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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
Thursday, December 25, 2025, Vol. 26, No. 257
Headlines
A R G E N T I N A
PROVINCE OF NEUQUEN: S&P Affirms 'B-' ICR, Outlook Remains Stable
B R A Z I L
BANCO BRADESCO: Fitch Affirms 'BB+/B' IDRs, Outlook Now Stable
BANCO DO BRASIL: Fitch Affirms 'BB' LT IDR, Outlook Stable
NEW FORTRESS: Extends Senior Secured Notes Forbearance to Jan. 9
WHIRLPOOL CORP: S&P Downgrades LT ICR to 'BB', Outlook Negative
C H I L E
LATAM AIRLINES: S&P Affirms 'BB' ICR, Alters Outlook to Positive
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Cost of Christmas Dinner Has Risen Nearly 190%
J A M A I C A
CAC 2000: Closes Two Outlets
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A R G E N T I N A
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PROVINCE OF NEUQUEN: S&P Affirms 'B-' ICR, Outlook Remains Stable
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On Dec. 19, 2025, S&P Global Ratings affirmed its 'B-' foreign and
local currency long-term issuer credit ratings on the Province of
Neuquen. The outlook remains stable.
Outlook
S&P said, "The stable outlook reflects our expectation of balanced
fiscal results (after capital expenditure), amid royalty revenue
from a buoyant oil and gas sector counterbalanced by spending
pressures (mostly relating to personnel). We expect the province to
ramp up its infrastructure spending with funding from multilateral
lending institutions, potential new market borrowing, and own
source revenue. Risks from Argentina's weak external liquidity
position and persistent economic vulnerabilities remain."
Downside scenario
S&P could lower the ratings on the province in the next 12 months
if adverse developments undermine the sovereign's access to
financing amid increased macroeconomic instability or a tightening
of access to foreign exchange--impairing the ability of Argentine
local and regional governments (LRGs) to service their
foreign-currency debt.
S&P could also downgrade the province if there's a stark
deterioration of its own fiscal profile that leads to heightened
liquidity pressures and an increased risk of missing timely debt
payments.
Upside scenario
Because Argentine LRGs do not meet the conditions for S&P to rate
them above the sovereign, an upgrade of Neuquen would require an
improvement in our transfer and convertibility (T&C) assessment for
Argentina and in the predictability of the federal fiscal
system--either of which would likely result if the sovereign has
improved creditworthiness.
There would also have to be an improvement in provincial liquidity
buffers from better-than-expected fiscal performance along with
continued access to borrowing.
Rationale
The 'B-' ratings on the Province of Neuquen reflect our expectation
that balanced fiscal performance, as well as potential access to
financing, will facilitate timely payment of its relatively low
debt service in the next 12 months. Revenue gains from increased
production in the hydrocarbon sector will be partly counterbalanced
by spending pressures. If the positive momentum in the hydrocarbon
sector continues and if infrastructure projects in the pipeline
materialize, there could be further revenue upside for Neuquen,
supporting its financial profile.
Its creditworthiness, however, is constrained by low liquidity
levels. The prioritization of other spending over debt service in
the recent past constrains our financial management assessment.
Furthermore, the volatile and underfunded institutional framework
for Argentine local governments, combined with Argentina's broader
macroeconomic challenges, continues to weigh on S&P's credit
ratings on Neuquen.
Strong performance from the hydrocarbon sector should contribute to
provincial revenue, while the provincial administration pursues
economic diversification
The institutional framework for Argentine LRGs--a framework that
S&P considers to be very volatile and underfunded--limits Neuquen's
capacity for fiscal planning and exposes it to the potential
transfer of fiscal stress from higher tiers of government. For
example, in 2024, there were deep cuts to discretionary transfers
and national macroeconomic stress weighed on nondiscretionary
transfers.
Argentina's track record of inconsistent economic policies and
macroeconomic imbalances has given LRGs less space for effective
financial planning and have weighed on their budgetary execution.
The shift toward market-oriented economic policies and fiscal
"shock therapy" during President Javier Milei's administration has
been key as Argentina starts to normalize its economy. But its
initiatives (cuts in some transfers and infrastructure spending)
have also led to stress for provincial governments.
While this has translated into a limited planning horizon, Neuquen
has been using available tools--such as capex cuts and access to
local financing--to counterbalance its fiscal accounts' sensitivity
to macro variables such as exchange rate movements, the price of
oil, and inflation. Governor Rolando Figueroa, who won elections
with a provincial coalition party, is in the middle of his first
term, and his administration aims to diversify the province's
economy beyond oil and gas to bolster long-term growth--with an eye
toward maintaining balanced fiscal performance.
Following two years of economic contraction, Argentina will likely
see real GDP growth of more than 4% in 2025, in S&P's view, and it
may see growth of 3%-4% in 2026-2028. Oil and gas production from
the Vaca Muerta basin has partially insulated Neuquen's economy
from the complex, volatile macroeconomic conditions at the national
level.
S&P said, "Notwithstanding management's efforts to diversify the
province's economic structure, we assume that oil and gas will
continue to underpin the province's economic growth, since it will
take time to see more pronounced development in other sectors.
Further development of infrastructure for the oil and gas sector
could, over time, continue to bolster the growth trend in the
province, as well as income levels. We expect that Neuquen's GDP
per capita will reach $28,700 in 2025, above the Argentine average
of $14,700.
"We expect balanced fiscal results, with a gradual ramp-up in capex
funded by Neuquen's own resources and by borrowing
We expect some erosion in Neuquen's fiscal results in 2025, with an
operating balance of 5.7% of operating revenue (down from 13.0% in
2024) along with a moderate deficit after capex. For 2026-2027, our
base case sees operating surpluses of 7%-8% of operating revenue."
Increased production in the oil and gas sector--coupled with
continued advancement in infrastructure investment that facilitates
getting production to market--will support Neuquen's royalties and
gross receipt tax collection. Roughly 60% of total revenue is
linked to the sector, though that's also highly sensitive to
exchange rate movements and the price of oil. S&P Global Ratings
expects a Brent oil price of $60 per barrel in 2026 and $65 per
barrel in following years. At the same time, strong unions in
Neuquen exert significant pressure on the province's personnel
spending, which we believe will balance out some of these inflows.
Strong fiscal performance in 2024 was due to increases in real
terms in tax revenue and royalties from currency depreciation and
favorable oil prices (with a Brent price of $80 per barrel); that
counterbalanced a strong contraction in transfers from the national
government. Overall transfers fell to 15% of revenue in 2024 from
25% in 2023, and S&P expects that they'll remain at those lower
levels. Meanwhile, operating spending increased in line with
inflation, and the administration made cuts to capex.
The province is ramping up infrastructure spending after it fell in
2024; S&P's base case assumes that it'll gradually increase to 9%
of total spending (from 6% in 2024) and that it'll be financed by
own resources as well as borrowings from multilateral lending
institutions and, potentially, the capital markets (whether local
or foreign).
Neuquen's capex plans focus on strengthening connectivity,
diversifying the economy in sectors such as tourism and education,
and improving equality of access to basic services across the
province. The hydrocarbon sector mostly relies on private
investment.
With this capex increase, S&P expects balanced results after
capital accounts in 2025-2027.
Neuquen was one of the provinces that did not transfer its pension
system to the national government. The administration increased
pension contributions by provincial decree in 2023, and results
went from a 2.5% average deficit in five years to balance in 2024
and as of September 2025. The province for several years hasn't
been receiving transfers from the sovereign to cover the deficit.
According to S&P's estimates, total liquidity from cash balances
and expected fiscal flows covers 47% of debt service payments (of
$305 million) in the next 12 months. Its liquidity estimate
includes the provincial countercyclical and development fund (known
as FEDEN)--$47 million as of September 2025. The fund was created
in 2022, but its funding was suspended and its resources were
redirected to the paydown of the social security deficit (in 2023)
and to debt service (in 2024).
S&P's base case assumes that, while its calculation of the
province's liquidity buffer on its own doesn't cover projected debt
service, the province has options available to cover debt service
payments in 2026.
Most payments are in foreign currency and correspond to the
province's two outstanding bonds (one secured and the other
unsecured) as well as the $100 million bond in the local market
that will mature in April 2026 (issued by the province in October
2023). Neuquen also has debt with multilateral lending
institutions, Credit Suisse, and the national government.
Three Argentine local governments issued debt in the international
capital markets in 2025, for the first time since 2018. S&P said,
"We believe the Province of Neuquen should have access to this type
of borrowing in the current context, given its fiscal performance
and the attractiveness of its oil sector for foreign investment.
The province is already authorized to issue notes in the local
market; it has been very active with multilateral lenders such as
IBRD, IADB, and CAF; and it has lined up borrowing for projects.
Furthermore, besides prospects for financing, we would expect
management to adjust spending, if needed."
S&P said, "We expect somewhat higher borrowing from these sources
in 2026 compared with recent years, but modest funding needs and
revenue dynamics, we believe, will lead to a debt burden of 20% of
operating revenue in 2026-2027." While over 90% of Neuquen's debt
is in foreign currency, dollar-linked revenue from the hydrocarbon
sector serves as a natural hedge, partially mitigating the risks of
accessing hard currency to service international debt.
In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.
After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.
The committee's assessment of the key rating factors is reflected
in the Rating Component Scores above.
The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.
Ratings List
Ratings Affirmed
Neuquen (Province of)
Issuer Credit Rating B-/Stable/--
Senior Unsecured B-
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B R A Z I L
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BANCO BRADESCO: Fitch Affirms 'BB+/B' IDRs, Outlook Now Stable
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Fitch Ratings affirmed Banco Bradesco S.A.'s (Bradesco) Long-and
Short-Term Local and Foreign Currency Issuer Default Ratings (IDRs)
at 'BB+' and 'B', respectively. The Rating Outlook for the IDRs is
revised to Stable from Negative. Fitch also affirmed Bradesco's
Viability Rating (VR) at 'bb+', its Government Support Rating (GSR)
at 'bb-', and its National Long-Term rating at 'AAA(bra)' with a
Stable Outlook and National Short-Term rating at 'F1+(bra)'.
The revision of the IDR Outlook to Stable reflects a sustained
improvement in Bradesco's financial profile, especially its
profitability and asset quality ratios, while capitalization,
liquidity and funding metrics remain solid. This is evidenced by
lower Stage 3 exposures, a decline in non-performing loans past due
over 90 days, a stronger collateralization profile across the
credit portfolio, a significant reduction in restructured loans,
and the bank's solid coverage ratios for impaired loans. Fitch
notes the bank's well-executed strategy to enhance its product mix,
the moderation of provisioning expenses through 2025, and improving
margins.
Key Rating Drivers
Business, Financial Profile Key Strengths: Banco Bradesco S.A.'s
IDRs are driven by its Viability Rating (VR), which reflects a
stable business profile characterized by diversified revenue
streams. The bank's ratings are one notch above Brazil's sovereign
IDRs (BB/Stable), underscoring Bradesco's very strong business
profile and its significant market position within the Brazilian
financial system. This positioning provides Bradesco with greater
resilience to absorb potential macroeconomic risks compared to
lower-rated peers.
Fitch believes Bradesco would likely maintain its capacity to meet
its obligations even in the event of a sovereign default, without
any restrictions imposed by the sovereign. However, the uplift of
the ratings is constrained to just one notch due to Bradesco's
considerable exposure to sovereign risk, primarily through its
extensive holdings of government securities and the concentration
of its operations within Brazil.
Operating Environment Affirmed: The operating environment score for
Brazil's banks is 'bb', which is in line with the implied
assessment based on Brazil's GDP per capita of USD10,000 and
Fitch's Operational Rating Index (ORI) index of 47.9 (percentile
ranking). Fitch projects Brazilian GDP growth of 2.0% in 2025 and
2026, reflecting normalization in agricultural output along with
steady domestic demand. Consumption should remain supported by the
labor market and less restrictive monetary policy could balance out
the impact of moderate fiscal tightening.
Stable and Diversified Business Profile: Bradesco's robust banking
and insurance franchises in Brazil, spanning multiple business
units, significantly enhance its profile. These franchises provide
notable pricing power, strong earnings capacity and financial
flexibility through stable customer deposits and capital market
access. Bradesco's total operating income (TOI) averaged USD19,1
billion from 2021 to 2024, reaching an annualized USD22,1 billion
in 9M25.
Well-Balanced Risk Profile: Bradesco maintains a relatively
moderate and well-controlled risk appetite across its securities
and insurance activities, underpinned by highly disciplined credit
origination and monitoring processes executed through
sophisticated, segmented systems. During the last cycle, the bank
effectively advanced its strategic plan, increasing the level of
guarantees and collateralization across the credit portfolio,
expanding small and midsize enterprise (SME) lending backed by
guarantee funds, and growing its public payroll loan book while
launching a new private payroll loan modality.
The bank also reduced its exposure to unsecured portfolios; for
example, in credit cards, it has been rebalancing the mix toward
higher-income clients. In addition, Bradesco maintains a measured
relative exposure to the sovereign, allocating a portion (2.1x the
equity) of its liquidity to government securities. Historically,
Bradesco's credit risk ratios have shown greater volatility than
those of key peers due to its higher exposure to unsecured
portfolios, though recent actions have supported a more resilient
risk profile.
Improving Asset Quality: Fitch revised the asset quality score of
'bb' to Stable from Negative, reflecting stabilized metrics and a
strategic repositioning of Bradesco's retail loan portfolio toward
high-income individuals. Bradesco's asset quality has been
improving quarter by quarter. Under Resolution 4,966, Stage 3 loans
within the expanded credit portfolio declined to 7.5% at
end-September 2025 from 7.8% in March 2025, versus a high average
of 11,7% over the last four years (2021-2024) for D-H classified
credits. Non-performing loans 90 days past due stabilized at 4.1%
of total loans over the first three quarters of 2025, with coverage
at 168% as of September. Fitch expects Stage 3 loans to converge
toward around 6% of total loans through 2027, driven by the
maturation of more collateralized vintages, in line with the bank's
strategy to balance secured and unsecured exposures.
Better Profitability Ratios: Bradesco's core profitability
(operating profit-to-RWA, annualized) improved to 2.2% in September
2025, from 1.3% at end-2023 and 2.1% at end-2024, remaining above
the 2021-2024 average of 1.8%. In Fitch's projections, this core
ratio is expected to remain above 2.0% through 2027, supported by
strategic adjustments, a disciplined risk appetite, operational
efficiency (primarily in personal banking and branches), and a more
balanced secured/unsecured loan mix. Fitch also notes the insurance
arm's strong and sustained contribution to group earnings in recent
years, providing a stable buffer to profitability as banking
operations normalize.
Stable CET1's Ratio: Fitch has upgraded Bradesco's capitalization
and leverage score to 'bb', supported by strong internal generation
and conservative management buffers. Bradesco's capitalization
remains comfortably above regulatory minimums, with the regulatory
Common Equity Tier 1 (CET1) to RWA ratio at 11.4% as of September
2025 (11.1% average from 2021-2024). In Fitch's projections,
Bradesco's CET1 ratio is expected to stay above 11% through 2026,
supported by retained earnings, disciplined risk-weighted asset
growth, and stable internal capital generation.
Solid Liquidity and Stable Funding: Bradesco's liquidity is solid,
supported by stable deposits, a sizable securities portfolio, and
strong long-term funding capacity. Its broad distribution network
captures deposits at attractive costs, and flight-to-quality in
stress periods benefits the bank's status as one of the sector's
largest. A highly diversified customer base ensures steady time,
savings, and demand deposits, while Bradesco remains one of Latin
America's largest private issuers of domestic and international
bonds. It holds multiple credit lines and long-term funding from
institutions such as BNDES and has steadily increased local
financial bill issuance. As of September 2025, its Liquidity
Coverage Ratio is 152.6% and Net Stable Funding Ratio (Long-Term
Liquidity Ratio) is 121.4%.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
IDRs and VR
-- Bradesco's ratings would be downgraded following a downgrade of
Brazil's sovereign rating, as they are capped at one notch above
it, or a downward revision of Brazilian banks' OE assessment;
-- The ratings could be downgraded if the bank's performance
deteriorates materially and for a prolonged period, eroding its
exceptional strength versus domestic peers, or if its
loss-absorption capacity weakens, reducing resilience to potential
Brazilian sovereign stress;
-- Bradesco's VR would be adversely affected if asset quality
deteriorates and profitability is impacted, particularly if the
operating profit-to-RWA ratio falls below 2.0% on a sustained basis
and if CET1 ratio falls below 10% on a sustained basis.
National Rating
- -- Bradesco's National Ratings are sensitive to changes in its
creditworthiness relative to other Brazilian issuers.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
IDRs and VR
-- Upgrade potential for Bradesco is limited. An upgrade would
depend on an upgrade of Brazil's rating, which would improve the
assessment of the group's operating environment.
National Rating
-- Bradesco's Long-Term ratings are already at the top of the
national scale and therefore cannot be raised.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
Senior Unsecured
Bradesco's senior unsecured debt is rated in line with its IDRs, as
the instruments share the issuer's default risk.
GSR
Bradesco's GSR of 'bb-'reflects a moderated probability of support
from the Brazilian authorities, if needed. The government's
moderate financial flexibility, as indicated by its sovereign
rating, is the primary driver of its GSR. This assessment also
considers contagion risks stemming from Bradesco's position as a
domestic systemically important bank with dominant market share. As
of 2025, Bradesco's market share in customer deposits was 12%.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
Rating Sensitivities
Senior Unsecured
-- Bradesco's senior unsecured debt ratings are sensitive to a
change in its IDR.
GSR
-- The GSR is sensitive to any change in assumptions of propensity
or ability of the sovereign to provide support to the bank.
VR ADJUSTMENTS
The VR has been assigned in line with the implied VR.
The asset quality score of 'bb' has been set above the 'b & below'
category due to following adjustment reason: Collateral and
reserves
Rating Prior
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Banco Bradesco S.A.
LT IDR BB+ Affirmed BB+
ST IDR B Affirmed B
LC LT IDR BB+ Affirmed BB+
LC ST IDR B Affirmed B
Natl LT AAA(bra) Affirmed AAA(bra)
Natl ST F1+(bra) Affirmed F1+(bra)
Viability bb+ Affirmed bb+
Gov't Support bb- Affirmed bb-
senior unsecured LT BB+ Affirmed BB+
BANCO DO BRASIL: Fitch Affirms 'BB' LT IDR, Outlook Stable
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Fitch Ratings has affirmed the Long-Term Foreign and Local Currency
Issuer Default Ratings (IDRs) of Banco do Brasil S.A. (BdB) at 'BB'
and Short-Term Foreign and Local Currency IDRs at 'B'. Fitch has
also affirmed BdB's Viability Rating (VR) at 'bb', Government
Support Rating (GSR) at 'bb', and Long-Term and Short-Term National
Rating at 'AAA(bra)' and 'F1+(bra)', respectively. The Long-Term
Ratings' Outlooks are Stable.
Key Rating Drivers
Government Support Drives Ratings: BdB's IDRs are driven by its GSR
of 'bb' and reflect potential government support and are equalized
with those of Brazil (BB/Stable). Fitch believes the Brazilian
government's willingness to support BdB if needed is high, given
BdB's ownership structure, its key policy role in rural lending and
its systemic importance.
Strong Local Market Position: BdB's VR is driven by its leading and
diversified banking franchise in Brazil, which supports
consistently healthy profitability and a granular, stable funding
base. The VR also considers BdB's good capitalization and a
well-balanced lending mix.
Operating Environment Affirmed: The operating environment score for
Brazilians Banks is 'bb', which is in line with the implied
assessment based on Brazil's GDP per capita of USD10,000 and
Fitch's Operational Rating Index (ORI) index of 47.9 (percentile
ranking). Fitch projects Brazilian GDP growth of 2.0% in 2025 and
2026, reflecting normalization in agricultural output along with
steady domestic demand. Consumption should remain supported by the
labor market and less restrictive monetary policy could balance out
the impact of moderate fiscal tightening.
Diversified Business Profile: BdB is the leading domestic bank by
assets and deposits, with strong revenue diversification that has
supported consistent capital generation across multiple economic
cycles; total operating income averaged USD22.2 billion over
2021-2024 and reached USD23.7 billion on an annualized basis in
9M25. In agribusiness - also due to its policy role - the bank is
the primary financial agent in Brazil, contributing significantly
to meeting the sector's credit demand: According to Banco Central
do Brasil, as of September 2025, BdB held 48.7% of total financing
to the agribusiness sector, and in direct lending to individual
rural producers (agro personal loans), its market share was 55.7%,
underscoring a dominant position across both broader sector
financing and retail producer credit.
Despite BdB's strong sovereign linkage, governance enhancements in
recent years have improved the bank's business and financial
profile. Top management is largely composed of seasoned career
executives and, as a listed company, BdB applies corporate
governance practices broadly aligned with key domestic peers. While
Fitch's base assumes no near-term structural changes to its
strategy, the agency will continue monitoring potential political
interferences (as it does with other government-owned banks) that
could materially affect BdB's financial metrics.
Secured Mix Benefits Risk Profile: Credit risk is BdB's main risk,
accounting for 80% of RWAs as of September 2025. Agriculture
remains relevant but underperformed in 2025, with higher
delinquencies and more judicial restructurings, representing 32% of
gross loans at end-3Q25. The rural portfolio is well diversified
with strong controls, collateral, and climate-risk insurance. In
retail, payroll-deductible lending is mostly to public employees;
private-sector payroll lending is a window of opportunity. Loans to
SMEs, corporates, and government are about 35% of total credits,
with the top 20 exposures around 8% of the total, and public-sector
lending largely backed by sovereign guarantees. Market risk is low
(3.3% of RWAs), with most securities invested in government bonds.
Asset-Quality Pressures: Fitch has affirmed the Asset Quality score
at 'bb' and revised the Outlook to Negative from Stable due to
rising agribusiness delinquencies driven by volatility in
soft-commodity prices, adverse weather in certain crops/regions,
increased leverage among rural producers, a higher incidence of
judicial recoveries among rural producers, and a wait-and-see
stance regarding the renegotiation program under Provisional
Measure 1,314 (MP 1,314/2025), all of which are pressuring
portfolios in the short term.
Despite a diversified and largely secured credit book, BdB was
affected by risk materialization in agribusiness — where its
exposure is above peers — which weighed on performance.
Delinquencies among SMEs also increased, pressured by the high
interest rate environment, as did delinquencies in individual
portfolios. Stage 3 loans stood at 8.5% in September 2025, broadly
in line with the 8.3% average for D-H (2021-2024) rated exposures.
The bank also strengthened coverage on impaired loans and 90-day
NPLs to preserve a meaningful buffer against losses.
Fitch expects MP 1,314/2025, recently published by the government,
to support asset-quality improvements. The measure is designed to
facilitate loan renegotiations and strengthen guarantees and
collateral structures, benefiting both the bank and producers. Even
with El Niño risks in 2026, impacts should be contained given the
portfolio's crop and geographic diversification. Nevertheless,
asset-quality indicators are expected to converge to historical
levels only over the medium to long term as agribusiness stabilizes
and the renegotiation and guarantee measures take hold.
Lower Profitability: BdB's strong domestic franchise and
diversified business model have supported resilient income through
cycles, with good revenue quality reflected in meaningful fee and
insurance contributions. Efficiency and commercial initiatives have
accelerated revenue growth.
However, 2025 results were pressured by higher funding cost and by
increased loan-loss provisions. These factors reduced Operational
Results/RWA to 1.0% in September 2025 from 3.2% in December 2024,
underscoring a sharp decline versus recent years. Profitability is
expected to recover from 2026 as SELIC rates trend lower and
asset-quality pressures ease, supported by commercial loan growth,
particularly in private payroll-deductible lending where the bank
aims to expand market share, helping operating metrics gradually
converge toward higher levels.
Good Capitalization: Fitch has upgraded BdB's capitalization and
leverage score to 'bb' supported by strong internal generation and
conservative management buffers. BdB's common equity Tier 1 (CET1)
ratio was 11.2% at end-September 2025 (11.7% average 2021-2024),
providing adequate buffers relative to minimum requirements. The
total capitalization ratio was 14.8%, well above the minimum
requirements. Fitch expects the bank to operate with a CET1 ratio
of around 11.5%. It is also worth highlighting the positive effects
of MP 1314/2025 on CET1 which, together with the reduction of the
payout to 30%, should mitigate the repayments of the hybrid
instruments as well as the regulatory capital effects scheduled for
2026.
Diversified Funding, Stable Liquidity: Fitch views BdB's funding
and liquidity as a rating strength. Funding is stable, supported by
a large deposit franchise and ample access to secured and unsecured
wholesale markets. The bank's loan-to-customer deposit ratio was
136% in September 2025 (4YA 2021-2024: 121.5%) and has been stable
in this level over the past few years. The bank's liquidity
position is also sound, with a liquidity coverage ratio at 187%,
net stable funding ratio of 107% in September 2025 and backed by
large buffers of high-quality liquid securities.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
IDRs, GSR and VR
-- Rating downside is primarily contingent on a downgrade of
Brazil's IDRs. BdB's ratings are also sensitive to changes in its
strategic importance to the Brazilian government, which is not
expected to change;
-- BdB's VR would be negatively affected if its CET1 ratio falls
below 10% or its regulatory capital ratios approach the minimum
requirements due to asset quality deterioration, weakening of
profitability or higher than expected growth;
-- BdB's VR would be negatively affected by Fitch's revision
downwards over Brazilian bank OE score.
National Ratings
-- BdB's National Long-Term Rating is also sensitive to a negative
change in Fitch's opinion of the bank's creditworthiness relative
to other Brazilian issuers.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
IDRs, GSR and VR
-- An upgrade of the GSR and Long-Term IDRs would require a
sovereign upgrade. In addition to a sovereign upgrade, the bank
would have to maintain healthy financial metrics to upgrade the
VR.
National Ratings
-- BdB's National Long-Term Rating may be affected by a change in
Fitch's perception of the bank's performance relative to Brazilian
peers.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
SENIOR UNSECURED
BdB's senior unsecured debts is rated in line with its IDRs as the
likelihood of default on these obligations reflects the likelihood
of default of the entity.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
SENIOR UNSECURED
BdB's senior unsecured debts ratings are sensitive to a change in
its IDR.
VR ADJUSTMENTS
The VR of 'bb' has been assigned below the 'bb+' implied VR due to
the following adjustment reason: Sovereign Rating (Negative).
The Asset quality score of 'bb' is above the 'b & below' category
implied score due to the following adjustment reason(s): Collateral
and reserves (Positive).
Ratings Action
Rating Prior
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Banco do Brasil S.A.
LT IDR BB Affirmed BB
ST IDR B Affirmed B
LC LT IDR BB Affirmed BB
LC ST IDR B Affirmed B
Natl LT AAA(bra) Affirmed AAA(bra)
Natl ST F1+(bra) Affirmed F1+(bra)
Viability bb Affirmed bb
Gov't Support bb Affirmed bb
senior unsecured LT BB Affirmed BB
NEW FORTRESS: Extends Senior Secured Notes Forbearance to Jan. 9
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New Fortress Energy Inc. announced on Dec. 17, 2025, that it has
extended its forbearance agreement with representatives of the
holders of its new senior secured notes due 2029 from December 15,
2025 to January 9, 2026.
During the forbearance period, NFE expects to continue to advance
the completion of its restructuring with the company's
stakeholders.
About New Fortress Energy Inc.
New Fortress Energy Inc., a Delaware corporation, is a global
energy infrastructure company founded to help address energy
poverty and accelerate the world's transition to reliable,
affordable and clean energy. The Company owns and operates natural
gas and liquefied natural gas infrastructure, ships and logistics
assets to rapidly deliver turnkey energy solutions to global
markets. The Company has liquefaction, regasification and power
generation operations in the United States, Jamaica, Brazil and
Mexico. The Company has marine operations with vessels operating
under time charters and in the spot market globally.
For the fiscal year ended December 31, 2024, the Company had $12.9
billion in total assets, $10.8 billion in total liabilities, and a
total stockholders' equity of $2 billion.
* * *
In November 2025, S&P Global Ratings lowered its issuer credit
rating on New Fortress Energy Inc. (NFE) to 'SD' (selective
default) from 'CCC'. At the same time, S&P lowered its issue level
rating on NFE's 12% senior secured notes due 2029 to 'D' from
'CCC-'. The downgrade reflects NFE's decision to enter into a
forbearance agreement. S&P will reevaluate its ratings on NFE
before the end of November as more information becomes available.
The Company has initiated a process to evaluate its strategic
alternatives to improve its capital structure. It has retained
Houlihan Lokey Capital, Inc. as financial advisor and Skadden,
Arps, Slate, Meagher & Flom LLP as legal advisor to assist it in
this evaluation. The Company, along with its advisors, is
considering all options available, including asset sales, capital
raising, debt amendments and refinancing transactions, and other
strategic transactions that seek to provide additional liquidity
and relief from acceleration under its debt agreements.
As part of this process, the Company is engaging in discussions
with various existing stakeholders and potential investors. There
are inherent uncertainties as the outcome of these negotiations
and
potential transactions are outside management's control, and
therefore there are no assurances that management will be
successful in these negotiations and that any of these potential
transactions will occur.
In addition, there can be no assurances that these transactions
will sufficiently improve the Company's liquidity or that the
Company will otherwise realize the anticipated benefits.
Moreover, if the Company fails to obtain amendments and
forbearance, the Company may be required or compelled to pursue
additional restructuring initiatives to preserve value and
optionality, including possible out-of-court restructurings, or
in-court relief, which could have a material and adverse impact on
the Company's stockholders.
WHIRLPOOL CORP: S&P Downgrades LT ICR to 'BB', Outlook Negative
---------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
U.S. based-Whirlpool Corp. to 'BB' from 'BB+'. Its 'B' short-term
issuer credit and commercial paper ratings on Whirlpool are
unchanged.
The negative outlook reflects the potential for a downgrade within
the next 12 months if Whirlpool continues to underperform our
expectations, potentially due to ongoing elevated competitive
pressures or a deterioration in economic conditions, such that S&P
no longer believes credit metrics will strengthen in line with our
base-case forecast.
Whirlpool Corp. continues to face high imported inventory from its
rivals in its North American major domestic appliance market,
substantial tariffs, and a subdued housing market.
S&P said, "We now expect free operating cash flow (FOCF) and
proceeds from the Whirlpool India sale will be materially lower
than our prior projections, which will further delay the company's
deleveraging trajectory.
"We forecast adjusted leverage will remain elevated at about 5.4x
at the end of fiscal 2025 and about 4.9x at the end of fiscal
2026.
"The downgrade reflects our view that credit-measure improvement
will take longer than we previously anticipated." If macroeconomic
conditions weaken or competitive pressures remain elevated,
improvement could also be delayed. For the 12 months ending Sept.
30, 2025, Whirlpool's adjusted leverage was 6x compared with 5.9x
in the same period ending in 2024. Its performance was hurt by
substantially weaker margins, especially in the third fiscal
quarter (company-reported ongoing EBIT margin declined 140 basis
points (bps) year over year to 4.5%), affected by a continued
promotional environment as Whirlpool's Asian competitors pulled
forward imports ahead of tariffs.
Whirlpool reported higher sales and market share growth in its
North America major device appliance (MDA) segment in the third
quarter, supported by new product introductions as it refreshed
about 30% of its product portfolio compared with the typical 10%
annual refresh rate. However, this was offset by elevated flooring
costs Whirlpool incurred to help retailers stock the new models
and
clear older items, and we expect this will weigh on margins for
the
rest of the year and into 2026. S&P said, "Further, we continue to
assume 2026 demand will be heavily weighted toward lower margin
replacement volume like 2025 and believe any potential
discretionary demand improvement will be later in 2027 (assuming a
50-bp Fed funds rate cut over the second half of 2026). We expect
adjusted EBITDA margins to improve approximately 70 bps in 2026,
following flat performance in 2025. Supporting this will be
meaningful pricing actions to mitigate tariff-related cost
pressures (particularly as competitors also begin to adjust
pricing
to reflect the current tariff environment as pre-tariff excess
inventory normalizes) and benefits from recent cost reduction
initiatives."
S&P said, "Total proceeds from Whirlpool's previously announced
31%
stake in Whirlpool India will be lower than our prior
expectations.
We assume the company's planned sale of an additional 20% of its
equity stake in Whirlpool India will provide proceeds of about
$250
million in 2026. In total, we now expect gross proceeds from the
India sale will be about $420 million, including the $166 million
received from the 11% sale in November 2025. This is lower than
our
previous expectation for about $550 million in total proceeds,
reflecting the company's decision to sell down via on-market
trades
and the significant decline in Whirlpool India's share price since
the announcement to reduce its stake.
"This, along with the weaker margin forecasts and relatively high
dividend payments (despite the 50% cut earlier this year), results
in lower discretionary cash flow (DCF) available to repay
outstanding debt in 2025 and 2026. Therefore, we now project
adjusted leverage will remain elevated at about 5.4x in fiscal
2025
and 4.9x in fiscal 2026. We think it's less likely Whirlpool will
be able to find a strategic buyer for its remaining ownership
stake."
Refinancing efforts have been successful to date. Whirlpool's
revolving credit facility becomes current in May 2026 and $516
million of bonds mature in November 2026. S&P said, "Given our
expectation for weaker DCF and heavy reliance on the revolver to
fund its material seasonal working capital requirements, we assume
the company will access the capital markets to refinance the debt,
the terms of any refinancing could include higher pricing and
additional covenants."
S&P said, "We continue to consider the cash held in Brazil as
accessible and net it against gross debt for adjusted leverage
calculations. Whirlpool continues to hold material cash in its
Brazil subsidiary amounting to about $400 million as of Sept. 30,
2025. We consider the cash as accessible to repay its existing
U.S.
based debt obligations as the company regularly repatriates cash
from Brazil into the U.S. through dividend payments. That said, we
note its Brazilian business has multiple ongoing pending tax
assessments dating back to the early-2000s; unaccrued contingent
liabilities including interest accumulated over the years totaled
about $700 million. We believe tax disputes in Brazil are not
uncommon, though the magnitude of any settlements collectively
approaching this amount would add about 0.6x to 2025 S&P Global
Ratings-adjusted leverage and materially reduce liquidity. We lack
clarity on any potential resolution of these contingencies which
will be handled on a case-by-case basis, including the timing
which
might still be many years out.
"We continue to assess the company's business risk as
satisfactory.
Underpinning this view is Whirlpool's large market share in its
key
North and Latin American MDA markets, leading share across
national
builders, well-established and long-standing relationships with
home improvement retailers, its meaningful North America-based
manufacturing footprint which should benefit the company later in
2026, and strong brand recognition across a portfolio of both
mass,
value, and premium offerings. At the same time, we also consider
the highly competitive nature of the industry from
well-established
brands, including AB Electrolux (BBB-/Stable/A-3), LG Electronics
Inc. (BBB/Positive), Samsung Electronics Co., Ltd.
(AA-/Stable/A-1+), GE Appliances, Haier, and Midea (A+/stable).
"We continue to believe Whirlpool is better positioned than its
rivals with less domestic production, who will be more negatively
affected by tariffs, the impacts of which we should see next year.
The durables industry is highly cyclical and relies heavily on
discretionary spending. Further, Whirlpool needs to continuously
innovate and spend on advertising and promotions to maintain its
market share. Recent announcements from a number of its
competitors
to either set up or expand their manufacturing footprint in the
U.S. could potentially diminish Whirlpool's competitive advantage,
although not in the near term.
"The negative outlook reflects the potential for a downgrade
within
the next 12 months if Whirlpool continues to underperform our
expectations. This could be due to ongoing elevated competitive
pressures or a deterioration in economic conditions, such that we
no longer believe credit metrics will strengthen in line with our
base-case forecast.
"We could lower our ratings if Whirlpool's operating performance
falls short of our expectations, sustaining adjusted leverage
above
5x, and FOCF is weaker than projected." This could be due to:
-- A decline in industry demand for large appliances caused by
accelerating inflation, lower economic activity, or unexpectedly
higher interest rates;
-- Whirlpool losing share in its key North American or profitable
Latin American markets, potentially due to intense competition
from
overseas rivals;
-- An inability to offset a major portion of expected tariff
headwinds with pricing and sourcing actions;
-- Delays or the inability to deliver on strategic cost reduction
initiatives; or
-- Whirlpool exhibiting more aggressive financial policies.
S&P could revise its outlook on Whirlpool to stable if an
improving
operating performance and prudent financial policies sustain
leverage below 5x. This could occur if:
-- Sales and earnings prospects improve because discretionary
demand strengthens and competitive pressures ease, or Whirlpool
begins to benefit from its U.S. manufacturing footprint in the
face
of tariffs; and
-- The company demonstrates more conservative financial policies,
including by reducing gross debt using FOCF and proceeds from the
Whirlpool India sale.
=========
C H I L E
=========
LATAM AIRLINES: S&P Affirms 'BB' ICR, Alters Outlook to Positive
----------------------------------------------------------------
S&P Global Ratings revised its outlook to positive from stable and
affirmed its 'BB' issuer credit rating on Latam Airlines Group S.A.
At the same time, S&P affirmed its 'BBB-' issue-level rating on
Latam's senior secured 2030 and 2031 notes and maintained the '1'
recovery rating (rounded estimate: 95%).
The positive outlook reflects S&P's expectations of sound operating
performance and that funds from operations to debt will remain
above 45% through 2027.
Latam has consistently exceeded performance expectations throughout
2025 and has provided constructive guidance for 2026.
S&P said, "We believe increased financial flexibility will support
faster capacity expansion in the next two years and as a result, we
have revised our base case upwards and now expect stronger EBITDA
and cashflow, and funds from operations to debt consistent with a
higher credit rating.
"Latam Airlines Group S.A.'s (LATAM) operating and financial
performance year to date in 2025 has exceeded our expectations,
prompting an upward revision to our full-year forecasts. Since the
beginning of the year, fuel prices have trended downward, and
yields have performed slightly better than anticipated across all
its markets, collectively supporting revenues and margins above our
prior assumptions. Furthermore, considering the company's
performance through the first nine months of the year, we have
revised our projections for capacity and demand increases by
approximately 100 and 130 basis points, respectively. As a result,
we now estimate EBITDA of about $4.1 billion in 2025, up from $3.6
billion in our latest forecast, and anticipate slightly stronger
credit metrics across the board."
In 2026, favorable demand dynamics, LATAM's efficient and
disciplined cost structure, and lower fuel prices should underpin
solid operating performance and robust cash flow generation. S&P
said, "Considering the revised company aircraft order book, which
now incorporates Embraer aircraft, we are now expecting greater
capacity additions in 2026 and 2027. We project a 9% increase in
total available seat kilometers (ASK) in 2026, and we expect demand
momentum in the region to persist, supporting healthy and stable
load factors of approximately 84%. While economic growth prospects
for South America in 2026 are marginally softer, improving
inflation and interest rates should support domestic consumption
and, in turn, air travel demand. Consistent with recent experience,
we expect LATAM's competitive advantages to allow it to capture a
meaningful share of this growth, supported by its strong presence
at the region's main airports, leading frequency share and premium
slot positions at key hubs, and continued expansion of its joint
venture with Delta Air Lines Inc. (BBB-/Stable/--)."
Additionally, S&P anticipates that LATAM will maintain a very
competitive cost per available seat kilometer (CASK), supported by
ongoing productivity initiatives and continued progress in
digitalization and data analytics. These efforts are enhancing
network optimization and operational reliability, for example, by
optimizing standby crew allocation, optimizing each phase of every
flight to reduce fuel consumption, and utilizing predictive
operational models to avoid unplanned aircraft issues.
LATAM's sizable fleet order book will support growth but should
result in higher capital expenditures and incremental debt over the
medium term. The company has a secured orderbook for 140 aircraft
from 2026 onwards, including 68 deliveries in the next two years
(representing a 13.7% fleet growth between 2025 and 2027). These
deliveries also include the recently announced strategic
partnership with Embraer, encompassing 24 firm E2 orders and
purchase options for up to an additional 50 aircraft, which should
strengthen LATAM's presence in Brazil and support the development
of other regional routes.
This strategy should support business growth, fleet modernization,
and fuel savings. But it will also lead to higher lease payments
and a gradual increase in gross debt because the company expects to
finance the bulk of these acquisitions through financial and
operating leases. S&P expects gross debt (including operating
leases) to grow to almost $10 billion in 2027 from approximately
$7.7 billion by year-end 2025.
Stronger operating results should provide the capacity to support a
heavier capital structure, but it also increases the company's
exposure to severe industry downturns. Nevertheless, our base-case
projections indicate adequate headroom within current credit
thresholds, supported by strong cash generation, as reflected in
expected free operating cash flow (FOCF) after lease payments of
$850 million-$900 million in 2026 and approximately $1.0 billion in
2027.
S&P said, "Against a backdrop of strong free cash flow generation,
we believe LATAM has capacity to sustain elevated shareholder
returns while maintaining financial flexibility to ensure headroom
under its financial policy. In our base case, we assume the company
will continue to remunerate shareholders beyond its minimum 30%
dividend policy. Nevertheless, we expect management to continue
balancing distributions with preserving balance sheet resilience,
allowing for adjustments should industry conditions weaken. We
believe Latam will maintain leverage comfortably below its 2.0x
financial policy leverage threshold to maintain credit metrics
aligned with a stronger credit rating.
"The positive outlook on LATAM reflects our expectations of sound
operating performance and that credit metrics will remain
commensurate with a stronger rating, with funds from operations
(FFO) to debt above 45% through 2027. We expect the company will
generate higher revenue and sound profitability underpinned by
increases in capacity, healthy yields and well-established cost
discipline.
"We could revise the outlook to stable in the next 12 to 18 months
if LATAM's FFO-to-debt ratio falls below 45% or EBITDA margin
deviates considerably from our base case. This might occur if
demand deteriorates amid much weaker-than-expected economic
conditions, taking a toll on revenue. The ratio could also drop if
the company's EBITDA falls considerably, for instance, stemming
from much higher fuel prices, leading to lower-than-expected
margins and earnings.
"We could raise the ratings in the next 12 to 18 months if LATAM
continues delivering strong results. It would need to maintain a
conservative financial discipline, supporting our expectation that
the company will be able to preserve FFO to debt consistently above
45% and EBITDA margins comfortably above 20%, even under more
volatile industry or macroeconomic conditions."
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Cost of Christmas Dinner Has Risen Nearly 190%
------------------------------------------------------------------
Dominican Today reports that representatives of the Dominican
Liberation Party (PLD) warned that
Dominican families will spend RD$11,019 more on Christmas dinner in
2025 compared to 2020,
according to a study presented during a press conference held by
the party's Secretariat of Agricultural Affairs.
PLD leader Adriano Sanchez Roa stated that the estimated cost of a
traditional Christmas
dinner has risen from RD$5,805 in 2020 to RD$16,825 in 2025,
representing an
accumulated increase of nearly 190% over five years, according to
Dominican Today.
He described the rise as excessive and argued that it will prevent
many families
from properly celebrating Christmas Eve, the report notes.
Sanchez Roa attributed the increase to what he described as
government neglect of
the agricultural sector, including the dismissal of technical
personnel from
the Ministry of Agriculture and the weakening of the Dominican
Agrarian
Institute (IAD), the report notes. He also claimed that the
concentration
of food distribution and the elimination of social programs
implemented
under the previous PLD administration have worsened food
insecurity, the report relays.
According to the PLD, high prices for staple Christmas foods --
such as
pork, chicken, turkey, rice, vegetables, and dairy products—have
made traditional
meals increasingly unaffordable, the report discloses. The party
further argued
that current government assistance programs and Christmas bonuses
do not
adequately compensate for the loss of earlier social food support
initiatives, the report adds.
About Dominican Republic
The Dominican Republic is a Caribbean nation that shares the
island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district. Luis
Rodolfo
Abinader Corona is the current president of the nation.
TCR-LA reported in April 2019 that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."
An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.
Standard & Poor's credit rating for Dominican Republic was raised
to 'BB' in December 2022 with stable outlook. Moody's credit
rating for Dominican Republic was last set at Ba3 in August 2023
with the outlook changed to positive. Fitch, in December 2023,
affirmed the Dominican Republic's Long-Term Foreign-Currency
Issuer
Default Rating (IDR) at 'BB-' and revised the outlook to positive.
=============
J A M A I C A
=============
CAC 2000: Closes Two Outlets
----------------------------
RJR News reports that CAC 2000, an air conditioning equipment and
service company in Kingston, Jamaica, says it has closed two of
its retail locations as part of an ongoing cost-reduction and
efficiency drive.
The company, in a statement on the matter, disclosed that its
Montego Bay store was closed with effect from October 1, while
operations at the Village Plaza in Kingston ended on
December 1, according to RJR News.
The closures are part of the firm's operational efficiency
program, aimed at streamlining its retail footprint
and improving overall performance, the report discloses.
The company adds that it does not expect the move to
have any material impact on its financial results, the report adds.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.
Copyright 2025. All rights reserved. ISSN 1529-2746.
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of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Peter A. Chapman at 215-945-7000.
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* * * End of Transmission * * *