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250929.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, September 29, 2025, Vol. 26, No. 194 Headlines A R G E N T I N A ARGENTINA: Poverty Fell to 31.6% in 1st Half of 2025, INDEC Says ARGENTINA: U.S. Treasury Chief Hints at Argentina Financial Rescue B A H A M A S FTX GROUP: FTX Trust Seeks $1B From Crypto Miner Genesis Digital B E R M U D A GOLAR LNG: Moody's Assigns First Time 'B2' Corporate Family Rating GOLAR LNG: S&P Assigns Preliminary 'B' ICR, Outlook Stable WEATHERFORD INTERNATIONAL: Moody's Ups CFR to Ba2, Outlook Positive B R A Z I L AEGEA SANEAMENTO: S&P Assigns 'BB-' Issuer Credit Rating BANCO DO BRASIL: Moody's Affirms 'Ba1' Deposit Ratings GOL LINHAS: Abra Pulls Plug on Deal, Ending Talks on Merger C O L O M B I A BANCO AGRARIO: Fitch Affirms 'BB+' LongTerm IDRs, Outlook Negative BANCOLDEX: Fitch Affirms BB+ LongTerm IDRs, Outlook Negative FINANCIERA DE DESARROLLO: Fitch Affirms 'BB+' IDRs, Outlook Neg. FINDETER: Fitch Affirms 'BB+' Currency LongTerm IDRs, Outlook Neg. C O S T A R I C A COSTA RICA: Moody's Hikes Issuer Ratings to 'Ba2', Outlook Stable D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Faces Challenges in Growing AI Capabilities J A M A I C A JAMAICA: S&P Raises LongTerm Sovereign Credit Ratings to 'BB' JAMAICA: Trade Deficit Hit US$2.4 Billion for January to May 2025 P A N A M A BANCO LATINOAMERICANO: Fitch Rates USD200MM 7.5% Sub. Notes 'BB-' P U E R T O R I C O CARMEN FRATICELLI: Court Upholds Dismissal of Bankruptcy Case U R U G U A Y PROVINCIA CASA: S&P Assigns 'B-' Global Scale Rating - - - - - ================= A R G E N T I N A ================= ARGENTINA: Poverty Fell to 31.6% in 1st Half of 2025, INDEC Says ---------------------------------------------------------------- Buenos Aires Times reports that Argentina's poverty rate fell to 31.6 percent in the first of the year, according to the INDEC national statistics bureau – a drop of 6.5 points from the second half of 2024. Extrapolated out to the wider population, the data means that more than 14 million Argentines – almost a third of the population – are now considered poor, according to Buenos Aires Times. The proportion of households living below the poverty line stood at 24.1 percent, added the bureau, a drop of 4.5 points from the same period, the report notes. Within this group, 5.6 percent of households were classified as living in extreme poverty, encompassing 6.9 percent of the population – declines of 0.8 points and 1.3 points respectively, the report relays. The downward trend was observed across all regions of the country, according to INDEC's report, Buenos Aires notes. The news was greeted jubilantly by officials in President Javier Milei's government, which hailed the improvement as a sign that the administration's austerity measures are bearing fruit, the report says. "Poverty continues to decline. Freedom advances or Argentina retreats. Long live freedom, damn it!!!" wrote Milei in a post on social media, the report discloses. Presidential Spokesperson Manuel Adorni echoed the sentiment: "It wasn't by issuing currency, it wasn't by harassing the private sector, it wasn't by isolating ourselves from the world. Populism impoverishes, always," he wrote on his X account, the report says. "Poverty continues to decline," celebrated the Human Capital Ministry in a post on social media, noting the "strong interannual decline" in extreme poverty, the report notes. Experts said the drop was mostly down to a fierce fall in inflation, the report relays. The Milei government managed to slow price hikes to almost 118 percent in 2024 and has maintained the downward trend in 2025, the report recalls. Prices increased 19.5 percent in the first eight months of this year, the report discloses. INDEC's report, based on 31 urban centres nationwide, provides a window into the inequality amongst Argentina's population, the report says. The bureau measures poverty and extreme poverty by a household's ability to afford the basic food basket (CBA) and the overall basic basket (CBT), the report notes. The downward trend in indicators is directly linked to changes in the purchasing power of household incomes relative to the cost of the reference baskets, the report relays. While the CBA increased by 13.2 percent and the CBT by 12.3 percent, household incomes rose by an average of 26.3 percent, the report says. This discrepancy allowed both poverty and extreme poverty rates to decline relative to the previous measurement, the report notes. However, the gap between the income of poor households and the cost of purchasing the CBT remains unchanged. On average, these households earned around 671,492 pesos, while the cost of the CBT for that same group stood at 1,065,691 pesos, the report discloses. Drilling down into the data by age, the data shows the worrying penetration of poverty among children and adolescents: 45.4 percent of those under the age of 14 live in households below the poverty line, the report says. Among young people aged 15 to 29, the rate was 37 percent, while among adults aged 30 to 64 it reached 27.7 percent, the report relays. For those aged 65 and over, the incidence dropped to 10.8 percent, the report notes. Geographically, the NEA (Northeast) and Cuyo regions recorded the highest poverty rates, 39 percent and 33.8 percent respectively. In contrast, Patagonia and the Pampas registered the lowest levels, with 27 percent and 30.5 percent, the report discloses. When President Milei took office in December 2023, poverty affected 41.7 percent of the population, the report relays. The indicator soared to 52.9 percent in the first half of 2024 following a steep devaluation of the currency and has fallen since then, the report notes. Extreme poverty has followed the same trajectory, affecting 11.9 percent in the second half of 2023 and rising to 18.1 percent in early 2024, the report relays. In the second half of the same year, 8.2 percent of Argentines were considered destitute, the report adds. Methodology Questioned Following the publication of the new data, some experts warned that methodological limitations could be responsible for some of the improved numbers, the report relays. Sociologist Daniel Schteingart, from the Fundar research centre, said that the decline in poverty should be interpreted with caution, stating it is based on a survey in which people declare their income in an unreliable manner and because it measures the previous month's income in comparison with the current month's food basket, the report discloses. ‘When you have high monthly inflation, as was the case in 2023 and early 2024, that one-month gap between income and the basket adds many poor people. When you have low monthly inflation like now, that effect practically disappears,' he explained, the report says. "It's not that INDEC is lying," he continued. "It's that the methodology itself has potential weaknesses that came together in the last year." The Catholic University of Argentina (UCA), argued in a statement that the decline in poverty had been "overrepresented" since it is still based on baskets constructed using consumption patterns from a decade ago, the report relays. For example, last year, the government eliminated subsidies for utilities such as water, gas and electricity, causing an astronomical increase in prices that is not reflected in inflation or poverty figures, it stressed, the report adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. The upgrade reflects the launch of a new IMF program, among other things. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. Moody's Ratings, in January 2025, raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. ARGENTINA: U.S. Treasury Chief Hints at Argentina Financial Rescue ------------------------------------------------------------------ globalinsolvency.com, citing the Wall Street Journal, reports that the Treasury Secretary Scott Bessent disclosed the Trump administration is looking at options to provide Argentina a financial lifeline as the country struggles to overhaul its economy. Bessent in a series of posts on X laid out the options administration officials are reviewing to backstop Argentina if the country under President Javier Milei's leadership can't overcome its financial woes, according to globalinsolvency.com. "These options may include, but are not limited to, swap lines, direct currency purchases, and purchases of U.S," the report adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. The upgrade reflects the launch of a new IMF program, among other things. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. Moody's Ratings, in January 2025, raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. ============= B A H A M A S ============= FTX GROUP: FTX Trust Seeks $1B From Crypto Miner Genesis Digital ---------------------------------------------------------------- Clara Geoghegan at law360.com reports that the recovery trust created under FTX's Chapter 11 plan has filed a lawsuit in Delaware bankruptcy court that aims to claw back more than $1 billion that FTX's founder invested in Genesis Digital Assets Ltd., accusing the bitcoin mining firm of overinflating its value and projections to secure the funds. 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 E R M U D A ============= GOLAR LNG: Moody's Assigns First Time 'B2' Corporate Family Rating ------------------------------------------------------------------ Moody's Ratings has assigned a first time B2 long-term Corporate Family Rating and B2-PD Probability of Default Rating to Golar LNG Limited (the company, Golar LNG). Concurrently, Moody's have assigned a B3 instrument rating to the $500 million senior unsecured notes issued by Golar LNG. The outlook is stable. RATINGS RATIONALE The ratings reflect Golar LNG's focus on large, floating liquefied natural gas (FLNG) assets, essentially floating liquefaction plants, with good underlying market fundamentals, its highly contracted nature with approximately $17 billion of earnings backlog under tolling- and lease-like contracts that provide fixed minimum payments, before commodity-linked tariff upside and inflationary adjustments, thereby mitigating price and volume risks while also providing some upside. Various contractual mechanisms also mitigate other risks to a significant degree, including country and counterparty risks, while its customer mix include some highly-rated counterparties such as BP p.l.c. (A1 stable). Golar LNG's FLNG assets are large scale and typically represent important local infrastructure in the region they operate in, enabling the export of otherwise potentially stranded gas resources. However, the ratings also reflect Golar LNG's asset concentration and degree of construction risk with two operational vessels (FLNG Hilli and FLNG Gimi) and one under development (MKII) due in the fourth quarter of 2027. Despite significant contractual mitigations, Golar LNG's vessels nevertheless operate and are expected to continue to operate in the waters of lower-rated countries such as Cameroon (Caa1 stable) and Argentina (Caa1 stable), and it has concentration among counterparties including low-rated local companies, which increases counterparty risks. The company will also have large, contracted cash outflows over the next years for the construction of the MKII vessel and cash flow generation will temporarily dip in the second half of 2026 following completion of FLNG Hilli's existing contract and before commencement of its new 20-year contract expected in 2027. These developments are reflected in weak credit metrics over the construction period of the MKII, including negative cash flows, high upfront Moody's-adjusted debt/EBITDA of above 10x in 2025 to 2027 (excluding FLNG GIMI pre-COD cashflows in 2025 expected EBITDA) and Moody's-adjusted EBITDA/Interest below 2.0x. Moody's expects the company to refinance the asset-level funding on the FLNG Gimi in the fourth quarter of 2025 now that the commercial operations date (COD) has been achieved, which will together with the proceeds from the new senior unsecured notes add substantially to cash balances. As a result, Moody's-adjusted net debt/EBITDA would still be high but somewhat lower in the 7.0-10.0x range over the 2025-2027 period. From 2028, assuming no further newbuild activity, metrics should substantially improve, although the company may commission the next conversion to take advantage of market demand. ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS Golar LNG is exposed to environmental and social risks, including physical climate risks given its asset concentration and the need to operate its assets safely and responsibly. Given its focus on hydrocarbons it is exposed to the energy transition, although partly limited by its focus exclusively on converting third-party gas to LNG. Governance considerations include the company's financial policies including the meaningful use of debt to fund its assets and substantial ongoing dividend payments, as well as its transparency and disclosure as listed business. RATING OUTLOOK The stable outlook reflects Moody's expectations that the company will maintain its steady operating track record, execute the construction of the MKII as planned within budget and time including securing appropriate funding in a timely and cost competitive manner, and execute as planned regarding the transition of the FLNG Hilli to Argentina in 2027. LIQUIDITY The liquidity profile is good. The company had an unrestricted cash balance of $783 million as of June 2025, which will rise following the notes issuance and an expected refinancing of the FLNG Gimi asset-level funding. Moody's expects Golar LNG to remain significantly cash flow negative over the coming years due to the growth investments related to the MKII and relocation of the FLNG Hilli. Considering the minimum contractual counterparty payments, continuation of shareholder returns at current levels, expected notes and FLNG Gimi asset-level funding, Moody's expects Golar LNG to have sufficient funds through the investment peak of the MKII conversion. STRUCTURAL CONSIDERATIONS The senior unsecured notes are rated one notch below the CFR. They are unsecured and unguaranteed by the operating subsidiaries and rank behind the secured funding at FLNG Gimi and FLNG Hilli. They rank in line with the other unsecured bonds and convertible bond. Moody's expects Golar LNG to continue to pursue asset-level financing. However, any future capital structure changes beyond the anticipated refinancing of the FLNG Gimi asset-level funding may have implications for the instrument rating. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could come under positive pressure if the company successfully executes on the FLNG Hilli contract start-up in Argentina in 2027 and MKII peak construction phase so that Moody's-adjusted debt/EBITDA falls sustainably towards 6.0x and Moody's-adjusted EBITDA/Interest rises above 2.0x. A prerequisite would also be an at least adequate liquidity profile and Moody's would also consider the operating environment in its main countries for any positive pressure to develop. Conversely, negative pressure on the rating could arise if any operating or counterparty issues occur, the company's financial policy becomes more aggressive for example through rising shareholder returns, rising leverage beyond Moody's expectations or weakening credit metrics. More specifically, debt/EBITDA remaining above 7.0x beyond 2027 or EBITDA/Interest falling below 1.25x would result in negative pressure. Weakening liquidity or an inability to secure any additional funding needs at cost competitive levels and in a timely manner would also pressure the rating and so would any rising concerns that the environment in the countries it operates, most notably Argentina, may have an adverse impact on Golar LNG. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Midstream Energy published in February 2022. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. COMPANY PROFILE Golar LNG is a US-listed business, specializing in owning and operating FLNG vessels. It has two operating vessels, the FLNG Hilli and FLNG Gimi, with a third, the MKII under construction and due in late 2027. GOLAR LNG: S&P Assigns Preliminary 'B' ICR, Outlook Stable ---------------------------------------------------------- S&P Global Ratings assigned our 'B' preliminary issuer credit rating to Bermuda-Based Golar LNG and its 'B-' preliminary issue rating to its proposed notes. The stable outlook reflects S&P's expectation that Golar will deliver stable operating and financial performances in line with S&P's base case. Golar LNG, a Bermuda-registered operator of two floating LNG (FLNG) vessels, is looking to issue notes to partly refinance existing debt and for general corporate purposes. The company provides tolling services on a take-or-pay basis via long-term contracts and has little exposure to commodity prices or volume risk, which results in highly predictable cash flows. Still, it operates in high and very high risk countries and S&P forecasts its leverage (gross debt to EBITDA) will materially exceed 5x during the next few years. Golar's current and future exposures to high and very high risk countries, increasingly to Argentina, are key rating constraints. Despite being registered in Bermuda and having management in Europe, Golar's two FLNGs (FLNG Gimi--owned, FLNG Hilli—leased under a financing arrangement with mandatory purchase obligation at the end of the financing period) operate in regions that S&P views as high risk. FLNG Gimi started its 20-year contract offshore from Mauritania and Senegal in June 2025, while FLNG Hilli is in the final year of its contract in Cameroon. In 2026, Hilli will relocate to Argentina, where Golar has just concluded a 20-year tolling contract. Moreover, Golar's new vessel MKII, to be built and enter operations by 2028, will operate in Argentina, increasing Golar's exposure to the country to about 80% of EBITDA. S&P said, "We view Golar's increasing exposure to Argentina as a central weakness in the company's credit profile. Our long-term foreign currency sovereign credit rating on Argentina is ' CCC' and on Feb. 17, 2025, we lowered the long- and short-term local currency sovereign credit ratings to 'SD/SD' (selective default)." Still, the government has recently had some success in addressing key challenges, such as high inflation, but the country's macroeconomic situation remains fluid and difficult to predict. Argentina has a track record of frequent changes in political and economic policies, which have significantly affected international and local businesses. It has also defaulted several times, and the government has imposed currency restrictions on occasions. The current administration has taken steps to attract foreign investors and granted Golar a special RIGI regime (Regimen de Incentivo para Grandes Inversiones). RIGI protection brings a stable regulatory, tax and monetary regime, but whether this would survive a change in the country's leadership remains untested. Golar's contractual and structural protections should mitigate some risks, but it is exposed to the financial systems of the countries it operates in. Golar aims to protect itself from high-risk jurisdictions by maintaining offshore bank accounts and having offtakers pay into those in U.S. dollar under all contracts. These measures will allow it to accumulate liquidity in low-risk jurisdictions and service its debt from those if there are disruptions to transborder payments or any other operational interruption. S&P said, "We also recognize that FLNG's are self-propelling vessels, located offshore, which mitigates certain physical risks. They can also be relocated if a contract is lost or other obstacles arise. These mitigants lead us to rate the company above the 'CCC' foreign currency sovereign rating on Argentina and above our 'B-' T&C assessment, as well as above our 'B-' foreign currency sovereign ratings on Cameroon and Senegal." S&P said, "Still, the risks are not fully mitigated, in our view. In Cameroon and Argentina payments to Golar are ultimately made by local companies. In Cameroon it is Perenco Cameroon (unrated) from a local bank account. In Argentina the payment will be made by Southern Energy SA, which is incorporated in Argentina, from its Argentinian bank account. The documentation also assumes guarantees from Southern Energy's parent companies in case of its inability to pay or if a contract is terminated. However, three out of four (YPF [B-/Stable/--]), Pampa Energia [B-/Stable/--], Pan American Energy [not rated], and Harbour Energy [BBB-/Stable/--]) are Argentinian companies, which are bound by the same potential credit constraints as the sovereign. The contracts also incorporate insurance against the risk of expropriation but the timing of payments under potential claims might not help prevent a default, according to our definition, given the number of jurisdictions involved. "We forecast high leverage over the next few years for Golar, with gross debt to EBITDA above 5x, reflecting operational expansion costs and Hilli's relocation. With the new contract starting in Mauritania/Senegal, Golar's EBITDA will grow toward $370 million this year, from $252.2 million in 2024. However, in 2026 it will relocate Hilli to Argentina to start a new contract. In that year, Hilli will only generate revenues for about six months, which will impact Golar's annual results. Golar has also begun work on MKII, which will cost about $1.8 billion in 2025-2028 and materially increase its debt (we note that Golar has a track record of building FLNG Hilli and FLNG Gimi within costs and schedule). This leads us to forecast Golar's gross debt to EBITDA increasing toward 14x-15x in 2026 on a S&P Global Ratings-adjusted basis, from 4.9x in 2024 and 8.5x in 2025 (noting that we fully consolidate the cash flows and debt related to Gimi, which is 70% owned by Golar). We also do not net Golar's sizable cash balances to calculate our financial ratios. "Leverage could start to reduce meaningfully in 2028, when MKII starts to generate cash flows, with EBITDA exceeding $600 million, and capital expenditure (capex) decreases. However, the pace of deleveraging would depend on whether the company decides to build another vessel, which we see as a possibility. Golar will also likely continue paying dividends regularly despite the high leverage it will have in the coming years. We anticipate it paying about $100 million of dividends annually over the forecast period, in addition to distributions to minority shareholders of Gimi, at about $160 million this year and $20 million-$30 million annually from 2026, which will further limit its deleveraging capacity." Absent sovereign-related risks, the company's tolling business provides it with stable and predictable cash flows. Golar LNG occupies a leading position in terms of capacity and the number of assets in the global FLNG market, which is a sector with high technological, financial and operational barriers to entry. FLNG also benefits from the growing demand for LNG and the increased willingness to diversify energy sources, particularly in Europe. As a provider of tolling services, Golar does not procure, own, or sell the commodity (natural gas, LNG). Also, it does not provide 100% of the theoretical availability of an FLNG vessel; nor does it commit the vessel to be available 100% of the time, which gives it sufficient headroom for maintenance and/or additional works. As soon as Golar provides contractual availability, it receives a base tolling fee that is not exposed to the availability of feedstock (natural gas) or price fluctuations for either feedstock or product (LNG). The feedstock and product are owned and sold by its customers. Golar's contracts include a commodity-linked component, under which it receives extra payments if the LNG price exceeds a certain minimum. S&P said, "In our base case, this commodity-linked component never exceeds 15% of EBITDA under our current gas price assumptions, which we believe results in stable and highly visible cash flows and EBITDA. Contract cash flows depend on counterparties that we do not view as having strong credit quality. The exception is BP (A-/Stable), which is one of the counterparties in the Mauritania/Senegal contract." S&P said, "We rate the proposed notes preliminary 'B-', one notch below our issuer credit rating on Golar, because they will be structurally subordinated to the debt of subsidiaries. We calculate that there will be more than 50% of debt in the capital structure that will have structural or contractual priority to the proposed notes. We also expect the company to keep using asset-backed financing in the future. The proposed senior unsecured notes will have no upstream guarantees from the operating subsidiaries, where most of Golar's debt will sit, mostly secured. We used our structural subordination analysis to derive the rating on the notes, rather than our recovery analysis, given the countries of Golar's operations. We do not do recovery analysis in Bermuda (the country of its registration), the Marshall Islands (FLNG registration), or Cameroon, Mauritania, Senegal, and Argentina (countries of operations). In certain cases, we do recovery analysis for shipping companies with vessels registered in the Marshall Islands, when we assess diversification as high due to the large number of vessels dispersed across the globe, which mitigates certain country-related risks. However, in the case of Golar, both vessels will be stationed in one location for a long time. We also note that Golar owns only one FLNG, Gimi--while Hilli is leased under a financing arrangement, the company having a mandatory purchase obligation at the end of the financing period and purchase options at specific dates. "The final rating will depend on our receipt and satisfactory review of all final transaction documentation. Accordingly, the preliminary rating should not be construed as evidence of a final rating. If we do not receive the final documentation within a reasonable time frame or if the final documentation departs from the materials reviewed, we reserve the right to withdraw or revise our preliminary rating. Potential changes include the utilization of the bond proceeds, maturity, size, and conditions of the notes, financial and other covenants, security, and ranking. "The stable outlook on Golar reflects our expectation that the company will continue to deliver a stable operating performance with the successful startup of its contract in Mauritania and Senegal. We also expect that it will complete its Cameroon contract and relocate FLNG Hilli to Argentina in 2026. "Our base case assumes leverage increasing toward 13x-15x in 2026-2027, from 4.6x in 2024, as a result of elevated capex to build a third vessel, MKII, as well as lower revenues from the FLNG Hilli due to its relocation. We expect Golar will maintain adequate liquidity and reasonable cash balances at its offshore bank accounts. "The stable outlook also assumes stable political, economic, and financial environments in Golar's countries of operations, allowing it to continue doing business without disruptions and receive payments for its services, into offshore accounts, to service its debt. "We could lower the rating on Golar if it suffered a major operational disruption leading to a material decline in cash flow generation, causing higher leverage and liquidity pressures." More aggressive financial policies, including large acquisitions, higher capex and shareholder distributions, or other material cash outflows could lead to a downgrade. Material deteriorations in the political, economic, and financial environments in its countries of operations, which undermined Golar's operations or its ability to receive payments into its offshore accounts, could also lead to a downgrade. S&P said, "If we were to revise upward our view of country risk in Argentina, where Golar's operations will be heavily concentrated in the future, we could consider an upgrade. Also, additional credit enhancements, such as reducing its exposure to Argentina, might also support rating upside. Over the longer term we could consider a positive rating action if Golar's leverage declines, improving its EBITDA interest coverage ratios towards 2x." WEATHERFORD INTERNATIONAL: Moody's Ups CFR to Ba2, Outlook Positive ------------------------------------------------------------------- Moody's Ratings upgraded the ratings of Weatherford International Ltd. (Bermuda) (Weatherford), including its Corporate Family Rating to Ba2 from Ba3, Probability of Default Rating to Ba2-PD from Ba3-PD, and the rating on the backed senior unsecured notes to Ba3 from B1. The SGL-1 Speculative Grade Liquidity Rating (SGL) remains unchanged. A Ba3 rating was assigned to its proposed senior unsecured notes due 2033. Moody's have also withdrawn the Baa3 bank credit facility ratings. The outlook remains positive. Weatherford will apply the net proceeds from the notes offering and $100 million of existing cash towards a partial repayment of the notes due 2030. Moody's have concurrently withdrawn Baa3 ratings on the senior secured bank facility due to no amounts outstanding. The company put in place a new senior secured bank facility (unrated) to support its corporate short-term funding requirements. "The upgrade of Weatherford's ratings reflects its conservative financial policies and improving credit profile," stated James Wilkins, Moody's Ratings Vice President – Senior Analyst. "The company continues to generate positive free cash flow and reduce debt, which is lowering its leverage and strengthened its balance sheet." RATINGS RATIONALE The upgrade of Weatherford's CFR to Ba2 reflects its conservative financial policies, declining debt, and Moody's expectations the company will continue to generate positive free cash flow and improve its credit metrics. Despite a slowdown in certain of its oilfield service markets, Weatherford has continued to generate positive free cash flow and apply excess cash flow to debt reduction, even while also repurchasing shares. In 2024, the company implemented a capital allocation framework that includes a dividend ($1 per share p.a., paid quarterly) starting in the third quarter 2024 and a $500 million share repurchase program. The company's business transformation and focus on efficiencies improved its profit margins while oilfield services demand rebounded from the lows experienced in 2020, allowing Weatherford to continue to generate positive free cash flow in 2025, even as revenue declined (down -13% YoY in the first half 2025). The company benefits from sourcing ~80% of revenue outside of the US. International and offshore markets for oilfield services have experienced more favorable demand compared to the US market, where the rig count has declined meaningfully in 2023-2025. Weatherford is targeting gross leverage below 1x. Therefore, Moody's expects the company's credit metrics to continue to improve as it further reduces debt. The issuance of notes due 2033 and repayment of notes due 2030 with the net proceeds and $100 million of existing cash, reduces the company's gross leverage and improves its debt maturity profile by reducing the principal amount of notes due 2030 to a more manageable principal amount and extending the maturity of a portion of the notes. As of June 30, 2025, leverage was 1.7x, including Moody's analytical adjustments, which is low compared to 'Ba' rated peers. Weatherford benefits from its large scale (comparable to the biggest oilfield services companies), a broad product range, and significant geographic and customer diversification, with a substantial portion of revenue coming from more stable international markets. The company's numerous patented products and technologies are well-known and widely used in the oilfield services industry, providing competitive advantages and leading market positions in several product categories. Weatherford's SGL-1 rating reflects excellent liquidity through 2026, supported by its revolving credit facility, unrestricted cash balance ($943 million as of June 30, 2025) and expected positive free cash flow generation. Weatherford entered into a new five year credit agreement in September 2025 that matures in September 2030 and provides for a $1 billion revolving credit facility and letters of credit. (There were no borrowings under the prior credit facility in place at the end of the second quarter 2025 and the company had $412 million of letters of credit outstanding as of the end of the second quarter 2025, including $259 million issued under the old credit agreement and $153 million of additional letters of credit under various bilateral agreements, some of which were collateralized with restricted cash.) The credit agreement has financial covenants that require the company to maintain at least $250 million of liquidity (cash plus availability under the credit facility), a minimum interest coverage ratio of 2.5x, a maximum consolidated net leverage ratio (debt/EBITDA) of 3.5x and a maximum consolidated net secured leverage ratio of 1.5x. Moody's expects the company to maintain ample headroom for future compliance with these covenants through the end of 2026. The next notes maturity is the unsecured notes due in 2030. The proposed notes are senior unsecured obligations of Weatherford and will rank pari passu with the company's existing senior unsecured notes due 2030 (also rated Ba3). The company's debt capital structure includes obligations under the secured credit agreement and the two issues of unsecured notes, which are all obligations of Weatherford International Ltd. (Bermuda) as well as other entities as borrowers (in the case of the revolving credit facility) or a co-issuer (in the case of the notes). The obligations under the credit facilities and have a secured claim to substantially all of the personal property of Weatherford International plc and the guarantors. The notes are rated Ba3, one notch below the Ba2 CFR, because of the more senior priority-claim secured credit facility debt in Weatherford's capital structure. The positive outlook reflects Moody's expectations that Weatherford will continue to execute on its financial policy, prioritizing debt reduction and a strong balance sheet, and will generate positive free cash flow and excellent liquidity, supported by significant cash balances. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The CFR could be upgraded if Weatherford continues to successfully achieve it business objectives (e.g., reducing costs and expanding profit margins), generates positive free cash flow, and continued to reduce debt (improving its credit metrics), and maintains conservative financial policies supportive of a higher rating, with debt/EBITDA leverage at or below 1. 5x. The CFR could be downgraded if the company engages in debt-funded acquisitions, adopts more aggressive financial policies or debt/EBITDA leverage rising above 3x, or a significant reduction in cash balances without the corresponding reduction in leverage. Weatherford International Ltd. (Bermuda) is a wholly-owned subsidiary of Weatherford International plc, which is incorporated in Ireland, and is a diversified international provider of a wide range of services and equipment to the global oil and gas industry. The principal methodology used in these ratings was Oilfield Services published in January 2023. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. =========== B R A Z I L =========== AEGEA SANEAMENTO: S&P Assigns 'BB-' Issuer Credit Rating -------------------------------------------------------- S&P Global Ratings, on Sept. 23, 2025, assigned its 'BB-' issuer credit rating to Aegea Saneamento e Participacoes S.A. (Aegea), its 'BB-' issue rating and '3' recovery rating to Aegea Finance's proposed notes. The negative outlook reflects the company's pressured credit metrics particularly in 2025, given its aggressive growth and Brazil's high interest rates. Aegea is Brazil's largest private sanitation company, with over 39 million clients, operating concessions and public-private partnerships (PPPs) in 15 states. Through acquisitions, the company has increased its scale, but also its leverage. The company is proposing to issue 10-year senior unsecured blue notes through its financing vehicle Aegea Finance S.a. r.l. (not rated). The notes will be unconditionally and irrevocable guaranteed by Aegea. Part of the proceeds will used to finance a partial tender offer for its existing notes due 2029, and the remainder to finance eligible investments under the notes' framework. Appetite for growth amid high-interest rates hinders free operating cash flow (FOCF) and increases leverage. Aegea has increased its debt to sustain growth and investments. In 2024, the company expanded its portfolio through new concessions and secured full financing to address Águas do Rio's financial obligations and fund its capital expenditure (capex) in the next few years. Aguas do Rio's acquisition was completed in November 2021, and was Aegea's largest acquisition in the past few years, with R$15.4 billion in concession fees and required investment of about R$24 billion throughout the concession's term. The company also won the auction to operate a sewage PPP in the state of Paraná and the water and sewage concession in the state of Piauí for R$1 billion. In 2025, Aegea started operating several previously awarded concessions, won the concession to operate water and sewage in the state of Para for R$1.8 billion in concession fees, and announced the acquisition of the solid waste operations of Ciclus Rio for R$1.1 billion. To support expansions and operating improvements, S&P projects investment of approximately R$24 billion between 2025 and 2027, leading to FOCF shortfall of almost R$5 billion in 2025 and more than R$3 billion in 2026. To support this robust growth, the company issued approximately R$9.5 billion in debt in the first half of 2025. S&P said, "As a result, we expect pressured credit metrics this year, with funds from operations (FFO) to debt of 5%-10% and debt to EBITDA around 4.5x, considering Brazil's basic interest rates at 15%. We expect these metrics to be 10%-15% and 4.0x, respectively, starting in 2026, given increasing cash flow and improving operating performance of its concessions, especially Corsan, Aguas do Rio, and Manaus, which are ramping up and should represent close to 80% of the company's EBITDA in 2025." The negative outlook on the rating reflects the company's increasing leverage and large interest burden, combined with an appetite for growth, stemming from a large number of auctions in the coming quarters and increasing investment for the operating improvement of the recently won concessions. S&P may downgrade Aegea if it maintains an aggressive acquisitive strategy with no rise in cash flow due to the delayed ramp-up of assets, preventing deleveraging. Aegea's portfolio has expanded at a remarkable pace and improved its operating efficiency. Considering all recent acquisitions, Aegea's portfolio has an average concession life of more than 30 years. The sanitation sector in Brazil benefits from stable cash generation, resilient billed volumes, inflation-adjusted rates, and the favorable regulatory framework. The latter, amended five years ago, has been predictable, while no interventions have occurred under it, thereby fostering investments in the sector. Aegea's significant investment is helping margins to rise. For instance, Corsan reported EBITDA margin of 66% in the first half of 2025, up from 49% in the same period of 2024, mainly driven by the expansion of the sewage network and lower expenses, following the floods in Rio Grande do Sul last year. However, the company still faces operating and commercial challenges in blocks 1 and 4 of Águas do Rio, particularly regarding high water loss rates. In parallel to the proposed notes, Aegea has launched an optional tender offer for its existing notes. Part of the proceeds of Aegea Finance's senior unsecured notes will be used to repurchase up to $250 million of its 6.75% notes due 2029 to extend its debt maturity profile, as the proposed notes mature in January 2036. The remaining proceeds will be used to fund eligible investments under the notes' framework, labeled as blue. Aegea will fully and unconditionally guarantee the notes. Therefore, the rating on the proposed notes reflects the parent's credit quality and S&P views that unsecured creditors would benefit from a significant recovery under a hypothetical default scenario, with recovery rounded to 65%. This is part of the company's broader liability management efforts to reduce debt cost and debt concentration particularly between 2028 and 2030. In addition, Aegea is in the process of issuing its 23rd local debentures for R$3.2 billion due 2032, which will be used to finance the voluntary tender offer for the three debentures maturing between 2028 and 2029. S&P said, "We analyze Aegea on a consolidated basis. We incorporate the figures for Águas do Rio 1 SPE S.A. and Águas do Rio 4 SPE S.A. (collectively, Águas do Rio) and concessions acquired by Aegea in April 2021, because of an integrated financial and operational management of those assets, in Aegea's financial figures. Additionally, we adjust our credit metrics to include Parsan's debt, which was used to finance the acquisition of Corsan. We view the Equity Support Agreement between Aegea and Parsan as having characteristics of corporate guarantees. Moreover, as Aegea consolidates Corsan's numbers, we incorporate both its debt and financial performance into our adjusted metrics. As a result, we start our analysis from reported gross debt of about R$48 billion as of June 30, 2025. As debt adjustments, we consider the company's lease agreements of about R$2.3 billion, R$1.5 billion in fees related to older acquisitions, and about R$6 billion of preferred stocks provided by minority shareholders. We also deduct its cash position, as we believe it is available to pay down debt, reaching the net debt of about R$56 billion by the end of 2025. The recent restatement of Aegea's financial statements, due to revised accounting treatment for unrealized profits on related party transactions, does not impact our metrics as these adjustments pertain to non-cash items. "The negative outlook reflects Aegea's strained credit metrics in 2025, stemming from its aggressive growth trajectory in the form of acquisitions and increasing investment in its recently acquired concessions, amid Brazil's high interest rates, which consume cash flows through higher debt servicing. "We may downgrade Aegea in the next 18 months if its credit metrics deviate from our base-case scenario, which assumes FFO to debt above 10% and FFO cash interest coverage closer to 2.0x in 2026. This could occur if the company acquires new concessions primarily financed through debt, or if investment exceeds our projections, while investment fails to bolster cash flow due to a delayed ramp-up of assets and/or because of a more aggressive dividend payout. In addition, persistently high interest rates could increase refinancing costs or hinder the financing of Aegea's substantial investment, potentially creating liquidity pressures. "We could revise the outlook stable if the recent concessions bolster the financial performance, resulting in cash flow exceeding our base-case scenario, which the company would use to reduce debt. This, coupled with declining interest rates, would also accelerate the company's deleveraging, resulting in FFO to debt consistently higher than 12% and FFO cash interest coverage above 2.0x." BANCO DO BRASIL: Moody's Affirms 'Ba1' Deposit Ratings ------------------------------------------------------ Moody's Ratings has affirmed Banco do Brasil S.A.'s (BB) long- and short-term local and foreign currency deposit ratings at Ba1 and Not Prime, respectively, following the affirmation of the bank's Baseline Credit Assessment (BCA) and Adjusted BCA at ba1. Moody's also affirmed the bank's long- and short-term local and foreign currency Counterparty Risk Ratings at Baa3 and Prime-3, respectively, and long- and short-term Counterparty Risk Assessments (CRA) at Baa3(cr) and Prime-3(cr), respectively. The outlook on the long-term bank deposit ratings remains stable. In addition, Moody's also affirmed Banco do Brasil S.A. (Cayman)'s (Cayman Branch) foreign currency senior unsecured debt and MTN program ratings at Ba1 and (P)Ba1, respectively, foreign currency preferred stock non-cumulative debt rating at B1 (hyb). Moody's also affirmed the Cayman Branch's long- and short-term local and foreign currency Counterparty Risk Ratings at Baa3 and Prime-3, respectively, and long- and short-term Counterparty Risk Assessments (CRA) at Baa3(cr) and Prime-3(cr), respectively. The outlook on the senior unsecured rating remains stable. RATINGS RATIONALE In affirming BB's BCA of ba1, Moody's acknowledge its well-established franchise as the second-largest bank by total assets in the country in June 2025. This position is supported by a diversified earnings structure, steady access to core retail deposits, sound liquidity, and adequate capital buffer above regulatory minimums over the past five years. The affirmation of the BCA at ba1, however, also acknowledges recent challenges faced by BB, particularly in its agribusiness loan portfolio, and associated with the implementation of IFRS 9 accounting standards, which Moody's sees as manageable by the bank. About one-quarter of BB's loan book consists of low-risk exposures, including loans to individuals through payroll loans and mortgage, as well as loans to government-related entities supported by strong receivables. These loan portfolios help mitigate challenges related to the agribusiness portfolio and loans to small- and medium-sized companies (SMEs) that accounted for 13.0% and 10.9% of gross loans, respectively, in June 2025. While BB's granular loan book also supports the generation of recurring earnings that enables the bank to withstand periods of pressured profitability, revenues from trading, service fees, and other products, including insurance and investment banking, also contribute positively to bottom-line results. Amid the high interest rate cycle and strong volatility in commodity prices over the past six months, BB's problem loan ratio, measured as Stage 3 loans to gross loans, increased to 8.4% in June 2025, from 7.8% in March 2025, and the 90-day nonperforming loan (NPL) ratio rose to 4.2%, from 3.9% in the same period. While this deterioration in asset quality was primarily driven by the agribusiness portfolio, it highlights BB's portfolio concentration risk that exposes the bank to an increasing trend of judicial recovery filings by producers, particularly in the soybean industry. Accounting for more than one third of gross loans, the agribusiness portfolio has also been affected by high interest rates and the overleveraging of producers over the recent two years. In addition, BB's problem loan volumes also rose among SME borrowers facing financial strain from the country's elevated interest rate environment, with 90-day NPL ratio reaching 10.6% of total SME loans in June 2025. Despite these challenges, BB maintained loan-loss reserves at 87.2% of Stage 3 loans and 7.2% of gross loans, providing a cushion to absorb higher credit losses in the coming quarters. Despite estimates of strong demand for harvest financing in the 2025/26 season, BB's origination of new rural loans will likely be more moderate as the bank reinforces its loan collection process and enhances criteria for new credit disbursements as part of ongoing efforts to restructure problematic loans. Moody's views that a persistent scenario of weak asset quality could have negative pressure on the bank's BCA in the next quarters. The challenging asset risk environment has also hit BB's profitability, with the net income to tangible assets ratio declining to 0.9% in June 2025, from 1.7% in the previous year, particularly as a result of a 59.4% increase in credit costs in the 12 months ended in June 2025. In the second half of 2025, BB's profitability will likely remain constrained due to cautious loan growth and persistently high funding and credit costs. BB's capitalization, measured by Moody's ratio of tangible common equity to risk-weighted assets, declined to 7.1% in June 2025 from 8.7% a year earlier, primarily due to loan growth of 8.9% during the period. The recent decline in dividend payouts is expected to help maintain capitalization at a stable level. Moody's also expects BB's funding and liquidity profiles to remain solid over the outlook horizon, supported by access to stable demand and savings deposits through its nationwide branch network and its status as a government-owned institution. BB's Ba1 long-term local and foreign currency deposit ratings, as well as its foreign currency senior unsecured debt rating, incorporate Moody's assessments of the highest degree of support from the Government of Brazil (Ba1 stable), its main shareholder, and the bank's systemic importance. However, this support does not result in any rating uplift, as BB's BCA is already aligned with Brazil's Ba1 sovereign rating. The senior unsecured ratings carry a stable outlook, consistent with the outlook on the sovereign. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade of BB's long-term deposit and senior unsecured debt ratings is unlikely, as they are currently aligned with Brazil's sovereign rating. This reflects the strong credit linkages between the sovereign and the bank. BB's BCA could be upgraded if Brazil's sovereign rating is raised and, simultaneously, the bank demonstrates a material improvement in asset quality and profitability, thereby continuing to support its loss-absorbing capital buffers. Conversely, downward pressure on BB's BCA could result from sustained deterioration in asset quality and profitability metrics, which would weaken the bank's capacity to absorb credit losses. Given its status as a government-backed entity, BB's deposit and debt ratings would also face downward pressure in the event of a downgrade of Brazil's sovereign rating. The principal methodology used in these ratings was Banks published in November 2024. BB's "Assigned BCA" score of ba1 is set two notches above the "Financial Profile" initial score of ba3 to account for the issuer's ample access to low-cost stable funding, strong position of liquid assets and diversified loan book and earnings structure. GOL LINHAS: Abra Pulls Plug on Deal, Ending Talks on Merger ----------------------------------------------------------- Gabriel Araujo and Luciana Novaes Magalhaes at Reuters report that airline group Abra has decided to terminate talks on a potential merger between Brazilian carrier Gol, which it controls, and rival Azul , a securities filing showed. The move ends prospects for the creation of a dominant airline in Latin America's largest economy, which would have held roughly 60% of the domestic market, surpassing the local unit of Chile-based LATAM Airlines (LTM.SN), opens new tab, according to Reuters. Abra Group -- the majority investor in Gol and Colombia's Avianca -- and Azul first signed a memorandum of understanding in January aimed at combining the two carriers, following months of talks and market speculation, the report relays. However, Azul filed for Chapter 11 bankruptcy protection in May, a move that analysts warned at the time would likely scupper the potential merger with Gol, which in June emerged from its own bankruptcy proceedings, the report discloses. Azul's shares were up 18% in early afternoon trading in Sao Paulo, while Gol's shares rose 5%, the report says. Industry Struggles "The parties have not meaningfully discussed or progressed a possible business combination transaction for several months as a result of Azul's focus on its Chapter 11 proceeding," Abra told Azul in a letter, according to Gol's filing, the report discloses. Both companies sought bankruptcy protection as the industry grappled with debt burdens, a steep decline in traffic during the COVID-19 pandemic, and aircraft delivery delays, the report says. Abra noted that the January memorandum came "in another scenario and at another moment for the companies," the report relays. Gol and Azul also terminated their 2024 codeshare deal for cross-selling tickets and integrating their loyalty programs, which had been under intense scrutiny from antitrust watchdog CADE. Abra, however, left the door open for future talks, the report notes. "We continue to believe in the merits of a business combination of Azul and Gol and, as such, Abra is ready, willing and available to engage with the relevant stakeholders," it added. In a separate filing, Azul confirmed the talks had ended and reaffirmed its "commitment to strengthening its capital structure." Azul expects to exit bankruptcy in early 2026, the report relays. Competition Concerns The potential merger had raised competition concerns and criticism from LATAM, though some experts labeled it a "necessary evil" for a financially healthy sector in Brazil, where costs are high and air travel remains restricted, the report relays. "We never considered a scenario in which such a merger would be approved without mitigation measures. No country in the world would do that," LATAM Brasil CEO Jerome Cadier told Reuters. He added that the development did not change LATAM's expectations for the local market, the report discloses. Brazil's government, which initially supported the deal to prevent either company from failing but later reversed its stance on competition worries, welcomed the end of the talks, the report says. "The outcome is the result of the strengthening of the airlines and the growth of aviation in Brazil," Ports and Airports Minister Silvio Costa Filho wrote on X, the report relays. About Gol Linhas GOL Linhas Aereas Inteligentes S.A. provides scheduled and non-scheduled air transportation services for passengers and cargo; and maintenance services for aircraft and components in Brazil and internationally. The company offers Smiles, a frequent flyer program to approximately 20.5 million members, allowing clients to accumulate and redeem miles. It operates a fleet of 146 Boeing 737 aircraft with 674 daily flights. The company was founded in 2000 and is headquartered in Sao Paulo, Brazil. GOL Linhas Aereas Inteligentes S.A. and its affiliates and its subsidiaries voluntarily filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 24-10118) on Jan. 25, 2024. GOL Linhas estimated $1 billion to $10 billion in assets as of the bankruptcy filing. The Debtors tapped Milbank LLP as counsel, Seabury Securities LLC as restructuring advisor, financial advisor and investment banker, Alixpartners, LLP, as financial advisor, and Hughes Hubbard & Reed LLP as aviation related counsel. Kroll Restructuring Administration LLC is the Debtors' claims agent. In August 2025, Moody's Ratings assigned a B3 corporate family rating to Gol Linhas Aereas Inteligentes S.A. (Gol) in connection with its post-bankruptcy exit financing. At the same time, Moody's assigned a B3 rating to the $2.1 billion backed senior secured first lien notes issued by Gol Finance (LuxCo) on June 6, 2025 and due in 2030. The outlook for both entities is stable. =============== C O L O M B I A =============== BANCO AGRARIO: Fitch Affirms 'BB+' LongTerm IDRs, Outlook Negative ------------------------------------------------------------------ Fitch Ratings has affirmed Banco Agrario de Colombia S.A.'s (Agrario) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB+' and its Viability Rating (VR) at 'bb'. The Rating Outlook for the IDR is Negative. Key Rating Drivers Support Driven IDRs: Banco Agrario de Colombia's IDRs are driven by its 'bb+' Government Support Rating (GSR), which reflects Fitch's assessment of the propensity and ability of support from the bank's sole shareholder, the Colombian government (BB+/Negative), if needed. The Negative Outlook on Agrario's IDRs mirrors the Outlook on Colombia's IDRs. The bank's assigned Viability Rating (VR) is in line with its implied VR based on its business, risk and financial profile. State Ownership: Fitch's support assessment considers with high importance that Agrario is a policy bank fully owned by the state through Grupo Bicentenario, a government holding of the Ministry of Finance. Although the Colombian government does not explicitly fully guarantee all of Agrario's liabilities, the entity has many operational and financial synergies with the public administration and is view by Fitch as a factor with high importance. Important Policy Role: Agrario has a key policy role in the development of the agricultural sector, small and medium enterprises and the government plan of promoting the "Popular Economy" resulting in an equalization of its GSR with the sovereign's 'BB+' Long-Term IDR. The GSR also reflects Agrario's role in Grupo Bicentenario, the holding that consolidates public sector financial entities. Pressured Asset Quality: Agrario's asset quality remains pressured, reflecting weaker borrower repayment capacity since 2023 amid a prolonged unfavorable operating environment and climate-related shocks, which have had a greater impact given the bank's high exposure to agricultural lending. However, by 1H25 asset quality appears to have reached an inflection point: the 90+ days past due loans (PDL) ratio declined to 6.8% from 7.3% in 2024, though it remains above the four-year average of 6.0%. This improvement reflects the bank's actions to contain PDLs, including tightened underwriting standards, strengthened collections and recoveries, and borrower support measures such as loan modifications and restructurings. As a result, PDL's are not expected to further deteriorate at YE 2025. Recovery in Profitability: As Fitch expected, Agrario's profitability is recovering as funding costs fall and asset quality improves. By 1H25, operating profit to risk-weighted assets (RWA) rose to 5.5% from 3.2% in YE 2024, though below the 6.5%. four-years average. Agrario's profitability ratio exceeds the 2% system average, supported by low RWA density. Fitch expects profitability to stabilize around 4.5% for YE 2025, consistent with the rating category. Adequate Capitalization: Agrario's common equity Tier 1 (CET1) ratio improved to 15.9% at 1H25 from 14.6% at YE 2024, mainly reflecting the improvement in profitability, and a slight decrease in RWA. Fitch does not anticipate significant pressure on capitalization metrics in YE 2025 and believes capitalization will remain adequate, under moderate asset growth and stable earnings. Fitch believes Agrario's capital position is commensurate with its rating level and risk exposure. Sound Liquidity: Agrario's sound liquidity position is reflected in its loans-to-deposit ratio of 99.5% at 1H25, which has improved as deposits grew at a higher pace compared to loans. Historically, customer deposits have covered almost two-thirds of the bank's funding needs. Fitch expects liquidity to remain sound as the bank benefits from an ample and stable deposit base and access to local funds from other financial institutions. The loans to deposit ratio is expected to be around 104% at YE 2025, considering higher growth pace of loans over deposits. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Agrario's GSR and IDRs could be downgraded if the sovereign rating is downgraded. - Agrario's GSR and IDRs could be downgraded if Fitch perceives a decrease in the bank's policy role for the government, but this scenario is unlikely over the medium term. - The VR could be downgraded if a significant deterioration of the bank's asset quality and/or profitability ratios result in a sustained decrease in the CET1 ratio below 12%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Agrario's GSR and IDRs could be upgraded in the event of a similar action in Colombia's sovereign ratings, absent any change in Fitch's view of the government's propensity to provide support to this bank. - The VR could be upgraded by the confluence of improvements in the operating environment and asset quality that results in an operating profit to RWA ratio consistently above 4.75%. VR ADJUSTMENTS Fitch has assigned an Earnings and Profitability score of 'bb+' that is below the 'bbb' category implied score due to the following adjustment reason: Earnings stability (negative). Public Ratings with Credit Linkage to other ratings Banco Agrario's ratings are driven by Colombia's sovereign rating (BB+/Negative). 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 Agrario de Colombia 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+ BANCOLDEX: Fitch Affirms BB+ LongTerm IDRs, Outlook Negative ------------------------------------------------------------ Fitch Ratings has affirmed Banco de Comercio Exterior de Colombia S.A.'s (Bancoldex) Foreign and Local Currency Long-Term Issuer Default Ratings (IDRs) at 'BB+'. The Rating Outlook is Negative. Fitch has also affirmed Bancoldex's National ratings at 'AAA(col)' and 'F1+(col)' and its subsidiary Fiduciaria Colombiana de Comercio Exterior S.A.'s (Fiducoldex) National Scale ratings at 'AAA(col)' and 'F1+(col)'. The Rating Outlook is Stable. Key Rating Drivers Government Support Drives Ratings: Bancoldex's IDRs are driven by its Government Support Rating (GSR), which is equalized with Colombia's Long-Term IDR (BB+ /Negative). The ratings reflect Fitch's assessment of the Colombian government's high propensity and ability to provide timely support to Bancoldex, if needed. Fitch also believes Bancoldex plays a prominent policy role, as it is an integral arm of the state in implementing economic development policies. State Ownership: Fitch's support assessment considers with high importance that Bancoldex is a policy bank fully owned by the state through Grupo Bicentenario, a government holding of the Ministry of Finance. Although the Colombian government does not explicitly fully guarantee all Bancoldex's liabilities, the entity has many operational and financial synergies with the public administration, which Fitch views as a 'high importance' factor. Policy Bank Role: Bancoldex's ratings reflect its high strategic importance in Colombia for promoting small and medium-sized enterprises (SMEs) and larger commercial and corporates, enhancing competitiveness and fostering foreign trade. As a development bank, it primarily provides wholesale funds and guarantees to commercial banks and other non-bank financial institutions, and offers direct credit lines to SMEs and corporates to promote economic growth. Development Role Explains Financial Performance: Bancoldex's financial profile has no direct implications for its ratings. Its asset quality is aligned with its development bank model and recent issuance of direct loans. Bancoldex's 30 days Past Due Loans (PDLs) ratio rose modestly to 3.7% at June 25 (3.5% at December 24) due to the SME loans. These carry higher risk compared to its development loans, which remained relatively stable amid prepayments from financial institutions. Its operating profit to RWA ratio declined (2.9% at June 25 vs. 3.5% at December 24), reflecting weaker net interest performance and higher cost-to-revenue, despite a solid and increasing non-interest contribution and lower Loan Impairment Charges (LICs). Comfortable Capital Position and Diversified Funding: Capital buffers remain a key strength. As of June 2025, Bancoldex' common equity Tier 1 ratio (CET1) increased to 29.6% (2024: 28.8%). Capital ratios improved further due to retained earnings and lower risk-weighted assets. Bancoldex's funding mix shifted toward a more deposit-centric profile while remaining diversified, reducing reliance on bank borrowings and market debt. Liquidity is supported by a sizable high-quality securities portfolio, predominantly Colombian government bonds. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Bancoldex's GSR and IDRs could be downgraded if the sovereign rating is downgraded; - Although not a baseline scenario, Bancoldex's ratings could change if Fitch perceives a decrease in the company's strategic importance to the government's public policies, such as a shift in its countercyclical role or supporting commercial companies either directly or through wholesale loans. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Bancoldex's GSR and IDRs could be upgraded in the event of a similar action on Colombia's sovereign ratings, absent any change in Fitch's view of the government's propensity to provide support to this bank; - National ratings have no upside potential because they are at the highest level in the national rating scale. SUBSIDIARIES & AFFILIATES: KEY RATING DRIVERS Fiducoldex's National Ratings reflect the support they would receive from Bancoldex in case of need, mainly based on Fitch's opinion of the entity's high strategic role for Bancoldex's business model and the reputational and franchise implications from a subsidiary default. Fiducoldex's synergies with its parent and respective role in executing the group's long-term strategy as well as alignment with central government are also important factors. SUBSIDIARIES AND AFFILIATES: RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Fiducoldex's ratings will reflect any negative rating action taken on its main shareholder, Bancoldex, and any change in Fitch's assessment on the propensity and/or ability of the parent to provide support. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Fiducoldex's National Scale Ratings are at the highest level on the national scale and therefore they cannot be upgraded. Public Ratings with Credit Linkage to other ratings Bancoldex's ratings are support driven from Colombian government. Fiducoldex's ratings are support driven from Bancoldex. 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 Comercio Exterior de Colombia S.A. LT IDR BB+ Affirmed BB+ ST IDR B Affirmed B LC LT IDR BB+ Affirmed BB+ LC ST IDR B Affirmed B Natl LT AAA(col) Affirmed AAA(col) Natl ST F1+(col) Affirmed F1+(col) Government Support bb+ Affirmed bb+ Fiduciaria Colombiana de Comercio Exterior S.A. – Fiducoldex Natl LT AAA(col) Affirmed AAA(col) Natl ST F1+(col) Affirmed F1+(col) FINANCIERA DE DESARROLLO: Fitch Affirms 'BB+' IDRs, Outlook Neg. ---------------------------------------------------------------- Fitch Ratings has affirmed Financiera de Desarrollo Nacional, S.A.'s (FDN) Long-Term (LT) Foreign (FC) and Local Currency (LC) Issuer Default Ratings (IDRs) at 'BB+' and the bank's Government Support Rating (GSR) at 'bb+'. The Rating Outlook for the LT IDRs is Negative. Fitch has also affirmed FDN's National LT and Short-Term Ratings at 'AAA(col)' and 'F1+(col)', respectively. The Outlook for the National ratings is Stable. Key Rating Drivers Government Support Drives Ratings: FDN's IDRs and national ratings are based on the support it would receive from the Colombian government, if required, as reflected in its GSR of 'bb+'. Fitch considers the entity to have a high policy role as it is integral to the state in implementing infrastructure development policies. State Ownership: Fitch's support assessment considers with high importance that the Colombian government is FDN's majority shareholder through Grupo Bicentenario and that the company has operational and financial synergies with the public administration. However, the government does not extend an explicit guarantee on all its debt. Government Support Ability: The government's current ability to support the bank is reflected in the sovereign's IDR of 'BB+' and its Negative Outlook. The GSR indicates the minimum level to which the entity's LT IDRs could fall if Fitch does not change its view on potential sovereign support. FDN's national ratings are at the highest level on the ratings scale and indicate relative rankings of creditworthiness within Colombia. The national ratings are based on potential sovereign support, if needed. Policy Role: Fitch considers FDN's policy role with high importance in the support assessment. The bank acts as the government's financial arm to structure and finance public infrastructure projects. The entity is heavily involved in the development of the country's biggest road concession programs and some of the largest infrastructure projects in a wide variety of sectors, which are expected to grow in the short to medium term. Financial Profile: FDN's ratings are based solely on Fitch's assessment of expected government support. The bank's performance has been relatively stable over the years, supported by solid capital metrics and good loan performance, which in turn underpin its adequate asset quality. As of June 2025, the 30-days PDL ratio slightly increase to 0.14%. Like other development banks, FDN's loan portfolio shows concentration per debtor, but this is partially offset by good payment behavior and adequate loan loss allowances. By 2Q25, FDN's annualized operating profit to risk-weighted assets ratio improved to 3.5% from 3.1% in 2024 but is still below the 2021-2024 average (3.9%). This trend is explained by higher net interest margin due to lower funding costs and relatively stable loan impairment charges. As of June 2025, FDN's common equity tier 1 to risk-weighted assets ratio remains high at 17.2%, slightly below 18.1% at YE24. Capitalization is considered robust and supports FDN's expected high loan growth. Bilateral loans, local bond issuances, external bank lines and term deposit certificates to institutional investors support FDN's funding profile. As of June 2025, customers deposits grew by 61.5% compared to December 2024. Fitch believes that FDN will continue to maintain a solid financial profile, supported by expected growth on loans and assets with strong capital. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - FDN's GSR and IDRs could be downgraded if the sovereign rating is downgraded; - FDN's GSR, IDRs and national ratings could be downgraded if Fitch perceives a decrease in the entity's policy role for the national government, but this scenario is unlikely over the medium term. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - FDN's GSR and IDRs could be upgraded in the event of a similar action in Colombia's sovereign ratings, absent any change in Fitch's view of the government's propensity to provide support to FDN; - The national ratings have no upside potential because they are at the highest level on the national rating scale. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Debt Ratings: Fitch rates FDN's local senior debt issuance at the same level as its National LT rating because the notes' likelihood of default matches the company's. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES FDN's senior notes' national ratings are sensitive to any changes in FDN's national ratings. Public Ratings with Credit Linkage to other ratings FDN's ratings are support-driven by the Colombian government. 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 ----------- ------ ----- Financiera de Desarrollo Nacional S.A. LT IDR BB+ Affirmed BB+ ST IDR B Affirmed B LC LT IDR BB+ Affirmed BB+ LC ST IDR B Affirmed B Natl LT AAA(col) Affirmed AAA(col) Natl ST F1+(col) Affirmed F1+(col) Government Support bb+ Affirmed bb+ senior unsecured Natl LT AAA(col) Affirmed AAA(col) FINDETER: Fitch Affirms 'BB+' Currency LongTerm IDRs, Outlook Neg. ------------------------------------------------------------------ Fitch Ratings has affirmed Financiera de Desarrollo Territorial S.A.'s (Findeter) Long- and Short-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB+' and 'B', respectively. The Rating Outlook is Negative, in line with that of the Colombian sovereign. Fitch has also affirmed Findeter´s National Long- and Short-Term Rating at 'AAA(col)' and 'F1+' respectively, with a Stable Outlook for the Long -Term Rating. Key Rating Drivers Government Support Drives Ratings: Findeter's IDRs are driven by its Government Support Rating (GSR), which is equalized to Colombia's Long-Term IDR (BB+/Negative). The ratings reflect Fitch's assessment of the Colombian government's propensity and ability to provide timely support to Findeter if needed. Colombia's sovereign rating reflects its ability to support the development bank, while its propensity to support is reflected in Findeter's state ownership and policy bank role. The GSR indicates the minimum level to which the entity's Long-Term IDRs could fall if Fitch does not change its view on potential sovereign support. Findeter's National Ratings are at the highest level in the ratings scale, reflecting potential sovereign support if needed. These ratings indicate relative creditworthiness within Colombia. State Ownership: Fitch's support assessment considers with high importance that Findeter is fully owned by the state through Grupo Bicentenario, a government holding of the Ministry of Finance. Although the Colombian government does not explicitly guarantee all of Findeter's liabilities, Fitch views its ownership as long term and strategic. Bank's Policy Role: Findeter's ratings reflect its policy role of high importance. The entity is an integral arm of the state, implementing the economic development policies of the National Development Plan and financing regional and urban infrastructure. As a development bank, Findeter primarily structures general obligation loans to supervised financial institutions and, direct lines generally backed by promissory notes from infrastructure projects. Consistent with the National Development Plan for 2022-2026, Findeter grants direct loans to special-purpose vehicles structured for investment projects in eligible sectors. This further supports Fitch's view on Findeter's relevant policy role. Development Role Explains Financial Performance: As of June 2025, past due loans (PDLs) over 30 days totaled 2.5%, surpassing the average of the last four years, reflecting the deterioration of a direct exposure of an electricity sector borrower. By the same date, the operating profit-to-risk-weighted assets (RWA) ratio fell to -0.38%, from 1.8% in December 2024. Operating profit weakened due to a 290% rise in loan impairment charges, largely explained to that single-name exposure. Profitability was further pressured by a sustained narrowing of the net interest margin amid monetary easing and 2024-2025 rate cuts, alongside a negative net result from trading and derivatives. Strong Capital and Improved Loan-to-Deposit: As of June 2025, the Common Equity Tier 1 (CET1) ratio was 21.2%, above the result of December 2024 (19,75%) and compares favorably with local and international peers. The loans-to-customer deposits ratio improved to 113,2%, below the four-year average of 147.2%, but still exceeds the banking sector average. Following the maturity of two bonds in 2024, term deposit certificates now account for nearly 80% of total funding, with multilaterals as the next largest source. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Findeter's GSR and IDRs could be downgraded if the sovereign rating is downgraded; - Findeter's GSR, IDRs, and National Scale Ratings could also be downgraded if Fitch perceives a decline in the bank's policy role for the government, such as a shift in its role of transforming the regions by financing different sectors of the economy. However, this scenario is unlikely over the medium term. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Findeter's GSR and IDRs could be upgraded in the event of a similar action on Colombia's sovereign ratings, without any change in Fitch's view of the government's propensity to provide support to this bank; - National Ratings have no upside potential because they are at the highest level in the national rating scale. Public Ratings with Credit Linkage to other ratings The ratings are support-driven. This entity's ratings are linked to those of the Colombian Sovereign. 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 ----------- ------ ----- Financiera de Desarrollo Territorial S.A. – Findeter LT IDR BB+ Affirmed BB+ ST IDR B Affirmed B LC LT IDR BB+ Affirmed BB+ LC ST IDR B Affirmed B Natl LT AAA(col) Affirmed AAA(col) Natl ST F1+(col) Affirmed F1+(col) Government Support bb+ Affirmed bb+ =================== C O S T A R I C A =================== COSTA RICA: Moody's Hikes Issuer Ratings to 'Ba2', Outlook Stable ----------------------------------------------------------------- Moody's Ratings has upgraded the Government of Costa Rica's long-term local and foreign currency issuer and foreign currency senior unsecured debt ratings to Ba2 from Ba3. The outlook has been changed to stable from positive. The upgrade reflects Moody's views that prospects for the sovereign's fiscal and debt metrics have improved meaningfully, underpinned by continued progress on establishing a track record of fiscal discipline alongside robust economic growth. The government's adherence to expenditure ceilings and proactive policy management have accelerated the decline in the debt burden, even as the country approaches the February 2026 general election. Moreover, debt affordability will steadily improve as government interest payments have begun to decline even in nominal terms, buffering the sovereign's fiscal strength. The stable outlook reflects a balance of upside and downside risks to Costa Rica's Ba2 rating. The sovereign is making progress to improve institutions and governance strength backed by stronger debt and liquidity management, and continued compliance with fiscal rules embedded in the medium-term fiscal framework. Moody's expects that robust, albeit slower, economic growth will continue to support the decline in the government debt burden. However, Costa Rica's still-low tax base has seen limited benefits from the economy's robust growth, and as external growth drivers subside due to the impact of global tariffs on external demand, economic activity in Costa Rica will be subject to downside risks. Should economic activity decelerate more than Moody's expects, this could have a negative impact on government revenue growth, posing challenges to the fiscal consolidation trajectory outlined in the medium-term fiscal framework. In addition, failure by the Legislative Assembly to approve external market financing, or the continued approval of new tax exemptions, would further complicate fiscal consolidation efforts and heighten financing risks. Costa Rica's local and foreign currency country ceilings have been raised to Baa1 from Baa2 and to Baa3 from Ba1, respectively. The four-notch gap between the local currency ceiling and the sovereign rating reflects limited government intervention in the economy, high predictability and reliability of institutions, overall low political risk and relatively contained external imbalances. The Baa3 foreign-currency ceiling, two notches below the local currency ceiling, reflects the economy's moderate level of external indebtedness, open capital account and a low level of policy effectiveness. RATINGS RATIONALE RATIONALE FOR THE UPGRADE TO Ba2 STRONG COMPLIANCE WITH EXPENDITURE CEILINGS WILL HELP ACCELERATE THE DECLINE IN GOVERNMENT DEBT Costa Rica's fiscal consolidation is anchored by a structural shift to sustained primary surpluses and robust real GDP growth, resulting in an eight percentage point decline in public debt from its 67.6% of GDP peak in 2021 to 59.8% in 2024. The authorities have raised the primary balance by over three percentage points of GDP, compared to pre-pandemic levels, through significant spending cuts and increased revenues from the 2018 tax reform. Despite one-off effects that widened the fiscal deficit in 2024, debt fell below 60% of GDP owing to robust economic growth. The primary surplus narrowed in 2024 to 2.3% of GDP from 2.8% in 2023 at the general government level. Measures such as the public employment law that restricts wage increases and ongoing tax administration efforts are in place to support a widening of primary surpluses, and 2025 fiscal results reflect substantial expenditure restraint. Moody's forecasts the general government primary surplus will widen to 2.6% of GDP in 2025 from 2.3% in 2024, implying a lower overall fiscal deficit of 2.2% of GDP in 2025 from 2.8% in 2024. Medium term fiscal consolidation is mostly reliant on spending decreases that are likely to come from a slow reduction in the wage bill based on measures adopted in recent years and continued compliance with expenditure ceilings under the fiscal rule. As a result, Moody's forecasts that general government primary surpluses are likely to reach 3% of GDP in 2026-27. Public debt will fall below 55% of GDP by 2027, increasing the sovereign's ability to respond to negative shocks. DEBT AFFORDABILITY WILL STEADILY IMPROVE, BUFFERING THE SOVEREIGN'S FISCAL STRENGTH Costa Rica's borrowing costs have continued to decline and will support favorable debt and interest cost dynamics. Debt management reforms, including the unification of debt management functions and centralization of cash holdings, have helped reduce domestic borrowing costs. The new market makers program has increased liquidity in the sovereign debt market. There has been a marked downward shift in the sovereign's domestic yield curve that in 2024 allowed the sovereign to lengthen the average maturity of domestic debt to 7.0 years from 6.3 in 2023 without a significant increase in funding costs. In 2025, the authorities have focused their liability management efforts on decreasing the overall cost of debt without shortening average maturities. The substantial decrease in domestic and external yields is supporting higher debt affordability. Consequently, interest payments on debt have begun declining this year both in absolute and relative terms. In the first six months of 2025, interest expenditure fell 4.2% in nominal terms compared to the same period in 2024. Moody's forecasts the general government interest-to-revenue ratio will decline to 17% in 2025 from 18.5% in 2024, and will ease further to 15.9% in 2026, supporting an improvement in Costa Rica's fiscal strength. Moreover, the approval of the constitutional reform enabling greater access to external financing would further reduce the sovereign's reliance on the domestic market, broaden the investor base, and potentially lower the sovereign's cost of funding by facilitating benchmark-sized issuances in international markets. This structural improvement would reinforce the downward trajectory of interest expenditures and support debt sustainability over the medium term. ROBUST GROWTH IS SET TO SLOW BUT WILL REMAIN AMONG THE STRONGEST IN THE REGION, SUPPORTING BENIGN DEBT DYNAMICS Real GDP grew 4.3% in 2024, driven by exports, inward FDI, and strong private consumption. Costa Rica remains one of the fastest-growing economies in Latin America and among 'Ba'-rated sovereigns globally. Through 2025, growth will have averaged 5.1% since 2021, outpacing regional and global peers even though Costa Rica has comparatively higher income levels. Entrenched macroeconomic stability, a well-educated and highly skilled labor force, the country's proximity to the US, and a pro-business regulatory framework that supports a benign business environment with an absence of political polarization, continue to make Costa Rica an attractive destination for FDI, and support the sovereign credit profile. Moody's forecasts real GDP growth will converge with potential, slowing to 3.5% in 2025 and remain around that level in 2026–27. The slowdown reflects the impact of the 15% tariff imposed by the US and softer global demand that is likely to have a moderating effect on activity in the country's export-oriented sectors. Half of Costa Rica's exports of goods and services are bound to the US, which is also the source of about two-thirds of Costa Rica's FDI. Even so, economic growth will remain supportive of a gradual but steady decline in debt ratios that is likely to accelerate as the fiscal deficit narrows. RATIONALE FOR STABLE OUTLOOK The risks around the baseline scenario that supports a Ba2 rating are balanced. On the upside, robust economic growth and the authorities' continued commitment to expenditure restraint could lead to a faster decline in the government debt burden, improving fiscal strength more than Moody's currently envision. Stronger debt and liquidity management and continued compliance with fiscal rules embedded in the medium-term fiscal framework could support a more rapid decrease in funding costs that enhances debt affordability. Should political support grow for revenue-increasing tax reforms, fiscal performance could strengthen more than Moody's forecasts. On the downside, softer economic activity could result in revenue decreases, jeopardizing the fiscal consolidation plan. Costa Rica's still-low tax base has seen limited benefits from the economy's robust growth and as external growth drivers subside due to the impact of global tariffs on external demand, economic activity in Costa Rica will be subject to downside risks. Since the pandemic in 2020, Costa Rica's growth has been led by stronger economic activity in the free trade zones than in the broader economy. This has led to a two-speed economy that has not resulted in a material improvement in tax revenues, which at around 13.5% of GDP lag behind the tax burden in countries with similar income levels. Moreover, should economic activity decelerate more than Moody's expects, this could have a detrimental impact on government revenue growth, making the fiscal consolidation push more reliant on expenditure cuts, rather than limiting expenditure growth as is currently planned. ESG CONSIDERATIONS Costa Rica's ESG Credit Impact Score of CIS-3 reflects the country's moderate exposure to environmental and social risk. Its governance profile remains moderately weak due to its track record of slow policymaking process that at times limits policy effectiveness and reforms. The E-3 issuer profile score on environmental risk is related to physical climate risk. Lower crop yields because of weather events can harm the agricultural export sector and tourism revenues may be affected by wildfires, floods and increased storm severity. The S-3 issuer profile score on social risk reflects labor and income, housing, and health and safety risks. Social considerations historically were not material to Costa Rica's credit profile given a long history of stable governments and democratic institutions but attempts to reduce fiscal deficits have encountered significant social resistance in prior years. Popular demands to reduce perceived inequalities and high rates of violence will continue to constrain domestic policy choices. The G-3 issuer profile score on governance risk is related to the political inability of several administrations to address a fiscal crisis that led to substantial debt accumulation. Although budget management was weak, the authorities are slowly building a track record of credibility as fiscal deficits narrow. Governance risks are tempered by a very favorable institutional structure that safeguards democratic processes and upholds the respect for contracts. GDP per capita (PPP basis, US$): 29,892 (2024) (also known as Per Capita Income) Real GDP growth (% change): 4.3% (2024) (also known as GDP Growth) Inflation Rate (CPI, % change Dec/Dec): 0.8% (2024) Gen. Gov. Financial Balance/GDP: -2.6% (2024) (also known as Fiscal Balance) Current Account Balance/GDP: -1.3% (2024) (also known as External Balance) External debt/GDP: 40.7% (2024) Economic resiliency: baa2 Default history: At least one default event (on bonds and/or loans) has been recorded since 1983. On September 22, 2025, a rating committee was called to discuss the rating of the Costa Rica, 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 not materially changed. The issuer's fiscal or financial strength, including its debt profile, has materially increased. The issuer has become less susceptible to event risks. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Policy continuity under a new administration that maintains the current fiscal trajectory by preserving primary surpluses and existing consolidation measures, as well as the current debt management strategy to improve debt affordability, could lead to an upgrade. Additionally, progress on reforms that enhance external financing flexibility and complement establishing a track record of low fiscal deficits could exert upward pressure on the ratings. Costa Rica's ratings could face downward pressure if liquidity and financing constraints re-emerge, or if a reversal of fiscal policy leads to wider fiscal deficits that deviate significantly from the medium-term fiscal framework, resulting in an upward debt trajectory. Given the country's history of political gridlock hindering reforms and the prompt adoption of corrective fiscal measures, downward pressure on the sovereign's credit profile could also result from legislative deadlock, lack of timely approval of external financing, or political inability to support measures that have led to continued improvements in debt metrics. 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. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Faces Challenges in Growing AI Capabilities --------------------------------------------------------------- Dominican Today reports that while the Dominican Republic is among the countries lagging in investment in artificial intelligence, other nations have assigned regulatory roles to this technology. This is the case in Albania, which has just appointed AI "Diella" as Minister of Public Procurement, to ensure that tenders are "100% incorruptible" and expenditures are "100% legible" for the public, according to Dominican Today. Other countries have taken similar steps, creating ministerial or Government positions dedicated to AI or digital technologies, the report notes. Still, without full ministerial authority, the United Arab Emirates has a "Ministry of State for Artificial Intelligence, Digital Economy and Remote Working" with Omar Al Olama. At the same time, France appointed Clara Chappaz as Secretary of State (or Minister Delegate) for Artificial Intelligence and Digital Technologies, the report relays. These steps show a trend: your governments are creating important roles for AI, which can be revolutionary and make governments more efficient, but it also increases risks: giving machines human functions is inherently high risk, but these risks are greater when we assign them public functions, the report notes. The challenge this represents for the Dominican Republic is significant because the problem is not only that this trend forces the country to invest in technology to overcome its lag, but that this must be accompanied by the talent required to manage this technology and regulations that mitigate the risks, the report discloses. In particular, the country must prepare to prevent the technological and governance gap from widening, the report says. Failure to do what is necessary in these areas could lead the country to become even more dependent on external standards imposed by technological powers, the report relays. Furthermore, we must ensure that, as AI begins to improve efficiency in public and private management in other countries (from tax administration to industrial policy), the competitiveness gap does not widen to our detriment, the report notes. This means that, in trade, foreign investment, and talent attraction, the country could lose appeal compared to countries that already use AI to accelerate processes, reduce costs, and generate predictability, the report relays. As wisdom warns, the times give it the strength of the unquestionable: "The country advances with weary steps in a race where artificial intelligence is already a hurricane's wind, and it fears that, by staying in its wake, it will not be able to reap the rewards or avoid the storms," the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCR-LA reported in April 2019 that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Standard & Poor's credit rating for Dominican Republic was raised to 'BB' in December 2022 with stable outlook. Moody's credit rating for Dominican Republic was last set at Ba3 in August 2023 with the outlook changed to positive. Fitch, in December 2023, affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' and revised the outlook to positive. ============= J A M A I C A ============= JAMAICA: S&P Raises LongTerm Sovereign Credit Ratings to 'BB' ------------------------------------------------------------- S&P Global Ratings, on Sept. 25, 2025, raised its long-term foreign and local currency sovereign credit ratings on Jamaica to 'BB' from 'BB-', and its transfer and convertibility assessment to 'BB+' from 'BB'. At the same time, S&P Global Ratings affirmed its 'B' short-term foreign and local currency sovereign credit ratings on Jamaica. The outlook is positive. Outlook The positive outlook reflects S&P Global Ratings' expectation that continued primary fiscal surpluses will let the government meet its fiscal responsibility law debt target, likely ahead of schedule. This would demonstrate its decade-long commitment to effective and predictable fiscal policymaking. At the same time, we expect the government's debt burden will decrease. Downside scenario S&P could revise the outlook to stable during the next six-18 months if we believed changing fiscal policy would lead to larger, sustained deficits over the forecast horizon, and if no other rating assessments improved; or if the economy fails to perform as expected, weakening the country's external position. Upside scenario S&P said, "We could raise the ratings over the next six-18 months if Jamaica's debt burden improves as its interest-to-revenues ratio decreases, and if we expect this improvement will be sustained during the forecast horizon. We could also raise the ratings if the economic growth rate improves and converges with that of peers at a similar level of economic development." Rationale Institutional and economic profile: Institutions are stronger while growth is expected to remain mild The support across political parties and many economic sectors of society for a fiscal policy focused on debt reduction that was evident during the recent election suggests broad policy consensus that has become embedded in Jamaica's political culture and in its governing institutions over the past decade. S&P believes that the re-elected government, the Jamaica Labour Party (JLP), will remain committed to its legislatively enshrined debt-to-GDP ceiling (60%) during its third consecutive term in office. This commitment follows a track record of adherence to large government primary surpluses and reducing government debt. Jamaica is the only one of the 141 sovereigns rated by S&P Global Ratings that has achieved an annual primary fiscal surplus above 3% of GDP for the past 10 years, notwithstanding significant external shocks like the pandemic and major hurricanes. S&P said, "Although the JLP's majority has shrunk, with 35 of 63 seats in the Parliamentary House of Representatives, we believe that both the country's main political parties -- the JLP and the opposition People's National Party -- share a similar outlook on economic policy and commitment to fiscal consolidation. Jamaica has a history of a stable democracy with smooth transitions of government. We believe there is bipartisan consensus on macroeconomic policies." The government has improved its ability to respond to weather-related shocks, as demonstrated in the aftermath of Hurricane Beryl last year when it was able to quickly roll out support measures to the population and return to normal operations. Proactive preparation has improved the government's readiness for such events. The government has also solidified the Bank of Jamaica, giving it legal independence and an official inflation-targeting mandate. Furthermore, recent indicators suggest that violent crime, which has been a long-term problem with negative economic and social impacts, has lessened in the past year. S&P said, "On the back of these improvements and the recovery from the storms that affected Jamaica last year, we expect growth will rebound in 2025, with real GDP expanding by 2%. Jamaica's economy has suffered from anemic growth, on average, over the past several decades. During the past five years, the economy has been affected by successive negative external shocks. We expect that growth will return to its long-term average of 1%-2% annually by 2026-2028. We expect GDP per capita will be about US$8,500 in 2025." This level is higher than anticipated, in part due to revised GDP data that uses an updated industrial classification, a rebasing of economic sectors, in alignment with international best practices. The Jamaican economy is relatively well diversified, with tourism, agriculture, mining, and manufacturing, but it is vulnerable to hurricanes, flooding, and droughts. Over the past decade, the government has made numerous reforms that support diversification and economic growth. Nevertheless, growth remains constrained by high security costs; perceived corruption; low productivity; low business competitiveness; and vulnerability to external shocks, including weather-related ones. S&P expects the country's 10-year weighted-average growth rate will be 1.3%, which, although higher than before, remains below that of sovereigns in the same GDP category. Flexibility and performance profile: Jamaica's external debt profile is improving as the government's debt burden falls. The combination of consistent primary surpluses and higher GDP levels will lead to net general government debt falling below 50% this year, and continuing to fall during the forecast horizon. S&P said, "We expect net general government debt will reach just below 48% this year, four percentage points lower than our 2025 forecast made last year. At the same time, we expect the government interest to revenues metric will fall, averaging just over 15% from 2025-2027. The government estimates its financing needs will be J$158 billion in the current fiscal year, and we expect it will meet them through a combination of domestic borrowing and predominantly concessionary multilateral loans." Jamaica's debt has significant exposure to exchange rate movements, as approximately 59% of general government debt is denominated in foreign currency. This exposure and the depreciation of the Jamaican currency are significant factors in S&P's assessment of the change in net general government debt, as currency depreciation can offset debt reduction. S&P said, "As part of our assessment of the government's contingent liabilities, we consider the US$480 million in senior secured notes issued by Kingston Airport Revenue Finance LLC in October 2024 and the US$400 million in senior secured notes issued by Montego Bay Airport Revenue Finance Ltd. in July 2025. However, given the size of these transactions and credit profiles that indicate stronger creditworthiness on a stand-alone basis than the sovereign, they do not weaken our government debt assessment. At the same time, we deduct the proceeds that the government has received from these transactions from non-tax revenue, where it is counted by the government, as we consider these funds to be finance-related, and not part of ordinary budget revenues. "We assess Jamaica's contingent liabilities from the financial sector and nonfinancial public enterprises as limited, based on our Banking Industry Country Risk Assessment score of '8' (with '1' being the lowest-risk category and '10' the highest) and the ratio of banking sector assets to GDP of less than 100%. "We expect the change in net general government debt to GDP will average 0.9% from 2025-2028. We expect this metric will gradually shrink over the forecast horizon as the effects of Hurricane Beryl in 2024, as well as our deduction of securitization revenues from non-tax revenue related to the airport securitizations, fall out of the metric. These metrics also incorporate the negative effect of a likely depreciating Jamaican dollar on the valuation of the country's large foreign currency-denominated external debt. We expect primary surpluses to remain below their average in the past decade as the government will have met its long-term debt-to-GDP target this year and GDP revisions indicate a larger economy. Nevertheless, primary surpluses will likely remain above 3% of GDP, on average, over the forecast horizon." Following two consecutive years of current account surpluses averaging 2.9% of GDP, fueled by strong tourism receipts and high remittances, Jamaica is likely to maintain surpluses over the next several years, dropping closer to historical levels. The surplus may decline to 1.6% of GDP in 2025. Remittances continued to bolster external balances, although they decreased slightly year over year to just less than US$3.36 billion (about 15% of GDP) in 2024. S&P expects remittances will remain steady for the next two years. Over the next four years, the current account may be on average in a surplus of 0.6% of GDP. Current account surpluses have supported central bank reserves. This, together with stronger financial sector external assets and steady external debt, has contributed to an improvement in our external assessment of the country. External debt of the public, private, and financial sectors, net of usable reserves and financial sector external assets, reached 45% of current account receipts in 2024, and we expect it will reach 42% this year. The country's gross external financing needs will likely hover around 90% of current account receipts and usable reserves in the next couple of years after falling gradually over the past several years. Nevertheless, Jamaica's net external liability position is substantially larger than its net external debt position, which could expose the country to elevated risk of disruptions to external funding. To address vulnerabilities to weather-related events, the government created a disaster risk policy framework to build resiliency and respond faster in the aftermath of a disaster. This has served Jamaica well during recent external shocks, such as Hurricane Beryl and storm Raphael in 2024. The multilayered approach to mitigating the fiscal risks caused by a disaster includes a contingency fund, insurance, a disaster line of credit with a multilateral institution, and the issuance of a catastrophe bond. Although Jamaica has made progress on mitigating the fiscal risks, its economy and infrastructure remain vulnerable to physical risks. Inflation has fallen sharply in recent months and was 1.2% in August 2025, below the Bank of Jamaica's target of 4%-6%, largely due to the effects of falling energy and agricultural prices. In 2024, the Bank of Jamaica began reducing its policy rate, and it was 5.75% as of August 2025. S&P believes the bank will maintain a cautious monetary policy that, combined with tight fiscal policy, will keep inflation at the lower end of its target band. Although the central bank has a short track record under its enhanced autonomy, S&P believes it will continue facilitating orderly movements in the floating exchange rate, as shown by two-way movement recorded against the U.S. dollar. Dollarization is still high in the financial system, but it has decreased over the past several years. In June 2025, about 36% of resident deposits in the financial system were denominated in foreign currencies. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee's assessment of the key rating factors is reflected in the Rating Component Scores above. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. Ratings List Upgraded To From Jamaica Sovereign Credit Rating BB/Positive/B BB-/Positive/B Transfer & Convertibility Assessment Local Currency BB+ BB Jamaica Air Jamaica Ltd. Senior Unsecured BB BB- JAMAICA: Trade Deficit Hit US$2.4 Billion for January to May 2025 ----------------------------------------------------------------- RJR News reports that Jamaica's merchandise trade deficit jumped to US$2.4 billion between January and May this year. That's compared to US$2.2 billion during the similar period last year, according to RJR News. The increase was driven by a 3.6 per cent rise in imports to US$3.2 billion alongside a 7 per cent fall in exports to US$773 million, the report notes. The country's export earnings were not enough to cover key import costs, including US$919 million of raw materials, US$865 million for food and consumer goods and US$841 million for fuel during the five month period, 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 A N A M A =========== BANCO LATINOAMERICANO: Fitch Rates USD200MM 7.5% Sub. Notes 'BB-' ----------------------------------------------------------------- Fitch Ratings has assigned a final 'BB-' rating to Banco Latinoamericano de Comercio Exterior, S.A.'s (Bladex) U.S. dollar-denominated perpetual non-cumulative fixed-to-fixed subordinated notes for USD200 million at 7.5%. The notes will constitute additional Tier 1 (AT1) capital for the bank in accordance with Panamanian banking laws. The notes also are intended to strengthen the bank's primary capital, with proceeds from the issuance to be used for general corporate purposes. The final rating follows a review of final terms and conditions according to information Fitch received when it assigned Bladex an expected rating on Sept. 5, 2025. For more details see "Fitch Assigns Bladex's Perpetual Subordinated Notes 'BB-(EXP)' Rating,". Key Rating Drivers The new notes issuance rating is four notches below Bladex's 'bbb' Viability Rating (VR), reflecting two notches for high loss severity due to the bank's deep subordination and two notches for incremental non-performance risk, given its fully discretionary, non-cumulative coupon cancellation feature, according to Fitch's criteria. The agency has used the bank's VR as the anchor rating because it believes it better reflects nonperformance risk. The notes are perpetual, with no fixed maturity or fixed redemption date, with semiannual interest payments, which also will be noncumulative. The bank will have the option to redeem the notes, subject to the prior approval of Panamanian banks regulator, in whole or in part after the seventh anniversary of the issue date or on any interest payment date thereafter. The notes will rank junior in right of payment to all the bank's senior debt and pari passu with each other and with any other unsecured AT1 capital subordinated indebtedness. They will rank senior to Bladex's common and preferred shares and to any other instruments that rank junior in right of payment to the notes in a liquidation event. Interest on the notes will not be due or payable on a payment date, and will not accrue, in certain cases, including when the issuer, at its sole discretion, elects to suspend payment and accrual. Such suspension will not constitute an event of default. In addition, under Panamanian law, if the Superintendency of Banks of Panama takes administrative control of the issuer and initiates reorganization, the notes may be used to absorb losses. The notes will be permanently written off if any of the following occur: the issuer enters reorganization, the regulator orders a write-off the notes, or the bank's Tier 1 capital ratio falls below 5.125% (a non-viability event). Bladex's VR reflects extensive geographic diversification; notable business and funding profiles anchored by a widely recognized regional franchise and strong position in the market it serves; and a robust risk framework that has supported resilient financial performance. As of June 2025, its CET1-to-risk-weighted-assets ratio was 15.0% and its regulatory capital adequacy ratio was 13.9%. For further information about the rating drivers and rating sensitivities for Bladex, please see "Fitch Affirms Bladex's IDR at 'BBB'; Outlook Stable" dated May 15, 2025. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - The rating of the notes is sensitive to movements in the bank's VR in any direction, and the baseline scenario is that the notching will likely remain -4 relative to the bank's VR. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The rating of the notes is sensitive to movements in the bank's VR in any direction, and the baseline scenario is that the notching will likely remain -4 relative to the bank's VR. Date of Relevant Committee 02-Sep-2025 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 Latinoamericano de Comercio Exterior, S.A. Subordinated LT BB- New Rating BB-(EXP) ===================== P U E R T O R I C O ===================== CARMEN FRATICELLI: Court Upholds Dismissal of Bankruptcy Case ------------------------------------------------------------- Judge Maria de los Angeles Gonzalez of the United States Bankruptcy Court for the District of Puerto Rico denied Carmen Maria Mercado Fraticelli's motion for reconsideration of the dismissal of her bankruptcy case. On May 31, 2024, Carmen Maria Mercado Fraticelli filed the petition for relief under Chapter 11, Subchapter V of the Bankruptcy Code. On Aug. 5, 2024, creditor Blue View Capital LLC filed proof of claim number 1 in the amount of $283,593.07, secured by Debtor's residential property located in Ponce, Puerto Rico. On Sept. 17, 2024, Blue View filed a motion to dismiss the case with a four-year bar to re-file. On Sept. 26, 2024, Debtor opposed Blue View's dismissal request. On Oct. 30, 2024, the court entered an opinion and order denying Blue View's request for dismissal of the case with a four-year bar to refile and allowed Debtor to proceed to confirmation. On Nov. 23, 2024, Blue View moved for the reconsideration of the order denying the dismissal and the bar to refile. Following Debtor's request for valuation and protracted motion litigation with Blue View, on Dec. 5, 2025, the court conducted an evidentiary hearing to determine, for purposes of 11 U.S.C. Section 1129(b)(2)(A)(i), 11 U.S.C. Section 506(a) and Fed. R. Bankr. P. 3012, the value of Debtor's residential property. On April 14, 2025, the court determined in an opinion and order that the value of said property was $135,000 and granted Debtor thirty days to file an amended Subchapter V plan consistent with the valuation ruling. On May 19, 2025, Debtor filed her Subchapter V amended plan, which the court set for a confirmation hearing on July 10, 2025. On July 7, 2025, Blue View filed an objection to the confirmation of Debtor's amended plan. Blue View questioned the plan's feasibility by analyzing the monthly operating reports filed to date, which it argued had multiple deficiencies and inconsistencies. Blue View also pointed out that the operating reports for April and May were outstanding. Further, it argued that the plan did not meet the criteria for cram down confirmation under 11 U.S.C. Sec. 1191(b) and that the plan improperly proposed a bifurcation of its claim, a claim that Debtor never objected to. The court granted Blue View's objection to confirmation and denied confirmation of Debtor's plan. The court also granted Blue View's request for reconsideration and dismissed the case. Now pending before the court is Debtor's motion filed on July 21, 2025, seeking reconsideration of the dismissal. On the same day, Debtor also filed an amended subchapter V plan, amended schedules I and J, an objection to Blue View's claim, amended monthly operating reports for January, February, and March 2025, and monthly operating reports for April, May, and June 2025. In her motion for reconsideration, Debtor argues that at the confirmation hearing, she did not admit that her plan was unfeasible. Instead, she contends that the court could not assess feasibility due to the incomplete monthly operating reports filed up to that date. She states that now she has amended these reports and attached evidence of her income to demonstrate the source of the funds. Further, she asserts that at the 341 meeting of creditors and in "other hearings and motions," she had testified that her plan would also be funded with her husband's income. She further states that, if necessary, her son and daughter would contribute to fund her plan and submits as exhibits two unsworn statements under penalty of perjury to that effect. She also attributes her previous omission of her husband's income and bank statements to an error made by her prior accountant, who has now been replaced. She claims that she is now in full compliance with the confirmation requirements. Debtor also emphasizes her active participation in the valuation hearing, which resulted in the court determining that the value of the property is $135,000. She contends that she had no obligation to file an objection to Blue View's claim, and that the court's valuation effectively bifurcated the claim. Moreover, Debtor argues that she does not need Blue View's vote for plan confirmation because she can confirm her plan under the cram-down provisions of 11 U.S.C. Sec. 1191(b). She asserts that her plan is fair and equitable because it proposes to pay within a reasonable timeframe and with interest, providing more than what unsecured creditors would receive in a Chapter 7 liquidation scenario. Lastly, she requests that the court exercise its equitable powers under 11 U.S.C. Sec. 105(a) to reconsider the dismissal of her case and allow her to preserve her only property, which serves as her residence and place of business. Blue View opposes Debtor's reconsideration request. It asserts that the court did not err in dismissing the case and that Debtor's motion fails to meet the standard for reconsideration, as there is no showing of newly discovered evidence or manifest error. Moreover, Blue View contends that there were multiple valid grounds for dismissal, which the record clearly supported, including ongoing noncompliance despite multiple opportunities to cure deficiencies, continuing substantial diminution to the estate, lack of feasibility, and an unreasonable likelihood of reorganization. Regarding the statements attached to her motion claiming that her son and daughter might contribute to fund the plan, Blue View argues that these individuals could have appeared at the confirmation hearing but chose not to and that their statements fail to identify specific amounts that could render them relevant for a feasibility determination. The court agrees with Blue View. Debtor has neither argued how this court committed manifest error nor presented any compelling grounds for the court to reconsider its dismissal order. On the contrary, the record shows, and Debtor admits, that: she failed to comply with the reporting requirements for debtors in Subchapter V; she appeared unprepared to prosecute the confirmation of her plan at the confirmation hearing; she waited until the day before the hearing to seek a continuance and to request additional time to amend her plan and operating reports; and the lack of complete and accurate financial information resulting from incomplete or missing operating reports prevented the court from properly assessing the plan's feasibility at the confirmation hearing. Furthermore, aside from stating that the omission was due to errors made by the prior accountant, Debtor has failed to explain why possible contributions by family members to fund the plan were not included in prior plans and reports filed with the court. The court concurs with Blue View that this information has been readily available to Debtor and therefore does not constitute newly discovered evidence warranting reconsideration of the case's dismissal. The Court concludes absent a showing of mistake, inadvertence, surprise, excusable neglect, or any other reason that justifies the reconsideration of the dismissal of the case, Debtor's motion for reconsideration is denied. A copy of the Court's Opinion and Order dated September 15, 2025, is available at https://urlcurt.com/u?l=87uFyw from PacerMonitor.com Carmen Maria Mercado Fraticelli filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 24-02341) on May 31, 2024, listing under $1 million in both assets and liabilities. The Debtor is represented by Juan Carlos Bigas Valedon, Esq. ============= U R U G U A Y ============= PROVINCIA CASA: S&P Assigns 'B-' Global Scale Rating ---------------------------------------------------- S&P Global Ratings assigned its 'B-' global scale and 'uyBBB-' national scale long-term issuer credit ratings to Provincia Casa Financiera (PCF). The outlook is stable. S&P bases the rating on PCF's status as a branch of Argentina-based Banco de la Provincia de Buenos Aires. As a result, it caps PCF's creditworthiness by Argentina's transfer and convertibility (T&C) assessment. The stable outlook on Provincia Casa Financiera (PCF) mirrors that on Argentina, which balances persistent economic vulnerabilities in that country against improved fiscal outcomes, falling inflation, and renewed GDP growth. S&P's rating on Provincia Casa Financiera (PCF) is based on its status as a branch of the Argentina-based bank Banco de la Provincia de Buenos Aires (BAPRO; raA-/Stable/raA-2). The Uruguayan branch plays an important role in BAPRO's operations in the commercial segment, as it primarily focuses on credit services for foreign trade between Argentina, Uruguay, and Brazil; money orders and transfers; investments; and securities custody. PCF is a small franchise in Uruguay, with a market share of 0.01% of loans and 0.07% of deposits as of July 2025. However, in the last two years its commercial loan portfolio has doubled in size without damaging its asset quality, while it has maintained strong capitalization. As of July 2025, the branch continues to have no nonperforming assets and net charge-offs. Its regulatory capital ratio is 70.3%, well above the minimum requirement and the industry's average. S&P considers BAPRO to be well positioned in the market. It plays a relevant role in Buenos Aires as the financial agent that collects revenue and pays obligations for both the public administration and decentralized public agencies. BAPRO is also the receiving agent for all the province's official and judicial deposits, providing it with low-cost funding. Also, BAPRO has a large distribution network, and its portfolio covers several economic sectors, while it also focuses on developing primary industries in the regional economy. As of May 2025, BAPRO was the fifth-largest financial institution by deposits and the sixth in terms of loans, with a market share of 7.3% and 7.6%, respectively. S&P said, However, our view of BAPRO's creditworthiness reflects Argentina's T&C assessment, and this carries across to PCF. The cap on our rating on PCF reflects the risk that Argentina could impose restrictions that prevent the bank from paying its foreign currency liabilities, which could constrain PCF's obligations not denominated in Argentine pesos." The stable outlook on PCF mirrors that on the sovereign rating on Argentina, given that the rating on PCF reflects S&P's view of the parent's credit profile, which reflects Argentina's T&C assessment. The outlook balances persistent economic vulnerabilities in Argentina against improved fiscal outcomes, falling inflation, and renewed GDP growth. Any change in our view of BAPRO's or Argentina's creditworthiness would lead to a similar action on the Uruguayan subsidiary. S&P said, "We could lower the ratings in the next six to 12 months if negative developments undermine the Argentinian sovereign's already limited access to financing. Failure to stabilize macroeconomic variables or advance reforms could lead to instability and interfere with the ability of domestic banks in that country to access, convert, and transfer money abroad. "We could take a positive rating action on PCF if we were to raise the sovereign rating and T&C assessment on Argentina and BAPRO is able to pass our sovereign stress test. This could happen if external liquidity improves and economic vulnerabilities decline, setting the stage for continued economic recovery in the country." ********* 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. 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