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T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, July 31, 2026, Vol. 27, No. 152
Headlines
A R G E N T I N A
ARGENTINA: IMF Boss Hails 'Much Sounder' Economy Under Milei
B R A Z I L
BRAZIL: DBRS Confirms 'BB' LongTerm IDRs, Trend Stable
J A M A I C A
JAMAICA: Insurance Law Changes Could Open More Job Opportunities
JAMAICA: Rising Cost Forcing Locals to Delay Home Purchase
JAMAICA: Stock Exchange Still Dampened By Hurricane Impact
M E X I C O
BANCO MULTIVA: Moody's Assigns First Time 'Ba2' Deposit Ratings
P U E R T O R I C O
ALUGLASS LLC: Seeks Chapter 11 Bankruptcy in Puerto Rico
RB MARKETPLACE: To Sell Cooper Vehicle to Clarimar Rodriguez Baez
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A R G E N T I N A
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ARGENTINA: IMF Boss Hails 'Much Sounder' Economy Under Milei
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AFP News reports that international Monetary Fund director
Kristalina Georgieva hailed Argentina's improved economic standing
since President Javier Milei took power in 2023.
The IMF boss was visiting top debtor Argentina to meet with Milei,
for whom the Washington-based institution has repeatedly voiced
support since he took office, according to AFP News.
"What we have today, by all indicators, is a much sounder picture"
since 2023, Georgieva said at a joint press conference with Economy
Minister Luis Caputo, AFP News notes.
Milei campaigned on a pledge to revive the economy by slashing
public spending and reining in inflation. The austerity measures
imposed by his government have been unpopular, prompting frequent
protests, the report relays.
AFP News discloses that Georgieva said Argentina's "much stronger
position . . . is a result of the hard work of the government," as
well as "the sacrifice of the Argentine people."
During her two-day trip, Georgieva is set to meet with Central Bank
Governor Santiago Bausili and experts from the business world and
academia, the report says.
She is expected to visit Vaca Muerta, a vast oil and gas formation
that is key to Argentina's export economy, located about 1,200
kilometres (750 miles) from Buenos Aires, the report relays.
'Take Stock'
The report notes that IMF spokesperson Julie Kozack said the visit
marked "an opportune time for us to take stock of the progress made
under the current program with the Argentine authorities."
The trip comes at a mixed moment for Argentina's economy, which has
seen inflation on a downward trend over the past three months –
though it is still at 33.5 percent year-on-year, the report says.
But growth remains sluggish and well under the IMF's forecast of
3.5 percent in 2026, with 0.2 percent growth year-on-year, the
report notes. Growth was forecast to rise even higher in 2027,
hitting four percent, the report relays.
Consumer activity is anaemic while debt defaults are skyrocketing,
the report discloses.
Mortgage defaults have tripled over the past year, hitting 12.8
percent, the highest level in 20 years, the report says.
In 2025, Argentina concluded an extended fund facility agreement
worth US$20 billion over four years with the IMF, the report
relays. In May, the IMF greenlit a US$1-billion tranche under the
agreement, adds the report.
AFP News discloses that protests against the IMF in Buenos Aires
sought to give Georgieva an "unwelcome" reception, with placards
held up in the main square reading: "No to paying foreign debt."
Another banner bore the slogan "English out of the Malvinas, IMF
out of Argentina" - the first part referring to the British claim
over the Malvinas (Falkland) Islands, the report relays.
After Argentina, the IMF director is expected to visit Uruguay to
meet with President Yamandu Orsi in Montevideo, the report 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.
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B R A Z I L
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BRAZIL: DBRS Confirms 'BB' LongTerm IDRs, Trend Stable
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DBRS, Inc. (Morningstar DBRS) confirmed the Federative Republic of
Brazil's Long-Term Foreign and Local Currency - Issuer Ratings at
BB in June 2026. At the same time, Morningstar DBRS confirmed the
Federative Republic of Brazil's Short-term Foreign and Local
Currency -Issuer Ratings at R-4. The trend on all ratings is
Stable.
KEY CREDIT RATING CONSIDERATIONS
The Stable trend balances Brazil's resilient macroeconomic
performance with its long-standing fiscal challenges. Output is
expanding at a solid pace but gradually decelerating under the
weight of highly restrictive monetary policy. Labor market
conditions remain strong, with low unemployment and rising real
wages. After growing 2.3% in 2025, the economy is forecast to
expand by 1.9% in 2026 and 2.0% in 2027. The near-term impact of
the Iran conflict on Brazil's growth and fiscal outlooks is likely
limited. Although higher global energy prices benefit Brazil's
terms of trade, the positive effect for energy producers is offset
by the squeeze on consumers' purchasing power and tighter monetary
policy trajectory than previously expected. The government plans to
use windfall energy revenues to mitigate the impact on consumers
through energy-related subsidies and fuel tax cuts. Taken together,
we expect the primary fiscal balance to remain in a modest deficit
position this year, which is roughly the same as last year. General
elections will be held on October 4, with a potential presidential
runoff election on October 25 if no candidate wins a majority of
the valid votes. Regardless of who wins the presidency, it is
unclear whether the next administration will be willing and able to
build the congressional coalition needed to implement a durable
fiscal adjustment.
The BB credit ratings are supported by the country's solid external
position, flexible exchange rate, and credible inflation-targeting
monetary policy regime. These factors foster macroeconomic
stability and resilience. The key challenge for the credit rating
is putting public finances on a sustainable path. General
government debt (IMF definition) is expected to increase to 97% of
GDP this year (84% according to the definition used by the
Brazilian government). While the Lula administration has laid out a
gradual deficit-reduction path, the debt-to-GDP ratio, according to
IMF projections, is expected to increase through the end of the
decade. The vulnerability of public finances to shocks highlights
the importance of pursuing a credible consolidation strategy that
reinforces market confidence and sustains access to affordable
borrowing.
CREDIT RATING DRIVERS
The credit ratings could be upgraded if the government advances a
structural fiscal adjustment that improves public debt dynamics.
Implementation of economic reforms that strengthen the growth
outlook would facilitate this adjustment and be viewed as credit
positive.
The credit ratings could be downgraded if the commitment to fiscal
consolidation weakens or there is a material deviation from the
expected consolidation path. Additional shocks - either domestic or
external - that exacerbate Brazil's growth challenges could make
the necessary fiscal adjustment even more difficult to achieve.
CREDIT RATING RATIONALE
High and Rising Government Debt Leaves Public Finances Vulnerable
to Shocks
The most important factor for the evolution of Brazil's sovereign
credit rating is fiscal policy. The public debt-to-GDP ratio is
elevated and will continue to increase unless there is a sizable
and durable budget consolidation. The fiscal framework introduced
by the Lula administration in 2023 relaxed the fiscal constraints
relative to the previous "zero real spending growth" rule. While
the framework incorporated a degree of consolidation in design, the
results have been more neutral in practice. Including exempted
spending (largely court-ordered payments), the central government
posted a primary deficit of 0.4% of GDP in 2024 and 0.5% in 2025.
Notwithstanding ongoing concerns about the outlook, the commitment
to the framework, in Morningstar DBRS' view, has reduced downside
risks and accounts for the one-category uplift in the "Fiscal
Management and Policy" building block assessment. The deficit
target for 2026 appears feasible, albeit subject to pre-election
spending pressures. The effective target (including exempted
spending) is a primary deficit of 0.4% of GDP. The net impact of
the global energy shock on fiscal accounts looks set to be broadly
neutral. Revenue gains due to higher taxes, dividends and royalties
will likely be offset, to a large degree, by fuel tax cuts and
subsidies, as the government aims to mitigate the effect on
domestic consumers.
However, the fiscal outlook is a concern for several reasons. The
magnitude of the planned tightening is likely insufficient to
stabilize public debt dynamics. The government projects a fiscal
adjustment of 1.5-2.0 percentage points of GDP between 2025 and
2030, according to the 2027 Budget Guidelines Bill, whereas
Morningstar DBRS estimates that an adjustment of about 3.0
percentage points of GDP is needed to put the debt-to-GDP ratio on
a level path. The pace of consolidation is also slow. As a result,
public finances will be in a relatively poor position to manage
negative shocks for an extended period. In addition,
politically-challenging spending reforms are required to make the
adjustment durable. Growth in mandatory spending, most of which is
indexed to revenue or the minimum wage, is increasingly forcing the
government to squeeze discretionary spending. Without reform, this
dynamic runs the risk of being incompatible with the fiscal rules
over time.
The composition of Brazil's public debt provides some advantages.
Almost all government debt is denominated in local currency and
held by Brazilian residents. This, combined with the Treasury's
sizable liquid holdings, reduces exchange rate and rollover risks.
Nevertheless, the high level of debt and stressed fiscal accounts
leave public finances vulnerable to shocks. Tighter financing
conditions or rising risk premiums could worsen debt dynamics,
especially as 49% of the debt is floating rate and the average
maturity is relatively short (4.1 years). The vulnerability of
public finances to shocks highlights the importance of pursuing a
credible consolidation strategy.
Elections in October Will Shape a Brazil's Political Environment
for the Next Four Years
Elections will be held on October 4, 2026, to elect the president,
two-thirds of the Senate, and all 513 seats in the Chamber of
Deputies. If no presidential candidate wins a majority of votes, a
runoff election is held between the top two candidates on October
25. There are a dozen or so declared presidential candidates, and
party conventions have not yet been held, but the frontrunners are
incumbent President Luiz Inácio Lula da Silva (Lula), who is
running for his fourth term, and Flavio Bolonsaro, the son of
former President Jair Bolsonaro. Whoever wins the presidency will
be checked by a fragmented and independent legislature. Lula's
reelection would likely indicate broad policy continuity.
Bolsonaro's campaign promises to lower taxes and reduce the size of
the state. It is unclear whether either candidate would be willing
and able to build the congressional coalition needed to pursue a
durable fiscal adjustment during the next term. Notwithstanding the
near-term political challenges, Brazil's policymakers tend to
address core macroeconomic challenges over time, in Morningstar
DBRS' view. This accounts for the one-category uplift to the
"Political Environment" building block assessment.
Brazil's Medium-Term Growth Prospects are Modest but Recent
Economic Reforms Present Upside Risk
Brazil's subdued growth outlook partly reflects the country's aging
population, which has led to a slowdown in the growth of the labor
force. Interlinking structural constraints of low investment, high
business costs and weak competitive forces also play a role. Low
investment is especially evident in Brazil's underdeveloped
infrastructure. In addition, high tariff barriers, elevated
compliance costs, and inward-looking industrial policy impede
Brazil from more fully benefiting from global trade and investment.
The country's modest medium-term growth outlook has led us to make
a negative adjustment in the "Economic Structure and Performance"
building block assessment.
We view the balance of risks to the growth outlook as symmetrical.
On the upside, economic reforms implemented over the last 8 years
could have a larger-than-expected impact on investment and
productivity. Reforms included changes to credit markets, labor
regulations, and the value-added tax. The latter, which is designed
to be revenue-neutral, is unlikely to spur activity in the near
term but given the substantial scope for efficiency gains it could
have a meaningful impact on growth over time. On the downside, the
unwillingness or inability of policymakers to address fiscal
imbalances could end up pushing up borrowing rates and weakening
growth.
Brazil's external accounts are in a strong position. In the 12
months to April 2026, the current account posted a deficit of 2.7%
of GDP. DBRS expects the external gap to narrow modestly over the
coming quarters, supported by more favorable terms of trade, and
remain in a moderate deficit position over the forecast horizon,
with net FDI inflows providing a stable source of external
financing. Brazil's flexible exchange rate helps the economy adjust
to evolving global conditions. Moderate external debt levels reduce
risks to balance sheets across the economy stemming from potential
currency fluctuations. In addition, foreign exchange reserves at
$367 billion in April 2026 provide the central bank with
substantial resources to mitigate potential capital flow
volatility, if necessary. Taken together, Brazil's solid external
position and capacity to adjust to shocks has led us to make a
positive adjustment in the "Balance of Payments" building block
assessment.
Supply-Side Price Pressures Pose Upside Risk to the Inflation
Outlook
Inflation is running close to the upper bound of the central bank's
tolerance interval (3% +/- 1.5 percentage points). Twelve-month
headline inflation was 4.4% in April. While cooling domestic demand
gradually softened underlying price pressures coming into the year,
risks to the outlook are now clearly to the upside. Food and energy
prices could increase due to: 1) the transmission of higher global
energy prices to the local market, and 2) the rising probability of
severe weather (El Nino) in the second half of the year. According
to the May 29 FOCUS Survey, expectations for yearend inflation in
2026, 2027, and 2028 are 5.1%, 4.0%, and 3.7%, respectively. The
central bank started to ease monetary policy in March 2026, albeit
from a highly restrictive starting position. With above-target
inflation expectations and a resilient labor market, the central
bank will likely slow the pace of policy easing relative to
expectations at the start of the year. Nevertheless, the monetary
policy stance will likely remain in clear restrictive territory
through the end of 2027.
Credit growth decelerated in 2025 and early 2026, in line with
moderating domestic demand. Although the labor market has performed
well, some households are experiencing financial stress amid
elevated leverage and higher borrowing costs. Households' debt
service-to-income ratio is at a historically high level, and the
share of non-performing loans for households has materially
increased over the last year, although the deterioration partly
reflects changes in accounting rules. Notwithstanding some pockets
of weakening asset quality, Brazilian banks are soundly capitalized
with robust profitability and ample liquidity. Banks are generally
well-provisioned to digest greater-than-expected credit losses, if
necessary, particularly the larger banks with well-diversified loan
portfolios. In addition, the banking system overall is well-placed
to manage global market volatility. Their reliance on external
funding is low and their direct exposure to exchange rate risk is
minimal.
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
ESG Considerations had a significant effect on the credit
analysis.
Environmental (E) Factors
The following Environmental factor had a relevant effect on the
credit analysis: Land Impact and Biodiversity. Land management
practices in Brazil could create economic challenges and strain
trading relationships over time and, as a result, the factor Land
Impact and Biodiversity is a relevant factor for the ratings. This
has been taken into account within the "Economic Structure and
Performance" building block.
Social (S) Factors
The following Social factor had a significant effect on the credit
analysis: Human Capital & Human Rights. Similar to other emerging
market economies and many of its regional peers, Brazil's per
capita GDP is low at US$10.7k (US$23.4k on a PPP basis). This
reflects a relatively low level of labor productivity. This factor
has been taken into account in the "Economic Structure and
Performance" building block.
Governance (G) Factors
The following Governance factors had a significant effect on the
credit analysis: (1) Bribery, Corruption and Political Risks, and
(2) Institutional Strength, Governance and Transparency. According
to the Worldwide Governance Indicators, Brazil ranks in the 35th
percentile for Rule of Law and the 40th percentile for Government
Effectiveness. These factors are taken into account in the
"Political Environment" and "Fiscal Management and Policy" building
blocks.
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J A M A I C A
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JAMAICA: Insurance Law Changes Could Open More Job Opportunities
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RJR News reports that the leadership of the Financial Services
Commission (FSC) believes the proposed changes to the insurance law
in Jamaica could lead to additional jobs in the sector.
Members of the FSC were addressing the Regulations Committee in
Gordon House, according to RJR News.
"It is going to open up a new world for them. If it is opening up
things for them, I can only expect that their profitability is
going to improve, and if that be the case, and I am not saying that
a night follows day every time in this, but if you're doing better
financially, it means that you can employ more people. So I
wouldn't expect that by making this change, you're going to be
cutting back on any employment for anybody. I think that it would
more open up opportunities for people at the company in general,"
said Nicolette Jenez, Deputy Executive Director of the FSC, the
report notes.
Lawmakers are seeking to modernise the sector by making it easier
for insurance companies to take up investment opportunities, the
report says. This includes investing in infrastructural projects,
the report discloses.
At present, companies have to satisfy a four-item checklist, but
the change would mean they only need to achieve one of the four,
the report says. The checklist includes investing with companies
listed on the Jamaica Stock Exchange or any other stock exchange
recognised by the FSC, the report notes.
"Right now, the insurance companies are complaining that they don't
have enough of a selection of investment assets out there that they
can invest in because, as read how it is right now, they're going
to have to satisfy four different criteria. It is difficult to find
any investment out there that's going to satisfy all four," she
suggested, 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.
JAMAICA: Rising Cost Forcing Locals to Delay Home Purchase
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RJR News reports that Market Research Services Chairman Don
Anderson says many Jamaicans are delaying major purchases such as
homes and vacations because of the rising cost of living, but a
significant number still intended to buy motor vehicles.
Speaking on Radio Jamaica's Real Business, Mr. Anderson said the
trend is being driven largely by the country's inadequate public
transportation system, which relies heavily on nearly 40,000 taxi
operators and the financially troubled Jamaica Urban Transit
Company (JUTC), according to RJR News.
He also pointed to broader economic challenges facing consumers,
the report notes.
Mr. Anderson noted that the proportion of households receiving
remittances has fallen from a peak of 38 per cent five years ago to
27 per cent in the second quarter of this year, the report says.
He believes consumers are likely to continue facing difficult
economic conditions until the economy strengthens, the report
notes.
Despite those challenges, Mr. Anderson noted that consumer
confidence declined by 2.3 per cent in the second quarter of this
year, an improvement on this steeper 5.7 per cent fall recorded in
the first quarter, the report discloses.
He said consumer confidence is largely influenced by the
availability of well-paying jobs and the level of remittance
inflows, 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.
JAMAICA: Stock Exchange Still Dampened By Hurricane Impact
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RJR News reports that a Senior Investment Advisor says that the
Jamaica Stock Exchange continues to feel the effects of Hurricane
Melissa, with stock prices showing little overall movement.
Speaking on Radio Jamaica's Real Business, Christopher Thomas of
Mayberry Investments said the JSE Main Index and the Combined Index
have been trading within a narrow range of between 360,000 and
370,000 points, well below the half a million point peak recorded
before the COVID-19 pandemic, according to RJR News.
Mr. Thomas attributed the subdued market to the Bank of Jamaica's
relatively high interest rate environment and its continued
liquidity tightening measures to contain inflation, the report
notes.
He said these policies are encouraging investors to place funds in
lower risk interest bearing instruments rather than equities, the
report says.
The senior stock broker also argued that the government's increased
borrowing through interest bearing bonds is drawing investment
capital away from the stock markets, 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.
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M E X I C O
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BANCO MULTIVA: Moody's Assigns First Time 'Ba2' Deposit Ratings
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Moody's Ratings has assigned initial ratings and assessments to
Banco Multiva, S.A. (Banco Multiva), including long-term local and
foreign currency deposit ratings of Ba2, a baseline credit
assessment (BCA) and adjusted BCA rated at ba2. Additionally,
Moody's also assigned Not Prime short-term local and foreign
currency deposit ratings. The long-term and short-term counterparty
risk ratings for local and foreign currencies are assigned Ba1 and
Not Prime, respectively, and counterparty risk assessments were
assigned at Ba1(cr) for the long term and Not Prime(cr) for the
short term. The outlook on Banco Multiva's Ba2 long-term deposit
ratings is stable.
RATINGS RATIONALE
Banco Multiva's baseline credit assessment (BCA) of ba2 reflects
its specialized corporate franchise, focused on providing
structured and government-related loans in Mexico, as well as solid
capital buffers that have supported its rapid growth strategy. Its
ba2 credit profile is constrained by high single-name and sector
concentrations, moderate profitability relative to peers in Mexico,
and a less diversified and comparatively costlier funding mix.
Focused on structured corporate lending, syndicated loans, and
trust-backed financing, in March 2026, problem loans declined to
1.9% of gross loans, from 4.9% at the end of 2023, with loan loss
reserves coverage at 1.4x problem loans. The portfolio benefits
from structured trust loans that represent 41% of gross loans as of
March 2026 that segregate and ensure pledged cash flows, including
federal revenue-sharing transfers, toll revenues and contractual
payment rights, reducing willingness-to-pay risk and contributing
to lower credit losses. In addition, around 70% of the portfolio
benefits from federal government guarantees or federal tax
transfers associated with public-private partnership (PPP)
projects. However, these strengths are partly offset by elevated
borrower concentration risks, despite an adequate credit
performance, with the 20 largest exposures accounting for 44% of
gross loans and approximately four times tangible common equity
(TCE) in March 2026, representing a key constraint on its bank's
credit profile. Moreover, the bank has experienced a period of
rapid expansion, with loan growth averaging approximately 35%
annually since 2024, well above the industry's commercial lending
expansion in Mexico. This growth partly reflects its focus on
large-ticket transactions and sizable single-name exposures.
Banco Multiva's growth strategy has been supported by solid
capitalization and prudent capital policy, backed by historically
full earnings retention. The TCE was 14.8% of risk-weighted assets
as of March 2026, staying above regulatory requirements.
Profitability is moderate compared to other Mexican-rated peers,
but stable, with net income equivalent to 0.7% of tangible assets
and net interest margins averaging 3% between March 2024 and March
2026. Earnings benefit from very low credit costs and expanding
business volumes, although they remain constrained by a relatively
high operating cost base associated with ongoing investments in
growth, technology and acquisitions. Fee income generation has been
gradually improving over the past two years and represented 20% of
net revenue as of March 2026, mostly supported by the acquisition
of CIBanco's fiduciary business in 2025.
Despite the relatively small size of the franchise, deposit growth
has been consistent, but costs are above those of most domestic
peers given the bank's reliance on corporate and government-related
customers. Funding is also characterized by meaningful depositor
concentration, with the 20 largest depositors accounting for 45% of
total deposits in March 2026. Liquidity is moderate, with core
banking liquidity equivalent to 13.3% of tangible banking assets in
March 2026, supported by a buffer primarily composed of government
securities and central bank deposits.
The stable outlook for the Ba2 long-term deposit ratings reflects
Moody's expectations that Banco Multiva will be able to maintain
adequate financial fundamentals and sustain its good asset quality
and robust capitalization levels over the next 12 to 18 months, as
it continues to rapidly expand its lending operations.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Banco Multiva's BCA and long-term deposit ratings could be upgraded
if the bank demonstrates sustained improvements in single-name and
sector concentrations as well as funding diversification. Upward
rating pressure would also require the maintenance of strong asset
quality, solid capitalization, and enhanced generation of recurring
earnings.
Conversely, Banco Multiva's BCA and long-term deposit ratings could
face downward pressure if asset quality deteriorates materially,
borrower or depositor concentrations increase, capital buffers
weaken, or the bank experiences a significant deterioration in its
funding profile or liquidity position.
ESG CONSIDERATIONS
Corporate governance is highly relevant to banks' creditworthiness
because governance risks are primarily internal rather than
externally driven. Banco Multiva's governance reflects a risk
management framework and organizational expertise that are
appropriate for its specialized business model and risk appetite.
The board's majority of independent directors provides effective
oversight and helps mitigate governance risks stemming from the
bank's concentrated ownership structure and some degree of
key-person dependence. These considerations are particularly
relevant given the bank's significant focus on government-related
business, where business origination and client relationships could
be more closely linked to a limited number of senior management
members. Moreover, Banco Multiva's specialized business model may
constrain its expansion capacity over the longer term, while its
relatively high borrower concentrations could contribute to greater
volatility in earnings and asset quality metrics, potentially
pressuring capital levels under adverse scenarios. Accordingly,
governance remains an important credit consideration and warrants
ongoing monitoring as the bank continues to grow.
The principal methodology used in these ratings was Banks published
in November 2025.
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P U E R T O R I C O
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ALUGLASS LLC: Seeks Chapter 11 Bankruptcy in Puerto Rico
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On July 17, 2026, Aluglass LLC filed for Chapter 11 protection in
the U.S. Bankruptcy Court for the District of Puerto Rico, Ponce
Division. According to court filings, the Debtor reports between
$0 and $50,000 in liabilities owed to 1 to 49 creditors.
Chapter 11 Plan Filing and Disclosure Statement Deadline Set for
November 16, 2026
About Aluglass LLC
Aluglass LLC is a Ponce, Puerto Rico-based manufacturer of metal
windows and doors. The company operates a manufacturing facility
at the Port of Ponce under a lease extending through 2028 and
established its primary production site at Carr. 2 Km. 224.5 in
Ponce in early 2023 to expand its regional manufacturing
operations.
Aluglass LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. Case No. 26-03312) on July 17, 2026. In its petition,
the Debtor reported estimated assets of $0 to $50,000 and
estimated liabilities of $0 to $50,000.
The case is pending before the U.S. Bankruptcy Court for the
District of Puerto Rico, Ponce Division. The Honorable Bankruptcy
Judge handles the case. The Debtor's counsel was not identified in
the available court records.
RB MARKETPLACE: To Sell Cooper Vehicle to Clarimar Rodriguez Baez
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RB Marketplace Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Puerto Rico, to sell Property, free and clear
of liens, claims, interests, and encumbrances.
The Debtor is the registered owner of a 2023 Mini 22MI Cooper
with a value of $16,700.
The property is registered in favor of Debtor at the Department of
Public Transportation of Puerto Rico.
The motor vehicle is encumbered with a first ranking lien in favor
of BMW Financial Services NA, LLC.
The Debtor represents that he has received and accepted an offer
for the purchase of the property from Ms. Clarimar Rodriguez Baez
for the purchase price of $25,500.00.
All risks are passed on to Buyer who will pay lienholder BMW
directly and will pay Debtor the balance of the proceeds of the
sale upon entry of order approving the sale.
The Buyer is the daughter of the principal of Debtor-In-Possession,
Claribel Baez. However, funds for the payment of the vehicle are
personal and have not been obtained from the Debtor.
The Debtor believes that the sale of the vehicle is beneficial to
the bankruptcy estate, as it will be completed
upon entry of order approving the motion and will allow the Debtor
to receive full payment for the equity of the vehicle in the amount
of $3,152.28.
Included with this motion is appraisal with the actual value and
condition of the motor vehicle subject to sale made by professional
motor vehicle appraiser Salvador Lopez Cardec which shows that the
value of the vehicle given its condition is between $17,718.00 and
$21,825.00. Therefore, the price paid by Buyer is actually more
than the actual value of the motor vehicle and is beneficial to the
estate.
About RB Marketplace Inc.
RB Marketplace Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 26-00982) on March 6,
2026.
At the time of the filing, the Debtor disclosed up to $10,000,001
to $50 million in assets and $1,000,001 to $10 million in
liabilities.
Noemi Landrau Rivera, Esq., at Landrau Rivera & Assoc. is the
Debtor's counsel.
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S U B S C R I P T I O N I N F O R M A T I O N
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