article 4(a) of Provincial Law No. 3434 and Article 1 of Provincial Law No. 3449; and up to USD150 million for the repayment or amortization of public debt maturing on or after April 1, 2024. The final terms and conditions of these operations will be determined at the time of the tender offer announcement and pricing, respectively. Key Rating Drivers The notes' expected rating is the same as Neuquen's Long-Term Foreign Currency (FC) Issuer Default Rating (IDR) of 'B-', which reflects an adequate debt service coverage ratio for the next 12 months. On June 22, 2026, Fitch upgraded the Province of Neuquen's ratings. For details, please see Fitch Upgrades the Province of Neuquen's Ratings to 'B-' at www.fitchratings.com Neuquen's current Standalone Credit Profile is 'b-', which indicates relatively low refinancing risk. The province has maintained balanced fiscal results and growth in its own-source revenue amid a supportive global geopolitical environment. Medium-term uncertainty remains because key rating metrics depend heavily on the oil and gas sector relative to national peers. Direct debt at YE 2025 totaled ARS1,175.4 billion, with 92.1% denominated in FC, and total debt grew 12.9% from 2024, mainly due to currency depreciation. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade of Argentina's IDRs; - The IDR could be lowered if Neuquen's estimated actual DSCR drops below 1.2x and the liquidity coverage ratio falls below 1.0x, driven by lower operating margins and unrestricted cash, regardless of whether the payback ratio remains below 5x, resulting in the rating being guided directly by rating definitions. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade in Argentina's IDR; - The SCP could be raised to 'b' if the financial profile remains in line with projections for a payback ratio below 5.0x and an actual debt service coverage ratio that consistently remains above 2.0x under Fitch's rating case. Date of Relevant Committee 18-Jun-2026 ESG Considerations Neuquen has an ESG Relevance Score of '3' for Rule of Law, Institutional & Regulatory Quality, Control of Corruption as government effectiveness, such as policy formulation and implementation, and the credibility of the government's commitment to such policies, is now being managed in a way that results in low impact on Neuquen's rating. Neuquen has an ESG Relevance Score of '4' for Biodiversity and Natural Resource Management because of the province's significant economic and financial concentration in the volatile hydrocarbon sector, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Neuquen has an ESG Relevance Score of '4' for Creditor Rights because, despite the entity´s improved willingness to service and repay its debt obligations, the 2020 DDE remains relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating ----------- ------ Neuquen, Province of senior unsecured LT B-(EXP) Expected Rating =========== B R A Z I L =========== CONSTELLATION OIL: Fitch Hikes LongTerm IDR to 'B+', Outlook Stable ------------------------------------------------------------------- Fitch Ratings has upgraded Constellation Oil Services Holdings S.A.'s (Constellation) Long-Term Issuer Default Ratings (IDR) to 'B+' from 'B'. The Outlook on the IDRs is Stable. Fitch also upgraded the existing USD650 million secured notes to 'B+' from 'B' with a Recovery Rating of 'RR4' and assigned a 'B+'/'RR4' rating to Constellation's proposed USD625 million senior secured notes. The upgrade reflects improved earnings visibility and deleveraging following the extension of contracts for three rigs at higher day rates with limited downtime. The rating is also supported by a USD2.7 billion backlog that supports revenue visibility, although the company remains constrained by limited scale, and high client and geographic concentration. Key Rating Drivers Contract Extension Supports Deleveraging: Constellation's ability to renew contracts of three of its rigs at increased day rates while benefiting from minimal downtime supports the rating upgrade. Constellation announced two- to three-year extensions for these contracts at higher rates and better utilization, due to minimal downtime for rig re-work. This increases EBITDA and free cash flow (FCF) forecasts. Fitch expects that FCF will be sufficient to comfortably meet annual amortizations, and that the new issuance at a lower coupon will also support metrics. Fitch forecasts EBITDA leverage to decrease to 1.8x in 2026 from 2.9x in 2025 and remain below 2.0x through the rating horizon. Backlog Supports Visibility: In addition to enhancing financial metrics, the successful re-contracting of the three rigs enhances the company's business profile by increasing revenue and EBITDA scale and mitigating risk to sector volatility. Constellation's backlog of USD2.7 billion as of March 2026 supports revenue visibility within the volatile oilfield services market. The company expects to convert approximately USD830 million of its backlog into revenue annually in 2026 and 2027. Limited Global Scale: Constellation's fleet and operating footprint are smaller than those of leading global peers with larger fleets and broader service portfolios. This increases exposure to competitive pressure. In Brazil, Constellation is the largest drilling rig operator, with about 24% market share and 46 years of operating history, focused on mid-, deep- and ultra-deepwater production. This partly offsets the rating constraint from its smaller scale. Fitch forecasts revenue and EBITDA to improve to an average of USD765 million and USD316 million, respectively, over the rating horizon. These metrics are in line with the higher end of the 'B' category and, together with a clear deleveraging plan, support the rating upgrade. Client and Geographic Concentration: Constellation is fully concentrated in Brazil, and 75% of its backlog is contracted with Petroleo Brasileiro (Petrobras; BB/Stable). This concentration increases vulnerability to changes in the local market and to Petrobras' dominant position. These risks are reduced by the average length of the contracts, which is about three times the global average. The longer tenor smooths pricing and supports resilience in a downturn, although it delays the benefit of higher day rates. Constellation's geographic concentration in Brazil is partially mitigated by its longstanding tenure and highly efficient operations within a booming market. Peer Analysis Constellation's upgrade places it in the same rating category as Seadrill Limited (B+/Stable) and Valaris Limited (B+/Negative). Seadrill benefits from low leverage, strong liquidity and a leading position in ultra-deepwater drilling, while Valaris is supported by favorable long-term contracts, a growing backlog, positive FCF, leverage below 2.0x and strong liquidity. Constellation compares well with both peers through stronger contract coverage. Constellation's credit profile is stronger than Oceanica Engenharia e Consultoria S.A.'s (B-/Stable) and Nabors Industries, Ltd.'s (B/Stable). Oceanica has improved short-term liquidity but still needs more consistent uptime to strengthen credit metrics. Nabors remains constrained by the Parker Wellbore acquisition, softer U.S. drilling conditions and refinancing needs. Fitch’s Key Rating-Case Assumptions Brent oil price of USD87 per barrel (bbl) in 2026, USD65/bbl in 2027, and USD60/bbl thereafter; Number of vessels: seven owned and two third-party agreements in 2026 - 2029; Average utilization rate of 89% in 2026 and 95% in 2027; Average efficiency rate of 91% in 2026 and 93% in 2027; Average day rates of USD340,000 in 2026 and USD329,000 in 2027; Average annual capex of USD106 million in 2026 and 2027; Dividend payments of 40% of EBITDA 2026-2028, no payment in 2029; Cash taxes of 5% of EBITDA; Issuance of USD625 million seven-year amortizing notes with a coupon of 8.25%, with USD50 million annual amortization; Repayment of existing USD654 million debt with proceeds from new issuance. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('bb+', Moderate), sector characteristics ('b+', Moderate), market and competitive positioning ('b', Higher), diversification and asset quality ('b', Higher), company operational characteristics ('bb-', Moderate), profitability ('bbb', Lower), financial structure ('bbb-', Moderate), and financial flexibility ('bb-', Moderate). The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the latest historical year 2025, 40% for the forecast year 2026 and 40% for the forecast year 2027. B+ to CC considerations apply in its analysis and has no impact. The governance assessment of 'good' has no impact. The operating environment assessment of 'bb' has no impact. The SCP is 'b+'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'B+'. Recovery Analysis The recovery analysis assumes Constellation would be reorganized as a going concern (GC) in bankruptcy rather than liquidated. Fitch assumes a 10% administrative claim. GC Approach Constellation's GC EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the enterprise value. The GC EBITDA assumption of USD244 million represents the mid-point between a stress-case average EBITDA and LTM 1Q26 EBITDA. Fitch's stress case assumes the non-renewal of the Atlantic Star contract expiring in July 2026, and day rates 2.5% lower than the base case. An enterprise value multiple of 5.0x EBITDA is applied to the GC EBITDA to calculate a post-reorganization enterprise value. The choice of this multiple considered the following factors: - The historical bankruptcy case study exit multiples for peer energy oilfield service companies have a wide range with a median of 6.1x; - The oil field service subsector ranges from 2.2x to 42.5x due to the more volatile nature of EBITDA swings in a downturn. Liquidation Approach The liquidation estimate reflects Fitch's view of the value of balance sheet assets that can be realized through sale or liquidation processes during a bankruptcy or insolvency proceeding and distributed to creditors. Fitch assigns standard discounts to the liquidation value of the company's cash, accounts receivable, inventory and net property, plant and equipment (PP&E). Despite the material write-down of the company's PP&E, Fitch continues to apply a 20% liquidation value to the company's March 2026 book value, given the high uncertainty around assets values during a downturn. The allocation of value in the liability waterfall results in a recovery corresponding to 'RR1' for the USD625 million in senior secured notes. However, because the assets are concentrated in Brazil (Group D, as per Fitch's criteria), the recovery is capped at 'RR4'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Midcycle net leverage greater than 4.0x on a recurring basis; - EBITDA margins below 25% on a recurring basis; - EBITDA interest coverage below 3.5x; - Failure to renew contracts and/or material reduction in day rates; - Inability to refinance upcoming maturities; - Consistent negative FCF generation. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Midcycle net leverage below 3.0x on a recurring basis; - Enhanced customer diversification maintaining length of contracts; - Geographic diversification beyond Brazil Liquidity and Debt Structure Fitch expects Constellation to maintain an adequate liquidity position over the next three years after its successful bond issuance in September 2024. With the issuance of the 2033 notes, Constellation's liquidity profile will likely continue to improve, as lower interest rates and a more favorable amortization schedule support its cash position. Total debt of USD656 million, considering net derivatives, was comprised exclusively of the 2029 senior secured notes. The company's financial flexibility remains somewhat constrained, reflecting its limited market access due to its weak risk profile. Constellation's successful refinancing of its existing debt partly eases concerns about market access and improves liquidity metrics. The new structure includes lower annual amortization, and CFO comfortably covers annual debt obligations. Improved EBITDA forecast bolstered financial flexibility with EBITDA to interest coverage exceeding 5.0x. Issuer Profile Constellation is the largest provider of offshore drilling rigs services in Brazil with seven of its own offshore rigs and two managed third-party rigs, all of which are floaters. The company mainly works for Petrobras. 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 fiscal 2025 revenue-weighted Climate.VS for Constellation is 60 for 2035, which is consistent with the oilfield services industry. Offshore drilling operations, as well as their onshore counterparts, face the risk of regulatory scrutiny and environmental regulations. Furthermore, oilfield services also face risks relating to emission production, personnel safety, environmental disasters and other catastrophic events. Constellation's geographic concentration in Brazil exposes the company to localized regulatory impact. Key transition risks arise from potential reductions in oil and gas demand, and related demand for oil field services, driven by policies designed to reduce the use of oil and gas in the global economy, and in the shorter term from policies designed to limit greenhouse gas emissions from the production of oil and gas. These risks currently do not have a material influence on the rating currently, given the very long-term time frame over which the transition may take place and uncertainty regarding the extent and nature of changes, and markets and companies' response to them. For further information on how Fitch perceives climate-related risks in the oil and gas sector, see "Oil & Gas and Chemicals - Long-Term Climate Vulnerability Signals Update". ESG Considerations Constellation Oil Services Holding S.A. has an ESG Relevance Score of '4' for Waste & Hazardous Materials Management; Ecological Impacts due to the risk of offshore oil spills that may affect the drilling company, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Constellation Oil Services Holding S.A. LT IDR B+ Upgrade B LC LT IDR B+ Upgrade B senior secured LT B+ New Rating RR4 senior secured LT B+ Upgrade RR4 B GEOMETRICA PAR: Fitch Affirms 'BB+' Rating on $350M Sr. Sec. Notes ------------------------------------------------------------------ Fitch Ratings has affirmed the rating of the fixed-rate USD350 million senior secured notes issued by Geometrica Par Investimentos S.A. (Geometrica Par) at 'BB+'. The Rating Outlook is Stable. KEY RATING DRIVERS The rating reflects Geometrica Par's strong cash flow stability, supported by dividend distributions from Ferroport Logistica Comercial Exportadora S.A. (Ferroport). Ferroport's revenue base benefits from a long-term take-or-pay (ToP) contract with Anglo American Minerio de Ferro Brasil S.A. (AAMFB), a subsidiary of Anglo American plc (BBB+/Stable), underlining counterparty strength and the strategic importance of the terminal as Anglo American's sole export outlet for iron ore from Minas Gerais. The asset's critical function and established operating track record underpin its essentiality. Despite revenues and debt service being denominated in U.S. dollars (USD), revenue is collected in Brazilian reais (BRL). Operational expenses are also paid in BRL, exposing the transaction to the risk of transfer and convertibility. Furthermore, while the ToP agreement is robust, BRL-denominated operational expenses can pressure EBITDA margins in the event of BRL appreciation. The notes carry a fixed rate and feature a balloon payment at maturity in 2031. In Fitch's scenarios, the refinancing risk is mitigated by a cash sweep mechanism that fully amortizes the debt, as well as an eight-year ToP tail. Under the rating case, the minimum project life coverage ratio (PLCR) is projected to be 1.8x for 2026. Although the metrics are consistent with a higher rating, the rating is constrained by Brazil's Country Ceiling due to exposure to transfer and convertibility risk. Revenue Risk - Volume - High Midrange Strategic, Single-User Asset with Demand Certainty but Limited Diversification Ferroport is a dedicated export terminal, purpose-built to serve Anglo American's Minas-Rio mine via a proprietary slurry pipeline. Throughput volume is contractually secured under a long-term ToP arrangement through 2039, significantly reducing demand and volume volatility. In addition, Brazil's strengthened position as a leading supplier, combined with Minas-Rio's high-grade ore, reserves sufficient to support production above ToP annual volumes at least until 2068, and potential for further expansion following the recent incorporation of Serpentina, supports long-term demand certainty. However, the single-user nature and reliance on a single upstream mine and transportation route limit demand diversification and introduce potential concentration risks if Anglo American's operations are disrupted. Historical performance since 2014 demonstrates operational reliability over the course of an economic cycle and the ToP mechanism insulates the project from volume fluctuations, while the oil segment remains more exposed to this risk. The asset's demonstrated track record of uninterrupted performance across an economic cycle, together with a positive demand outlook in its reference market and its strategic role within the global iron ore supply chain, supports a High Midrange Volume Risk Assessment. Revenue Risk - Price - Stronger Predictable and Indexed Revenue Stream Ferroport's primary revenue stream is a 25-year, USD-denominated ToP contract with AAMFB, guaranteeing export volumes of 26.6 million wet metric tons per year through June 2039. For volumes above the ToP commitment, Ferroport receives additional revenue based on a reduced tariff. The contract automatically renews for an additional 35 years upon expiration, with tariffs set at 115% of total costs including operating costs, capex, and SG&A. The ToP agreement incorporates annual tariff adjustments indexed to two-thirds of the U.S. Producer Price Index for Industrial Commodities, providing a high degree of revenue predictability and inflation protection. The consistent implementation of these adjustments demonstrates contractual enforceability and reduces exposure to cost inflation. While revenue and debt are denominated in USD, operational costs and expenses are denominated in BRL, exposing the transaction to the risk of BRL appreciation. In addition, Ferroport benefits from a port access agreement with Vast Infraestrutura S.A. (Açu Petroleo Luxembourg S.A.R.L.; BB+/Stable) which allows the terminal to handle crude oil, providing an additional revenue stream that represents approximately 10%-15% of Ferroport's total revenue over time. Infrastructure Dev. & Renewal - Midrange Modern Asset with Predictable Maintenance Needs Ferroport's facilities are modern and well maintained, with no major renewal capex anticipated during the debt tenor. Maintenance planning is comprehensive and adequately budgeted, with planned investments primarily focused on channel dredging and incremental efficiency upgrades. The project benefits from robust asset management practices, supported by the long useful life of key equipment and ongoing technical assessments. While expansion capex is contractually permitted, it is subject to additional tariffing or bondholder approval, which helps limit unexpected financial burdens. The main equipment at the Ferroport terminal is expected to have a useful life of approximately 25 years or more — extending to around 2050 — provided current maintenance strategies and procedures are consistently followed. After this period, significant investments may be required to modernize and upgrade the terminal's infrastructure. Debt Structure - 1 - Midrange Refinance Risk Mitigated by Cash Sweep The debt carries a fixed interest rate and includes a balloon payment of up to 55.1% (USD177 million) due in 2031. The debt structure also features a target amortization schedule designed to fully amortize the debt within 12 years through a cash sweep mechanism. The evaluated debt is the only obligation to be serviced exclusively with dividend flows received by Geometrica Par. Ferroport dividends are upstreamed to the issuer every three months; given that Ferroport cash balances are held in BRL, this may result in foreign exchange volatility. However, the issuer has historically managed a monthly hedge program, which helps to reduce short-term dividend volatility. In addition, the debt structure includes a six-month offshore debt service reserve account (DSRA) and lock-up provisions. These provisions require compliance with the target debt balance, among other conditions, in order for Geometrica Par to be permitted to distribute dividends. Peer Analysis Geomtrica Par's closest peers are Dalrymple Bay Finance Pty Ltd (DBT; BBB-/Positive) and Mersin Uluslararasi Liman Isletmeciligi A.S. (Mersin; senior unsecured debt: BB-/Stable). DBT is highly concentrated in coal exports and serves a relatively small number of users. However, DBT benefits from a robust cash flow profile, underpinned by long-term ToP contracts with creditworthy miners. These contracts provide cash flow stability and substantially reduce volume risk. DBT's net debt-to-EBITDA ratio stands at 6.4x. The terminal also benefits from a strong asset base and limited competition. Although the Australian legal and regulatory framework is robust, refinancing risk is heightened for coal-concentrated terminals, which compounds the potential effect of energy transition risks. Nonetheless, DBT maintains an overall risk profile that supports an investment-grade rating, while the Positive Outlook reflects Fitch's expectation of continued deleveraging and an improving financial profile over the medium term. Mersin is Turkey's largest export-import port and handles the highest volume of containerized throughput in the country. Unlike Geometrica Par, Mersin's volume mix is more diversified but also more volatile. Mersin has a single bullet debt structure, but its refinancing risk is largely mitigated by a moderate leverage ratio of 2.0x between 2025 and 2029, measured by net debt to EBITDA. Mersin's rating is also capped by Turkey's Country Ceiling of 'BB-' and is aligned with the sovereign rating due to the port's linkages to the country's economic and regulatory environment. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A significant and sustained increase in costs that negatively affects cash flows and raises refinancing risk, resulting in the minimum PLCR falling close to 1.1x in Fitch's rating case scenario; - Deterioration on Fitch's view regarding Brazil's risk of imposing capital controls, affecting the ability to transfer currency; - Operational disruption that significantly affects ToP revenue collections. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Improvement in Fitch's view regarding Brazil's risk of imposing capital controls, provided the issuer's financial profile is still consistent with a higher rating. Financial Profile In Fitch's rating case, Geometrica Par is projected to fully repay its debt at maturity. Refinancing risk is further mitigated by the PLCR, which is calculated based solely on the ToP period. This is a conservative approach, as Fitch considers it highly likely that AAMFB will extend the commercial use of the port due to the remaining useful life of the iron ore mine, the existing infrastructure and the longevity of the equipment. Under the rating case, the minimum PLCR is projected to be 1.8x in 2026, and the net debt-to-cash flow available for debt service (CFADS) is expected to peak at 6.4x in 2026. Fitch considers both ratios comfortable due to the eight-year ToP tail. Geometrica Par's metrics align with higher ratings according to Fitch's "Transportation Rating Criteria"; however, its rating is constrained by Brazil's 'BB+' Country Ceiling Rating because the notes are denominated in USD while revenue is collected in local currency, making them subject to transfer and convertibility risk. Fitch's cases do not incorporate the recent increases in U.S. PPI, to which the concession's tariffs are indexed. A U.S. PPI that is higher than the CPI could provide some upside to projected cash flows. SECURITY The debt issued by Geometrica Par is the only obligation to be serviced exclusively with dividend flows received from Ferroport. The notes are USD-denominated, bear a fixed interest rate of 7.5% per year, are issued under Rule 144A/Reg S, and are senior secured. The security package includes Ferroport shares held by Geometrica Par, 100% of the shares of Gemometrica Par and the issuer's credit rights under its accounts. The notes feature both legal and target amortization curves. The legal curve has a final maturity in 2031, with a 55.1% balloon payment at maturity, while the target curve is intended to fully amortize the debt at maturity through a cash sweep mechanism, providing an eight-year tail prior to the end of the ToP contract. The notes also include a six-month offshore DSRA and lock-up provisions. Ferroport does not hold financial debt and additional indebtedness is limited to USD50 million, according to Ferroport's shareholders' agreement, which also requires that interim dividends of all cash flow available for distribution be paid within 30 business days after the end of each financial quarter. Climate Vulnerability Signals The Climate.VS for 2035 for Geometrica Par Investimentos S.A. is 60. This score reflects the company's high exposure to physical risks, primarily due to its location which could be impacted by floods given its low altitude, resulting in higher exposure to extreme weather events. These risks are not considered to have a material impact on the rating given the mitigating effect of the company's insurance coverage. 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 ----------- ------ ----- Geometrica Par Investimentos S.A. Geometrica Par Investimentos S.A./Dividends & Intercompany Loan - Fist Lien/1 LT LT BB+ Affirmed BB+ PETROLEO BRASILEIRO: Taps William Vella Nozaki as New Chief ----------------------------------------------------------- Reuters reports that Petroleo Brasileiro SA named William Vella Nozaki interim executive director for Energy Transition and Sustainability, effective Aug. 1, 2026. Nozaki has served since August 2024 as executive manager of Integrated Energy Transition Management, a role tied to the same directorate, according to Reuters. He has also been a board member at Transpetro since December 2023, the report notes. About Petrobras Petroleo Brasileiro S.A. or Petrobras (in English, Brazilian Petroleum Corporation - Petrobras) is an integrated energy company, with total assets of $215 billion and annual revenue of $86.3 billion as of the 12 months that ended June 2025. Petrobras dominates Brazil's oil and natural gas production, and refining and fuel marketing sectors. The company also holds stakes in the petrochemicals and power plant business segments. The Brazilian government directly and indirectly owns about 36.6% of Petrobras' outstanding capital stock and 50.3% of its voting shares. A corruption scandal was uncovered in 2014 that involved Petrobras. The scandal is related to money laundering that involved Petrobras executives. The executives were alleged to get received kickbacks from overpriced contracts, to the tune of about $3 billion in total. Over a thousand warrants were issued against politicians and businessmen in relation to the scandal. In 2016, Marcelo Odebrecht, CEO of Odebrecht, was sentenced to 19 years in prison after being convicted of paying more than $30 million in bribes to Petrobras executives. In January 2018, Petrobras agreed to pay $2.95 billion to settle a U.S. class action corruption lawsuit. In September 2018, Petrobras agreed to pay $853.2 million to settle with Brazilian and U.S. authorities. Fitch Ratings affirmed in April 2025, Petrobras' Long-Term and Foreign Currency Issuer Default Ratings (IDRs) and outstanding debt ratings at 'BB'. S&P Global Ratings assigned in January 2024, a new management & governance (M&G) assessment of moderately negative to Petrobras. At the same time, S&P affirmed its issuer credit ratings on Petrobras at 'BB' on the global scale and 'brAAA' on the Brazilian national scale. Meanwhile, Moody's Ratings affirmed in October 2024, Petrobras' Ba1 corporate family rating and ba1 Baseline Credit Assessment (BCA). In July 2022, Egan-Jones Ratings Company upgraded the foreign currency and local currency senior unsecured ratings on debt issued by Petrobras to BB+ from BB. RELIZ TECHNOLOGY: Seeks to Extend Plan Exclusivity to Oct. 11 ------------------------------------------------------------- Reliz Technology Group and its affiliates asked the U.S. Bankruptcy Court for the District of Delaware to extend their exclusivity periods to file a plan of reorganization and obtain acceptance thereof to Oct. 11, 2026 and Feb. 9, 2027, respectively. This is the Debtors' first request for an extension of their Exclusive Periods, and the Debtors are seeking only a limited 90-day extension. The Debtors submit that these factors, and the additional factors, weigh in favor of such extension: * Since the Petition Date, the Debtors have made significant and material progress advancing the Chapter 11 Cases. Significantly, the Debtors have filed and solicited their Plan, and have settled with Celsius, the Debtors' largest secured lender, with respect to the Celsius Claims. The Debtors submit that their significant progress made to date in the Chapter 11 Cases strongly weighs in favor of extending the Exclusive Periods. * The Debtors have made and will continue to make timely payments on their undisputed post-petition obligations in the ordinary course, meaning that the requested extension of the Exclusive Periods will not prejudice the legitimate interests of post-petition creditors. As such, this factor weighs in favor of extending the Exclusive Periods. * Granting the requested extensions of the Exclusive Periods will not pressure the Debtors' creditors or grant the Debtors any unfair bargaining leverage. Plan solicitation is complete and the Confirmation Hearing is scheduled to go forward on July 13, 2026. Thus, the Debtors are seeking extensions of the Exclusive Periods out of an abundance of caution in the event that any unforeseen issues arise. Therefore, this factor also weighs in favor of extending the Exclusive Periods. * The Plan has been filed and solicited and approved by all classes entitled to vote on the Plan. Additionally, there were no objections filed to Plan confirmation, and the Debtors were able to resolve all informal objections through agreed modifications to the Plan and proposed confirmation order. Accordingly, the Debtors believe that this factor weighs in favor of extending the Exclusive Periods. Counsel for the Debtors: David R. Hurst, Esq. Andrew A. Mark, Esq. McDERMOTT WILL & SCHULTE LLP 1000 N. West Street, Suite 1400 Wilmington, Delaware 19801 Tel: (302) 485-3900 E-mail: dhurst@mcdermottlaw.com amark@mcdermottlaw.com - and - Darren Azman, Esq. Joseph B. Evans, Esq. R. Ethan Dover, Esq. One Vanderbilt Avenue New York, New York 10017 Tel: (212) 547-5400 E-mail: dazman@mcdermottlaw.com jbevans@mcdermottlaw.com edover@mcdermottlaw.com - and - Gregg Steinman, Esq. 333 SE 2nd Avenue, Suite 4500 Miami, Florida 33131 Tel: (305) 358-3500 E-mail: gsteinman@mcdermottlaw.com About Reliz Technology Group Reliz Technology Group Holdings Inc., together with its affiliates Reliz Ltd., Reliz Technologies LLC, and Reliz CI Ltd., operate the BlockFills digital-asset trading and liquidity platform, offering institutional clients spot and derivatives trading, collateralized lending, and mining solutions. Founded in 2017, the group aggregates liquidity from a global network of exchanges and market makers, integrating smart order routing, trade reconciliation, and risk management through a multi-asset technology platform with FIX API connectivity and white-label software. Headquartered in Chicago, Illinois, also maintains offices in London, Dubai, Sao Paulo, and the Cayman Islands. Reliz and three affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 26-10371) on March 15, 2026. In the petition signed by Joseph Perry, interim chief executive officer, Reliz disclosed assets of between $50 million and $100 million and liabilities of between $100 million and $500 million. Judge Thomas M Horan oversees the cases. The Debtors tapped McDermott Will & Schulte, LLP as bankruptcy counsel; Katten Muchin Rosenman, LLP as bankruptcy-co-counsel; Berkeley Research Group, LLC as financial advisor; and Verita Global, LLC as claims agent. =================================== D O M I N I C A N R E P U B L I C =================================== AES ESPANA: Fitch Rates Proposed USD500M Sr. Unsec. Notes 'BB-' --------------------------------------------------------------- Fitch Ratings has assigned a 'BB-' rating to AES Espana B.V.'s (AES Espana) proposed senior unsecured notes of USD500 million. Net proceeds will fund the refinancing of its USD300 million notes due 2028 and local bonds at Dominican Power Partners (DPP). AES Espana and DPP (jointly, AES Dominicana) will be joint obligors on these notes. Fitch currently rates AES Espana's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB-'. The Rating Outlook is Stable. Key Rating Drivers Sovereign Linkage Through Discos: AES Espana ratings are linked to the Dominican Republic sovereign rating because the company depends on payments from state-owned distribution companies (discos) that require material support. Discos generate more than 80% of AES Espana's power purchase agreement (PPA) revenue and around 65% of EBITDA from AES Espana and DPP combined, while commercial and industrial clients account for about 17% of PPA revenue. High losses and weak collections at the discos make government transfers key to the stability of cash flows. A significant share of PPAs with discos will mature by 2027. Fitch assumes these contracts will be renewed, but future revenue visibility and EBITDA stability will depend on renewal terms, including price, volume and tenor. Weaker terms could reduce cash flow and profitability. Growth in renewables and more efficient thermal capacity should also support access to lower-cost spot purchases, often needed only when they are lower than PPA prices. Strong Market Position: AES Dominicana has a leading position in the Dominican energy sector, with about 20% market share, and has the only onshore LNG terminal in the country. Its 678 megawatts (MW) of thermal capacity, the country's largest LNG terminal, access to 390 MW of solar and wind capacity through its stake in AES Dominicana Renewable Energy S.A. (ADRE), and 138 MW of battery energy storage system (BESS) under construction and added LNG storage capacity through Energía Natural Dominicana S.R.L. (ENADOM) support its contractual structure and strengthen its role as the main LNG supplier to generators and other users. More than 80% of LNG and power capacity is contracted under U.S. dollar-denominated, top tolling agreements, and USD denominated PPAs, respectively. LNG contracts and PPAs are both indexed to U.S. CPI with no molecule or commodity price risk for LNG and full fuel cost pass-through for PPAs. AES own-generation gas supply is fully contracted with a SPA with Total Energies. This supports cash flow stability. Fitch notes that market practice for new PPAs is shifting toward shorter tenors, which could reduce average contract duration in the near term. Stable Leverage Profile: Fitch expects AES Espana's leverage to remain about 3.0x through the rating horizon, which assumes renewal of contracts with the distribution companies. EBITDA should average about USD190 million a year, while dividends from ENADOM and ADRE should average about USD30 million a year. Fitch's leverage calculation includes USD117 million of supplier financing debt and related interest since 2024, which reflects accelerated payments to certain gas suppliers. Low capex intensity, averaging 1.3% of revenue and focused mainly on maintenance, should support FCF in neutral territory. Low-Cost Asset Base: AES Espana, through a 50/50 JV with Energas Group and ENADOM, owns and operates the country's sole LNG import terminal, providing regasification, storage and transportation services. The LNG business contributes about 30% of consolidated EBITDA. Off-takers include large generation companies, shipping trucks, and commercial and industrial clients. AES Espana is among the lowest-cost electricity generators, with dual natural gas and diesel capacity. Natural gas should be fully dispatched if LNG prices are no more than 15% above diesel prices. Peer Analysis AES Espana's closest peer is Empresa Generadora de Electricidad Haina, S.A. (EGE Haina; BB-/Stable). Both issuers are linked to the Dominican Republic sovereign, and each receives material indirect revenue exposure from state-owned distribution companies. Their ratings also reflect exposure to the discos' weak credit profile, which stems from high energy losses, low collection rates and reliance on government transfers. AES Espana and DPP have smaller and less diversified installed capacity than EGE Haina, whose portfolio includes a broader mix of thermal generation and more renewable assets. Even so, AES Espana's natural gas business supports higher revenue generation than EGE Haina's. AES Espana's capital structure is stronger than that of those similarly rated but unconstrained peers, including Orazul Energy Peru S.A. (Orazul; BB/Stable) and TerraForm Power Operating, LLC (TERPO; BB-/Stable). Orazul's and TERPO's ratings reflect predictable cash flow, an adequate contract position, efficient hydroelectric and renewable assets and flexible costs. Orazul's leverage is higher than AES Espana's and remains close to 5.0x. Fitch’s Key Rating-Case Assumptions Government transfers to discos remain structural components of the company's indirect revenue; Contracts with discos maturing in 2027 are successfully renewed; Continuation of non-regulated user contracts, spot market sales and contracted LNG sales, which remain key drivers of the company's margins; Bond maturities are refinanced in 2026; Average annual energy generated by Andres and DPP of 3,600GWh; Average annual dividends from ENADOM and ADRE of USD37 million. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): - Business and financial profile factors (assessment, relative importance): Management (bbb-, Lower), Sector Characteristics (bb-, Higher), Market and Competitive Positioning (bb+, Moderate), Diversification and Asset Quality (bb+, Moderate), Company Operational Characteristics (bb-, Higher), Profitability (bb, Moderate), Financial Structure (bbb-, Moderate), and Financial Flexibility (bb-, Moderate). - The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the latest historical year 2025, 40% for the forecast year 2026 and 40% for the forecast year 2027. - The Governance Impact assessment of 'Good' results in no adjustment. - The Operating Environment Impact assessment of 'bb-' results in no adjustment. - The other risk elements adjustment applies since AES Espana's ratings reference the Dominican Republic sovereign due to significant subsidies to discos. Discos account for over 80% of AES Espana's PPA generation revenues (17% with commercial and industrial clients) but have high losses and low collections, requiring government support. This results in an adjustment of -1 notch(es). - The SCP is 'bb-'. Fitch made no adjustments to the SCP, resulting in a Foreign Currency IDR of 'BB-'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade in the Dominican Republic's sovereign ratings; - Deterioration in the reliability of government transfers; - Contract renewal under weaker terms that pressure cash flow visibility and profitability; - Exposure to spot sales and gas sales that collectively represent more than 60% of EBITDA; - Sustained leverage exceeding 4.5x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade in the Dominican Republic's sovereign ratings, while maintaining sufficient and reliable government transfers to AES Espana. Liquidity and Debt Structure Fitch expects AES Espana's liquidity to face pressures from upcoming debt maturities. The company faces bond maturities at AES Espana and DPP totaling USD560 million in 2027 and 2028. Fitch expects these maturities to be refinanced, supported by AES Espana's market profile and regular access to short-term funding. As of March 2026, the company had USD151 million in available cash against USD125 million of short-term debt maturities, with an additional USD215 million of uncommitted credit lines supporting liquidity. Liquidity could come under pressure from upcoming PPA maturities if recontracting occurs on weaker terms, including shorter duration, lower prices or lower contracted volumes. Issuer Profile AES Espana is an energy generation and natural gas supply company in Dominican Republic. It operates five generation assets, which includes combined cycle natural gas-fired plants, solar, wind and battery storage. Date of Relevant Committee 19 June 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 The results of the Climate.VS screener did not indicate an elevated risk for AES Espana. 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 ----------- ------ AES Espana B.V. senior unsecured LT BB- New Rating ============= J A M A I C A ============= BANK OF JAMAICA: Incurs $4.6BB Net Loss for January 1 to July 8 --------------------------------------------------------------- RJR News reports that the Bank of Jamaica is reporting a net loss of $4.6 billion for the period January 1 to July 8 this year. The central bank said the loss was recorded on total assets of $1.3 trillion, up from $1.2 trillion in July last year, according to RJR News. The bank's foreign assets increased by 8.3 per cent to $1 trillion, the report notes. The increase was driven mainly by a 14.9 per cent rise in time deposits and other cash resources to $942.9 billion, the report relays. The bank's demand liability surged by 32.3 per cent to $802.9 billion, the report adds. As reported in the Troubled Company Reporter-Latin America on March 4, 2026, RJR News reported that the Bank of Jamaica reported a net loss of $14 billion during the period January 1 to February 11, 2026. The bank also said that these losses were recorded on total assets of $1.3 trillion. The bank's total foreign assets jumped by 26 per cent to $1.1 trillion in February of this year. Meanwhile, its local assets fell $32 billion to $246 billion in February of this year compared with last year. The bank's total demand liabilities also increased by 22 per cent to $791 billion this year over last year, the report added. JAMAICA: Tourism Interest Still Strong Despite Hurricane Blow ------------------------------------------------------------- RJR News reports that Hurricane Melissa took out a sizable portion of Jamaica's hotel room stock, but according to Tourism Minister Ed Bartlett, it has not knocked the island off travellers' radar. Minister Bartlett admitted, however, that this summer is unlikely to match last year's performance, according to RJR News. "We still have 30 per cent of our inventory, and particularly Montego Bay inventory, out at the moment. We are, however, working feverishly to get back the stock of rooms that we lost," said the minister, the report notes. Several of Montego Bay's largest hotels continue extensive repairs and reconstruction, with some promising major upgrades in the coming months, the report says. "And I'm satisfied that summer will give way to a better fall, but definitely a stronger winter. And I see the recovery being full for winter this year, and certainly 2027 is going to see strong growth for tourism in Jamaica," he insisted, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. ===================== P U E R T O R I C O ===================== TOWERS ELECTRONICS: Hires Olga Velez as Accountant -------------------------------------------------- Towers Electronics Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire Olga Velez, a professional from Puerto Rico, as accountant. The professional will render these services: a. provide assistance to the Debtor in preparing the Monthly Reports of Operation; b. prepare the necessary financial statements; c. assist the Debtor in preparing the cash flow projections and or any other projection needed for the Disclosure Statement; d. assist the Debtor in any/ all financial and accounting pertaining to, or in connection with the administration of the estate; e. assist the Debtor in the preparation and filing of federal, state and municipal tax returns; and f. assist the Debtor in any other assignment that might be properly delegated; g. assist the Debtor in general accounting services, tax returns preparations and making deposits for taxes. Ms. Velez will charge $300 per month for bankruptcy related matters. Ms. Velez assured the court that she is a "disinterested person" within the meaning of 11 U.S.C. Sec. 101(14). She can be reached at: BO. Santana KM 69.2 Arecibo, PR 00612 About Towers Electronics Inc. Towers Electronics Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Puerto Rico Case No. 3:26-bk-02194) on May 14, 2026. At the time of the filing, the Debtor's estimated assets and liabilities were not disclosed in the provided materials. Judge Mildred Caban Flores oversees the case. Homel Antonio Mercado Justiniano is the Debtor's legal 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. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *