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251016.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 Thursday, October 16, 2025, Vol. 26, No. 207 Headlines A R G E N T I N A ARGENTINA: US Buys Pesos, Confirms US$20-Billion Lifeline B E R M U D A NABORS INDUSTRIES: Oaktree Entities Hold 5.12% Stake as of Sept. 29 E C U A D O R ECUADOR: IMF Reaches Deal on 3rd Review Under Extended Fund G U A T E M A L A GUATEMALA: Fitch Hikes LongTerm IDR to 'BB+', Outlook Stable J A M A I C A JAMAICA: Monetary Base Increased by $11 Billion at September End NCB JAMAICA: S&P Affirms 'BB-' Rating & Alters Outlook to Stable M E X I C O BANCO DEL BAJIO: Fitch Affirms 'BB+' LongTerm IDRs, Outlook Stable DEL MONTE: Claims Filing Deadline Set for Nov. 5 P U E R T O R I C O CIUDAD DEPORTIVA: Taps Hector Eduardo Pedrosa-Luna as Counsel - - - - - ================= A R G E N T I N A ================= ARGENTINA: US Buys Pesos, Confirms US$20-Billion Lifeline --------------------------------------------------------- Buenos Aires Times reports that U.S. President Donald Trump has put some of his "America First" capital online by greenlighting a multi-billion-dollar rescue package for Argentina – or more specifically, President Javier Milei. US Treasury Secretary Scott Bessent confirmed that Washington had bought Argentine pesos and finalised a US$20-billion economic support programme to help prop up the nation's faltering finances and calm turbulent currency markets, according to Buenos Aires Times. The report notes that Milei, a close ally of Trump, swiftly thanked the US leader for his "vision and powerful leadership." "Together, as close allies, we will build a hemisphere of economic freedom and prosperity," the La Libertad Avanza leader said, welcoming Bessent's announcement, the report relays. With Argentina's reserves desperately depleted, Bessent's announcement is expected to calm market doubts ahead of this month's midterm elections, the report discloses. The report says that Argentina's Central Bank was recently forced to sell more than US$1 billion in three days to prop up the peso, though it refrained from intervention, perhaps anticipating the US announcement. The report notes Milei had been struggling with market turbulence after a defeat in regional elections in Buenos Aires Province that were seen as a bellwether for the upcoming national elections. "Argentina faces a moment of acute illiquidity," Bessent wrote on social media, stating that Washington was well-positioned to act quickly, the report relays. "To that end, today we directly purchased Argentine pesos," the Treasury chief said. "Additionally, we have finalised a US$20-billion currency swap framework with Argentina's central bank," he added. The report relays that Bessent stressed that the US Treasury is "prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets." It's the third time the official has made such a comment in the past two months, the report says. Bessent's comments on X came after four days of meetings with Argentina's Economy Minister Luis Caputo in Washington, the report notes. Trump and Milei were due to meet at the White House, on October 14, for a high-profile meeting, the report discloses. The report relays that the US Treasury secretary said he plans to see Caputo again on the sidelines of the annual meetings of the International Monetary Fund and World Bank in Washington. The IMF has a role in this financial aid package, which Bessent assured was not "a bailout," the report notes. "Minister Caputo informed me of his close coordination with the IMF on Argentina's commitments under its bilateral program," Bessent recalled, the report discloses. Argentina already has a US$20-billion credit line with the Fund, agreed in April. In 2018, it took on a US$57-billion program under the administration of former president Mauricio Macri, of which it received US$44.5 billion, the report relays. Bloomberg estimates that Argentina's overall debt with the Fund stands at around US$55 million, the report notes. 'Systemic Importance' The Donald Trump administration's pledge to support Argentina has faced criticism, with several Democratic lawmakers calling on Trump last month to halt his plan, the report says. In a letter, they pointed to Argentina's recent decision to temporarily suspend soybean export duties, a move that they said undercut US farmers – who are already facing multiple challenges – in the global market, the report notes. The report discloses that Bessent has previously defended the plans. He told CNBC in early October that "as far as what the US is doing, just to be clear, we are giving them a swap line. We are not putting money into Argentina." The US official said that "the success of Argentina's reform agenda is of systemic importance" as well, the report relays. He said "a strong, stable Argentina which helps anchor a prosperous Western Hemisphere is in the strategic interest of the United States," arguing that its success should be a bipartisan priority, the report relays. At the start of the month, Bessent told CNBC that many governments in South America "moved from far-left to centre-right. We did not support them, and then they took a hard lurch to the left." At the time, he called Argentina a "beacon," adding that other countries could follow its lead, the report relays. The report discloses that Bessent described an optimistic economic outlook for his Southern Cone ally, despite the pressure that Argentina's debt and national currency have been under for weeks. "Argentina's policies, when anchored in fiscal discipline, are sound. Its exchange rate band remains adequate," he said in his message, the report notes. Bessent said during his conversations with Caputo, he was reassured by the "focus on achieving fiscally sound economic freedom for the people of Argentina via lower taxes, higher investment, private-sector job creation, and partnering with allies," the report discloses. "As Argentina lifts the dead weight of the state and stops spending into inflation, great things are possible," 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. ============= B E R M U D A ============= NABORS INDUSTRIES: Oaktree Entities Hold 5.12% Stake as of Sept. 29 ------------------------------------------------------------------- Oaktree Capital Holdings, LLC, Oaktree Capital Group Holdings GP, LLC, and Oaktree Capital Management, L.P., disclosed in a Schedule 13G (Amendment No. 2) filed with the U.S. Securities and Exchange Commission that as of September 29, 2025, they beneficially own 809,047 common shares, consisting of 737,112 common shares held directly and 71,935 common shares issuable upon redemption of convertible bonds, of Nabors Industries Ltd's common shares, representing 5.12% of the 15,736,950 common shares outstanding as of June 30, 2025. Oaktree Capital Holdings, LLC may be reached through: C/O Oaktree Capital Management, L.P. Henry Orren, Managing Director 333 S. Grand Avenue, 28th Floor Los Angeles, Calif. 90071 Tel: 213-830-6300 A full-text copy of the SEC report is available at: https://tinyurl.com/3wm98jmw 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. ============= E C U A D O R ============= ECUADOR: IMF Reaches Deal on 3rd Review Under Extended Fund ----------------------------------------------------------- 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." ================= G U A T E M A L A ================= GUATEMALA: Fitch Hikes LongTerm IDR to 'BB+', Outlook Stable ------------------------------------------------------------ Fitch Ratings has upgraded Guatemala's Long-Term Foreign and Local Currency Issuer Default Rating (IDR) to 'BB+' from 'BB'. The Rating Outlook is Stable. In addition, Fitch has upgraded Guatemala's Country Ceiling to 'BBB' from 'BBB-'. Key Rating Drivers Ratings Upgrade: The upgrade of Guatemala's ratings reflects solid and stable growth, longstanding policy prudence, and current account surpluses that support a build-up in external buffers. Fitch projects continued low fiscal deficits and debt-to-GDP, while higher government infrastructure and social investment boost growth. Growing current-account surplus supports a rapid build-up in international reserves and strengthening of the external balance sheet. Guatemala's ratings are supported by strong fiscal and external balance sheets. The ratings are constrained by governance challenges, and low GDP per capita. Solid Growth: Guatemala's real GDP growth is projected to remain robust at 3.8% in 2025, following 3.7% in 2024. Momentum stems from robust private demand, supported by remittances up around 20% yoy through September, and consumer credit up 10% yoy as of September, and strong public investment (central government capital outlays up 32% yoy as of August 2025). Fitch expects growth to stabilize at 3.7% in 2026-2027, with upside from strong capex execution and progress on public-private partnerships (PPPs) and downside from tighter U.S. trade and immigration shifts that could curb remittance-fueled consumption. Although the current growth pace remains in line to the 'BB' median (3.8% in 2025), it remains modest in the context of high population growth, resulting in slow convergence of per-capita income with peers. U.S. Policy Risk: U.S. immigration policy uncertainty is supporting a surge in remittances but could pose a downside risk in the coming years. While U.S. deportations are not up significantly, immigration to the U.S. has slowed sharply, which could contain remittance growth. Reduced outmigration from Guatemala could pose some offsetting upside to growth, but this hinges on the ability of the country to effectively integrate these workers in productive activities, which is uncertain. However, the 10% reciprocal U.S. tariff on Guatemala should be manageable, given the country's goods exports to the U.S. are low at (4.4% of GDP in 2024), and subject to a lower tariff than some competitors. Strong External Position: Fitch expects the current account surplus to widen to 4.8% of GDP in 2025 from 2.9% in 2024 on rising remittances. Central bank (BanGuat) international reserves have surged to USD 31.1 billion from USD 24.4 billion as of December 2024, driven by a current account surplus that has led to large net FX purchases, as well as sovereign external borrowing. Guatemala's sovereign net foreign asset (SNFA) position was 9.5% of GDP in 2024, well above the 'BB' median of 1.6% and the highest in Latin America and is projected to reach about 12% in 2025. Inflation Remains Low: Inflation has remained below the 4%±1pp target since mid-2023 and was 1.5% as of September. BanGuat has cut its policy rate twice by 25bp in August and September to 4.0%, slightly below the U.S. Federal Funds Rate. Fitch expects BanGuat to maintain a cautious stance going forward, as inflation expectations remain anchored around the 4% target. Fiscal Deficits Moderately Wider: Fitch expects the central government (CG) deficit to widen from 1.0% of GDP in 2024 to 2.5% in 2025 amid higher infrastructure and social spending. Fitch projects expenditures to rise to 15.1% of GDP in 2025 from 13.4% in 2024, assuming some under-execution. Growth in tax collections has moderately outpaced nominal GDP, indicating continued, though smaller, gains from the tax authority's efforts to combat evasion. For 2026, Fitch projects a CG deficit of 2.4%, below the 3.3% forecast in the proposed budget, assuming revenue growth in line with nominal GDP and further under-execution of capex. At the general government level (including the IGSS social security institute), there was a balanced fiscal position in 2024, and Fitch projects a deficit of 1.6% of GDP in 2025, well below the 'BB' peer median of 3.0%. Debt to Remain Low: In 2025, the authorities issued more domestic debt than in the prior two years but still mostly relied on external loans and bond issuance. Fitch projects gross government debt rising to 28.1% in 2025 from 26.3% in 2024. At the consolidated general government level (excluding IGSS holdings), Fitch expects debt to rise to 25.7% of GDP in 2025 and 26.4% in 2026, from 24.4% in 2024, well below the 'BB' median of 54.1%. Governance Remains a Constraint: President Arévalo remains focused on his anti-corruption agenda, but pushback from vested interest and a highly fragmented Congress complicated efforts. His Semilla party lost its legal status and recently split with the emergence of the new Raíces party. These institutional challenges were underscored by Congress's recent dismissal, on procedural grounds, Arévalo's veto of a bill that would reduce federal oversight of funds by subnational departmental development councils (Codedes), sending the matter to the Constitutional Court. Nevertheless, the administration secured legislative progress, including an antitrust law, a priority road infrastructure law, ongoing procurement reforms, and steps to strengthen AML/CTF. Looking ahead, the 2026 appointment cycle—including the attorney general, Constitutional Court and Supreme Electoral Court—will test governability under Arévalo and his ability to advance governance reforms. Guatemala's governance metrics remain weak, with a composite WGI score near the 27th percentile and particularly low results in Control of Corruption and Rule of Law (around the 14th-15th percentiles), underscoring the scale of the institutional challenge. ESG - Governance: Guatemala has an ESG Relevance Score (RS) of '5' for both Political Stability and Rights and for the Rule of Law, Institutional and Regulatory Quality and Control of Corruption. These scores reflect the high weight that the World Bank Governance Indicators (WBGI) have in its proprietary Sovereign Rating Model. Guatemala has a low WBGI ranking at the 27th percentile, reflecting relatively weak rights for participation in the political process, weak institutional capacity, uneven application of the rule of law and a high level of corruption. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Structural: Renewed social instability and/or political gridlock that affect macroeconomic performance, budget approvals or government financing flexibility; - Macro: Significantly lower-than-expected growth performance or weaker medium-term growth prospects. - Public Finances: Structural fiscal deterioration that puts debt-to-GDP on a steeper upward path, particularly should this be driven by erosion in tax collections. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Structural: Evidence of improving governability and reduction in political risk, for example, implementation of growth enhancing reforms, and progress on public works projects. - Public Finances: Maintenance of prudent policy mix that preserves low fiscal deficits and strengthens confidence in broadly stable debt/GDP over the medium-term. - Macro: Improved investment and growth prospects that support faster per-capita income convergence with peers. Sovereign Rating Model (SRM) and Qualitative Overlay (QO) Fitch's proprietary SRM assigns Guatemala a score equivalent to a rating of 'BB+' on the Long-Term Foreign-Currency (LT FC) IDR scale. Fitch's sovereign rating committee did not adjust the output from the SRM to arrive at the final LT FC IDR. Fitch's SRM is the agency's proprietary multiple regression rating model that employs 18 variables based on three-year centred averages, including one year of forecasts, to produce a score equivalent to a LT FC IDR. Fitch's QO is a forward-looking qualitative framework designed to allow for adjustment to the SRM output to assign the final rating, reflecting factors within its criteria that are not fully quantifiable and/or not fully reflected in the SRM. Debt Instruments: Key Rating Drivers Senior Unsecured Debt Equalised: The senior unsecured long-term debt ratings are equalised with the applicable long-term IDR, as Fitch assumes recoveries will be 'average' when the sovereign's long-term IDRs is 'BB-' and above. No Recovery Ratings are assigned at this rating level. Country Ceiling The Country Ceiling for Guatemala is 'BBB', two notches above the LT FC IDR. This reflects 'Strong' constraints and incentives, relative to the IDR, against capital or exchange controls being imposed that would prevent or significantly impede the private sector from converting local currency into foreign currency and transferring the proceeds to non-resident creditors to service debt payments. Fitch's Country Ceiling Model produced a starting point uplift of +2 notches above the IDR. Fitch's rating committee did not apply a qualitative adjustment to the model result. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for Guatemala. ESG Considerations Guatemala has an ESG Relevance Score of '5' for Political Stability and Rights as World Bank Governance Indicators have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and a key rating driver with a high weight. As Guatemala has a percentile rank below 50 for the respective Governance Indicator, this has a negative impact on the credit profile. Guatemala has an ESG Relevance Score of '5' for Rule of Law, Institutional & Regulatory Quality and Control of Corruption as World Bank Governance Indicators have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and are a key rating driver with a high weight. As Guatemala has a percentile rank below 50 for the respective Governance Indicators, this has a negative impact on the credit profile. Guatemala has an ESG Relevance Score of '4' for Human Rights and Political Freedoms as the Voice and Accountability pillar of the World Bank Governance Indicators is relevant to the rating and a rating driver. As Guatemala has a percentile rank below 50 for the respective Governance Indicator, this has a negative impact on the credit profile. Guatemala has an ESG Relevance Score of '4[+]' for Creditor Rights as willingness to service and repay debt is relevant to the rating and is a rating driver for Guatemala, as for all sovereigns. As Guatemala has track record of 20+ years without a restructuring of public debt and captured in its SRM variable, this has a positive impact on the credit profile. 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 ----------- ------ ----- Guatemala LT IDR BB+ Upgrade BB ST IDR B Affirmed B LC LT IDR BB+ Upgrade BB LC ST IDR B Affirmed B Country Ceiling BBB Upgrade BBB- senior unsecured LT BB+ Upgrade BB ============= J A M A I C A ============= JAMAICA: Monetary Base Increased by $11 Billion at September End ---------------------------------------------------------------- RJR News reports that Jamaica's monetary base (notes and coins in circulation plus the current account of the commercial banks and their statutory cash reserves held at the central bank) climbed by $11 billion to $427.5 billion as at the end of September from $416.5 billion at the end of August this year. This was due to an increase in the amount of paper money in circulation by $815 million to $275.2 billion in September (from $274.4 billion in August), according to RJR News. The amount of coins in circulation also climbed by $121.3 million to $7.4 billion in September (from $7.2 billion in August), the report notes. The statutory reserves of the commercial banks also climbed by $1.1 billion to $76.9 billion in September (from $75.7 billion in August), while the amount of money in their current accounts jumped by $8.9 billion to $67.9 billion in September, from $59 billion in August, the report adds. NCB JAMAICA: S&P Affirms 'BB-' Rating & Alters Outlook to Stable ---------------------------------------------------------------- RJR News reports that NCB Financial Group (NCBFG) and its main subsidiary National Commercial Bank Jamaica Limited (NCBJ) have received a positive outlook from S&P Global Ratings, reflecting growing confidence in the strength of Jamaica's economy and the group's performance. S&P revised the outlook on both entities' long-term issue-accredited ratings from 'stable' to 'positive', while affirming the existing ratings of 'B-' for the group and 'BB-' for the bank, according to RJR News. The change follows S&P's upgrade to Jamaica's sovereign rating to 'BB', citing the country's sustained fiscal discipline, strong institutional framework and sound macroeconomic management, the report notes. S&P also noted that Jamaica's banking sector remains resilient, supported by conservative lending practices, stable asset quality and prudent regulation, the report relays. Within this landscape, NCBJ continues to lead as Jamaica's largest financial institution, with a diversified business model, solid funding base and consistent earnings, the report discloses. The broader NCB Financial Group, which operates in Bermuda and Trinidad and Tobago, also benefits from regional diversification, contributing to its stable overall performance, the report says. According to S&P, the positive outlook suggests the possibility of a future ratings upgrade within 6-18 months, depending on continued economic strength and solid credit fundamentals across the group, the report notes. CEO of NCB Financial Group Robert Almeida welcomed the revision, calling it a strong endorsement of NCB's disciplined strategy and robust business model, the report adds. =========== M E X I C O =========== BANCO DEL BAJIO: Fitch Affirms 'BB+' LongTerm IDRs, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed Banco del Bajio S.A. Institucion de Banca Multiple's (BanBajio) Long- and Short-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB+' and 'B', respectively, Viability Rating (VR) at 'bb+' and Government Support Rating (GSR) at 'b+'. The Rating Outlook on the Long-Term rating is Stable. Fitch has also affirmed BanBajio's and Financiera Bajio, S.A. de C.V. Sofom E.R.'s (FIBA) Long- and Short-Term National scale ratings at 'AA(mex)'/Stable and 'F1+(mex)', respectively. Key Rating Drivers Ratings Driven by Inherent Creditworthiness: BanBajio's IDRs and National Ratings are underpinned by its good intrinsic performance, as evidenced in its 'bb+' VR. This denotes the bank's consistent business profile and conservative risk appetite, which has translated in a performance characterized by good asset quality and capital levels, along a stable funding profile. Stable Operating Environment: Fitch expects BanBajio to continue generating business volumes at acceptable risk levels, underpinned by the agency's 'bb+'/stable Operating Environment (OE) assessment for Mexican banks. While softer GDP growth could result from tariff-related pressures and slower U.S. economic activity, Mexico's large and diversified economy should help keep the Operational Risk Index (ORI) and GDP per capita broadly stable, preserving operating conditions for banks. Consistent Business Profile: BanBajio's intrinsic performance captured its good franchise and recognized market position in the Bajío region, with a business model specialized in the agribusiness and SME segments. This has fostered long-lasting relationships with clients that have allowed it to withstand strong competition from larger banks, as well as partially offset its less diversified model compared to close peers. Its profile reflects relatively stable earnings generation, with total operating income (TOI) of USD664 million as of June 2025, like that achieved in the same period of 2024 in local currency. Fitch expects that higher income can enhance the TOI in the medium term, closing the gap with its closest peers. Good, Albeit Slightly Pressured, Loan Quality: As of June 2025, the stage 3 loans-to-gross credits ratio showed deterioration, reaching 1.8% (2024: 1.5%). This deterioration was mainly driven by specific borrowers in the agribusiness and real estate sectors whose repayment capacity was strained due to market conditions, with a strong Mexican peso, and particular situations. However, the metric remains comparing well with peers and the banking system (2.1%). Fitch expects the bank's prudent underwriting standards, strict credit practices, close monitoring, and more conservative collateral schemes to support asset quality. These factors should keep the core metric at 1.8%-1.9% in 2025 and 2026, consistent with its 'bb+' score and a stable trend. Constant Performance Tending to Stabilize: Profitability continues to normalize. The bank's operating profit-to-risk-weighted assets (RWA) ratio was 4.7% in June 2025, down from 5.4% in 2024 and 6.6% in 2023. This was due to lower interest rates, and asset-liability mix that affected the net interest margin (NIM), along with high loan impairment charges (LICs) from portfolio deterioration; however, operating expenses remained controlled. Given the bank's strategies, Fitch estimates that profitability, although slightly pressured, will remain at solid levels around 4.4% in the coming years, which are more consistent with its current 'bb+' score. Therefore, the agency revised the trend for the earnings and profitability factor to stable from positive. Good Capitalization Levels: In 1H25, the common equity Tier 1 (CET1) to RWA metric was 14.3%, down from 14.9% in 2024, reflecting modest RWA growth, lower earnings, and dividend pay-outs. Fitch considers this level provides BanBajio with buffers to absorb losses and is commensurate with its 'bb' score, although the metric is below that of some of its peers. Fitch estimates the ratio will remain at levels around 15% over the rating horizon, sustained by moderate loan growth and consistent internal capital generation, which should offset dividend payments. Steady Funding and Liquidity Profile: The banks' funding structure is composed mainly of customer deposits that have expanded alongside moderate increase in credits. This improved the loan-to-deposit ratio to 100.4% as of 1H25, versus the 106.5% average for the last four years. Fitch expects this trend to continue, due to BanBajio's strategy to optimize the financing mix to benefit its cost, leading to a ratio approaching 100% in 2025 and 2026 and converging with that of its peers. Fitch also weighs its access to credit lines from different institutions and its stable liquidity profile, which provides flexibility to face difficulties in the market. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade BanBajio's IDRs, VR and National Ratings could be downgraded due to a material deterioration of its financial performance that leads to a sustained decline in a CET1 to RWA ratio below 14% and operating profit to RWAs ratio below 2%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade BanBajio's IDRs, VR and National Ratings could be upgraded if the operating environment and its credit profile both improve. Specifically, if the bank's TOI significantly increase and close the gap compared to higher rated peers in conjunction to improve its CET1 to RWA ratio above 20% and operating income to RWA close to 5% consistently, while maintaining the rest of its financial profile healthy. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Government Support Rating (GSR): The bank's GSR of 'b+', three notches below domestic systemically important banks' GSRs (bb+), denotes Fitch's view that a default of BanBajio would not result in a relevant contagion risk for the rest of the system factoring its less systemic importance than its peers. Given the bank mid-size franchise and moderate market share of customer deposits, which represented around 3.2% of the Mexican banking system, corresponding about 28% to individual deposits as of 1H25, the agency considers as moderate the probability of sovereign support in case of need it. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - BanBajio's GSR could be downgraded if Fitch believes that the government's propensity to support the bank declines due a material loss in the market share of customer deposits. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of BanBajio's GSR is limited and could only occur over time with a material gain in the bank's systemic importance. SUBSIDIARIES & AFFILIATES: KEY RATING DRIVERS Core Subsidiary for BanBajio: FIBA's national scale ratings are aligned with its shareholder's credit profile, BanBajio. Fitch considers FIBA plays a fundamental role in the bank's strategy, complementing its product offerings through factoring and financial leasing. Fitch's assessment also considers than BanBajio provides consistent support to FIBA via a credit line and as a joint obligor of one of FIBA's main financing providers. SUBSIDIARIES AND AFFILIATES: RATING SENSITIVITIES Factors That Could, Individually Or Collectively, Lead To Negative Rating Action/Downgrade - Any negative movement on FIBA's national ratings would be driven by a negative action on BanBajio's national ratings; - A change in the entity's strategic importance to the bank could negatively affect FIBA's ratings. Factors That Could, Individually Or Collectively, Lead To Positive Rating Action/Upgrade - Any positive movement on FIBA's national ratings would be driven by a positive action on BanBajio's national ratings. VR ADJUSTMENTS The Earnings and Profitability Score of 'bb+' has been assigned below the 'bbb' category implied score due to the following adjustment reason: Historical and Future Metrics (negative). Summary of Financial Adjustments Fitch's tangible capital calculation excluded prepaid expenses and other deferred assets from shareholders' equity. Sources of Information The principal sources of information used in the analysis are described in the Applicable Criteria. Financial figures are in accordance with the Comision Nacional Bancaria y de Valores criteria. Figures from 2022 include accounting changes in the process to converge to International Financial Reporting Standards. Prior years did not include these changes, and Fitch believes they are not directly comparable. Public Ratings with Credit Linkage to other ratings FIBA's ratings and Outlook are aligned with those of BanBajio as because it is a core entity to the bank's business strategy. 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 del Bajio, 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 AA(mex) Affirmed AA(mex) Natl ST F1+(mex) Affirmed F1+(mex) Viability bb+ Affirmed bb+ Gov't Support b+ Affirmed b+ Financiera Bajio, S.A. de C.V., SOFOM, E.R. Natl LT AA(mex) Affirmed AA(mex) Natl ST F1+(mex) Affirmed F1+(mex) DEL MONTE: Claims Filing Deadline Set for Nov. 5 ------------------------------------------------ The U.S. Bankruptcy Court for the District of New Jersey set Nov. 5, 2025, at 5:00 p.m. (prevailing Eastern Time) as last date and time for person or entities to file proofs of claim against Del Monte Foods Corporation II Inc. and its debtor-affiliates. The Court also set Dec. 29, 2025, at 5:00 p.m. (prevailing Eastern Time) as deadline for all governmental units to file their claims against the Debtors. Each Proof of Claim, including supporting documentation, must be submitted so that the Notice and Claims Agent actually receives the Proof of Claim on or before the applicable Bar Date by: (i) electronically using the interface available on the Notice and Claims Agent's website at https://cases.stretto.com/DelMonteFoods (ii) first-class U.S. Mail, which Proof of Claim must include an original signature, at the following address: Del Monte Foods Corporation II Inc., et al. Claims Processing c/o Stretto 410 Exchange Suite 100 Irvine, CA 92602 (iii) overnight mail, or other hand-delivery system, which Proof of Claim must include an original signature, at the following address: (a) By First-Class U.S. Mail, Overnight Courier or Hand Delivery to: Del Monte Foods Corporation II Inc., et al. Claims Processing c/o Stretto 410 Exchange, Suite 100 Irvine, CA 92602 To receive confirmation that the claim has been filed, either enclose a stamped self-addressed envelope and a copy of this form or go to https://cases.stretto.com/DelMonteFoods/ Additional Proof of Claim Forms may be obtained by contacting the Debtors' notice and claims agent, Stretto, Inc. ("Stretto" or the "Notice and Claims Agent"), by calling (833) 228- 5497 (Toll Free) for callers in the United States or by calling +1 (714) 263-3709 for callers outside the United States and/or visiting the Debtors' restructuring website at: https://cases.stretto.com/DelMonteFoods. About Del Monte Foods Corporation II Inc. Del Monte Foods, Inc. produces, distributes, and markets branded plant-based packaged food products in the United States and Mexico. Del Monte Foods Corporation II Inc. and its affiliates filed their voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 25-16984) on July 1, 2025, listing $1,000,000,001 to $10 billion in both assets and liabilities. Judge Michael B Kaplan presides over the case. Michael D. Sirota, Esq. at Cole Schotz P.C. represents the Debtor as counsel. The U.S. Trustee for Regions 3 and 9 appointed an official committee to represent unsecured creditors in the Chapter 11 cases of Del Monte Foods Corporation II, Inc. and its affiliates. The Committee retained Morrison & Foerster LLP as counsel, and Kelley Drye & Warren LLP as co-counsel. ===================== P U E R T O R I C O ===================== CIUDAD DEPORTIVA: Taps Hector Eduardo Pedrosa-Luna as Counsel ------------------------------------------------------------- Ciudad Deportiva Roberto Clemente, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire Hector Eduardo Pedrosa-Luna of The Law Offices of Hector Eduardo Pedrosa Luna to serve as legal counsel in its Chapter 11 case. The firm will provide these services: (a) prepare bankruptcy schedules, pleadings, applications and conduct examinations incidental to any related proceedings or to the administration of the case; (b) develop the relationship of the status of the Debtor to the claims of creditors; (c) advise the Debtor of its rights, duties, and obligations as Debtor operating under Chapter 11 of the Bankruptcy Code; (d) take any and all necessary action incident to the proper preservation and administration of this Chapter 11 case; and (e) advise and assist the Debtor in the formation and preservation of a plan pursuant to Chapter 11 of the Bankruptcy Code, the disclosure statement, and all related matters. Mr. Pedrosa-Luna shall receive compensation at an hourly rate of $175, subject to court approval under 11 U.S.C. Section 503 and FRBP 2014. A retainer of $7,000 has been paid, consisting of $3,000 from the Debtor's President, Mr. Luis Roberto Clemente Zabala, and $4,000 from 21 In Right, Inc. The Law Offices of Hector Eduardo Pedrosa Luna is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached at: Hector Eduardo Pedrosa-Luna, Esq. The Law Offices of Hector Eduardo Pedrosa Luna 33 Calle Bolivia, Suite 500 San Juan, PR 00917 Mailing Address: P.O. Box 9023963 San Juan, PR 00902-3963 Telephone: (787) 920-7983 Facsimile: (787) 754-1109 E-mail: hectorpedrosa@gmail.com 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. ********* 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. 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