/raid1/www/Hosts/bankrupt/TCRLA_Public/250225.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, February 25, 2025, Vol. 26, No. 40
Headlines
A R G E N T I N A
ARGENTINA: Milei Crypto Scandal Widens With Allegations
ARGENTINA: Talks Over New IMF Deal Entering Final Phase
B R A Z I L
UNIGEL GROUP: Completes Out-of-Court Reorganization
C A Y M A N I S L A N D S
HERTZ GLOBAL: Court Tosses Discovery's Breach of Contract Suit
G U A T E M A L A
[] Fitch Affirms BB+ Ratings on Three Guatemalan Banks
J A M A I C A
JAMAICA: BOJ Holds Policy Interest Rate at 6%
PALACE AMUSEMENT: Incurs Net Loss of $62.9 Million
M E X I C O
ACCURIDE CORP: Plan Exclusivity Period Extended to May 7
P A N A M A
ENA NORTE: Fitch Affirms 'BB' Rating on $600MM Notes, Outlook Neg.
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: Milei Crypto Scandal Widens With Allegations
-------------------------------------------------------
Manuela Tobias & Patrick Gillespie at Bloomberg News report that
the political uproar over Argentine President Javier Milei's role
in a crypto scandal has cast the spotlight on his closest adviser
and gatekeeper: his sister.
Hayden Davis, a key figure behind the Libra token — which surged
then crashed after Milei promoted it on X — bragged in a text
message to another investor that he was paying Karina Milei to get
the president to do his bidding, according to separate reports by
Argentina's marquee La Nación newspaper and crypto industry site
CoinDesk, Bloombenotes.
Davis, who hasn't responded to multiple requests for comment,
denied to CoinDesk that he had made payments to the president,
according to Bloomberg News.
It was also Karina who first took a meeting at the presidential
palace with local crypto consultant Mauricio Novelli, who later
introduced her brother to several of the parties involved in the
memecoin, La Nacion reported, Bloomberg News say.
The token's crash and the government's botched attempts to reclaim
the narrative have snowballed into the biggest scandal the
libertarian has faced since taking power more than a year ago,
Bloomberg News relays. First, it infuriated a horde of investors
and then it hit the market, Bloomberg News notes. Argentine
assets endured more volatility as sovereign bonds performed worse
than emerging market peers, Bloomberg News discloses. The stock
market, however, surged six percent after falling by a similar
amount the previous day, Bloomberg News notes.
An adviser to Karina Milei redirected Bloomberg's request for
comment to Milei's chief spokesperson, who declined to comment on
the news reports.
Davis acknowledged in an interview with Barstool Sports that he had
made money from Libra and was seeking ways to make things right,
Bloomberg News relates. He described the situation as a botched
launch.
Davis said he firmly believes Milei is not corrupt, and said the
money from the venture belongs to people on the President's team or
whom he "thought was Milei's team," Bloomberg News notes,
Milei, too, has vociferously denied knowing that his influence
could cause unsuspecting investors to quickly lose money, Bloomberg
News relays.
But that's all Milei and Davis seem to agree on, Bloomberg News
notes. The two have offered conflicting accounts over what
transpired, Bloomberg News discloses.
While both sides confirmed that Milei met Davis more than once in
Buenos Aires, the Argentines have downplayed the relationship and
denied that Davis had or has any connection to the government,
Bloomberg News says. Davis, meanwhile, described himself as an
adviser to the president who was working on him with a
"tokenisation," Bloomberg News relays.
Milei's bid to diffuse the situation unraveled when local news
network Todo Noticias accidentally broadcast a hot mic moment where
journalist Jonatan Viale allowed Milei's adviser, Santiago Caputo,
to interrupt the interview and omit a question. The seemingly
rigged interview only drew more negative attention to the scandal,
Bloomberg News discloses.
Karina Milei, whose official role is presidential chief-of-staff,
quickly emerged as the president's most powerful adviser,
accompanying him to meet Donald Trump and other world leaders
abroad, while lobbying for reforms in Congress, Bloomberg News
says.
Unlike President Milei's prolific use of social media, Karina Milei
never speaks to the press and rarely talks in public outside
campaign rallies, Bloomberg News relays. Both are scheduled to
arrive in Washington where they could meet Trump on the sidelines
of a conservative political event, Bloomberg News notes.
Karina is not only Milei's top adviser and strategist, but his
gatekeeper. "Talk to Kari" is one of the most common phrases tossed
around the president's circle when it comes to accessing the man
himself, he added,.
When reflecting on his takeaway from the memecoin debacle, Milei
cited the level of access to both himself and his sister, Bloomberg
News notes.
"We have decided we obviously can't keep living how we did before
and allow that everybody have access to us so easily," Milei said
in the TV interview. "Sadly we have to understand that our role
has to have filters," he added.
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 new
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). The IMF Executive Board's decision
allowed the authorities an immediate disbursement of an equivalent
of US$9.65 billion in March 2022.
Argentina's IMF-supported program seeks to improve public finances
and start to reduce persistent high inflation through a
multi-pronged strategy, involving a gradual elimination of monetary
financing of the fiscal deficit and enhancements in the monetary
policy framework.
In June 2024, the IMF Board completed an eighth review of the
Extended Arrangement under the Extended Fund Facility for
Argentina. The IMF Board's decision enabled a disbursement of
around US$800 million to support the authorities' efforts to
entrench the disinflation process, rebuild fiscal and external
buffers, and underpin the recovery.
On Feb. 17, 2025, S&P Global Ratings lowered its local currency
sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and
its national scale rating to 'SD' from 'raB+'. At the same time,
S&P affirmed its 'CCC/C' foreign currency sovereign credit ratings
on Argentina. The outlook on the long-term foreign currency rating
remains stable.
On Jan. 8, 2025, Moody's Ratings raised Argentina's local currency
ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1
from Caa3. Moody's said the decision to raise the local and
foreign currency ceilings reflects the increased predictability and
the greater consistency in economic policy that has led to a rapid
reduction in monetary and fiscal imbalances that were stoking very
high inflation.
On Nov. 15, 2024, Fitch Ratings upgraded Argentina's Long-Term
Foreign-Currency Issuer Default Rating (IDR) to 'CCC' from 'CC',
and its Long-Term Local-Currency IDR to 'CCC' from 'CCC-'.
Argentina's upgrade to 'CCC' from 'CC' reflects developments that
have improved Fitch's confidence in the authorities' ability to
make upcoming foreign-currency bond payments without seeking relief
of some sort.
DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local
Currency Issuer Ratings to B (low) from CCC on November 25, 2024.
The trend on all ratings is Stable.
ARGENTINA: Talks Over New IMF Deal Entering Final Phase
-------------------------------------------------------
Buenos Aires Times reports that Economy Minister Luis Caputo says
Argentina's talks with the International Monetary Fund over a new
financing programme are entering the final phases.
In a television interview, Caputo ruled out a future devaluation of
the peso, highlighted the government's progress on slowing
inflation and played down the impact of the so-called
‘cryptogate' scandal that has put President Javier Milei's
government on the back foot, according to Buenos Aires Times.
"We're onto the final points, negotiating the amount and the terms
on which we agree," the minister said in an interview with the A24
news channel, the report notes.
He said discussions are now focusing on fresh funds and the size of
the agreement, which will include a new exchange rate framework,
the report relays.
Argentina's government is negotiating a new agreement with the IMF
to replace its existing US$44.5-billion credit-line, granted in
2018 under former president Mauricio Macri's 2015-2019
administration, the report notes.
It is also seeking an additional US$11 billion in fresh funding,
which Milei says would allow the nation to eradicate the so-called
‘cepo,' strict currency controls that limit access to foreign
currency, the report says.
Earlier this month, Milei set a 2026 deadline for their removal,
adding that new cash from the IMF could speed up the process, the
report discloses.
Despite speculation, Caputo has repeatedly said that a new IMF
agreement would not imply a devaluation of the peso, which experts
consider to be overvalued, or an immediate exit from capital
controls, the report notes.
Asked if the IMF had explicitly requested a devaluation of the peso
to around 1,400 per US dollar, Caputo responded: "They never asked
for anything like that," the repor says.
Asked if fresh funds from the IMF could be used to intervene in the
foreign exchange market, Caputo suggested they would be part of a
broader plan: "It's money within a scheme that we will announce in
due course. What we have agreed upon will be part of that scheme.
It is very well structured — excellently structured," the report
relays.
Caputo's interview followed an announcement by the government that
Argentina had recorded a new primary and financial surplus, thanks
to revenue exceeding spending levels, the report notes.
The IMF is "pleasantly surprised by everything we've done," the
minister boasted. "It's the first time they've come across a
country presenting stricter targets than those they themselves
demanded — and on top of that, we've exceeded them," he added.
Argentina's new agreement will have the support of the IMF's board
and its managing director, Kristalina Georgieva, he added.
"The support is total, and now we just need to agree on the final
amount and get it through Congress," Caputo assured, the report
says.
He ruled out bypassing Congress, an option that had been considered
within the Economy Ministry and hinted at previously by President
Milei, 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 new
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). The IMF Executive Board's decision
allowed the authorities an immediate disbursement of an equivalent
of US$9.65 billion in March 2022.
Argentina's IMF-supported program seeks to improve public finances
and start to reduce persistent high inflation through a
multi-pronged strategy, involving a gradual elimination of monetary
financing of the fiscal deficit and enhancements in the monetary
policy framework.
In June 2024, the IMF Board completed an eighth review of the
Extended Arrangement under the Extended Fund Facility for
Argentina. The IMF Board's decision enabled a disbursement of
around US$800 million to support the authorities' efforts to
entrench the disinflation process, rebuild fiscal and external
buffers, and underpin the recovery.
On Feb. 17, 2025, S&P Global Ratings lowered its local currency
sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and
its national scale rating to 'SD' from 'raB+'. At the same time,
S&P affirmed its 'CCC/C' foreign currency sovereign credit ratings
on Argentina. The outlook on the long-term foreign currency rating
remains stable.
On Jan. 8, 2025, Moody's Ratings raised Argentina's local currency
ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1
from Caa3. Moody's said the decision to raise the local and
foreign currency ceilings reflects the increased predictability and
the greater consistency in economic policy that has led to a rapid
reduction in monetary and fiscal imbalances that were stoking very
high inflation.
On Nov. 15, 2024, Fitch Ratings upgraded Argentina's Long-Term
Foreign-Currency Issuer Default Rating (IDR) to 'CCC' from 'CC',
and its Long-Term Local-Currency IDR to 'CCC' from 'CCC-'.
Argentina's upgrade to 'CCC' from 'CC' reflects developments that
have improved Fitch's confidence in the authorities' ability to
make upcoming foreign-currency bond payments without seeking relief
of some sort.
DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local
Currency Issuer Ratings to B (low) from CCC on November 25, 2024.
The trend on all ratings is Stable.
===========
B R A Z I L
===========
UNIGEL GROUP: Completes Out-of-Court Reorganization
---------------------------------------------------
Mayer Brown reports that The Unigel Group, one of Latin America's
largest chemical companies and the leading national producer of
nitrogen fertilizers, has completed its out-of-court
reorganization, which began in February 2024. The process, akin to
a pre-pack, restructured BRL 5 billion in debt.
The restructuring involved converting the debt into new financial
instruments, including bonds and Brazilian debentures. Unigel also
secured BRL 600 million in new funding.
Tauil & Chequer Advogados, in association with Mayer Brown, advised
The Bank of New York Mellon, the trustee for the bondholders with
claims totaling approximately BRL 3 billion. The team was led by
partner Liv Machado, supported by associates Aline Sanches and
Sofia Nielsen.
The firm also handled cross-border issues related to recognizing
the reorganization in the U.S. under Chapter 15 of the Bankruptcy
Code and advised on the debt conversion through the issuance of new
restructured notes, with BNY Mellon acting as trustee.
About Unigel Participacoes SA
Unigel Participacoes SA is a Brazilian fertilizer manufacturer.
Unigel Participacoes sought relief under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-11982) on November 15,
2024.
===========================
C A Y M A N I S L A N D S
===========================
HERTZ GLOBAL: Court Tosses Discovery's Breach of Contract Suit
--------------------------------------------------------------
Judge Eric M. Davis of the Delaware Chancery Court granted Hertz
Global Holdings, Inc.'s motion to dismiss the case captioned as
DISCOVERY GLOBAL OPPORTUNITY MASTER FUND, LTD., and DISCOVERY
GLOBAL BEACON PARTNERS, LP, Plaintiffs, v. HERTZ GLOBAL HOLDINGS,
INC., Defendant, C.A. No. 2024-0655-EMD (Del. Ch.).
Discovery Global Opportunity Master Fund, Ltd. is a company
organized under the laws of the Cayman Islands. Discovery Global
Beacon Partners, LP is a limited partnership organized under the
laws of the State of Delaware. Hertz is a corporation organized
under the laws of the State of Delaware.
This is a breach of contract action. Plaintiffs Discovery Global
Opportunity Master Fund, Ltd. and Discovery Global Beacon Partners,
LP bring claims against Defendant Hertz Global Holdings, Inc.
arising out of a warrant agreement. Discovery filed a verified
complaint on June 14, 2024, alleging that Hertz engaged in a series
of transactions that amount to a Reorganization Event as that term
is defined in the Warrant Agreement. As a result, Discovery
contends they are entitled to declaratory relief (Count I),
monetary damages (Count II), and specific performance (Count III)
for Hertz's failure to honor the Warrant Agreement.
Hertz officially emerged from bankruptcy on June 30, 2021. Pursuant
to the Plan, Hertz and Computershare Trust Company, N.A. (as
warrant agent) entered into the Warrant Agreement. Each warrant
entitles the holder, upon the proper exercise and payment of the
applicable exercise price, to receive from Hertz one share of
common stock at a price of $13.80 per share. There are currently
82,710,029 Warrants outstanding. Discovery beneficially holds
9,161,086 Warrants, accounting for approximately 11% of the
outstanding Warrants. The Warrants have a 30-year term that expires
on June 30, 2051. The Warrant Agreement provides for certain
circumstances under which Hertz must redeem the Warrants prior to
the 30-year term.
The Warrant Agreement requires Hertz to redeem the Warrants within
five business days at the Change of Control Payment Amount when
there has been a Reorganization Event -- which includes a
recapitalization. The Warrant Agreement sets the redeeming price
through a specific formula.
Hertz filed a motion to dismiss the the plaintiff's verified
complaint on June 17, 2024. Through the Motion, it requests this
Court to dismiss the Complaint in its entirety and find that no
Reorganization Event has occurred in the transactions Discovery
alleges in its Complaint.
The Court held a hearing on the Motion on Nov. 12, 2024.
Hertz maintains that dismissal is warranted because Discovery's
interpretation of the Warrant Agreement is inconsistent with the
plain and unambiguous terms of the contract. It argues that
Discovery's interpretation disregards the Warrant Agreement's
contractual requirements that trigger a mandatory redemption. It
notes that the Warrant Agreement Section 12(g) requires a
Reorganization Event which causes the Common Stock of Hertz to be
converted into Reference Property before Hertz must redeem the
Warrants.
Hertz contends that Discovery's interpretation of the Warrant
Agreement creates an unreasonable and absurd result. Under
Discovery's interpretation, even where Hertz acquired a company for
cash through a merger, it would constitute a Reorganization Event.
That reading would be unreasonable in light of the Warrant
Agreement's commercial purpose.
Hertz goes on to argue that Discovery's interpretation destroys the
purpose of Section 12(g)(i) and (v) which serve as anti-destruction
clauses that prevent Warrant holders from losing their investments
through events that would cause Hertz stock to cease to exist. Such
events would cause the Warrants to become valueless. Conversion of
the Warrant into the new underlying asset the stocks were exchanged
for preserves the value of the Warrant. Discovery's interpretation
would only apply where Hertz shares are not facing that threat to
its existence.
Judge Davis concludes that the repurchase and debt financing of
Hertz's shares, even in an amount up to $3.4 billion, does not
amount to the significant structural changes to Hertz's capital
makeup that a 'recapitalization' suggests. Hertz's stock still
exists, and Discovery can point to no fact that suggests a
sufficiently detrimental impact to the existence of the stock which
underlies the Warrant Agreements or the ability of the Warrant
Holders to exercise their Warrant rights at the appropriate time.
To hold otherwise would stretch the Warrant Agreements meaning of a
'Reorganization Event,' would be overly inclusive and could produce
absurd results. Accordingly, the Court cannot find that Discovery's
proposed interpretation is a reasonable alternative interpretation
of Warrant Agreement Section 12(g)(i).
A copy of the Court's decision is available at
https://urlcurt.com/u?l=P9i9Fr from PacerMonitor.com.
Attorneys for Plaintiffs Discovery Global Opportunity Master Find,
Ltd. and Discovery Global Beacon partners, LP:
Samuel T. Hirzel, II, Esq.,
Brendan Patrick McDonnell, Esq.
HEYMAN ENERIO GATTUSO & HIRZEL LLP
300 Delaware Avenue, Suite 200
Wilmington, DE 19801
Telephone: (302) 472-7300
E-mail: shirzel@hegh.law
bmcdonnell@hegh.law
Daniel A. Fliman, Esq.
Ryan Montefusco, Esq.
Isaac S. Sasson, Esq.
John F. Iaffaldano, Esq.
PAUL HASTINGS LLP
200 Park Avenue
New York, NY10166
Telephone: (212) 318-6000
E-mail: danfliman@paulhastings.com
ryanmontefusco@paulhastings.com
jackiaffaldano@paulhastings.com
Attorneys for Defendant Hertz Global Holdings, Inc.:
Blake Rohrbacher, Esq.,
Kevin M. Kidwell, Esq.
RICHARDS, LAYTON & FINGER, P.A.
One Rodney Square, 920 North King Street
Wilmington, DE 19801
Telephone: (302) 651-7700
E-mail: rohrbacher@rlf.com
Andrew Ditchfield, Esq.
Alison B. Miller, Esq.
Kyra M. Kaufman, Esq.
DAVIS POLK & WARDWELL LLP
450 Lexington Avenue
New York, NY 10017
Telephone: (212) 450-4000
E-mail: andrew.ditchfield@davispolk.com
About Hertz Corp.
Hertz Corp. and its subsidiaries -- http://www.hertz.com/--
operate a worldwide vehicle rental business under the Hertz,
Dollar, and Thrifty brands, with car rental locations in North
America, Europe, Latin America, Africa, Asia, Australia, the
Caribbean, the Middle East, and New Zealand. They also operate a
vehicle leasing and fleet management solutions business.
On May 22, 2020, The Hertz Corporation and certain of its U.S. and
Canadian subsidiaries and affiliates filed voluntary petitions for
reorganization under Chapter 11 in the U.S. Bankruptcy Court for
the District of Delaware (Bankr. D. Del. Case No. 20-11218).
Judge Mary F. Walrath oversees the cases.
The Debtors have tapped White & Case LLP as their bankruptcy
counsel, Richards, Layton & Finger, P.A., as local counsel, Moelis
& Co. as investment banker, and FTI Consulting as financial
advisor. The Debtors also retained the services of Boston
Consulting Group to assist the Debtors in the development of their
business plan. Prime Clerk LLC is the claims agent.
The U.S. Trustee for Regions 3 and 9 appointed a Committee to
represent unsecured creditors in Debtors' Chapter 11 cases. The
Committee has tapped Kramer Levin Naftalis & Frankel LLP as its
bankruptcy counsel, Benesch Friedlander Coplan & Aronoff LLP as
Delaware counsel, UBS Securities LLC as investment banker, and
Berkeley Research Group, LLC, as financial advisor. Ernst & Young
LLP provides audit and tax services to the Committee.
* * *
Hertz Global and its subsidiaries emerged from Chapter 11
bankruptcy at the end of June 2021. Hertz won approval of a Plan
of Reorganization that unimpaired all classes of creditors (who
are
legally deemed to have accepted it) and was approved by more than
97% of voting shareholders. The Plan provided for the existing
shareholders to receive more than $1 billion of value.
Recovery by shareholders of close to $8 a share was made possible
after a fierce competition among bidders for control in the
company. Initial offers from potential bidders for Hertz in its
bankruptcy offered nothing for equity. Hertz in May 2021 selected
investment firms Knighthead Capital Management LLC and Certares
Management LLC, joined by other investors including Apollo Global
Management Inc. and a group of existing shareholders, as the
winning bidders for control of the bankrupt company. A rival group
that included Centerbridge Partners LP, Warburg Pincus LLC and
Dundon Capital Partners LLC was outbid at auction.
Hertz's Plan eliminated over $5 billion of debt, including all of
Hertz Europe's corporate debt, and will provide more than $2.2
billion of global liquidity to the reorganized Company. Hertz also
emerged with (i) a new $2.8 billion exit credit facility consisting
of at least $1.3 billion of term loans and a revolving loan
facility, and (ii) an $7 billion of asset-backed vehicle financing
facility, each on favorable terms.
=================
G U A T E M A L A
=================
[] Fitch Affirms BB+ Ratings on Three Guatemalan Banks
------------------------------------------------------
Fitch Ratings has conducted a portfolio review of five Guatemalan
banks after the recent revision of Guatemala's sovereign Outlook to
Positive. Following the sovereign action, Fitch revised the
outlook on its 'bb-' assessment of Guatemalan's banking system
operating environment (OE) to positive from stable.
Guatemala's macroeconomic stability and solid pace of growth have
resulted in sustained economic development that will improve
Fitch's core metrics to evaluate its score of the OE. The
country's estimated GDP per capita for 2024 is USD6,140, and the
Operational Risk Index was 22.4% as of January 2025.
Fitch expects the banks will continue to generate consistent
business volumes due to the positive macroeconomic dynamics. Fitch
forecasts steady credit growth for 2025 at slightly below 10%, with
lower asset quality pressure than in 2024. This will support
banking system profitability and capitalization metrics.
Fitch has affirmed the Long-Term (LT) and Short-Term (ST) national
scale ratings of Bi-Bank, S.A. (Bi-Bank) in Panama at 'AA-(pan)'
and 'F1+(pan)', respectively. Fitch revised the Outlook on
Bi-Bank's LT National rating to Positive from Stable following a
similar action over its sister company, Banco Industrial, S.A.
(Industrial).
Key Rating Drivers
Industrial and Banrural
Fitch affirmed Industrial and Banco de Desarrollo Rural, S.A.'s
(BanRural) LT Foreign Currency (FC) and Local Currency (LC) Issuer
Default Rating (IDRs) at 'BB' and revised the Outlook to Positive
from Stable. Fitch affirmed the FC and LC ST IDRs at 'B' and
Viability Rating (VR) at 'bb'. The Outlook revision follows a
similar action on Guatemala's OE assessment and Guatemala's IDR.
Fitch believes that if the sovereign rating is upgraded, Industrial
and BanRural will continue to be rated at the same level as the
sovereign due to their strong business and financial profiles.
Improving OE conditions would enhance the banks' credit profiles
because their strong market position will continue to benefit their
financial performance.
Industrial's IDRs are underpinned by its intrinsic creditworthiness
as captured in its 'bb' VR, which is consistent with its implied
VR. This reflects its leadership position in Guatemala, with a
market share of 29.1% by loans and 26.9% by deposits as of the
third quarter of 2024 (3Q24), robust risk management and strong
funding profile. This has translated to consistent financial
performance. As of 3Q24, the operating profit to risk weighted
assets (RWA) ratio was around 2.3%, while the Fitch Core Capital
(FCC) to RWA ratio was adequate at 10.4%. Loan quality, as
reflected in the non-performing loan ratio (NPL), continued its
upward trend, reaching 1.8% as of 3Q24. However, Fitch expects it
to decline slightly over the rating horizon, returning to levels
close to 1% in the long term.
BanRural's IDRs are underpinned by its intrinsic credit profile, as
reflected in its 'bb' VR, which is aligned with its implied VR. The
VR is influenced by the bank's solid business profile. BanRural is
the second-largest bank in Guatemala, with a market share by total
assets and deposits of 21.3% and 22.7%, respectively, in YE24. It
holds leading market positions in small and medium enterprises and
consumer loans.
BanRural's strong business profile supports good profitability and
capitalization ratios that are better than most of its local peers.
As of December 2024, its operating profit to RWA ratio was 5.5%,
while its FCC to RWA ratio was 18.9%. The bank's NPL metric remain
pressured at 3.7% in 2024 (2023: 3.1%).
G&TC and Bantrab
Fitch affirmed Banco G&T Continental S.A. (G&TC) and Banco de los
Trabajadores's (Bantrab) LT and ST FC and LC IDRs at 'BB' and 'B',
respectively, and their respective VRs at 'bb'. The Outlook is
Stable. Rating scale decompression following positive sovereign
rating actions would be neutral these banks' ratings, because their
current business and financial profiles are more commensurate with
the current 'bb' rating.
G&TC's IDRs are supported by its credit profile, as reflected in
its VR, which is aligned with its implied VR. The VR reflects the
bank's adequate intrinsic credit profile that is underpinned by its
strong business profile and prudent risk profile, with both
contributing to reasonable and stable financial performance.
G&TC is the third-largest bank by assets, loans and deposits as of
3Q24. Its operating profit to RWA ratio decreased to 2.1% at YE24
from 2.6% in 2023 due to higher operating expenses. The bank's
impaired loans increased but its asset quality remains adequate,
with an NPL ratio increasing to 1.4% in 2024. Reasonable loss
absorption capacity is reflected by its loan loss allowances
coverage of 178.7% and FCC to RWA ratio of 13.0%.
Bantrab's IDRs are supported by its credit profile, as reflected in
its VR, which is aligned with its implied VR. Bantrab's VR is
influenced by the bank's sound and consistent business profile,
reflecting its growing income generation and its solid market
position in the consumer segment. Bantrab's financial profile
reflects its solid capitalization levels, with FCC to RWA metrics
historically above 20% amid deteriorating asset quality during 2024
which impacted its profitability. Its collection mechanisms,
payroll deductions, and low borrower concentration support its
asset quality.
Government Support Ratings
Fitch also affirmed Industrial, BanRural, G&TC and Bantrab's
Government Support Ratings (GSRs) at 'bb-', which incorporates the
moderate likelihood of support the banks would receive from the
sovereign, if necessary. Fitch weighs heavily the banks' systemic
importance in Guatemala, as well as the relatively small size of
the banking system relative to the Guatemalan economy.
BAM
Fitch affirmed Banco Agromercantil de Guatemala, S.A.'s (BAM) LT FC
and LC IDRs at 'BB+'. BAM's ST FC and LC IDRs were also affirmed at
'B'. Additionally, the bank's Shareholder Support Rating (SSR) was
affirmed at 'bb+' and the VR at 'bb-'. The Outlook is Stable.
BAM's IDRs are driven by its SSR and reflect the potential support
the bank would receive from its shareholder, Bancolombia, S.A
(BB+/Stable), if needed. Shareholder capacity to provide support is
reflected in the 'bb+' SSR, and Fitch believes any required support
would likely be manageable, given BAM's moderate size of
approximately 6.9% of Bancolombia's consolidated total assets as of
3Q24.
BAM's VR reflects the bank's good business profile and a reasonable
risk profile. As of December 2024, BAM's operating profit to RWA
ratio reached negative levels because of higher interest expenses
and high loan impairment charges from loan deterioration, that
resulted from expected losses due to changes in the regulatory
provisioning approach. Nevertheless, its 2021-2024 core metric
average of 1.1% still maps in its current profitability score of
'b+'. BAM's asset quality remains relatively stable with 2024 NPL
ratio slightly increasing to 2.2% from 2.1% in 2023. Fitch
considers BAM's capitalization and funding metrics adequate, with
additional support potentially available from Bancolombia, if
necessary.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Industrial, BanRural, G&TC and Bantrab's
- The banks' IDRs and VRs would mirror any negative action on
Guatemala's sovereign ratings and Country Ceiling or a downward
revision of Fitch's assessment of the OE;
- Industrial's IDRs and VR could be downgraded due to sustained
deterioration in its loan quality, as well as a deteriorating
financial performance resulting a decline in the bank's operating
profit to an RWA metric to a level consistently below 1.5% and its
FCC to RWA ratio to a level consistently below 10.0%;
- BanRural's VR and IDRs could negatively be affected by the
deterioration of its financial profile caused by a significant
decline of its operating profit to RWA ratio to consistently below
2.0% and a decline in its FCC to RWA ratio close to 13.0%;
- G&TC's IDRs and VR could be downgraded from a sustained
deterioration of the bank's financial performance reflected in an
increase of impairment levels, weakened profitability (operating
profit to RWA consistently below 1.5%) or erosion of capital
cushions with an FCC ratio consistently below 12.0%;
- Bantrab's VR and IDRs could be downgraded by a significant
deterioration of the entity's financial profile, as reflected in a
weakening of its funding and liquidity profile, or a decline of its
operating profit to RWA consistently below 2.5%, causing a
continued reduction in its FCC to RWA ratio below 15.0%.
- Industrial, BanRural, G&TC and Bantrab 's GSRs are sensitive to a
downgrade of the sovereign rating, as well as its propensity to
provide support.
BAM
- A downgrade of Bancolombia's IDR or a lower support propensity
could result in a downgrade of BAM's LT and ST IDRs and SSR;
- BAM's VR could be downgraded in the event of a prolonged and
significant decline in loan quality that persistently erodes
profitability and leads to a diminished assessment by Fitch of the
bank's business profile strength.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Industrial and BanRural
- Industrial and BanRural's IDRs, VRs and GSRs would mirror any
positive action in the Guatemala's sovereign ratings, while
maintaining a consistent financial profile.
G&TC and Bantrab
- G&TC and Bantrab's IDRs and VRs have limited upside potential. In
the medium-to-long term, their ratings could be upgraded due to
material business profile improvements while maintaining good
financial profiles.
- G&TC and Bantrab's GSRs could be upgraded if Guatemala's
sovereign rating is upgraded.
BAM
- BAM's FC IDR and SSR could be upgraded if Bancolombia's IDRs are
upgraded and sovereign rating and Country Ceiling are also
upgraded. The bank's LC IDR could be upgraded if Bancolombia's IDR
is upgraded;
- BAM's VR could be upgraded if the bank improves its operating
profit to an RWA ratio consistently above 2.5% or its FCC to RWA
above 13.0%, while maintaining stable asset quality and a stable
funding and liquidity profile.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
Industrial's debt instruments are subordinated notes (ISbN) and
subordinated Tier 1 capital (IST-1). The ISbN notes are rated two
notches below Industrial's VR due to their subordinated status.
They rank junior to all the bank's present and future senior
indebtedness, pari passu with all other unsecured subordinated debt
and senior to Industrial's capital and Tier 1 hybrid securities.
The IST-1 notes are rated four notches below Industrial's VR due to
their deep subordination status and discretionary coupon omission
feature. Although the issues do not have outlook, Fitch believes
that subordinated notes could be upgraded if Industrial's IDRs are
upgraded.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- The ratings of the ISbN and IST-1 notes would be downgraded if
Industrial's VR is downgraded.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- The ratings of the ISbN and IST-1 notes would be upgraded if
Industrial's VR is upgraded.
SUBSIDIARIES & AFFILIATES: KEY RATING DRIVERS
Bi-Bank's national ratings in Panama are driven by the potential
support it would receive from its sister company, Industrial, if
necessary. The ratings denote the relative credit strength of
Industrial compared to other issuers rated in Panama. Fitch's
support assessment places high importance on the significant
reputational risk that Bi-Bank's default would constitute for the
group and on the crucial role it plays in the conglomerate's
country diversification strategy. The senior unsecured debt is
rated at the same level as Bi-Bank's national short-term rating,
because Fitch considers its probability of default equal to the
bank's.
SUBSIDIARIES AND AFFILIATES: RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Bi-Bank's national ratings could be downgraded if Industrial's
ability to support it decreases, as reflected by its Foreign
Currency IDR and its propensity to provide support. A downgrade of
the senior unsecured debt rating would result from a negative
action on Bi-Bank's Short-Term rating.
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Bi-Bank's ratings could be upgraded if Industrial's ability to
support it improves, as reflected by its Foreign Currency IDR. The
Short-Term National Rating and its senior debt rating are at the
top of the national scale and cannot be upgraded.
VR ADJUSTMENTS
Industrial, BanRural, G&TC, Bantrab and BAM
Fitch assigned an OE score of 'bb-', which is above the 'b'
category implied score, due to the following adjustment reason:
Sovereign Rating (positive).
Bantrab
Fitch assigned a Capitalization & Leverage score of 'bb+', which is
below the 'bbb' category implied score, due to the following
adjustment reason: Capital Flexibility and Ordinary Support
(negative).
BAM
Fitch assigned a business profile assessment of 'bb-', which is
above the 'b' implicit assessment, due to the following adjustment
reason: Market Position (positive).
Summary of Financial Adjustments
Industrial: Prepaid expenses and other deferred assets were
reclassified as intangible assets and deducted from total equity as
Fitch considers these to have low capacity to absorb losses.
BanRural: Prepaid expenses and other deferred assets were
reclassified as intangible assets and were deducted from equity
since the agency considers these to have low capacity to absorb
potential losses. Equity interests in insurance companies are also
deducted from equity.
G&TC: Fitch reclassified prepaid expenses and other deferred assets
as intangible assets and deducted them from total equity since the
agency believes they have low capacity to absorb losses.
Bantrab: Net asset value from an insurance subsidiary, prepaid
expenses and other deferred assets were reclassified as intangible
and deducted from total equity in order to calculate Fitch Core
Capital.
BAM: Prepaid expenses and other deferred assets were reclassified
as intangible assets and were deducted from FCC since the agency
considers these to have low capacity to absorb losses.
Public Ratings with Credit Linkage to other ratings
Industrial, BanRural, G&TC and Bantrab's GSRs are linked to
Guatemala's sovereign Foreign Currency IDR.
BAM's IDRs and SSR are based on support from Bancolombia.
Bi-Bank's national ratings are driven by support from Industrial.
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
----------- ------ -----
Bi-Bank, S.A. Natl LT AA-(pan) Affirmed AA-(pan)
Natl ST F1+(pan) Affirmed F1+(pan)
senior
unsecured Natl ST F1+(pan) Affirmed F1+(pan)
Banco
Agromercantil
de Guatemala S.A. LT IDR BB+ Affirmed BB+
ST IDR B Affirmed B
LC LT IDR BB+ Affirmed BB+
LC ST IDR B Affirmed B
Viability bb- Affirmed bb-
Shareholder Support bb+ Affirmed bb+
Banco
Industrial, S.A. LT IDR BB Affirmed BB
ST IDR B Affirmed B
LC LT IDR BB Affirmed BB
LC ST IDR B Affirmed B
Viability bb Affirmed bb
Government Support bb- Affirmed bb-
subordinated LT B- Affirmed B-
subordinated LT B+ Affirmed B+
Banco de
Desarrollo
Rural, S.A. LT IDR BB Affirmed BB
ST IDR B Affirmed B
LC LT IDR BB Affirmed BB
LC ST IDR B Affirmed B
Viability bb Affirmed bb
Government Support bb- Affirmed bb-
Banco de los
Trabajadores LT IDR BB Affirmed BB
ST IDR B Affirmed B
LC LT IDR BB Affirmed BB
LC ST IDR B Affirmed B
Viability bb Affirmed bb
Government Support bb- Affirmed bb-
Banco G&T
Continental S.A. LT IDR BB Affirmed BB
ST IDR B Affirmed B
LC LT IDR BB Affirmed BB
LC ST IDR B Affirmed B
Viability bb Affirmed bb
Government Support bb- Affirmed bb-
=============
J A M A I C A
=============
JAMAICA: BOJ Holds Policy Interest Rate at 6%
---------------------------------------------
RJR News reports that the Bank of Jamaica held the benchmark rate
at 6% per annum, despite the fall in the point to point inflation
rate to 4.7% in January.
The monetary policy committee of the central bank cited the
uncertainty in the US - Jamaica's major trading partner, according
to RJR News .
Both US consumer and producer price inflation accelerated in
January, and the American central bank held its benchmark rate at
between 4.25% per annum and 4.50% per annum indefinitely, 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.
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 2023, S&P
Global Ratings raised its long-term foreign and local currency
sovereign credit ratings on Jamaica to 'BB-' from 'B+', and
affirmed its short-term foreign and local currency sovereign credit
ratings at 'B', with a stable outlook. In September 2024, S&P
affirmed 'BB-/B' sovereign ratings on Jamaica and revised outlook
to positive. In March 2022, Fitch Ratings affirmed Jamaica's
Long-Term Foreign Currency Issuer Default Rating (IDR) at 'B+'.
The Rating Outlook is Stable.
PALACE AMUSEMENT: Incurs Net Loss of $62.9 Million
--------------------------------------------------
RJR News reports that Palace Amusement Company recorded a net loss
of $62.9 million, despite enjoying its highest level of attendance
and an increase in its revenues to $693 million during the
six-month period ended December 31 last year.
The company also reported that its revenues jumped by 36 per cent
to $347.5 million during the October to December quarter last year,
when compared with the corresponding period in 2023, according to
RJR News.
Despite this increase, the company lost $26.3 million, compared
with a profit of$ 84.1 million for October to December 2023, the
report recalls.
===========
M E X I C O
===========
ACCURIDE CORP: Plan Exclusivity Period Extended to May 7
--------------------------------------------------------
Judge J. Kate Stickles of the U.S. Bankruptcy Court for the
District of Delaware extended Accuride Corp. and its
debtor-affiliates' exclusive periods to file a plan of
reorganization and obtain acceptance thereof to May 7 and July 7,
2025, respectively.
As shared by the Troubled Company Reporter, the Debtors explain
that
these chapter 11 cases involve sixteen Debtor-affiliate entities
that had approximately $485 million in funded-debt obligations as
of the Petition Date. The Debtors have a wide variety of parties in
interest, including vendors, customers, facility and equipment
lessors, and other contractual counterparties, the AHG, the other
Prepetition Term Lenders, the Prepetition ABL Agent and Prepetition
ABL Lenders, and local, state, and federal agencies.
Furthermore, the Debtors and their advisors have spent (and
continue to spend) significant amounts of time coordinating with
non-Debtor affiliates around the world, from navigating parallel
proceedings for their Canadian affiliate to addressing the
operational overhang for the Debtors' other affiliates resulting
from the chapter 11 cases. Accordingly, the complexity of these
chapter 11 cases weighs in favor of extending the Exclusivity
Periods.
The Debtors assert that their request for an extension of the
Exclusivity Periods is their first such request and comes fewer
than four months after the Petition Date. During this short time,
the Debtors have accomplished a great deal, including filing the
Plan and Disclosure Statement, all while the Debtors continue to
work diligently with all stakeholders to ensure widespread support
of the Plan and Disclosure Statement. Additionally, the fact that
this is the Debtors' first request for an extension further
supports granting the requested extension.
Co-Counsel for the Debtors:
Joseph Barry, Esq.
Kenneth J. Enos, Esq.
Jared W. Kochenash, Esq.
Andrew A. Mark, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Rodney Square
1000 North King Street
Wilmington, Delaware 19801
Tel: (302) 571-6600
Fax: (302) 571-1253
Email: jbarry@ycst.com
kenos@ycst.com
jkochenash@ycst.com
amark@ycst.com
Co-Counsel for the Debtors:
Ryan Blaine Bennett, P.C.
Alexander D. McCammon, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
333 West Wolf Point Plaza
Chicago, Illinois 60654
Tel: (312) 862-2000
Fax: (312) 862-2200
Email: ryan.bennett@kirkland.com
alex.mccammon@kirkland.com
- and -
Derek I. Hunter, Esq.
601 Lexington Avenue
New York, New York 10022
Tel: (212) 446-4800
Fax: (212) 446-4900
Email: derek.hunter@kirkland.com
About Accuride Corp.
Accuride Corporation and its affiliates are a global leader in
steel and aluminum wheels and wheel-end components and assemblies,
supplying innovative products to over 1,000 customers in the
commercial vehicles, passenger cars, agriculture, construction and
industrial equipment markets.
Headquartered in Livonia, Michigan, the Debtors are part of a
global enterprise that employs approximately 3,600 individuals at
facilities in the United States, Canada, Mexico, Germany, France,
Turkey, Russia, and China.
Accuride's U.S. entities first filed for Chapter 11 protection in
October 2009, also in Delaware, to restructure in excess of $675
million in debt. The Court confirmed the Company's Plan of
Reorganization in February 2010.
On Oct. 9, 2024, Accuride Corp. and its U.S. entities filed
voluntary petitions for protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12289). Accuride
reported $500 million to $1 billion in assets and liabilities as of
the bankruptcy filing.
In the new chapter 11 cases, the Debtors tapped Kirkland & Ellis
LLP as bankruptcy counsel, Young Conaway Stargatt & Taylor, LLP, as
local bankruptcy counsel, and Perella Weinberg Partners LP as
investment banker. Alvarez & Marsal North America, LLC is the CRO
provider. Omni Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
===========
P A N A M A
===========
ENA NORTE: Fitch Affirms 'BB' Rating on $600MM Notes, Outlook Neg.
------------------------------------------------------------------
Fitch Ratings has affirmed the long-term rating on ENA Norte
Trust's (ENA Norte) USD600 million notes at 'BB' with a Negative
Rating Outlook. Fitch also affirmed the national long-term rating
at 'A+(pan)' and revised the Outlook to Negative from Stable.
The Negative Outlook reflects the increased repayment risk as the
debt maturity date approaches, even though the Outlook for Panama's
sovereign rating is Stable. According to Fitch's Rating Case (FRC),
outstanding debt balance at maturity is projected at $28 million.
Fitch believes this amount is likely manageable for the sponsor,
Empresa Nacional de Autopista (ENA), which is willing to ensure
timely debt repayment. Nonetheless, there is a lack of a clear
strategy to guarantee a full amortization of the notes.
The 'BB' rating of ENA Norte incorporates a two-notch uplift to its
Standalone Credit Profile (SCP) of 'b+'. As a government-owned,
ring-fenced transaction, the uplift is supported by the strong
links between Panama ('BB+'/Stable) and ENA Norte, which are
demonstrated by the government's significant influence on
operations through ENA. This supports the expectation that the
government will back ENA's plans to refinance or fully repay ENA
Norte notes at maturity.
ENA Norte's ratings reflect a strong, mature asset, with a long
operational track record. Despite the projects' contractual ability
to adjust tolls for inflation, they have not been increased in
several years. ENA Norte's debt structure is robust as toll
revenues are fully dedicated to cover operational and financial
obligations, allowing the project's gradual deleveraging.
Under FRC, the minimum Loan Life Coverage Ratio (LLCR) is 0.4x in
2028, which indicates that the debt is not fully repaid at
maturity. Despite this, the rating is supported by Fitch's
expectation that leverage at debt maturity will be below 1x, along
with sponsor ENA's strong historical liquidity levels and
demonstrated willingness to repay debt.
KEY RATING DRIVERS
Revenue Risk - Volume - Midrange
Limited Volume Risk: The corridor operates in Panama City, a strong
reference market, with a long track record of traffic and moderate
volatility. It plays an important role in connectivity for
commuters and commercial traffic within the city's broader road
network. Given the recent infrastructure changes in the city, the
assets face competition from free alternatives and other
transportation modes.
Revenue Risk - Price - Weaker
Fixed Toll Rates: Although the concessionaire is entitled to
annually adjust toll rates for inflation, they have not been
increased and are not expected to be updated in the medium term.
Infrastructure Dev. & Renewal - Midrange
Suitable Infrastructure Plan: The corridors have sound contractual
requirements to fund capex costs. According to the independent
engineer, Corridor Norte requires major maintenance and is not in
optimal physical condition. The concessionaire has short- and
medium-term maintenance plans in place to perform the work required
in certain sections of the corridor. The capital investment program
is internally funded.
Debt Structure - 1 - Stronger
Conservative Debt Structure: ENA Norte's debt structure has fixed
interest rate, is flow zero and has a six-month debt service
reserve account for interest payments.
Financial Profile
Under Fitch's rating case, ENA Norte's minimum LLCR in the rating
case is 0.4x and is very weak according to Fitch's applicable
criteria, and debt is not fully repaid at its maturity in 2028 ($28
million are estimated to remain outstanding). Nonetheless, the
rating is supported by Fitch's belief that the low expected
leverage at maturity will enable the concessionaire to refinance
the notes and that the Government of Panama has the capacity and
motivation to find a suitable solution for the notes before
maturity.
PEER GROUP
ENA Norte is comparable with Autopistas del Sol (AdS; B+/Positive).
Both projects provide critical connectivity within their respective
areas and are subject to increasing competition from free
alternatives, but Fitch assesses Price Risk as 'Weaker' for ENA
Norte and as 'Midrange' for AdS.
AdS's average debt service coverage ratio (DSCR) of 1.2x is higher
than the 0.4x coverage metric of ENA Norte, whose ratings are
supported by the government's ability to implement credit
protection measures, and the ability refinance the debt in the
medium term.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- If ENA or the Panamanian government delays taking timely actions
to either refinance the debt or create conditions for the debt
payment.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- The Rating Outlook could be revised to Stable once Fitch has more
visibility into the sponsor's strategy to guarantee a full
amortization of the notes.
TRANSACTION SUMMARY
ENA Norte Trust issued USD600 million in senior secured notes with
a bullet payment at maturity in April 2028. The net proceeds from
the issuance were used to pay for the acquisition of the
concession, fund reserve accounts, and cover any related
transaction costs and fees. The debt structure benefits from a Debt
Service Reserve Account (DSRA) of six months of interest payments
and any excess cash is dedicated for the repayment of principal.
SECURITY
The notes are secured by the project's toll revenues, all of ENA
Norte's rights, titles, and interests, and the assigned rights, the
transaction accounts, and all the issued and outstanding shares of
ENA Norte.
The issuance is structured with a pass-through amortization
mechanism that prohibits dividend distributions while the notes are
outstanding and employs all excess cash for the repayment of
principal. Liquidity reserves, for debt service and major
maintenance included in the structure, are deemed sufficient to
maintain financial stability during stressed periods.
Sources of Information
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
ENA Norte rating is linked to Panama's IDR.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
ENA Norte Trust
ENA Norte
Trust/Toll
Revenues - First
Lien/1 LT LT BB Affirmed BB
ENA Norte
Trust/Toll
Revenues - First
Lien/1 Natl LT Natl LT A+(pan) Affirmed A+(pan)
*********
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
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Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.
Copyright 2025. All rights reserved. ISSN 1529-2746.
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