/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/250425.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 Friday, April 25, 2025, Vol. 26, No. 83 Headlines B A H A M A S FTX GROUP: Can Serve Binance Execs via e-mail in $1.76B Suit B O L I V I A BOLIVIA: Moody's Cuts Issuer & Senior Unsecured Debt Ratings to Ca B R A Z I L AEGEA SANEAMENTO: Moody's Cuts CFR to Ba3, Alters Outlook to Stable BRAZIL: Faces Shifting Global Markets as Tariffs Reshape Landscape LATICINIOS SAO VICENTE: Lays Out Growth Plans After Restructuring D O M I N I C A N R E P U B L I C BANCO DE RESERVAS: Fitch Affirms BB- LongTerm IDR, Outlook Positive BANCO MULTIPLE BHD: Fitch Affirms 'BB-' Long-Term IDR, Outlook Pos. J A M A I C A [] JAMAICA: BPO Executive Wants Changes to Labor Laws P U E R T O R I C O CONCORDE METRO: Hires Vilarino & Associates LLC as Attorney CONCORDE METRO: Taps Luis R. Carrasquillo as Financial Consultant - - - - - ============= B A H A M A S ============= FTX GROUP: Can Serve Binance Execs via e-mail in $1.76B Suit ------------------------------------------------------------ Emily Lever at law360.com reports that a Delaware bankruptcy judge has allowed the FTX Recovery Trust to serve a $1.76 billion clawback suit against Binance via alternative means, saying the trust may serve the suit on two ex-Binance executives by email or social media. About FTX Group FTX is the world's second-largest cryptocurrency firm. FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that FTX paused customer withdrawals after it was hit with roughly $5 billion worth of withdrawal requests. Faced with liquidity issues, FTX on Nov. 9, 2022, struck a deal to sell itself to its giant rival Binance, but Binance walked away from the deal amid reports on FTX regarding mishandled customer funds and alleged US agency investigations. SBF agreed to step aside, and restructuring vet John J. Ray III was quickly named new CEO. FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc. (d/b/a FTX US), Alameda Research Ltd. and certain affiliated companies then commenced Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022. Additional entities sought Chapter 11 protection on Nov. 14, 2022. FTX Trading and its affiliates each listed $10 billion to $50 billion in assets and liabilities, making FTX the biggest bankruptcy filer in the US this year. According to Reuters, SBF shared a document with investors on Nov. 10, 2022, showing FTX had $13.86 billion in liabilities and $14.6 billion in assets. However, only $900 million of those assets were liquid, leading to the cash crunch that ended with the company filing for bankruptcy. The Hon. John T. Dorsey is the case judge. The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal North America, LLC as financial advisor. Kroll is the claims agent, maintaining the page https://cases.ra.kroll.com/FTX/Home-Index The Official Committee of Unsecured Creditors tapped Paul Hastings as counsel, FTI Consulting, Inc., as financial advisor, and Jefferies LLC as the investment banker. Young Conaway Stargatt & Taylor LLP is the Committee's Delaware and conflicts counsel. Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory T. Donilon, Edward L. Schnitzer, and David M. Banker, is representing Sam Bankman-Fried in the Chapter 11 cases. White-collar crime specialist Mark S. Cohen has reportedly been hired to represent SBF in litigation. Lawyers at Paul Weiss previously represented SBF but later renounced representing the entrepreneur due to a conflict of interest. ============= B O L I V I A ============= BOLIVIA: Moody's Cuts Issuer & Senior Unsecured Debt Ratings to Ca ------------------------------------------------------------------ Moody's Ratings has downgraded the Government of Bolivia's long-term local and foreign currency issuer and senior unsecured debt ratings to Ca from Caa3 and maintained the stable outlook on the ratings. The downgrade reflects very weak governance which is increasing the risks of a balance of payments crisis and sovereign default. With a general election scheduled to take place in August 2025, no significant policy action is likely before then. In the meantime, the government will be forced to decide between allocating scarce foreign exchange resources to make interest payments on external debt or pay for essential imports, including fuel, while also maintaining the boliviano's fixed exchange rate. Meanwhile, political turmoil, driven by deep divisions within Bolivia's ruling Movimiento al Socialismo (MAS) party, has significantly weakened the government's policy effectiveness and constrained its ability to stabilize very low foreign-exchange reserves and stem the ongoing deterioration of economic and financial conditions. The stable outlook reflects Moody's views that at the Ca rating level, upside and downside risks to Bolivia's credit profile remain balanced. Potential for incoming hard currency loan disbursements from multilateral development institutions combined with the relatively favorable structure of Bolivia's external debt obligations, which have a high portion of concessional multilateral loans, will help mitigate some of the current near-term credit pressures. However, Moody's expects significant credit challenges to remain, including sustained very low foreign-exchange reserve levels, weak production levels in the hydrocarbon sector, and very high domestic political risk. Bolivia's local and foreign currency country ceilings were lowered to Caa2 and Caa3 from Caa1 and Caa2, respectively. The two notch gap between the local-currency ceiling and the sovereign rating reflects political risks, weak institutions and a significant government footprint in the economy. The one-notch gap between the foreign currency and local currency ceiling reflects material transfer and convertibility risks given persistent balance of payment pressures, risks of capital flight, and very low policy effectiveness. RATINGS RATIONALE RATIONALE FOR THE RATINGS DOWNGRADE TO Ca RISING RISK OF BALANCE OF PAYMENTS CRISIS AND SOVEREIGN DEFAULT The downgrade of Bolivia's ratings to Ca from Caa3 reflects Moody's assessments that external liquidity pressures have reached acute levels, driven by the ongoing sharp decline in liquid foreign-exchange reserves, threatening a balance of payments crisis. As of end-December 2024, the latest data available for Bolivia's central bank reserves, liquid foreign-exchange reserves (excluding gold and IMF special drawing rights) declined very sharply to around $50 million (under 1% of GDP) from $316 million in May 2024 and $13.2 billion (40% of GDP) at the end of 2014. While a Gold Law was passed by the government in May 2023 to provide temporary liquidity relief by allowing the central bank to convert a portion of its relatively large gold holdings into liquid foreign-exchange reserves, gold no longer provides material liquidity support. Since passing the law, gold reserves have declined to about $1.9 billion (around 4% of GDP) from $2.6 billion, while foreign-exchange reserves have continued to decline. The fall in liquid foreign-exchange reserves has occurred despite Bolivia selling on average about 1.2 tons of gold per month in 2024 (the equivalent of $100 million a month). Bolivia has not published updated data on international reserves since December 2024. Persistent fiscal and current account deficits, which have averaged around 7.3% of GDP and 2.6% of GDP, respectively, over the past decade (2015-2024), have nearly exhausted Bolivia's once ample foreign-exchange reserves buffer. The drain on reserves reflects very weak governance which has manifested in part in a structural decline in hydrocarbon exports, which have effectively been depleted, with continued government subsidization of fuel imports that has weighed on both fiscal deficits and foreign exchange reserves. Declining hydrocarbon sector productivity, weak government policies and scarcity of hard currency have dampened real GDP growth, which fell to around 1.5% in 2024 from an average rate of just over 4% in 2021-2023. Moody's expects growth of around 2% from 2025 onward, supported by preelection government spending this year and economic policy adjustments from 2026 onward, following the country's general election in August. Inflation has surged in 2025, driven by scarcity of hard currency in the economy that has weighed on the boliviano's unofficial exchange rate. As of March 2025, annual inflation reached a rate of 14.6% from about 3.5% in April 2024. Ongoing supply disruptions and a wide gap between the official and unofficial exchange rate will likely continue to exert upward pressure on inflation through this year. A possible future devaluation of the boliviano after this year's election would put further pressure on inflation. Although principal payments on Bolivia's two outstanding international sovereign bonds will not come due until 2026, persistent external liquidity pressures have continued to increase sovereign credit risks threatening a potential missed interest payment. Interest payments on Bolivia's two outstanding bonds, which fully mature in March 2028 and 2030, are due on the 2nd and 20th of March and September of each year. Annual interest payments this year are about $109 million in total. Overall, recent developments have increased the risk of a disorderly balance of payments adjustment and of Bolivia not having sufficient hard currency to ensure full and timely repayment of its external debt obligations and imports. DEEP POLITICAL DIVISIONS HAVE SIGNFICANTLY WEAKENED POLICY EFFECTIVENESS Political turmoil, driven by deep divisions within Bolivia's ruling MAS party, has significantly weakened the government's policy effectiveness and constrained its ability to stabilize the decline in foreign-exchange reserves and ongoing deterioration of economic and financial conditions. Confrontations within MAS between supporters of President Arce and backers of Former President Morales have materially escalated since Moody's last rating action, significantly undermining governance and policy effectiveness. President Arce's rivals within the party have partnered with the center-right and right-wing opposition in Congress to block approval of multilateral loan disbursements that would provide critical external liquidity support. Previously political infighting in Bolivia's Congress only led to delays in disbursements of such loans. Blockage of these external funds at such a critical time highlights Bolivia's elevated political risk and legislative dysfunction, exacerbating the country's economic challenges and eroding government policy effectiveness, which has now pushed the country much closer to a balance of payments crisis. Ongoing political infighting in advance of Bolivia's general election in August will continue to polarize Congress and freeze material legislative actions to combat the country's economic and financial crisis. Moody's expects legislative fragmentation to continue to weigh on President Arce's ability to pass legislation for the remainder of his term this year. RATIONALE FOR THE STABLE OUTLOOK The stable outlook reflects Moody's views that at the Ca rating level, upside and downside risks to Bolivia's credit profile remain balanced. Potential for incoming hard currency loan disbursements from multilateral development institutions combined with the relatively favorable structure of Bolivia's external debt obligations, which have a high portion of concessional loans, will help mitigate some of the current near-term credit pressures. However, absent major policy adjustments, Moody's expects significant credit challenges to remain. The disbursement of pending multilateral development loans, which as of April 2025 amounted to around $1.7 billion including from the Inter-American Development Bank (Aaa stable) and Corporacion Andina de Fomento (CAF, Aa3 stable), would eventually provide much-needed access to hard currency that would help support Bolivia's foreign-exchange reserves. Other potential measures that could provide additional liquidity support include further disbursement of a contingent line of credit from CAF and bond issuance guarantees from multilateral institutions. In addition, further government measures aimed at easing export restrictions, reducing imports and public spending, and supporting private-sector growth could help to mitigate some of the pressures on the country's external position. Meanwhile, the overall structure of Bolivia's external debt obligations remains favorable with the vast majority (around 70%) owed to multilateral development institutions on concessional terms. As mentioned, total principal and interest due on Bolivia's sovereign international bonds are modest over the short term, amounting to around $109 million annually in 2025 (interest only), and are projected to rise to $435 million, $420 million and $677 million in 2026, 2027 and 2028, respectively. However, Moody's expects significant credit challenges to remain, including sustained very low foreign-exchange reserve levels, weak hydrocarbon sector productivity, and elevated domestic political risk. The authorities' decision to maintain Bolivia's exchange rate peg to the US dollar, combined with structurally lower export earnings from declining production levels in the hydrocarbon sector and maturing external debt payments, will continue to pressure foreign-exchange reserves. Absent major policy adjustments, Bolivia will likely experience a disorderly balance of payments adjustment and an abrupt change in the fixed exchange rate regime. ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS Bolivia's ESG Credit Impact Score is CIS-5, indicating that the sovereign rating is lower than it would have been if ESG risk exposures did not exist and that the negative impact is more pronounced than for issuers scored CIS-4. For Bolivia, this reflects its very weak governance profile which significantly weighs on the rating. Bolivia's exposure to environmental risks is highly negative (E-4), driven by risks related to carbon transition and natural resources management. The government and overall economy's high reliance on hydrocarbon sector revenues and exports exposes the sovereign to significant carbon transition risks. Natural resources mining, water management, increased deforestation and forest fires in the Bolivian Amazon rainforest also contribute to material environmental risks. Bolivia's exposure to social risks is highly negative (S-4), stemming from a long-history of relatively high levels of poverty, economic inequality, and social exclusion. Despite material improvements in recent years, Bolivia is characterized by relatively high levels of poverty, limited educational outcomes, and lack of sufficient access to basic services and housing. Like many other emerging economies, Bolivia benefits from a benign demographic structure. The influence of governance on Bolivia's credit profile is very highly negative (G-5), reflecting very weak policy effectiveness, weak institutional arrangements and a generally weak rule of law on overall governance. SUMMARY OF MINUTES FROM RATING COMMITTEE GDP per capita (PPP basis, US$): 11,028 (2023) (also known as Per Capita Income) Real GDP growth (% change): 3.1% (2023) (also known as GDP Growth) Inflation Rate (CPI, % change Dec/Dec): 2% (2023) Gen. Gov. Financial Balance/GDP: -9.7% (2023) (also known as Fiscal Balance) Current Account Balance/GDP: -2.5% (2023) (also known as External Balance) External debt/GDP: 36.1% (2023) Economic resiliency: b2 Default history: No default events (on bonds or loans) have been recorded since 1983. On April 14, 2025, a rating committee was called to discuss the rating of the Bolivia, Government of. The main points raised during the discussion were: The issuer's economic fundamentals, including its economic strength, have not materially changed. The issuer's institutions and governance strength, have materially decreased. The issuer's fiscal or financial strength, including its debt profile, has materially decreased. The issuer has become increasingly susceptible to event risks. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS WHAT COULD LEAD TO AN UPGRADE Moody's could upgrade Bolivia's ratings if policymakers are able to implement policy measures that foster a sustained increase in liquid foreign-exchange reserves and prove effective in substantially reducing external and fiscal imbalances. Over time, implementation of structural reforms that improve productivity of Bolivia's hydrocarbon sector, diversify the economy, and improve medium-term growth prospects would provide additional support to Bolivia's credit profile. WHAT COULD LEAD TO A DOWNGRADE Bolivia's ratings would be downgraded if the authorities were unable to prevent further significant declines in foreign-exchange reserves and deterioration of external and government liquidity pressures, which in turn increased the likelihood of a default or debt restructuring that would result in losses in excess of 65%. The principal methodology used in these ratings was Sovereigns published in November 2022. The weighting of all rating factors is described in the methodology used in this credit rating action, if applicable. Bolivia's "ba3" economic strength is set below the initial score of "ba2" to reflect the economy's increasing structural challenges, including significant underinvestment and productivity declines in the hydrocarbon sector, which are not adequately reflected in the initial factor score. In addition, "ca" susceptibility to event risk is set below the "caa" initial score to reflect more acute credit pressures from a combination of very high political, government liquidity and external vulnerability risks that are greater than when considered in isolation. Meanwhile, Bolivia's "b" banking sector risk is set below the "ba" initial score to reflect more significant risks to financial sector stability from macroeconomic imbalances than are captured in the initial score. This leads to a final scorecard-indicated outcome of Caa2-C, compared to an initial scorecard-indicated outcome of Caa1-Caa3. The assigned rating is within the final scorecard-indicated outcome. =========== B R A Z I L =========== AEGEA SANEAMENTO: Moody's Cuts CFR to Ba3, Alters Outlook to Stable ------------------------------------------------------------------- Moody's Ratings has downgraded AEGEA Saneamento e Participacoes S.A. (AEGEA)'s Corporate Family Rating to Ba3 from Ba2, and Aegea Finance S.a r.l. (Aegea Finance)'s Backed Senior Unsecured rating to B1 from Ba3. The outlook was changed to stable from negative. RATINGS RATIONALE The rating action was prompted by the company's increasing financing costs, which will pressure cash flow interest coverage ratios over the next two years and will lead to elevated leverage. AEGEA's significant capital expenditure requirements in order to reach the universalization of water and sewage services, including from new concessions, represent a unique opportunity but also create the potential for additional risk to creditors. The company's recurrent negative free cash flows have created a reliance on market access for external sources of cash that adds to its liquidity risks amid volatile market conditions. Partially balancing these risks are AEGEA's leadership position in the market, its diverse portfolio of operations and its track record of successful investments and concession turnovers. The contractual framework for sanitation companies in Brazil has allowed for economic rebalances and consistent tariff indexation, a key positive credit driver for the company. Finally, the rating action acknowledges the recent improvement in governance structure following Parsan S.A.'s capital reorganization, as well as the evidence of shareholder support, albeit not sufficient to materially improve the company's capital structure given its financial strategy of funding investments primarily with debt. Brazil's ongoing policy interest rate hikes combined with AEGEA's relatively high indebtedness will pressure financing costs and result in cash flow interest coverage ratios below the downgrade triggers of 1.8 times, at least for the next two years. Since September 2024, Brazil's central bank has increased the country's policy interest rate from 10.5% to 14.25% as of April 2025 and has signaled possible future rate hikes. As of December 2024 and considering AEGEA's hedges, most of the company's debt is floating, either indexed to interest rates (around 55%) or to inflation (remaining 45%). As of the same date, AEGEA's adjusted debt to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) stood at 4.4 times. Moody's adjusted debt calculation of BRL29 billion includes BRL3 billion as related to the debt of Parsan S.A. among other standard adjustments. AEGEA's ample concession portfolio provide unique growth opportunities and diversification benefits, but significant capital expenditure requirements in order to reach the universalization targets, create additional risk to creditors. AEGEA's service coverage includes 865 municipalities across 15 states and reaches 38 million people. Some of these localities have very low service coverage, such as the recently awarded Pará and Piauí states concessions which have a sewage coverage of 8.5% and 18% respectively. AEGEA has and will maintain elevated capital spending requirements in order to meet service universalization targets. As such, the company has reported recurring and increasing negative free cash flow over the last five years, which Moody's expects to continue over Moody's five-year projection horizon. These cash deficits have been primarily financed through the issuance of additional debt, and the company has frequently accessed both local and global financial markets for operational and liquidity needs. AEGEA's reliance on external sources of cash drive liquidity risks. The company has demonstrated resilient access to diverse funding sources, but current market conditions could impose less favorable terms. As per Moody's internal assessments, following the recent BRL424 billion equity injection and including the company's committed debt proceeds for capital expenditures the company has sufficient cash resources and internal cash generation to operate in 2025; but would need to raise about BRL5 billion of additional sources of cash to support its obligations in 2026, of which 40% are at the holding level. This assessment does not include the payment of the concession fees of BRL1.4 billion and early capital expenditure requirements for the Para State concessions, awarded on April 14, which Moody's assumes will be supported with a bridge loan and sector funding from development banks. On March 28, 2025, Parsan S.A. announced it completed a capital reorganization where AEGEA will be entitled to receive 75% of the dividends paid by Parsan S.A. (up from 1.25% previously). Moody's views the transaction as credit positive, because it simplifies Parsan S.A.'s capital structure and increases AEGEA's access to the future cash dividend stream originated from Corsan, which was previously assigned to preferred shareholders of Parsan. However, the company will continue not consolidating Parsan S.A.'s BRL3 billion debt obligations in its financial statements, which benefits from an equity support agreement from AEGEA. Supporting AEGEA's Ba3 Corporate Family Rating (CFR) is the company's market leadership position with long-term regulated water and sewage contracts that provide a large and diverse portfolio of operations. Through concessions such as Prolagos S.A., Águas de Teresina Saneamento SPE S.A., and Águas de Guariroba S.A., the group has proven its ability to manage large concessions and turn them into successful investments with superior returns. Brazil's regulatory framework for water utilities, although relatively new, has been consistently applied allowing for economic rebalances, when needed, and annual tariff indexation. Aegea Finance, a nonoperational subsidiary of AEGEA, has a senior unsecured rating of B1, which is a notch lower than AEGEA's CFR. The lower rating reflects the structural subordination of Aegea Finance's debt to the regular payment of dividends that operating subsidiaries upstream to AEGEA holding company after servicing its own debt obligations. As of December 2024, 48% of the company's consolidated debt were issued at the holding company level, while 52% was at the level of its operating subsidiaries. The outlook is stable, reflecting Moody's views that the company's leverage will increase but its debt capitalization ratio remains within 80%, while its cash flow interest coverage ratios remain at around 1.5 times and funds from operations over net debt remain above 7.5%. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade of the company's ratings could be considered if Moody's views a higher likelihood that that it will maintain its cash flow interest coverage ratio above 1.8 times, a debt capitalization approaching 70% and retained cash flow to net debt above 4%. An improvement in liquidity risks would also be essential for a ratings upgrade, such that the company would be able to operate comfortably without external liquidity sources during a minimum period of twelve to eighteen months. Conversely, the ratings could be downgraded with a further increase in financing costs that causes the company's cash flow interest coverage ratio to remain below 1.5 times for a prolonged period, or if Moody's perceives an increasing leverage trajectory. A downgrade would also be considered upon Moody's perceptions of a deterioration of the company's access to credit markets or reduced financial support from its shareholders. PROFILE AEGEA is one of the largest private water and sewage companies operating basic sanitation assets in Brazil under full or partial concession contracts and public-private partnerships (PPPs). The company is present in 865 municipalities located in 15 states already accounting for the newly auctioned Pará State concession. It serves a population of more than 38 million people. In the 12 months that ended December 2024, AEGEA reported net revenue of BRL13.9 billion, EBITDA of BRL6.9 billion, FFO interest coverage was 2.0x and debt/capitalization 72%, per Moody's standard adjustments. The company holds minority stake in Águas do Rio (AdR). For the 12 months that ended December 2024, AdR announced a net revenue of BRL8.6 billion and EBITDA of BRL2.2 billion. Despite not being consolidated into the financials of AEGEA, AdR's assets, which are accounted for via the equity income method, maintain a strategic value for the company. The principal methodology used in these ratings was Regulated Water Utilities published in August 2023. BRAZIL: Faces Shifting Global Markets as Tariffs Reshape Landscape ------------------------------------------------------------------ Richard Mann at Rio Times Online reports that Brazilian exporters are navigating a new global environment as tariff disputes between the United States and China reshape international trade. Analysis from S&P Global and industry data show that while Brazil has avoided the harshest direct impacts, indirect effects are spreading across its main export sectors, according to Rio Times Online. Agriculture remains the backbone of Brazil's export economy, the report notes. After China imposed tariffs as high as 125% on U.S. goods, Brazilian soybeans filled much of the resulting gap. Brazilian soy now accounts for up to 80% of China's imports, but further growth is limited, the report relays. Beef exports have also increased, yet sanitary restrictions and changing Chinese policies have capped additional gains, the report discloses. At the same time, the U.S. has signaled it may push trade partners to buy more American farm products, which could reduce Brazil's market share, the report says. Brazilian steel producers have increased exports to the U.S., supplying over 60% of America's semi-finished steel imports in 2024. However, this growth has a downside, the report notes. Cheaper steel from China and other countries, redirected by U.S. tariffs, has flooded Brazil's domestic market. Steel imports into Brazil jumped by 50% in 2023, reaching a record 5 million tonnes, the report relays. The local industry is now pushing for higher import tariffs, warning that continued price drops threaten domestic producers, the report notes. The pulp and paper sector has remained resilient, the report relays. Economic Landscape Amid Rising Tariffs Brazil, the world's largest pulp exporter, saw shipments rise by more than 23% in 2024, the report discloses. The U.S. imposed a 10% tariff on Brazilian pulp, but strong demand from China and Europe has offset any losses, the report relays. Most U.S. pulp and paper companies run integrated supply chains, so their reliance on imports is limited, the report says. Automotive exports from Brazil to the U.S. are small, which limits direct exposure to American tariffs, the report notes. Yet, indirect risks are growing, the report relays. Mexico, now facing higher U.S. tariffs, may redirect its automotive exports to Brazil and other Latin American countries, the report discloses. This could increase competition for Brazilian manufacturers and put pressure on local jobs, the report knows. The broader economic effects remain uncertain, the report says. Brazil's relatively closed economy and independence from major trade blocs have shielded it from the worst shocks, the report relays. Some economic models suggest these tariff disputes could even boost Brazil's GDP by 0.1 percentage point in 2025, mainly through gains in agriculture and select manufacturing, the report discloses. However, a global slowdown could depress commodity prices and weaken the Brazilian real, raising inflation risks, the report says. Supply chains are adapting, the report discloses. Companies are moving production closer to home and reducing reliance on China, aiming to buffer future disruptions, the report says. These changes are costly and take time, the report relays. Brazilian exporters now operate in a world where tariffs can change quickly and supply chains must adjust fast, the report discloses. While some sectors find new opportunities, others face rising challenges, the report says. The real story is how Brazilian industries adapt, balancing gains in global markets with increased competition and uncertainty at home, the report relays. All figures and claims in this report are based on verified industry and trade data as of April 2025, notes Rio Times Online. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian general election. He was sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. In October 2024, Moody's Ratings upgraded the Government of Brazil's long-term issuer and senior unsecured bond ratings to Ba1 from Ba2, the senior unsecured shelf rating to (P)Ba1 from (P)Ba2; and maintained the positive outlook. S&P Global Ratings raised on Dec. 19, 2023, its long-term global scale ratings on Brazil to 'BB' from 'BB-'. Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable Outlook. DBRS' credit rating for Brazil was last reported at BB with stable outlook at July 2023. LATICINIOS SAO VICENTE: Lays Out Growth Plans After Restructuring ----------------------------------------------------------------- Valor International reports that nearly five months after emerging from court-supervised reorganization, Minas Gerais-based dairy producer Laticinios Sao Vicente is laying out ambitious growth plans. One of Brazil's largest producers of mold-ripened cheeses, Sao Vicente was previously backed by Mercatto, a private equity fund managed by Bozano, which invested in the company in 2014 and exited five years later, notes the report. Valor International relates that the current focus is on premium products, particularly white and blue mold cheeses. In 2024, the company also launched a cream cheese line for the food service sector, which it plans to expand into retail. Additional bets include coalho cheese and pre-portioned products. Backed by these launches and increased sales volume both in existing and new retail channels, Sao Vicente expects to reach R$230 million in revenue this year, relates the report. For 2025, the company is planning BRL4 million in investments to expand its mold-ripened and yellow cheese production capacity at its facilities in Perdoes and Ritapolis, as well as increase storage capabilities, notes Valor International. According to The Latin American Lawyer, TPC Advogados represented Laticonios Sao Vicente during its judicial restructuring lawsuit, which has been successfully completed on December 2024. The debt value in court totaled BRL23 million. The company's restructuring plan was approved by the Brazilian Judiciary in September 2022. Since then, the company more than doubled its revenue, from BRL70 million in 2022 to BRL170 million in 2024. The judicial reorganization process, which began in 2020 as a result of financial difficulties aggravated by the pandemic, involved debts of BRL23 million and required an aggressive restructuring of the company, including the reduction of more than 40% of the workforce and robust adjustments to the portfolio and operational strategy. When the company filed for creditor protection, it had annual revenues of BRL70 million and faced serious liquidity and capital structure challenges. The work of TPC Advogados, through a specialized multidisciplinary team, was essential to the success of the judicial reorganization, which culminated in the approval of the reorganization plan in September 2022 -- and in the mediation with four classes of creditors, mainly milk suppliers, who were fundamental to the rapid resumption of operations. In addition to the judicial recovery, the team led by partner Eduardo Paoliello advised the company on the restructuring of a tax debt of more than BRL30 million, obtaining significant discounts and an extended payment period. =================================== D O M I N I C A N R E P U B L I C =================================== BANCO DE RESERVAS: Fitch Affirms BB- LongTerm IDR, Outlook Positive ------------------------------------------------------------------- Fitch Ratings has affirmed Banco de Reservas de la Republica Dominicana- Banco Multiple, S.A.'s (Banreservas) Local and Foreign Currency Long-Term Issuer Default Ratings (IDRs) at 'BB-'. The Rating Outlook is Positive. Fitch upgraded Banreservas' Viability Rating (VR) to 'bb-' from 'b+'. Key Rating Drivers IDR/GSR Support Driven: Banreservas' IDRs reflect Fitch's assessment of the Dominican Republic government's reasonable ability and propensity to support the bank due to its systemic importance, policy role and full ownership by the government. Government Support Rating: The 'bb-' Government Support Rating (GSR) reflects Banreservas' systemic importance with a 32% market share of banking system assets as of year-end 2024 (YE24), a policy role of collecting funds for the government's single treasury account to pay debt obligations, its role as a provider of public sector loans, and its 100% government ownership. The GSR also reflects a moderate probability of government support because of uncertainties about the ability or propensity of the Dominican Republic to provide support if needed, due to its speculative-grade IDR. Positive Outlook: The IDR's Positive Outlook is aligned with that of the sovereign. This reflects a trend of improvement in the country's governance that Fitch believes will be accompanied by further growth prospects. These improvements will allow the financial system to continue generating consistent business volumes and will support double-digit growth and a healthy financial profile. VR VR Upgrade: The upgrade of Banreservas's Viability Rating (VR) to 'bb-' from 'b+' reflects the bank's dedicated efforts in achieving outstanding asset quality and strong profitability. While the resilient operating environment contributes positively, Banreservas's strategic initiatives and robust risk management practices have driven its exceptional performance. The upgrade highlights the bank's ability to sustain solid financial outcomes, supported by sound capitalization and a solid funding base that effectively backs its operations. Improved Operating Environment: Banreservas's ratings incorporate Fitch's evaluation of the operating environment (OE) and its impact on the performance of financial entities. The score improvement to 'bb-'/stable emphasizes the Dominican banking system's resilience to external pressures. This system exhibits stability and strong performance, although persistently high interest rates have strained debtors' repayment capacity, leading to a systemic decline in asset quality ratios. The anticipated reduction in FED rates is likely to lower interest rates in the Dominican Republic's financial system and enhance profitability by reducing funding costs and impairment charges. Strong Franchise: Banreservas is the largest financial institution in the Dominican Republic, with a 32% market share of banking system assets as of YE24. It leads in the commercial and consumer loan sectors among universal banks. Banreservas is wholly owned by the Dominican government but operates as an independent and autonomous legal entity. Outstanding Asset Quality: Banreservas has consistently strong asset quality, underscoring its prudent financial management. By year-end 2024, the bank maintained a low 90-day Non-Performing Loan (NPL) ratio of 0.9%, reflecting stable performance. This consistency stems from conservative underwriting, diligent collections, and strategic charge-offs, which enhance asset quality. The bank's proactive approach is evident in its substantial loan loss allowances, covering impaired loans by 361%, indicating a robust buffer against credit losses. Fitch expects the NPL ratio to remain strong in 2025, bolstered by favorable market conditions and effective underwriting. However, coverage might decline due to the use of voluntary provisions, which will still deemed as adequate. Sound Profitability: By the end of 2024, Banreservas sustained strong financial performance, with an operating profit to risk-weighted assets (RWA) ratio of 4.7% (2021-2024 four-year average: 5.2%). This stability is due to a consistent net interest margin (NIM) in a high-interest rate setting, along with higher commissions, trading gains, and controlled expenses. Fitch anticipates that profitability will remain robust and high in the medium term, driven by controlled credit costs and strong interest and non-interest income. Adequate Capitalization: At YE24, Banreserva's FCC-to-RWA ratio kept on improving to 18.2%, reflecting the high internal capital generation and lower asset growth. The bank's loss-absorbing capacity benefits from maintaining ample reserve coverage. Fitch expects Banreservas' capitalization to remain adequate and commensurate with the current ratings, sustained by moderate expected growth and sound earnings generation. Stable Liquidity: At YE24, Banco de Reservas had a stable funding and liquidity position. The gross loans to customer deposits ratio deteriorated to 68.7% at YE24 from 63.9% at YE23 due to loan growth outpacing deposit growth. This highlights the bank's conservative liquidity management strategy, which relies on a strong deposit base but that Fitch still considers adequate. This ratio underscores the bank's capability to primarily fund its loan portfolio through customer deposits, thereby minimizing dependence on wholesale funding and bolstering financial stability. Fitch believes that liquidity will remain sound, benefiting from an ample and stable deposit base. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade IDRs and VR - Banreservas' IDRs and VR would mirror any downgrade in the Dominican Republic's sovereign ratings and Country Ceiling; - Banreservas' IDRs are sensitive to a change in Fitch's perception of the Dominican sovereign's propensity to support the bank; - Banreservas' VR could be downgraded if there is a significant deterioration in asset quality or profitability or if the FCC to RWA ratio sustains below 10%. GSR - Banreservas' GSR would be affected by a negative shift in Fitch's assessment of the Dominican government's propensity to provide timely support to the bank. This could also arise in the event of a sovereign negative rating action. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade IDRs and VR - Banreservas' IDRs could be upgraded if the sovereign rating is upgraded; - Banreservas' VR could be upgraded due to improvements in the OE or the bank's financial profile. GSR - Banreservas' GSR could be upgraded if the sovereign rating is upgraded. VR ADJUSTMENTS Fitch has assigned a Viability Rating Score of 'bb-', which is below the 'bb' implied score, due to the following adjustment reason: Operating Environment/Sovereign Constraint (negative). Fitch has assigned an Earnings and Profitability Score of 'bb+', which is below the 'bbb' category implied score, due to the following adjustment reason: Historical and Future Metrics (negative). Public Ratings with Credit Linkage to other ratings Banreservas' ratings are driven by the Dominican Republic's sovereign rating. Inversiones y Reservas and Fidureservas' ratings are driven by Banreservas' ratings. 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 ----------- ------ ----- Banco de Reservas de la Republica Dominicana - Banco Multiple, 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- Upgrade b+ Government Support bb- Affirmed bb- BANCO MULTIPLE BHD: Fitch Affirms 'BB-' Long-Term IDR, Outlook Pos. ------------------------------------------------------------------- Fitch Ratings has affirmed Banco Multiple BHD S.A.'s (BHD) Long-Term Local- and Foreign-Currency Issuer Default Ratings (IDRs) at 'BB-'. The Rating Outlooks on the IDRs are Positive. Fitch has also affirmed BHD's Viability Rating (VR) at 'bb-'. Key Rating Drivers Positive Rating Outlook: BHD's VR drives its Long-Term IDRs and National Ratings. The Positive Rating Outlook on the IDRs is aligned with that of the sovereign, indicating improved governance trends. Fitch expects these improvements to boost the country's growth prospects. Enhanced governance will benefit the operating environment (OE), allowing the banks to continue generating consistent business volumes and support the financial system's double-digit growth and healthy financial profile. Operating Environment Upgrade: BHD's ratings incorporate Fitch's evaluation of the OE and its impact on the performance of financial entities. The score improvement to 'bb-/Stable' emphasizes the Dominican banking system's resilience to external pressures, demonstrating stability and strong performance. However, persistently high interest rates have strained debtors' repayment capacity, leading to a systemic decline in asset quality ratios. With the anticipated reduction in U.S. Federal Reserve rates, lower interest rates in the Dominican Republic's financial system are expected, which will enhance overall profitability by reducing funding costs and impairment charges. Strong Franchise and Diversified Business Model: BHD is the third-largest bank in the Dominican Republic, with a market share of 15.9% by assets as of January 2025. BHD's loan portfolio is diversified, with commercial loans accounting for 59.4% of total loans, 28.8% consumer, and 11.8% mortgages. BHD's business model has been stable over time, with has a long track record of earnings stability that has proven resilient amid economic cycles. Asset Quality Deterioration amid High Interest Rates: High systemic interest rates have increased upward pressure on impairment levels. BHD's 90-day nonperforming loans (NPL) ratio rose to 2.3% at YE 2024 from 1.3% at YE 2023, above the 2020-2023 average of 1.5%. This rise is mainly due to a deterioration in the consumer and small and medium-sized enterprise segments, which were affected the most by high interest rates. However, double-digit loan portfolio growth mitigated this impact, keeping the NPL ratio appropriate for its business model. Fitch anticipates that the bank's asset quality will remain relatively stable over the medium term, supported by its growth prospects and strong risk management. Lower Profitability Metrics: In 2024, BHD's profitability metrics slightly decreased due to a 78% rise in impairment charges since YE 2023, reflecting higher NPLs. This was partially offset by improved net interest margin that benefited from higher loan rates, which partially offset higher funding costs, allowing the bank to maintain adequate profitability metrics. As of YE 2024, the operational profit-to-risk-weighted assets (RWA) ratio was 3.3%, down from 3.7% in YE 2023. Fitch anticipates that profitability metrics will benefit from lower interest rates, as anticipated U.S. rate cuts may reduce systemic interest rates, improving debtors' payment capacity and lowering funding costs, thereby controlling impairment charges. Adequate Capitalization: BHD's capitalization ratios have remained stable, reflecting adequate internal capital generation. As of YE 2024, the Fitch Core Capital (FCC) ratio was 13.7%. Fitch views the bank's current capitalization metrics as commensurate with the bank's business model, risk profile, and current ratings. BHD's loss-absorption capacity benefits from an over-provisioning of impaired loans (YE 2024: 164.4%), which has proven to be effective during periods of crisis. Robust Funding and Liquidity Position: BHD's funding structure and liquidity position remain sound, with sufficient capacity to meet its short-term obligations and sustain its operations, as reflected by a solid loans-to-deposit ratio of 83.2% at YE 2024 (four-year average: 80.5%). In addition, BHD maintains access to local capital debt markets and wholesale funding. Liquidity remains commensurate with the bank's current ratings. Fitch does not anticipate any changes to the bank's funding liquidity structure. Government Support Rating: BHD's Government Support Rating (GSR) of 'b+' reflects Fitch's view that, despite BHD's solid franchise in deposits of 15.9% as of January 2025, which makes it a systemically important bank, there is a limited probability of support because of significant uncertainty regarding the Dominican Republic's ability or propensity to do so. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Issuer Default Ratings, Viability Rating and Government Support Rating - Negative changes to BHD's IDRs and VR would mirror any movement in the Dominican Republic's sovereign ratings and Country Ceiling; - Downgrades to BHD's VR could result from significant pressure on the bank's financial profile, such as significant asset quality or profitability deterioration combined with an FCC-to-RWA ratio consistently below 10%; - A downgrade to BHD's GSR could occur if the sovereign's ability to support the bank weakens, as reflected in a sovereign downgrade, or if the sovereign's propensity to support the bank becomes less likely. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Issuer Default Ratings, Viability Rating and Government Support Rating - The VR could be upgraded by improvements in the OE and the bank's financial profile. - An upgrade to BHD's GSR is possible in the event of a sovereign upgrade if it coincides with strengthening of the sovereign's ability and propensity to support the bank. 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 ----------- ------ ----- Banco Multiple BHD, 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 b+ Affirmed b+ ============= J A M A I C A ============= [] JAMAICA: BPO Executive Wants Changes to Labor Laws ----------------------------------------------------- RJR News reports that Chairman of Itel BPO Yoni Epstein said there needs to be changes in the country's industrial relations laws, which were enacted in the 1970s. This, he claims, is necessary to protect the interests of both workers and investors, according to RJR News. He claims a revision of the relevant legislation would help to drive more investments, productivity and foreign exchange earnings in the knowledge process outsourcing sector, asserting that Jamaican workers are more competitive than their international counterparts, the report notes. There have been various complaints labour relations practices in the BPO sector, with working conditions, the nature of contracts and lack of union representation being among the main complaints of workers, the report relays. Two of the most far-reaching pieces of labour legislation in the 1970s were the Labour Relations & Industrial Disputes Act [LRIDA] of 1975 and the Employment Termination & Redundancy Payment Act, passed in 1974, the report discloses. Among its many provisions, the LRIDA gave legal recognition to the right of workers to trade union representation and established the Industrial Disputes Tribunal to hear their grievances and make relevant rulings, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. ===================== P U E R T O R I C O ===================== CONCORDE METRO: Hires Vilarino & Associates LLC as Attorney ----------------------------------------------------------- Concorde Metro Seguros LLC seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Vilarino & Associates, LLC as attorney. The firm's services include: a. advising the Debtor with respect to its duties, powers, and responsibilities in this case under the laws of the United States and Puerto Rico in which the Debtor in possession conducts its operations, does business, or is involved in litigation; b. advising the Debtor in connection with a determination whether reorganization is feasible and, if not, helping the Debtor in the orderly liquidation of its assets; c. assisting the Debtor with respect to negotiations with creditors for the purpose of proposing and confirming a viable plan of reorganization; d. preparing, on behalf of the Debtor, the necessary complaints, answers, orders, reports, memoranda of law, and/or any other legal paper or documents; e. appearing before the bankruptcy court, or any court in which Debtor asserts a claim interest or defense directly or indirectly related to this bankruptcy case; f. performing such other legal services for the Debtor as may be required in these proceedings or in connection with the operation of/and involvement with the Debtor's business, including but not limited to notarial services; g. employing other professional services, if necessary. The firm will be paid at these rates: Javier Vilariño, Esq., Senior Attorney $375 per hour Associates $275 per hour Paralegals $150 per hour The firm received a retainer in the amount of $25,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Javier Vilarino, Esq., a partner at Vilarino & Associates, LLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Javier Vilarino Vilariño & Associates LLC PO Box 9022515 San Juan, PR 00902-2515 Tel: (787) 565-9894 E-mail: jvilarino@vilarinolaw.com About Concorde Metro Seguros LLC Concorde Metro Seguros LLC is a single-asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). The Company's primary business involves managing the Metro Medical Center in Bayamon, Puerto Rico, which serves as its principal asset. Concorde Metro Seguros LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-01269 ) on March 24, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by Javier Vilarino, Esq. at VILARINO AND ASSOCIATES LLC. CONCORDE METRO: Taps Luis R. Carrasquillo as Financial Consultant ----------------------------------------------------------------- Concorde Metro Seguros LLC seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Luis R. Carrasquillo & Co. as financial consultant. The firm will assist the Debtor in the financial restructuring of its affairs by providing advice in strategic planning and the preparation of Debtor's plan of reorganization, monthly operating reports, disclosure statement and business plan, and participating in negotiations with Debtor's creditors. The firm will be paid at these rates: Luis R. Carrasquillo, Partner $200 per hour Marcelo Gutierrez, Senior CPA $160 per hour Ramon Villafañe, External Accountant $200 per hour Zoraida Delgado Diaz, Senior Accountant $110 per hour Arnaldo Morales, Senior Accountant $100 per hour Maria Vera, External Accountant $75 per hour David Sanchez Diaz Accountant $95 per hour Enid Olmeda, Junior Accountant $85 per hour Jean Aponte, Senior Accountant $75 per hour Luis R Guzman, Accountant $60 per hour Rosalie Hernandez Administrative and Support $45 per hour The firm was paid a retainer in the amount of $10,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Luis R. Carrasquillo Ruiz, CPA, a partner at Luis R. Carrasquillo & Co., P.S.C., disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Luis R. Carrasquillo Ruiz, CPA, Luis R. Carrasquillo & Co., P.S.C. 28th Street, TI-26 Turabo Gardens, Caguas PR 00725 Tel: (787) 746-4555 Fax: (787) 746-4556 E-Mail: luis@cpacarrasquillo.com About Concorde Metro Seguros LLC Concorde Metro Seguros LLC is a single-asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). The Company's primary business involves managing the Metro Medical Center in Bayamon, Puerto Rico, which serves as its principal asset. Concorde Metro Seguros LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-01269 ) on March 24, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by Javier Vilarino, Esq. at VILARINO AND ASSOCIATES LLC. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. 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