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T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, October 13, 2025, Vol. 26, No. 204
Headlines
A R G E N T I N A
ARGENTINA: McEwen Sees Copper Investors Resisting Latest Woes
ARGENTINA: Milei's Dollar Sales Bolster Peso
ARGENTINA: World Bank Trims Growth Forecast to 4.6%
B E R M U D A
NABORS INDUSTRIES: Miguel Rodriguez Named Chief Financial Officer
B R A Z I L
BRAZIL: Lula Asks Trump to Remove Tariffs in 'Friendly' Phone Call
D O M I N I C A N R E P U B L I C
EGE HAINA: Fitch Alters Outlook on 'BB-' IDRs to Stable
E C U A D O R
ECUADOR: IMF Reaches 3rd Review under the EFF Arrangement
J A M A I C A
NCB FINANCIAL: S&P Affirms B/B- Ratings & Alters Outlook to Pos.
M E X I C O
METROFINANCIERA SAPI: Fitch Lowers Rating on MTROCB 07U Notes to D
P E R U
BANCO DE CREDITO DEL PERU: Fitch Rates USD Sub. Notes 'BB+(EXP)'
P U E R T O R I C O
CIUDAD DEPORTIVA: Section 341(a) Meeting of Creditors on Oct. 29
PUERTO RICO: Court Says Committee Members Firing Unlawful
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A R G E N T I N A
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ARGENTINA: McEwen Sees Copper Investors Resisting Latest Woes
-------------------------------------------------------------
James Attwood at Bloomberg News reports that Rob McEwen's copper
venture is pressing ahead with a major project in Argentina,
betting a new legal and fiscal stability program shields it from
the latest spate of turmoil in the nation.
McEwen Copper Inc released a feasibility study for its Los Azules
project in San Juan Province and is looking to go public early next
year, with a possible Buenos Aires listing, Chief Executive Officer
Michael Meding said, according to Bloomberg News.
Bloomberg News notes that existing and prospective investors
haven't been put off by recent market turmoil in Argentina, Meding
said in an interview from Europe ahead of meetings with potential
backers.
President Javier Milei, a fiery right-wing populist, is battling a
currency crisis ahead of key midterm elections while US Treasury
Secretary Scott Bessent has pledged a financial lifeline to the
crisis-prone nation, Bloomberg News relays. For mining companies
that had largely shunned Argentina after decades of state
intervention, Milei's program of tax, currency and trade benefits
– known as RIGI – has provided a way to bulletproof capital
commitments, Bloomberg News notes.
"We believe in the future of Argentina," Meding said. "It's in a
good spot geopolitically and has what the world needs," he added.
Soon after he spoke, McEwen Copper put out a feasibility study for
Los Azules, including an initial capital estimate of US$3.2 billion
and annual copper cathode production of 204,800 tonnes, Bloomberg
News notes. The project's RIGI application, listed as US$2.7
billion, was approved late last month, Bloomberg News discloses.
Now the company is turning to an initial public offering, which
could take place in Toronto or New York next quarter, Meding said.
It's also discussing a possible concurrent listing in Argentina,
Bloomberg News says.
Bloomberg News discloses that while McEwen had planned to float the
copper unit's shares this year, RIGI approval took longer than
expected and management wanted to release the feasibility study
beforehand, Meding said. Also, the company just signed an agreement
with the World Bank's private-sector investment arm.
McEwen Copper is speaking with existing holders, which include
automaker Stellantis NV and a Rio Tinto Group venture, as well as
prospective new investors as it seeks fresh funds, he said,
Bloomberg News relays.
In the feasibility statement, McEwen Copper said it had received
preliminary finance proposals from firms including Komatsu Ltd. and
Sandvik AB, as well as European export credit agencies, covering
most of the major mechanical equipment and half of the local
construction cost, Bloomberg News discloses.
Los Azules is slated to begin construction next year and churn out
its first copper in 2030 when the wiring metal is projected to be
in short supply, Bloomberg News adds.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
In March 2022, the International Monetary Fund (IMF) approved a
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota) -- with an approved immediate
disbursement of an equivalent of US$9.65 billion. Argentina's
IMF-supported program sought to improve public finances and start
to reduce persistent high inflation through a multi-pronged
strategy.
On April 11, 2025, the IMF further approved a 48-month Extended
Fund Facility (EFF) arrangement for Argentina totaling US$20
billion (or 479 percent of quota), with an immediate disbursement
of US$12 billion, and a first review planned for June
2025 with an associated disbursement of about US$2 billion. The
program is expected to help catalyze additional official
multilateral and bilateral support, and a timely re-access to
international capital markets.
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: Milei's Dollar Sales Bolster Peso
--------------------------------------------
Nicolle Yapur at Bloomberg News reports that Argentina investors
are increasing bets that President Javier Milei will devalue the
peso after midterm elections this month as the government depletes
its reserves to prop up the ailing currency.
The Treasury intervened for a seventh straight session, according
to two people with direct knowledge of the matter, according to
Bloomberg News. It had already sold an estimated US$1.5 billion in
the previous six sessions, pushing greenbacks into the market to
boost the value of the peso, Bloomberg News notes.
In recent weeks, the government has been intervening on several
fronts to prevent the currency from sliding further, reinstating
some exchange controls and selling dollars in the futures market,
Bloomberg News says. But the more the government has to do to prop
up the peso, the more it becomes apparent that the current exchange
rate is unsustainable, fueling the very run on the currency the
authorities are trying to halt, Bloomberg News discloses.
"The market seems to be pricing in an FX regime change the day
after the elections, which means that the closer we get to the
date, the more pressure builds up on the exchange rate," said
Santiago Resico, an economist at brokerage firm one618. "The fact
that the Treasury is selling large amounts of dollars every day
clearly doesn't help," he added.
The government is looking to prevent a slump in the peso that would
fuel inflation ahead of the midterms on October 26, in which half
of the seats in Congress are up for grabs, Bloomberg News notes.
Milei needs to gain support in both chambers to advance his most
challenging economic reforms, Bloomberg News says.
The Central Bank, which burned through US$1.1 billion in reserves
last month to prop up the currency, has been relying on Treasury
cash to keep it stable lately, Bloomberg News dscloses. While the
monetary authority can also step into markets, it can only do so if
the peso breaches the trading band set as part of Argentina's deal
with the International Monetary Fund, Bloomberg News says.
Bloomberg News relays that the outlook for Argentina deteriorated
after Milei suffered a heavy setback in a local vote in Buenos
Aires Province in early September amid growing economic woes and as
corruption scandals tarnish some of his closest allies. A pledge
of aid from the United States helped halt the sell-off, but not
reverse the slump, Bloomberg News relays.
For now, the most popular base case scenario is for the government
to get between 34 percent and 37 percent of votes in the upcoming
election, Barclays economist Ivan Stambulsky said in a report to
investors, Bloomberg News discloses. Under those circumstances,
Milei is still expected to be able to keep governing by veto and
decree, Bloomberg News notes.
But lawmakers in the lower house are scheduled to debate
legislation that would limit the use of presidential decrees,
according to the chamber's agenda, Bloomberg News relates. That
could further crimp Milei's ability to push through reforms in the
second half of his term, Bloomberg News notes.
Dollar sales and election jitters have fueled volatility in the
bond market, said Paula Gandara, chief investment officer at Adcap
Asset Management in Buenos Aires, Bloomberg News discloses.
After posting a strong rally, notes maturing in 2035 fell over a
cent the following day as the government continued to inject
greenbacks into currency markets, Bloomberg News relays. The bonds
declined again, leading losses in emerging markets, Bloomberg News
relays.
"Markets want them to devalue the currency and allow it to be a
free floating rate. No more bands, no more intervention," said
David Austerweil, emerging-markets deputy portfolio manager at
VanEck in New York. "It's going to happen one way or the other," he
added.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
In March 2022, the International Monetary Fund (IMF) approved a
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: World Bank Trims Growth Forecast to 4.6%
---------------------------------------------------
Buenos Aires Times reports that the World Bank has trimmed its 2025
growth forecast for Argentina by almost a point to 4.6 percent, a
prediction that nonetheless remains higher than estimates from
local experts.
In a report issued October 7 in Washington, the global institution
said that the domestic economy will be the one of the
best-performing in the wider Latin American region, despite the
downgrade, according to Buenos Aires Times.
"In Argentina, a remarkable economic rebound continues after two
consecutive years of contraction, although deep challenges remain,"
the World Bank stated in its report, Buenos Aires Times notes.
The organization indicated that the projected increase is driven by
a recovery in agriculture and early signs of improvements in
consumption and investment, the report relays.
"There are early signs of improvement in private sector consumption
and investment, supported by the initial implementation of the
government's stabilisation plan, which has coincided with lower
inflation and a fiscal surplus," the report said, referring to
President Javier Milei's administration, Buenos Aires Times
discloses.
Buenos Aires Times says that the the World Bank also highlighted
Argentina's fierce fiscal discipline under Milei, a trait that sets
it apart from the rest of the region.
"A different case," the report noted, is Argentina, "which has
recently made significant strides towards fiscal consolidation,
achieving fiscal surpluses," it added.
The institution projects that Argentina will be the fastest-growing
country in the region bar Guyana, with an estimated growth of 11.8
percent, Buenos Aires Times relays.
The REM (Market Expectations Survey), published monthly by
Argentina's Central Bank with input from local professionals and
economists, recently cut the country's growth forecast for 2025 to
3.9 percent, Buenos Aires Times notes.
Latin America and the Caribbean
Overall, Latin America and the Caribbean will grow by 2.3 percent
this year - a slight increase compared to the 2.2 percent in 2024,
but once again leaving the region as the world's lowest regional
performer. Buenos Aires Times relays.
This year, "the regional growth rate is expected to increase
slightly," said the report, while warning that "several individual
economies are facing downward revisions in their forecasts," it
added.
For 2026, growth is forecast at 2.5 percent, according to the World
Bank, Buenos Aires Times discloses.
For this year, Argentina stands out, with its 4.6 percent
projection a significant improvement on the 1.3 percent contraction
seen in 2024, Buenos Aires Times notes.
Of the two largest economies in the region, Brazil is losing
momentum (2.4 percent compared to 3.4 percent in 2024), while
Mexico is barely growing (0.5 percent projected this year), Buenos
Aires Times relays.
"This partly reflects an external environment offering limited
support, characterised by a slowing global economy, falling
commodity prices, and rising uncertainty," the World Bank noted,
Buenos Aires Times says.
Susana Cordeiro Guerra, recently appointed Vice-President of the
World Bank for the region, noted that although governments in the
region "have steered their economies through repeated crises while
maintaining stability," they must now "accelerate reforms."
"The external environment remains complex, with a decline in global
demand and commodity prices projected to fall by around 10 percent
in 2025 and a further five percent in 2026 – negatively impacting
key sectors," the report added.
The World Bank advocates stimulating the growth of
"transformational" businesses – those with ambitions beyond
family-run microenterprises, which in some countries account for up
to 70 percent of the national economy, Buenos Aires Times 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.
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B E R M U D A
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NABORS INDUSTRIES: Miguel Rodriguez Named Chief Financial Officer
-----------------------------------------------------------------
Nabors Industries Ltd. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that that the Board of
Directors of Nabors appointed Miguel Rodrigeuz as Chief Financial
Officer, effective October 1, 2025.
Mr. Rodrigeuz succeeds William Restrepo, whose previously-announced
retirement became effective as of September 30, 2025. Mr. Rodriguez
will serve as Nabors' principal financial and accounting officer as
of October 1, 2025, and Mr. Restrepo will step down from those
positions effective as of September 30, 2025.
Mr. Rodriguez, age 54, has over 25 years of finance experience, and
has served as Senior Vice President – Operations Finance of
Nabors since joining in February 2019. In this role, Mr. Rodriguez
revamped and streamlined the Operations Finance function and also
added Treasury and Tax functions to his area of responsibility.
Prior to joining Nabors, Mr. Rodriguez spent more than 25 years in
various finance roles of increasing responsibility at SLB Drilling
Group. Mr. Rodriguez earned his bachelor's degree and CPA at UCAB
in Venezuela.
There are no arrangements or understandings between Mr. Rodriguez
and any other person in connection with his appointment. Mr.
Rodriguez does not have any family relationships with any director
or other executive officer of Nabors, or any person nominated or
chosen by Nabors to become a director or executive officer, and
there are no transactions in which Mr. Rodriguez has an interest
requiring disclosure under Item 404(a) of Regulation S-K
Offer Letter and Severance Agreement with Mr. Rodriguez:
In connection with Mr. Rodriguez's appointment as Chief Financial
Officer, Nabors, Nabors Industries, a wholly owned subsidiary of
Nabors, and Mr. Rodriguez entered into an offer letter with Mr.
Rodriguez, effective October 1, 2025, as well as an executive
severance agreement, effective October 1, 2025.
Pursuant to the Rodriguez Offer Letter, Mr. Rodriguez will receive
an annual base salary of $625,000, and effective January 1, 2026,
will be eligible to earn an annual cash bonus pursuant to the
annual bonus program generally applicable to Nabors' other senior
executives, with a target annual bonus equal to 100% of base
salary.
Effective January 1, 2026, Mr. Rodriguez will also be eligible to
receive annual equity-based compensation awards under the Company's
long-term incentive program, as determined by the Board in its
discretion. Mr. Rodriguez will be eligible to participate in the
other compensation/benefit programs provided to senior executives
of Nabors generally.
Under the terms of the Rodriguez Offer Letter, in connection with
Mr. Rodriguez's appointment as Chief Financial Officer, Mr.
Rodriguez will be eligible to receive:
(i) a cash bonus in the amount of $200,000, payable shortly
following the effective date of Mr. Rodriguez's appointment,
(ii) a restricted stock award having a grant date value of
$200,000 that vests ratably over a three-year period, subject to
continued employment, and
(iii) a restricted stock award having a grant date value of
$500,000, cliff-vesting on the fourth anniversary of the grant
date, subject to continued employment, to be granted on January 1,
2026.
Under the terms of the Rodriguez Severance Agreement, in the event
Mr. Rodriguez employment is terminated by Nabors without "Cause"
(other than due to death or Disability) or by Mr. Rodriguez for
"Good Reason" (each as defined in the Rodriguez Severance
Agreement), Mr. Rodrigeuz will be entitled to receive:
(i) a cash payment of one-times Mr. Rodriguez's then-current
base salary, payable in equal installments over the 12-month period
immediately following such termination of employment,
(ii) a cash payment equal to one-times Mr. Rodriguez's target
annual bonus for the year in which the termination of employment
occurs, pro-rated based on the number of days Mr. Rodriguez was
employed by the Company during the calendar year, payable at the
same time such bonuses are paid to other senior executives of the
Company, and
(iii) continued healthcare coverage for the 24-month period
immediately following such termination of employment (to the extent
permitted under the Consolidated Omnibus Budget Reconciliation Act
of 1985, as amended), subject to Mr. Rodriguez execution and
non-revocation of a general release of claims and continued
compliance with his applicable restrictive covenants.
In the event Mr. Rodriguez's employment is terminated by Nabors
without "Cause" (other than due to death or Disability) or by Mr.
Rodriguez for "Good Reason" during the 24-month period immediately
following a "Change in Control" (as defined in the Rodriguez
Severance Agreement), Mr. Rodriguez will be entitled to receive the
Severance Benefits, except that the severance amount set forth in
clause:
(i) shall be equal to the sum of two-times Mr. Rodriguez's
then-current base salary and two times the target annual cash bonus
amount, respectively, and such amounts shall be paid in a lump sum
within 60 days following the date of termination to the extent
permitted under Section 409A of the Internal Revenue Code, as
amended, or such other required date to the extent required under
Section 409A.
The foregoing description of the Rodriguez Offer Letter and the
Rodriguez Severance Agreement are each qualified by reference to
the full text of the Rodriguez Offer Letter and the Rodriguez
Severance Agreement, a copy of which is available at
https://tinyurl.com/58y4fs5e
Separation Benefits for Mr. Restrepo:
In connection with Mr. Restrepo's retirement from the Company, he
will be eligible to receive the retirement benefits described in
the Amended and Restated Employment Agreement between Mr. Restrepo,
Nabors, and Nabors Industries, a wholly owned subsidiary of Nabors,
dated as of January 2, 2020. These retirement benefits include:
(i) vesting of all unvested restricted shares (other than TSR
Shares), options and performance stock units that have been earned
but remain subject to time-vesting requirements;
(ii) continued eligibility for vesting in a pro-rata portion of
performance stock units granted during 2025, based on actual
performance determined at the end of the applicable performance
period;
(iii) vesting of TSR Shares at maximum levels; and
(iv) continuation of health coverage until the earlier of:
(a) the date that Mr. Restrepo or another member of his family
receives health coverage by a subsequent employer;
(b) three years from the date of the termination of his
employment; or
(c) the dates of his and his spouse's death.
Mr. Restrepo is entitled to all vested amounts owed to him under
the Executive Deferred Compensation Plan.
About Nabors
Bermuda-based Nabors Industries Ltd. (NYSE: NBR) owns and operates
land-based drilling rig fleets and provides offshore platform rigs
in the United States and several international markets. Nabors also
provides directional drilling services, tubular services,
performance software, and innovative technologies for its own rig
fleet and those of third parties.
As of June 30, 2025, the Company had $5.04 billion in total assets,
$3.59 billion in total liabilities, and $640.33 million in total
stockholders' equity.
* * *
Egan-Jones Ratings Company on June 10, 2025, maintained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Nabors Industries, Inc.
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B R A Z I L
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BRAZIL: Lula Asks Trump to Remove Tariffs in 'Friendly' Phone Call
------------------------------------------------------------------
Buenos Aires Times reports that Brazilian President Luiz Inacio
Lula da Silva urged US President Donald Trump to lift punitive
trade tariffs in their first official talks after months of
animosity – with both suggesting an in-person meeting in the near
future.
The two leaders spoke for 30 minutes in a "friendly tone" and Lula
raised the possibility of a meeting in Malaysia next month, the
Brazilian presidency said in a statement, according to Buenos Aires
Times.
Lula "requested the removal" of tariffs imposed on his country's
products and sanctions against Brazilian officials, the report
relays.
Trump hailed "a very good telephone call" in a post on Truth
Social, the report discloses.
"We will be having further discussions, and will get together in
the not too distant future, both in Brazil and the United States,"
he said, without adding details, the report says.
Ties have soured between Washington and Brasília in recent months,
with Trump angered over the trial and conviction of his ally, the
far-right former president Jair Bolsonaro, the report relays.
Trump has imposed a 50-percent tariff on Brazilian products and
imposed sanctions against several top officials, including a top
Supreme Court judge, to punish Brazil for what he termed a "witch
hunt" against Bolsonaro, the report notes.
"We are very optimistic that we will move toward a win-win
situation in this relationship," said Brazil's Vice-President
Geraldo Alckmin, who has been tasked with continuing negotiations
with US Secretary of State Marco Rubio, the report relays.
He noted the call had gone "even better than we expected" and that
the two presidents had exchanged personal phone numbers, the report
adds.
'Excellent Chemistry'
The phone call came after what first appeared to be a chance
encounter on the sidelines of the UN General Assembly last month
that led Trump to hail his "excellent chemistry" with Lula, the
report relays.
However the Estadao news site reported the brief run-in, which
included a hug, was actually the result of an intensive
behind-the-scenes "diplomatic operation," the report discloses.
In a speech to the UN, Lula slammed an "unacceptable" attack on the
independence of Brazil's Judiciary, the report says.
Despite the political and economic pressure, Brazil's Supreme Court
sentenced Bolsonaro to 27 years in prison for his role in a botched
coup bid after his 2022 election loss to Lula, the report notes.
The report relays that Trump, meanwhile, used his UN speech to
accuse Brazil of "censorship, repression" and "judicial
corruption."
He later switched tack, and recounted his run-in with Lula,
describing him as "a very nice man, actually," the report relays.
The two men stand on polar opposite sides when it comes to issues
such as multilateralism, international trade and the fight against
climate change, the report notes.
The Brazilian presidency said that Lula had raised the possibility
with Trump of an in-person meeting at the Association of Southeast
Asian Nations (ASEAN) summit in Malaysia in October, the report
relates.
He also re-iterated an invitation to Trump to attend the COP-30
climate conference in Brazil's Amazon city of Belem in November,
"and also expressed his willingness to travel to the United
States," the report relays.
'No-One to Talk To'
Lula has repeatedly stated that Brazil was "ready to negotiate"
regarding tariffs, but lamented there was "no-one to talk to" in
Washington, the report discloses.
A Brazilian government source told AFP the private sector played a
key role behind the scenes in the rapprochement with Washington,
citing a meeting between Trump and Brazil's billionaire beef tycoon
Joesley Batista at the White House, the report relays.
Batista's "JBS played an important role, but it wasn't the only
one," said the source, the report notes.
A European diplomat told AFP on condition of anonymity that
Brazilian aircraft manufacturer Embraer had also put pressure on
the White House, the report discloses.
Trump's tariffs mainly target major Brazilian exports beef, coffee
and sugar, the report says.
Brazilian trade data for September, released, showed that exports
to the United States fell 20.3 percent compared with last year,
while imports from the US rose 14.3 percent, the report relays.
However, Brazil has other major markets, such as Asia, for its beef
and coffee, and has been expanding to diversify its exports, the
report notes.
Overall exports grew 7.2 percent in September, with major growth in
China, India, Singapore, Argentina, Peru and Panama, the report
adds.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian
general election. He was sworn in on January 1, 2023, as the 39th
president of Brazil, succeeding Jair Bolsonaro.
In October 2024, Moody's Ratings upgraded the Government of
Brazil's long-term issuer and senior unsecured bond ratings to Ba1
from Ba2, the senior unsecured shelf rating to (P)Ba1 from (P)Ba2;
and maintained the positive outlook. S&P Global Ratings raised on
Dec. 19, 2023, its long-term global scale ratings on Brazil to
'BB' from 'BB-'. Fitch Ratings affirmed on Dec. 15, 2023, Brazil's
Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with
a Stable Outlook. DBRS' credit rating for Brazil was last reported
at BB with stable outlook at July 2023.
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D O M I N I C A N R E P U B L I C
===================================
EGE HAINA: Fitch Alters Outlook on 'BB-' IDRs to Stable
-------------------------------------------------------
Fitch Ratings has affirmed Empresa Generadora de Electricidad
Haina, S.A.'s (EGE Haina) Foreign and Local Currency Long-Term
Issuer Default Ratings (IDRs) at 'BB-' and revised the Rating
Outlook to Stable from Positive. Fitch has also affirmed EGE
Haina's USD300 million senior unsecured notes at 'BB-'.
The Stable Outlook reflects a financial structure characterized by
gross leverage (total debt to EBITDA) exceeding 5x. The ratings
reflect structural support from the Dominican Republic
(BB-/Positive) that compensates for high payment deficits from the
state-owned distribution companies, as well as a diversified asset
base and market dominance.
EGE Haina's 50% shareholder, Fondo de Inversion Cerrado de
Desarrollo de Infraestructuras Energeticas (FICDIE I), a power
infrastructure investment fund, manages the company's operations.
However, Fitch rates EGE Haina on a standalone basis, without
assuming parental support. The remaining shares are 49.993% owned
by the Dominican Republic's Fondo Patrimonial de las Empresas
Reformadas and 0.007% by minority shareholders.
Key Rating Drivers
High Leverage Drives Outlook Change: The Stable Outlook reflects
EGE Haina's higher leverage profile following recent debt-funded
investments in a sizable capex program that included new renewable
energy capacity and the Siba Energy combined-cycle plant. Leverage
has exceeded 5x since 2023 and EBITDA/interest declined to below 2x
at YE 2024. Fitch will reassess the credit metrics from 2026
onward, as EBITDA increase from fully contracted, newly operational
or expanded assets and as new debt needs decrease. Cash at YE 2025
should be about USD32 million, with no upstream dividends due to
four consecutive years of negative FCF.
As additional renewables and efficient thermal capacity enter the
Dominican Republic's energy matrix during the forecast period, the
company plans to purchase more low-cost spot energy to fulfill its
long-term PPAs rather than dispatching its relatively costlier
fuel-based plants. This shift, alongside stable contracting, should
reduce operating costs, improve EBITDA margins, and reduce
leverage.
Heightened Counterparty Exposure: Fitch expects government support
to remain a structural, albeit indirect and component of EGE
Haina's operating profile. The company contracts over half of its
revenue from the country's three state-owned distribution companies
(discos), each of which has chronically high physical energy losses
(38% as of 1H2025), low collection rates and charges electricity
tariffs that do not account for true energy costs. The central
government makes structural transfers to the discos to pay the
generators for energy received. The transfers to EGE Haina averaged
30% of its historical operating revenue and equaled or exceeded
100% of annual EBITDA.
Long-Term PPAs Stabilize Cash Flow: More than 80% of EGE Haina's
revenue is contracted through long-term, USD-denominated PPAs
through at least 2030, with a weighted average life of 10 years for
existing contracts. In 2024, 86.9% of sales were contracted through
PPAs. The contracts contain adequate cost pass-through provisions
of the company's variable costs, and, in the case of the discos,
which represent 60% of revenues, are backed by material government
support.
Diversified Asset Base: EGE Haina's credit profile benefits from a
diversified portfolio of power generation assets using different
sources of energy, including natural gas, fuel oil and coal, as
well as a growing capacity of wind and solar. Thermal sources
account for around 61% of the company's installed capacity as of
1H25, and material investment in wind and solar will shift the
company's resource base toward roughly 50% renewable energy
installed generation by 2027.
Peer Analysis
EGE Haina's 'BB-' IDR is the same as that of AES España B.V.
(Positive Outlook), the Dominican Republic's other primary
electricity generator. Both AES España B.V. and EGE Haina's
ratings are restricted by counterparty exposure from the
state-owned distribution companies, which are their main
off-takers. The Dominican electricity sector is dependent on
government transfers due to high energy losses, low collection
levels and material subsidies.
EGE Haina's credit profile benefits from its asset base in
operation with over 1GW capacity, larger than the combined capacity
of AES España and its related company Dominican Power Partners at
677MW. EGE Haina has a diversified energy matrix that utilizes
different sources of energy, including natural gas, fuel oil, wind,
coal and solar, while AES España's generation units primarily
depend on natural gas and fuel oil. Additionally, AES España has
an integrated operation with a natural gas port, regasification,
storage and gas pipeline facilities.
EGE Haina's leverage will exceed 5x through 2025 to finance the
construction of new capacity, then Fitch projects gross leverage to
decline by 2026 to the 4x range and be more comparable to that of
AES España with an average leverage closer to 3.8x.
Key Assumptions
- Government transfers to discos remain structural components of
company revenue;
- Installed capacity in operation of 1,255MW in 2025, 1,365MW in
2026 and 1,495MW in 2027;
- Siba Energy commences closed cycle operations at YE2025;
- Energy generation declines in favor of low-variable cost
purchased spot energy to fulfil PPAs;
- Account receivables of 80 days with no material delays in
government payments;
- Average annual capital expenditure (capex) of USD108 million
between 2025 and 2028;
- No to minimal dividends payments in 2025 and 2026, then
increasing to USD20 million per year thereafter while maintaining
at least USD26 million in year-end cash.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A downgrade of the Dominican Republic's sovereign rating;
- Operational cash flow deterioration that leads to sustained
leverage of more than 4.5x;
- Sustained EBITDA to interest coverage below 2.5x;
- Structurally, materially negative FCF outside of the expansion
period;
- YoY sustained cash position below USD50 million.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- An upgrade of the Dominican Republic's sovereign ratings, in
conjunction with operational cash flow improvement leading to a
sustained leverage of less than 4x and EBITDA/interest coverage
exceeding 2.5x.
Liquidity and Debt Structure
EGE Haina maintains adequate liquidity supported by its available
cash balance, access to a USD204 million in available credit lines,
predictable revenue and recently extended debt maturity terms. As
of June of 2025, the company had USD85.6 million in cash and
short-term obligations of USD54 million . As of August 2025, EGE
Haina extended its near-term debt maturities into longer-term debt,
and plans to enact future refinancings for maturities occurring in
2027 and 2028. Fitch expects a shift towards positive free cash
flow in 2026 following several years of heightened capex levels to
further support a stable liquidity position.
Issuer Profile
EGE Haina is one of the Dominican Republic's main electricity
generation companies. It is 50% controlled by power infrastructure
investment fund FICDIE I, 49.99% controlled by FONPER, a holding
company fully owned by the government of the Dominican Republic,
and 0.007% controlled by minority shareholders.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Sector Forecasts Monitor
data file which aggregates key data points used in its credit
analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
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
----------- ------ -----
Empresa Generadora
de Electricidad
Haina, S.A. LT IDR BB- Affirmed BB-
LC LT IDR BB- Affirmed BB-
senior unsecured LT BB- Affirmed BB-
=============
E C U A D O R
=============
ECUADOR: IMF Reaches 3rd Review under the EFF Arrangement
---------------------------------------------------------
An International Monetary Fund (IMF) team led by Patrizia
Tumbarello held discussions with the Ecuadorian authorities during
September 17 to October 8, 2025 on the Third Review of the
country's 48-month Extended Fund Facility (EFF) Arrangement.
Upon the conclusion of the discussions, Ms. Tumbarello issued the
following statement:
"We are pleased to announce that IMF staff have reached Staff-Level
Agreement with the Ecuadorian authorities on the Third Review under
the EFF Arrangement. In July, the IMF Executive Board approved an
augmentation of the program of about US$1 billion (SDR 750.4
million), raising total access under the program from about US$4
billion to about US$5 billion. The authorities’ program will also
catalyze additional financial support from multilateral partners.
Subject to confirmation of international partners’ financial
commitments and approval of this Review by the IMF Executive Board,
Ecuador would have immediate access to about US$600 million (SDR
438.4 million).
"Real GDP is recovering faster than expected, driven by stronger
domestic demand and record nonoil exports. The current account
balance continues recording sizable surpluses, supporting a further
increase in international reserve buffers. The economy has shown
resilience but is still subject to several challenges, including
acute global policy uncertainty and volatility in international
financial markets. The authorities’ decisive policy actions and
steadfast commitment to their economic program helps mitigate
risks.
"The authorities continue to make significant progress in
implementing their economic reform plan supported by the EFF
arrangement. All quantitative performance criteria for end-August
2025 were met, some with significant margins. The authorities have
taken important actions to strengthen fiscal sustainability and
liquidity buffers, while protecting the most vulnerable. In
addition, the authorities are advancing their ambitious structural
reform agenda to safeguard financial stability, enhance governance,
and boost private investment and job-rich growth.
"The authorities' policy actions and reforms are helping to enhance
macroeconomic and financial stability, safeguard dollarization,
strengthen fiscal sustainability, protect vulnerable groups, and
support stronger and more inclusive growth.
"The IMF staff wishes to express its gratitude to the Ecuadorian
authorities for the constructive and frank discussions during this
Review."
=============
J A M A I C A
=============
NCB FINANCIAL: S&P Affirms B/B- Ratings & Alters Outlook to Pos.
----------------------------------------------------------------
S&P Global Ratings revised the outlook to positive from stable on
its long-term issuer credit ratings on entities National Commercial
Bank Jamaica Ltd. (NCBJ) and NCB Financial Group Ltd. (NCBFG). S&P
also affirmed its long-term 'BB-' and short-term 'B' ratings on
NCBJ and long-term 'B-' and short-term 'B' ratings on NCBFG.
S&P said, "Stronger institutions, public finances, and external
sector underpin our recent upgrade of Jamaica. The support across
political parties and many economic sectors for a fiscal policy
focused on debt reduction suggests broad policy consensus that has
become embedded in Jamaica's political culture and in its governing
institutions over the past decade. We believe that the reelected
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."
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. Current account surpluses have supported central
bank reserves, while the financial sector external assets are
stronger and external debt is steady.
On the back of improved government ability to respond to
weather-related shocks, the recent drop in violent crime, and the
greater independence of the Bank of Jamaica, S&P expects growth
will rebound in 2025, with real GDP expanding by 2%. S&P expects
that growth will return to its long-term average of 1%-2% annually
by 2026-2028.
Healthier macroeconomic fundamentals lay the foundations for more
stable business conditions in the banking industry. Improving
public finances indicate that government capacity to support the
banking system in times of stress has increased in recent years,
although the magnitude and scope of the potential support remains
uncertain. S&P said, "As a result, we now regard the government's
capacity to support banks as adequate, leading to an improvement in
our BICRA of Jamaica's systemwide funding and industry risk
assessments. The government's liquidity enhancement mechanisms,
such as the deposit insurance scheme and capital buffer
requirements, reinforce its lender-of-last-resort capacity. In
addition, the government is working to launch a special crisis
resolution regime aimed at financial institutions, which could
provide timely systemwide support."
Consistent current account surpluses have supported central bank
reserves, allowing orderly movements in the exchange rate. S&P
said, "We believe healthy external balances help mitigate risk of
imbalances in the banking industry, in particular because of the
system's still high--although consistently lowering --
dollarization in terms of loans and deposits. However, we believe
imbalances risks remain intermediate due to banks' exposure to
cyclical economic sectors that might cause some volatility in their
growth."
Although the banking sector's loan portfolio is small and somehow
concentrated by industry, asset quality has been resilient to
external shocks like the pandemic and major hurricanes, and we
expect this to continue. This resilience is thanks to banks'
conservative lending strategies, active management of credit
exposures, and the stable economic conditions over the past few
years. Total credit has been growing conservatively at around 10%
per year since 2020, and the portfolio is mostly composed of
secured lending (about two-thirds of total loans). As a result, we
expect the nonperforming loans ratio to remain controlled at
2.4%-2.6% over the next 12 months.
In addition, improving domestic economic fundamentals could set the
basis for more convenient operating conditions for financial
institutions in 2026-2027. As fundamentals improve -- including
healthier public finances and external balances, more stable GDP
growth, and more supportive employment and inflation levels -- they
could underpin further banks' business expansion, healthy growth,
and better asset quality and funding conditions. Consequently, S&P
revised Jamaica's BICRA economic risk trend to positive from
stable.
S&P said, "We continue to view the BICRA industry risk trend as
stable. We expect the industry's operating framework to continue
aligning with international principles, but that initiatives will
take several years to be fully implemented. We expect the industry
to maintain stable profits and funding base as long as depositor
confidence remains strong amid good economic momentum and banks'
creditworthiness.
"The positive outlook on our ratings on NCBJ and NCBFG reflects the
positive economic risk trend in Jamaica's BICRA. We use our BICRA
economic risk and industry risk scores to establish a financial
entity's anchor, which serves as the starting point for assigning
an issuer credit rating. For Jamaica, the BICRA anchor remains
'bb-'. However, amid our recent improvement of the industry risk
score to '7' from '8', together with the revision of the economic
risk trend to positive, we believe there is a likelihood we could
revise up our BICRA anchor to 'bb' in the next six to 18 months. If
this occurs, we could raise the long-term ratings on NCBJ and NCBFG
by one notch.
"The intrinsic creditworthiness of the bank and group remains
stable, with their S&P Global Ratings risk-adjusted capital ratios
improving, although still consistent with our current assessment.
This improvement is due to the recent upgrade of the sovereign
rating, which we use to estimate the risk weights on government
exposures. We expect NCBJ to maintain its strong market position as
the largest bank in Jamaica, along with its diversified businesses
and consistent revenue generation. The bank provides a wide range
of banking products and services and has focused on fostering the
use of digital platforms in the country. In line with its owner,
NCBFG, we expect the bank to concentrate efforts on enhancing
customer experience and cross-selling its products. We expect the
bank's nonperforming assets to remain stable, although somewhat
above historical levels due to some pending corporate cases and its
loan portfolio mix. NCBJ's nonperforming assets have remained 3.1%
over the past three years (compared to 2.5% prior to the
pandemic)."
S&P expects NCBFG to remain a leading player in the Jamaican
financial industry. The group benefits from business and geographic
diversification, offering a variety of banking operations through
its direct bank subsidiaries, NCBJ and Bermuda-based Clarien Group
Ltd. (not rated). Moreover, the group has established insurance
operations through its Trinidad and Tobago-based subsidiary,
Guardian Holdings Ltd. (GHL; not rated), which occupies a leading
position in that market and has a significant presence in Jamaica.
This helps to stabilize the group's revenue generation. Clarien's
loan portfolio weighs on the group's asset quality, because it has
lower credit quality compared to that of NCBJ. While metrics
improved post-pandemic and have remained stable, with nonperforming
loans at 4.1% in 2024, the group's credit portfolio still has some
concentration in sectors more susceptible to economic downturns,
such as tourism and construction.
Outlook
National Commercial Bank Jamaica Ltd.
The positive outlook on NCBJ reflects the positive economic risk
trend in Jamaica's BICRA. S&P said, "We could upgrade the bank by
one notch in the next six to 18 months if good economic momentum in
Jamaica translates into better operating conditions for the
domestic banking industry, prompting us to revise upward the BICRA
anchor. The positive outlook on the bank also considers our
expectation that it will sustain its credit fundamentals, with
manageable credit and operational losses, adequate funding and
liquidity, and commensurate capitalization to sustain its business
plan."
Downside scenario
S&P may revise the outlook to stable if recent progress on the
sovereign's fundamentals recede, thus limiting healthier conditions
for banks, which would lead it to revise the BICRA economic risk
trend to stable.
Upside scenario
S&P could raise the long-term rating on NCBJ if it revises the
Jamaica BICRA anchor to 'bb', while the bank's intrinsic credit
fundamentals remain the same and the sovereign rating remains 'BB'
or above.
NCB Financial Group Ltd.
S&P said, "The positive outlook on NCBFG reflects the positive
economic risk trend in Jamaica's BICRA. We could upgrade the
holding company by one notch in the next six to 18 months if good
economic momentum in Jamaica translates into better operating
conditions for the domestic banking industry, prompting us to
revise upward the BICRA anchor. The positive outlook on the holding
company also considers our expectation that the group will maintain
its credit fundamentals, including diversified and stable revenue
sources, good capitalization at its subsidiaries, and gradually
improving consolidated risk-adjusted capital metrics (per our
methodology). We also expect the group and its banking subsidiaries
will maintain manageable asset quality and operational losses."
Downside scenario
S&P may revise the outlook to stable if recent progress on the
sovereign's fundamentals recede, thus limiting healthier conditions
for financial entities, which would lead it to revise the BICRA
economic risk trend to stable.
Upside scenario
S&P could raise the long-term rating on NCBFG if it revises the
Jamaica BICRA anchor to 'bb', while the group and holding company's
intrinsic credit fundamentals remain the same.
Jamaica--BICRA Score Snapshot
To From
BICRA group 8 8
Economic risk 8 8
Economic resilience Extremely Extremely
high risk high risk
Economic imbalances Intermediate risk Intermediate risk
Credit risk in the economy High risk Very high risk
Trend Positive Stable
Industry risk 7 8
Institutional framework High risk High risk
Competitive dynamics Very high risk Very high risk
Systemwide funding High risk Very high risk
Trend Stable Stable
Banking Industry Country Risk Assessment (BICRA) economic risk and
industry risk scores are on a scale from 1 (lowest risk) to 10
(highest risk).
Ratings Component Scores
National Commercial Bank Jamaica Ltd.
Issuer Credit Rating BB-/Positive/B
SACP bb-
Anchor bb-
Business position Strong (+1)
Capital and earnings Moderate (0)
Risk position Moderate (-1)
Funding and liquidity Adequate and adequate (0)
Comparable ratings analysis 0
Support 0
ALAC support 0
GRE support 0
Group support 0
Sovereign support 0
Additional factors 0
SACP--Stand-alone credit profile.
NCB Financial Group Ltd.
Issuer Credit Rating B-/Positive/B
SACP b+
Anchor bb-
Business position Strong (+1)
Capital and earnings Constrained (-1)
Risk position Moderate (-1)
Funding and liquidity Adequate and adequate (0)
Comparable ratings analysis 0
Support 0
ALAC support 0
GRE support 0
Group support 0
Sovereign support 0
Additional factors -2
SACP--Stand-alone credit profile.
Ratings List
Ratings Affirmed; Outlook Action
To From
NCB Financial Group Ltd.
Issuer Credit Rating B-/Positive/B B-/Stable/B
National Commercial Bank Jamaica Limited
Issuer Credit Rating BB-/Positive/B BB-/Stable/B
Ratings Affirmed
NCB Financial Group Ltd.
Senior Secured B-
===========
M E X I C O
===========
METROFINANCIERA SAPI: Fitch Lowers Rating on MTROCB 07U Notes to D
------------------------------------------------------------------
Fitch Ratings has downgraded Metrofinanciera S.A.P.I. de C.V. SOFOM
ER's (Metrofinanciera; D(mex)/D(mex)) residential mortgage-backed
security MTROCB 07U to 'Dsf' and 'D(mex)vra' from 'Csf' and
'C(mex)vra' due to the missed interest payment recorded on Oct. 1,
2025, and the expectation that additional shortfalls will continue
to occur given a natural decline in collections stemming from
portfolio deterioration.
Entity/Debt Rating Prior
----------- ------ -----
Metrofinanciera
MTROCB07U (F#297)
MTROCB 07U
Senior Notes
MX97MT010009 LT Dsf Downgrade Csf
Senior Notes
MX97MT010009 Natl LT D(mex)vra Downgrade C(mex)vra
KEY RATING DRIVERS
The downgrades reflect the missed interest payment recorded on Oct.
1, 2025, in line with the common representative's notice dated
Sept. 29, 2025. Fitch believes this event can no longer be
considered isolated. While the transaction could meet its payment
obligations in the future (if asset monetization improves
liquidity), the agency expects shortfalls to persist, as asset
performance is expected to continue deteriorating. Additionally,
the transaction would rely on recoveries for full debt repayment.
As of Oct. 1, 2025, accrued interest payable totaled 226,128.82
inflation-indexed units (UDIs); of that amount, only 202,131.96
UDIs were paid. The unpaid amount is 23,996.86 UDIs, equivalent to
10.61% of interest due. The outstanding interest will be included
in the calculation for the next period and, if applicable, the
corresponding payment will be made on Nov. 1, 2025.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
MTROCB 07U ratings are already at the lowest level on both the
national and international scales, a further downgrade is not
possible.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
The agency considers an upgrade unlikely, as the current rating
reflects the notes' failure to meet their payment obligations.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
ESG Considerations
Fitch does not provide ESG relevance scores for Metrofinanciera
MTROCB07U (F#297) MTROCB 07U.
In cases where Fitch does not provide ESG relevance scores in
connection with the credit rating of a transaction, program,
instrument or issuer, Fitch will disclose any ESG factor that is a
key rating driver in the key rating drivers section of the relevant
rating action commentary.
=======
P E R U
=======
BANCO DE CREDITO DEL PERU: Fitch Rates USD Sub. Notes 'BB+(EXP)'
----------------------------------------------------------------
Fitch Ratings has assigned an expected rating of 'BB+(EXP)' to
Banco de Credito del Peru S.A.'s (BCP) upcoming issue of U.S.
dollar-denominated subordinated Tier 2 notes'. The notes are for an
amount yet to be determined at a rate to be set at the time of the
issuance. The tenor of these notes is also yet to be determined.
The final rating is contingent on the receipt of final documents
materially conforming to the information already received. The use
of proceeds will be for general corporate purposes.
Key Rating Drivers
The expected rating for the upcoming issuance is two notches below
BCP's anchor rating, its Viability Rating (VR) of 'bbb'. The
two-notch difference between BCP's's VR and the Tier 2 notes'
expected rating reflects the notes' higher loss severity relative
to senior debt considering their subordinated status and its view
of a heightened likelihood of poor recoveries in a default. As the
notes do not have any going-concern loss absorption (e.g. interest
deferral) features, no additional notching for incremental
non-performance risk has been applied.
The notes will rank pari passu in right of payment with other
parity obligations of the issuer; senior in right of payment to all
of the Issuer's existing and future Junior Obligations and share
capital and junior in right of payment to all of the Issuer's
existing and future senior obligations.
BCP's IDRs are driven by its VR of 'bbb', which is aligned with the
implied VR. The bank's ratings are supported by its robust and
leading market position, well-diversified business model,
consistent funding strategies, and a solid and improving financial
profile. However, these ratings are constrained at the sovereign
level due to the bank's limited geographical diversification beyond
Peru and significant exposure to foreign currency.
For more details on BCP, see Fitch Affirms Banco de Credito del
Peru at 'BBB'; Outlook Stable.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- The subordinated debt ratings would mirror any negative action on
the bank's VR and would maintain the downward notching from it.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- The subordinated debt ratings would mirror any positive action on
the bank's VR and would maintain the downward notching from it.
ESG Considerations
Fitch does not provide ESG relevance scores for Banco de Credito
del Peru S.A.
In cases where Fitch does not provide ESG relevance scores in
connection with the credit rating of a transaction, programme,
instrument or issuer, Fitch will disclose any ESG factor that is a
key rating driver in the key rating drivers section of the relevant
rating action commentary.
Entity/Debt Rating
----------- ------
Banco de Credito
del Peru S.A.
Subordinated LT BB+(EXP) Expected Rating
=====================
P U E R T O R I C O
=====================
CIUDAD DEPORTIVA: Section 341(a) Meeting of Creditors on Oct. 29
----------------------------------------------------------------
Ciudad Deportiva Roberto Clemente Inc. filed Chapter 11 protection
in the District of Puerto Rico on Sept. 27, 2025. According to
court filing, the Debtor reports between $1 million and $10 million
in debt owed to 1 and 49 creditors. The petition states funds will
be available to unsecured creditors.
A meeting of creditors under Section 341(a) in the Debtor's case
will be held on October 29, 2025 at 10:00 AM via Telephonic
Conference.
About Ciudad Deportiva Roberto Clemente Inc.
Ciudad Deportiva Roberto Clemente Inc. operates in the sports and
recreation industry from its base in Carolina, Puerto Rico, where
it was established to develop and manage athletic and educational
facilities for youth and the community. The nonprofit entity was
created to oversee a large-scale sports complex known as Sports
City, intended to provide baseball fields, courts, swimming pools,
and training areas. It reports business activity under the
classification of "Other Amusement and Recreation Industries" and
maintains limited operations tied to sports, education, and
recreational services.
Ciudad Deportiva Roberto Clemente Inc. sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-04345) on
September 27, 2025. In its petition, the Debtor reports estimated
estimated assets and liabilities between $1 million and $10 million
each.
Honorable Bankruptcy Judge Enrique S. Lamoutte Inclan handles the
case.
The Debtor is represented by Hector Eduardo Pedrosa Luna, Esq. of
THE LAW OFFICES OF HECTOR EDUARDO PEDROSA LUNA.
PUERTO RICO: Court Says Committee Members Firing Unlawful
---------------------------------------------------------
Jim Wyss and Michelle Kaske of Bloomberg News report that the U.S.
District Court of Puerto Rico ruled that the Trump administration
overstepped its authority when it dismissed several members of
Puerto Rico's Financial Oversight and Management Board (FOMB) in
August.
The court found that the White House's action to remove the members
violated federal law governing the board's structure and
independence, according to the report.
The administration had fired six of the seven board members, a move
that prompted three of them -- Arthur Gonzalez, Andrew Biggs, and
Betty Rosa -- to challenge their removal. They argued that the
dismissals were politically motivated and lacked the legal
justification required for such action under the Puerto Rico
Oversight, Management, and Economic Stability Act (PROMESA), the
report states.
In a decision issued October 3, 2025, U.S. District Judge
Maria Antongiorgi-Jordan agreed with the plaintiffs, ruling that
the White House failed to provide valid cause for their
termination. The judge's ruling reinstates the members and
reinforces the board's autonomy as it continues to oversee Puerto
Rico's fiscal recovery and debt restructuring efforts.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States. The chief of state is the President of the
United States of America. The head of government is an elected
Governor. There are two legislative chambers: the House of
Representatives, 51 seats, and the Senate, 27 seats. The
governor-elect is Ricardo Antonio Rossello Nevares, the son of
former governor Pedro Rossello.
In 2016, the U.S. Congress passed PROMESA, which, among other
things, created the Financial Oversight and Management Board and
imposed an automatic stay on creditor lawsuits against the
government, which expired May 1, 2017.
The members of the oversight board are: (i) Andrew G. Biggs, (ii)
Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J.
Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii)
David A. Skeel Jr.
On May 3, 2017, the Commonwealth of Puerto Rico filed a petition
for relief under Title III of the Puerto Rico Oversight,
Management, and Economic Stability Act (PROMESA). The case is
pending in the United States District Court for the District of
Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico
PROMESA petition is available at
http://bankrupt.com/misc/1701578-00001.pdf
On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation
(COFINA) commenced a case under Title III of PROMESA (D.P.R. Case
No. 17-01599). Joint administration has been sought for the Title
III cases.
On May 21, 2017, two more agencies; Employees Retirement System of
the Government of the Commonwealth of Puerto Rico and Puerto Rico
Highways and Transportation Authority (Case Nos. 17-01685 and
17-01686) commenced Title III
cases.
U.S. Chief Justice John Roberts named U.S. District Judge Laura
Taylor Swain to preside over the Title III cases.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq.,
at O'Neill & Borges LLC are onboard as attorneys.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains the case Web site
https://cases.primeclerk.com/puertorico
Jones Day is serving as counsel to certain ERS bondholders.
Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General
Obligation Bondholders.
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