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251226.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, December 26, 2025, Vol. 26, No. 258 Headlines A R G E N T I N A AES ARGENTINA: S&P Upgrades ICR to 'CCC+', Outlook Stable B R A Z I L AZUL SA: Will Turn Profit in 2026 After Bankruptcy BANCO BTG PACTUAL: Fitch Hikes IDRs to BB+, Outlook Stable ITAU UNIBANCO: Fitch Affirms 'BB+' IDRs, Outlook Stable C A Y M A N I S L A N D S ETIHAD ENERGY: Fitch Gives B+(EXP) Rating to USD167MM Trust Certs J A M A I C A JAMAICA: BOJ Says External Accounts Likely to Weaken in Near Term JAMAICA: Melissa Causes Drop in Tourism Earnings, Job Losses TRANSJAMAICAN HIGHWAY: S&P's Outlook on 'BB' Rated Notes Now Stable P E R U PETROLEOS DEL PERU: S&P Lowers ICR to 'B-', On Watch Negative P U E R T O R I C O JUAN MANUEL GINORIO: Condado Loses Bid to Dismiss Bankruptcy Case - - - - - ================= A R G E N T I N A ================= AES ARGENTINA: S&P Upgrades ICR to 'CCC+', Outlook Stable --------------------------------------------------------- S&P Global Ratings raised its ratings on AES Argentina Generacion S.A. (AAG) to 'CCC+' from 'CCC'. The ratings on the company remain capped at the level of the sovereign rating. The stable outlook on AAG reflects that on the sovereign and the improvements in the regulatory framework. On Dec. 17, 2025, S&P Global Ratings raised its local and foreign currency ratings on Argentina to reflect its improved access to liquidity and declining economic vulnerabilities. BUENOS AIRES (S&P Global Ratings) Dec. 22, 2025—S&P Global Ratings took the ratings actions described above. Recent developments indicate that the government's access to capital markets is widening, boosting its liquidity. Economic imbalances have declined, thanks to lower inflation and a fiscal surplus during 2025. Despite recent improvements, AAG's significant exposure to CAMMESA, the wholesale electricity market operator in Argentina, remains a rating constraint. The regulatory framework has demonstrably improved over the past year, resulting in the upturn for Argentina's energy sector and in a more stable payment flows from CAMMESA. Also, the government has recently undertaken initiatives in the energy sector to attract investment and to establish a more supportive regulatory framework. However, S&P remains conservative in its outlook for the industry until it sees a longer track record of consistent and timely cash flows from CAMMESA. If CAMMESA experiences financial difficulties or delays in payments, this could pose a liquidity risk for AAG, as was the case during its debt restructuring in early 2024. The loss of the Alicura concession weakens AAG's competitive position. This resulted during an international tender process, in which another group was selected as the winning bidder. Consequently, AAG's installed capacity will shrink by 1,050 megawatts (MW), which represents one-third of its total capacity. And while AAG will no longer rely on Alicura's revenue stream that will reduce its exposure to CAMMESA, the significant reduction in installed capacity raises concerns about the company's long-term business strategy and market position. However, S&P doesn't believe the impact on the company's cash flows will be material, considering the unfavorable terms of the concession that generated only approximately 10% of AAG's EBITDA. S&P said, "Furthermore, with the international bond's amortization starting in 2026, we will closely monitor AAG's liquidity and refinancing plans for next year while executing its capital expenditure (capex) plan. While unlikely, a freeze in electricity rates or delays in CAMMESA payments could significantly increase refinancing risks. "The stable outlook on AAG reflects that on the sovereign. The outlook also incorporates the improvements in the regulatory framework and our view that the company should service debt maturities in 2026 in an orderly manner. Despite the termination of the concession for the Alicura hydroelectric plant, we anticipate that the impact will be limited. as cash flow from it was modest due to unfavorable terms. "In the next 12 months, we could lower the ratings on AAG if CAMMESA fails to make the stipulated payments, which would jeopardize the company's operations. We could also lower the ratings if refinancing risk heightens, which will weaken liquidity and our view of the company's capital structure. Additionally, we could lower our ratings on AAG or revise the outlook to negative if we were to take a similar action on the sovereign, as the rating for AAG is at the same level as the one on the sovereign. "In the next 12 months, we could revise upward AAG's stand-alone credit profile to 'b-' if there's a longer track record of CAMMESA's payment, a reduction in the company's refinancing risk, and greater clarity regarding the company's long-term business strategy. While less likely, an upgrade of AAG could also occur if these conditions are met and new investments linked to power purchase agreements reduce its exposure to CAMMESA." =========== B R A Z I L =========== AZUL SA: Will Turn Profit in 2026 After Bankruptcy -------------------------------------------------- Bloomberg News reports that Brazilian budget carrier Azul SA, now backed by United Airlines Holdings Inc. and American Airlines Group Inc., expects a bankruptcy-triggered reduction of debt and a slew of renegotiated aircraft leases to help it generate a profit the next two years. The airline will refocus growth plans on the domestic market, though it will increase flights to the US to handle strong demand for World Cup soccer matches next summer, Chief Executive Officer John Rodgerson said in an interview, notes the report. Azul will still accept deliveries of new aircraft from Airbus SE and Embraer SA, the report says. About Azul Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of flight departures and cities served, offers 900 daily flights to over 150 destinations. With an operating fleet of over 200 aircrafts and more than 15,000 Crewmembers, the Company has a network of 300 non-stop routes. Azul was named by Cirium (leading aviation data analysis company) as the most on-time airline in the world in 2023. In 2020, Azul was awarded best airline in the world by TripAdvisor, the first time a Brazilian flag carrier earned the number one ranking in the Traveler's Choice Awards. On the Web: http://www.voeazul.com.br/imprensa On May 28, 2025, Azul S.A. and 19 affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 25-11176). The cases are pending before Judge Sean H. Lane. The Company is supported by Davis Polk & Wardwell LLP, White & Case LLP, and Pinheiro Neto Advogados as legal counsel; FTI Consulting as financial advisor; Guggenheim Securities, LLC as investment banker; SkyWorks Capital LLC as fleet advisor; and FTI Consulting, C Street Advisory Group, and MassMedia as strategic communications advisors. Stretto is the claims agent. The Participating Lenders are supported by Cleary Gottlieb Steen & Hamilton LLP and Mattos Filho as legal counsel and PJT Partners as investment banker. United Airlines is supported by Hughes Hubbard & Reed LLP and Sidley Austin LLP as legal counsel and Barclays Investment Bank as investment banker. American Airlines is supported by Latham & Watkins LLP as legal counsel. AerCap is supported by Pillsbury Winthrop Shaw Pittman LLP as legal counsel. The U.S. Trustee for Region 2 appointed an official committee to represent unsecured creditors in the Chapter 11 cases. The Committee retained Willkie Farr & Gallagher LLP as its counsel, Alvarez & Marsal North America, LLC, as its financial advisor, Houlihan Lokey Capital, Inc., as its investment banker. The Backstop Commitment Parties are represented by Cleary Gottlieb Steen & Hamilton and Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados. The Subscription Agent is Stretto. BANCO BTG PACTUAL: Fitch Hikes IDRs to BB+, Outlook Stable ---------------------------------------------------------- Fitch Ratings has upgraded Banco BTG Pactual S.A. (BTG Pactual) and BTG Pactual Holding S.A. (BTGH) Foreign and Local Currency Long-Term Issuer Default Ratings (IDRs) to 'BB+' from 'BB', respectively. The Rating Outlook for the IDRs is Stable. Fitch has also affirmed the Short-Term IDRs at 'B' and upgraded the Viability Rating (VR) of BTG Pactual to 'bb+' from 'bb'. Fitch has affirmed the National Ratings at 'AAA(bra)'/Stable. The upgrade reflects BTG Pactual's continued enhancements of its funding profile, while improving its business mix diversification and financial profile, which led to a sustained strengthening the bank's core financial profile. Fitch believes BTG Pactual's ratings should be rated and capped one notch above Brazil's sovereign rating due to the bank's exceptional strength. The upgrade also includes a strong record of resilient earnings, and sound asset-quality trends, combined with stable capital and stronger liquidity buffers. We believe these factors would mitigate pressures on the bank in the case of severe stress on the Brazilian sovereign. We also expect BTG Pactual to maintain profitability above the regional banks' average. Fitch has upgraded BTG Pactual's Government Support Rating (GSR) to 'b+' from 'ns' due to the bank's high systemic importance. Key Rating Drivers BTG Pactual - IDR, VR, NATIONAL RATINGS Ratings Driven by VR: BTG Pactual's IDRs and National Ratings are driven by BTG Pactual's standalone creditworthiness, as measured by its 'bb+' VR. BTG Pactual's ratings are underpinned by its strong domestic franchise in its selected markets and increasingly well-diversified product mix that grant it an exceptional strength relative to domestic peers. This results in resilient performance through economic and interest-rate cycles. The ratings also reflect improved funding and liquidity, robust profitability and adequate capitalization. Ratings One Notch Above Brazil: Elevated business diversification and very strong loss-absorption capacity put BTG Pactual is a strength relative to domestic peers. The ratings reflect our expectation that the bank would likely continue to service its obligations in case of a sovereign default, and that the Brazilian sovereign is unlikely to impose material restrictions on the bank's debt-servicing capacity. Operating Environment: Brazil's "bb/Stable" operating environment (OE) score caps the headroom for further upgrades despite BTG Pactual's strengthened profile. While macroeconomic volatility has moderated, structural vulnerabilities persist, including weaker sovereign creditworthiness, high funding costs and sensitivity of local markets to global shocks. BTG Pactual has demonstrated strong adaptability to these conditions, reflected in stable credit performance and earnings. Nonetheless, the OE continues to constrain upside. The Brazilian OE remains capped by Brazil's 'BB' rating. Broader, More Balanced Franchise: BTG Pactual's 'bbb-' Business Profile reflects its scale and diversification as one of Latin America's largest independent investment banks. The group operates across investment banking, markets, corporate lending, and sizable wealth and asset management platforms, with managerial revenues rising from BRL9 billion in 2020 to BRL25.1 billion in 2024. Growing international operations and continued expansion in advisory, distribution and digital channels enhance business stability, deepen client reach and strengthen BTG Pactual's competitive positioning versus regional peers. Moderate Risk Profile, Despite Rapid Expansion: BTG Pactual's risk profile is assessed as moderate, reflecting a concentrated but high-quality expanded credit portfolio anchored in large corporates, financial institutions and infrastructure groups, with top exposures largely rated at or above the sovereign. Market-risk activities are larger than those of universal banks given BTG Pactual's investment-bank model, but are well managed, supported by strong limits, central clearing and consistent stress testing. Treasury results have been positive and strong across multiple years with no loss events, underscoring disciplined risk-taking despite higher market sensitivity. Corporate-Focused Book, Adequate Asset-Quality: BTG Pactual's asset-quality metrics are adequate, reflecting its loan mix, supporting low loss severity despite moderate single-name exposure. The Stage 3 ratio stands at 5.8% (5.3% on an expanded-credit basis), with coverage near 70% and limited restructured loans. Fitch expects stable asset-quality performance, supported by diversifying exposures, high borrower quality, and robust workout and recovery practices. Resilient Core Earnings Amid Continued Growth: Fitch upgrade BTG Pactual's earning and profitability score to 'bb+' from 'bb'- The bank's operating profit/RWA ratio reached 3.7% in 6M25, up from 3.3% in 2023, remaining above most domestic peers and supporting solid capital generation. Revenues grew 31% YoY in 9M25 across lending, wealth, asset management and markets, while efficiency improved with a cost-to-income ratio near historical lows. Credit costs have normalized but remain well-covered by pre-impairment profit, underpinning resilient earnings through market and credit cycles. Growth in fee-based income, consumer banking and credit origination offers more balance to S&T revenue, which remains material but less dominant. Fitch views BTG Pactual's profitability as more sustainable than in previous cycles due to the depth of recurring businesses and higher client-flow volumes. Adequate Buffers: Fitch revises BTG Pactual's capitalization & leverage score to 'bb+' from 'bb'. Common equity tier 1 (CET1) ratio has remained around 12% in recent periods, supported by strong internal capital generation despite fast RWA growth. The bank maintains comfortable buffers relative to regulatory requirements, and total capital of 15.5% at end-3Q25 is reinforced by hybrid issuances. The bank's ability to raise capital, disciplined payout policy and deep access to subordinated debt markets further reinforce capital flexibility. Improved Structure Despite Wholesale-Orientation: BTG Pactual's funding profile remains wholesale-oriented, though deposits have grown materially, now providing a more balanced mix across corporate, wealth and retail channels. The gross loans/customer deposits ratio has risen to around 140%, reflecting rapid balance-sheet expansion, but retail deposits already account for roughly 30% of total deposits. Structural liquidity is adequate. The LCR remains comfortably above regulatory minimums and large HQLA buffers mitigate sensitivity to short-term market stress. BTGH - IDRs, NATIONAL RATINGS BTGH Ratings Equalized: BTGH is a pure holding company. The company's Long- and Short-Term IDRs and National Ratings are the same as BTG Pactual's, its main operating subsidiary (controls 65.8% of BTG Pactual). This is due to the company's moderate leverage and the favorable regulatory framework for Brazilian financial groups. The equalization of the ratings is based on the high correlation between the probability of default for BTGH and the bank. Both are incorporated in the same jurisdiction and are supervised by the Brazilian authorities. The holding company's double-leverage ratio was moderate. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrades BTG Pactual'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, reducing its exceptional strength versus domestic peers, or if its loss-absorption capacity reduces, diminishing resilience to a potential Brazilian sovereign stress. A downgrade could materialize if operating profit fails to remain above 3% of RWAs. A CET1 ratio below 10%, without prospects of recovery or mitigating factors, could also pressure the ratings. Reduced flexibility and capacity to access the wholesale funding markets, if it materially affects liquidity, could also lead to negative rating action. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade IDRs and VR Upgrade potential for BTG Pactual is limited. An upgrade would be contingent on an upgrade of Brazil's rating, resulting in a better assessment of the group's operating environment. NATIONAL RATINGS -- BTG's Long-Term ratings are at the top of the national scale, and therefore, cannot be elevated. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Senior Debt BTG Pactual's senior unsecured issuances are in line with its IDRs. The probability of default of any senior obligation is tied to that of the bank (reflected in the Long-Term IDR), as a default of senior obligations would be treated by the agency as default by the entity. Government Support Rating BTG Pactual's GSR of 'b+' reflects a limited probability of support from the Brazilian authorities, if required. Despite contagion risks from BTG Pactual's position as a domestic bank with high systemic importance, the government's limited financial flexibility and capacity to provide support as indicated by its sovereign rating, highly influence its GSR. BTGH BTGH is a pure holding company. The company's Long- and Short-Term IDRs and National Ratings are the same as BTG Pactual's, its main operating subsidiary (controls 69.4% of BTG). This is due to the company's moderate leverage and the favorable regulatory framework for Brazilian financial groups. The equalization of the ratings is based on the high correlation between the probability of default for BTGH and the bank. Both are incorporated in the same jurisdiction and are supervised by the Brazilian authorities. The holding company's double-leverage ratio was moderate. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES Senior Debt BTG Pactual's senior debt ratings would move in line with the bank's IDRs. Government Support Ratings BTG Pactual's GSR of 'b+' is sensitive to changes in Fitch's assessment about the ability and/or propensity of the sovereign to provide timely support to the bank, and would only be likely to occur with a significant increase in the bank's systemic importance. BTGH BTGH's IDR and national ratings would remain at the same level as BTG Pactual and would move in tandem with any rating actions on its main operating subsidiary. However, a material and sustained increase in BTGH's double-leverage metrics (above 120%), would be negative for ratings. Additionally, a change in the dividend flows from the operating companies or debt levels at the holding company that affects its debt coverage ratios could also be detrimental to its ratings. Rating Prior ------ ----- Banco BTG Pactual S.A. LT IDR BB+ Upgrade BB ST IDR B Affirmed B LC LT IDR BB+ Upgrade BB LC ST IDR B Affirmed B Natl LT AAA(bra) Affirmed AAA(bra) Natl ST F1+(bra) Affirmed F1+(bra) Viability bb+ Upgrade bb Gov't Support b+ Upgrade ns senior unsecured LT BB+ Upgrade BB BTG Pactual Holding S.A. LT IDR BB+ Upgrade BB ST IDR B Affirmed B LC LT IDR BB+ Upgrade BB LC ST IDR B Affirmed B Natl LT AAA(bra) Affirmed AAA(bra) Natl ST F1+(bra) Affirmed F1+(bra) Gov't. Support ns Affirmed ns ITAU UNIBANCO: Fitch Affirms 'BB+' IDRs, Outlook Stable ------------------------------------------------------- Fitch Ratings has affirmed the Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) of Itau Unibanco Holding S.A. (IUH) and its operating subsidiary Itau Unibanco S.A. (Itau Unibanco) at 'BB+', and the Long-Term National Rating at 'AAA(bra)'. The Rating Outlooks are Stable. Fitch has also affirmed IUH and Itau Unibanco's Viability Rating (VR) at 'bb+' and upgraded IUH's implied VR to 'bbb-' from 'bb+', reflecting meaningful improvements in the bank's risk profile and asset quality fundamentals. However, the final VR is one notch below the implied 'bbb-' VR, driven by the Operating Environment (OE) adjustment, which Fitch assesses at 'bb+' Key Rating Drivers Well-Balanced Business, Risk Profile: IUH's ratings reflect its strong business profile and well-managed risk, supporting resilient earnings generation. This is underpinned by the group's leading domestic banking position and consistent, moderate exposure to stronger economies than Brazil (BB/Stable), including Chile (A-/Stable), Uruguay (BBB/Stable) and Colombia (BB+/Negative), among other Latin American markets. The ratings are also supported by a sound funding profile and higher liquidity and capital buffers than similarly rated regional banks. Group VR: Fitch rates Itau Unibanco Holding S.A. (IUH; BB+/Stable) and its main bank subsidiary, Itau Unibanco S.A. (Itau Unibanco; BB+/Stable), at the same level, reflecting similar risk profiles. This is alignment stems from the Central Bank of Brazil's consolidated supervision, with capital, liquidity and operational integration highly fungible across the group. The IDRs and National Ratings are driven by standalone creditworthiness, as indicated by the 'bb+' Viability Rating (VR). Ratings One Notch above Brazil: The VRs are one notch above Brazil's sovereign rating, reflecting the group's very strong standalone credit profile. On a consolidated basis, IUHS's direct exposure to Brazilian sovereign securities debt represents approximately 1.9x its equity, which is a moderate but manageable concentration that is well within the banks' risk appetite, supported by strong capital and liquidity buffers. This, combined with the bank's geographic diversification, underpins the resilience of the group's asset quality in periods of stress. Fitch believes that these entities would likely retain the capacity to service their obligations in the case of a sovereign default, without any restrictions from the government. Stable Operating Environment: Fitch expects IUH to maintain business volumes at acceptable risk levels, supported by a 'bb+'/Stable OE assessment. This reflects the bank's strong domestic franchise and moderate complementary operations in Latin America. In our view, sector risks are balanced in the near term, with neither clear upside nor downside predominating. Domestically, although global disinflation is ongoing, local economic activity remains subdued and risk premiums are elevated, resulting in a continued restrictive monetary policy stance. Despite a robust labor market, households remain highly leveraged, with significant exposure to expensive credit products. This increases their sensitivity to interest rates and inflation. Leading Franchise, Disciplined Strategic Execution: IUH's dominant franchise, strong brand, and diversified revenue model underpin its business profile. Four-year average operating income is USD24.4 billion, the largest among regional peers. The group combines scale with strategic discipline, prioritizing high-return segments and maintaining a selective regional footprint. Latin American subsidiaries are locally funded and complementary, providing moderate diversification without elevating risk. Ongoing digital investments and improved efficiency support recurring earnings. Proactive Portfolio Management Drives Implied VR Upgrade: Fitch has upgraded IUH's Risk Profile score to 'bbb-', reflecting disciplined, forward-looking risk management. The bank maintains a diversified portfolio supported by tighter wholesale concentration limits, selective SME and agribusiness growth, and a shift toward prime retail, which clearly differentiates the bank from domestic and regional peers. Conservative underwriting, early staging and strong collateral practices underpin stable asset quality and cost-of-risk levels broadly in line with higher-rated peers, helping sustain resilient earnings despite Brazil's challenging operating environment. Meanwhile, market risks, such as interest rate and foreign exchange (FX) are well-managed through hedging. Contained Formation Pressure: Fitch has also upgraded IUH's Asset Quality score by one notch to 'bb+', supported by resilient metrics and contained impaired-loan formation throughout multiple cycles. The Stage 3 ratio improved to 4.2% in 3Q25, below prior expectations, while Stage 2 improved to 4.1%. Early delinquency trends are broadly steady. Coverage remains adequate, with 55.9% Stage 3 reserves, and renegotiated and restructured balances have declined for eight consecutive quarters. Fitch expects impaired loans to stay below 5% over the medium term, supported by a defensive secured mix and selective unsecured growth. Earnings Resilience and Best-in-Class Efficiency: IUH's operating profitability is a rating strength, improving over the past three years. Diversification and strategic enhancements in retail and corporate banking yield resilient revenue streams. Operating profit relative to risk-weighted assets (RWA) reached 3.6% in 9M25. Fitch expects a strong credit underwriting, market risk management, and cost-to-income culture to maintain earnings ratios close to current levels in 2025 and 2026. Adequate and Consistent Capital Planning: Fitch has upgraded IUH's capitalization and leverage score to 'bb+', supported by its solid capitalization and internal generation and conservative management buffers. CET1 remained comfortably above the internal target, reaching 13.5% in 3Q25; overall capital adequacy was further supported by AT1 and Tier 2 instruments. Prudent capital planning balances distributions with regulatory and macroeconomic needs. Recent liability management, including replacing costlier USD AT1 with domestic issuance, has improved capital efficiency. Fitch expects CET1 ratios to remain consistent with the current rating. Stable Funding, Strong Liquidity: Funding and liquidity remain core rating strengths. IUH benefits from a large, granular retail and SME deposit base, strong corporate transactional franchises, and consistent "flight to quality" behavior during periods of market volatility. Competition for deposits remains elevated, but IUH's pricing power and diversification help contain pressures. Liquidity is ample, with high-quality liquid assets providing robust buffers and regulatory liquidity ratios well above minimum requirements. Access to domestic and international markets enhances flexibility. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade -- IUH's ratings would be downgraded if Brazil's sovereign rating is downgraded, as they are capped at one notch above the sovereign, or if IUH's OE assessment is revised downward;. -- The entities' VRs and Long-Term IDRs would be pressured if the CET1 ratio falls and remains below 10% without a credible short-term plan to rebuild it, including due to worse-than-expected asset quality deterioration or unexpected events; -- A sustained decline in earnings resilience, i.e., operating profit/RWAs below 2%, would also likely trigger a negative rating action; -- The National Ratings are sensitive to a weakening of creditworthiness relative to other Brazilian issuers. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade -- An upgrade would require an upgrade of Brazil's sovereign rating, which would improve the group's operating environment; -- Over the medium term, an upgrade would require (i) a CET1/RWA ratio consistently above 12%, (ii) an impaired loan ratio structurally below 6%, and (iii) preservation of the group's earnings resilience. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Senior Unsecured Debt IUH's senior unsecured debt is rated in line with its Long-Term IDRs, as the likelihood of default on these obligations mirrors the entity's overall default risk. Subordinated Debt IUH's Tier subordinated notes are rated two notches below the VR of 'bb+', reflecting their subordinated status and expected high loss severity. No additional notching for nonperformance is applied because coupons are not deferrable, and the write-off trigger is close to the point of nonviability. Accordingly, Fitch views incremental nonperformance risk as immaterial for rating purposes. GSR IUH's GSR of 'bb-' reflects a moderate probability of support from the Brazilian authorities, if needed. While IUH's position as a domestic systemically important bank with dominant market shares raises contagion concerns, the government's moderate financial flexibility and capacity to provide support as indicated by its sovereign rating, highly influence its GSR. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES SENIOR DEBT IUH's senior unsecured debt ratings are equalized with IUH's IDRs and are therefore primarily sensitive to changes in the IDRs. SUBORDINATED AND JUNIOR SUBORDINATED DEBT IUH's hybrid ratings (for its Tier II subordinated debt) rating is sensitive to a change in its anchor VR. GSR An upward revision of the GSR would be contingent on a positive change in the sovereign's propensity to support the bank. In Fitch's view, this is highly unlikely, although not impossible. VR ADJUSTMENTS The VR of 'bb+' has been assigned below the 'bbb-' implied VR due to the following adjustment reason: Sovereign Rating (negative) The Asset Quality score of 'bb' was assigned above the 'b and below' category implied score because of the following adjustment: Collateral and reserves. The Funding & Liquidity score of 'bbb-' was assigned above the 'bb and below' category implied score because of the following adjustment: Deposit Structure. Rating Prior ------ ----- Itau Unibanco Holding 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+ subordinated LT BB- Affirmed BB- Itau Unibanco 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- =========================== C A Y M A N I S L A N D S =========================== ETIHAD ENERGY: Fitch Gives B+(EXP) Rating to USD167MM Trust Certs ----------------------------------------------------------------- Fitch Ratings has assigned Etihad Energy Sukuk Limited's USD167 million trust certificates an expected senior secured rating of 'B+'(EXP). The Recovery Rating is 'RR2.' The certificates are issued on behalf of Vertex Investments Holdings Limited and guaranteed by Brooge Petroleum & Gas Investment Company FZE (BPGIC; B-(EXP)/Stable) and Gulf Navigation Holdings PJSC and certain of its subsidiaries. Etihad is the certificates' trustee and an exempted limited liability company incorporated in the Cayman Islands. It was incorporated solely to participate in the transactions described in the transaction documents to which it is a party. Its shares are held by Walkers Fiduciary Limited as share trustee. Vertex is the obligor, seller, lessee, purchaser, and servicing agent. BPGIC guarantees Vertex's payment obligations under the transaction documents on a senior secured basis. Vertex's payment obligations under the documents are also guaranteed by Gulf Navigation and certain subsidiaries on a senior secured basis. Fitch will assign a final rating to the certificates after removal of pre-existing liens from BPGIC's operating assets and perfection of all security interests for certificateholders. Assignment of a final rating is also contingent on the receipt of executed documentation conforming to the documentation already reviewed by Fitch and after BPGIC's expected Issuer Default Rating (IDR) is converted to final. Issuance proceeds repaid BPGIC's existing senior secured bonds, and the balance will remain in cash on the balance sheet. Key Rating Drivers The trust certificates' rating is anchored to BPGIC's IDR as a senior secured guarantor and the group's key cash flow generator. This reflects Fitch's view that default of the senior secured obligations under the guarantee would indicate BPGIC's default, per Fitch's rating definitions. The sukuk is secured by, among others, a mortgage on BPGIC's key liquids storage assets and the associated land leasehold, bank accounts, receivables, and other assets. Fitch believes the trustee's ability to satisfy payments due on the certificates ultimately depends on Vertex satisfying its secured payment obligations to the trustee under the transaction documents, creditors' recovery prospects would be enhanced by the senior secured guarantee from BPGIC and Gulf Navigation. In addition to Vertex's propensity to ensure repayment of the trust certificates, in Fitch's view, Vertex must ensure full and timely repayment of Etihad's obligations, due to its various roles and obligations under the sukuk structure and documentation, especially but not limited to the below features: -- Vertex, as servicing agent, is to ensure sufficient funds are available to meet the periodic distribution amounts, partial distribution amounts and PIK distribution amounts payable by the trustee under the certificates on each periodic distribution date. It can take other measures to ensure that there is no shortfall and that the face amount and any due and unpaid periodic distribution amounts are paid in full and in a timely manner. -- The rental due on a rental payment date, will be an amount equal to the sum of the fixed rental amount instalment, the cash profit rental amount, the PIK rental amount, and the lease service amount less any murabaha profit instalment, which when taken together with such murabaha profit instalment will be sufficient to fund the periodic distribution amounts, partial distribution amounts, partial distribution amount and PIK distribution amounts payable by the trustee under the certificates. Failure to timely and fully pay the dissolution distribution amount and any periodic distribution amount will constitute a dissolution event. Any deferral of the PIK distribution amount shall not constitute a dissolution event or any other breach of obligations under the transaction documents. -- On the scheduled dissolution date, the aggregate amounts of the deferred sale price then outstanding, if any, shall become immediately due and payable by the obligor; and the trustee will have the right to require the obligor to purchase all of its rights, title, ownership interests, benefits and entitlements in, to and under the usufruct assets for an amount equal to the exercise price. The exercise price payable by the obligor to the trustee, together with the aggregate amounts of the deferred sale price then outstanding, if any, are intended to fund the dissolution distribution amount (scheduled) to be paid by the trustee. -- If an obligor event has occurred and is continuing and Vertex fails to effect or perform any ordinary maintenance and repair, Etihad is entitled but not bound to take possession of the lease assets for the purpose of having those repairs or replacements effected, and the Vertex shall repay to the Etihad the full actual cost of those repairs and replacements. -- Vertex will ensure that Etihad will be allowed reasonable access, upon reasonable request, to the lease assets, to inspect the works and related data books and records, provided that no such visit or inspection shall interfere with, or interrupt the operations of the lessee. If the lessee failed to comply, this would constitute a dissolution event. - The scheduled dissolution distribution amount is the sum of the outstanding face amount of such certificate; any due and unpaid periodic distribution amounts, and all due and unpaid outstanding PIK payments, for such certificates. -- The dissolution distribution amount upon dissolution event is the sum of the outstanding face amount of such certificate; any due and unpaid periodic distribution amounts for such certificate; in respect of any redemption of the certificates that occurs during the period of twelve months from (and including) the issue date, the make-whole amount for such certificate (if any); the premium amount for such certificate; in the case of the occurrence of an obligor event (without double counting the 5% per annum increase that has been applied to the cash profit rate) an amount equal to the product of: (i) 5% per annum; (ii) the sum of (A) the aggregate outstanding face amount of such certificate as at the date of the occurrence of such obligor event and (B) the outstanding PIK payment as at the relevant date; and (iii) the actual number of days in the period from (and including) the date on which such obligor event occurred to (but excluding) the relevant date, divided by 360; and all due and unpaid outstanding PIK payments for such certificate. - The exercise price and 5% exercise premium payable by Vertex under the purchase undertaking to the trustee, together with the aggregate amount of the deferred sale price then outstanding, if any, are intended to fund the dissolution amount payable by the trustee under the trust certificates. - On the occurrence of a total loss event or partial loss event (unless the lease assets are replaced), if there is a shortfall from the insurance proceeds, Vertex undertakes to pay the loss shortfall amount directly into the transaction account. If the servicing agent is not in compliance with the obligation to insure the assets against total loss or partial loss events, it shall immediately deliver written notice to the trustee and the delegate of such non-compliance and the details thereof, and this will constitute an obligor event. - BPGIC and Gulf Navigation and certain subsidiaries have agreed to unconditionally and irrevocably guarantee in favour of inter alia the trustee and the delegate the due and punctual performance by Vertex of all its payment obligations. If Vertex does not pay any sum payable by it under the transaction documents by the time and on the date specified for such payment, the guarantor will pay that sum as directed. - The payment obligations of the obligor shall constitute direct, unconditional and secured obligations of the obligor; and save for such exceptions as may be provided by applicable legislation, at all times rank at least equally with all other outstanding unconditional and secured obligations of the obligor, present and future. Notwithstanding that the Secured Parties have the benefit of the Transaction Security, to the extent there are any unsecured and unsubordinated claims against the obligor under the transaction documents, such unsecured and unsubordinated claims against it, rank at least pari passu with the claims of all its other present and future unsecured and unsubordinated creditors, except for those creditors whose claims are mandatorily preferred by laws applying to ADGM companies generally. -- The payment obligations of each of the guarantors are and will be direct, unconditional, unsubordinated and secured obligations of the respective guarantors. -- It is a dissolution event if the obligor repudiates or challenges the valid, legal, binding and enforceable nature or sharia compliance of any or any part of a transaction document to which it is a party, or does or causes to be done any act or thing evidencing an intention to repudiate or challenge, these conditions or any (or any part of any) transaction document to which it is a party. -- The certificates' terms require that any incremental financial indebtedness of BPGIC or its immediate holding company exceeding USD1 million with a tenor of three months or more, excluding any future tap issuances under the Sukuk, will be and remain at all times fully and unconditionally subordinated to the certificates in accordance with the terms of the Subordination Deed. The sukuk documentation includes an obligation for Vertex to ensure that at all times, the tangible asset ratio - defined as total value of the lease assets/aggregate value of the lease assets and the deferred sale price outstanding - is more than 50%. Vertex's failure to comply with this obligation will not constitute an obligor event. If the tangible asset ratio falls below 33% (tangibility event), the certificate holders will have the option to require the redemption of all or any of their trust certificates at the dissolution amount and the trust certificates will be delisted. In this event, there would be implications for the tradability and listing of the trust certificates. Fitch expects the tangibility ratio will be above 50% through the life of any trust certificates issued. The obligor and its related parties will have a sufficient base of unencumbered tangible assets, of which a material portion will be initially earmarked for the sukuk. As such, the asset base of Vertex and its affiliates is sufficiently strong to support the trust certificates. Fitch expects Vertex to maintain the tangibility ratio above 50% with support from the asset base held by multiple sellers (wholly owned subsidiaries of Gulf Navigation). The tangible fixed assets totaled over USD400 million as of 9M25, while the tangibility ratio will be low but manageable at inception of the sukuk, once BPGIC's existing bonds are repaid and mortgages over its assets released, there will be more than sufficient tangible unencumbered assets available to keep the tangibility ratio well above 50%. If Vertex does not have sufficient headroom, Fitch expects support from BPGIC, due to the senior secured guarantee it provides. Fitch said, "We expect BPGIC to remain a highly cash flow generative entity with significant restrictions on dividends and other distributions and a debt service reserve account, providing sufficient liquidity buffer to service payments due under the transaction documents." The terms of the trust certificates include a negative pledge provision, cross acceleration, obligor event, insurance notice event, change of-control clause, restrictive covenants with respect to the trustee, and requirement for BPGIC to fund a debt service reserve account. Fitch believes a default of BPGIC or an insolvency of Gulf Navigation would constitute an event of default under the certificates and financial covenants are in place to limit leverage at both BPGIC and Gulf Navigation. Based on the information received, Fitch believes the legacy governance issues previously impacting BPGIC have been resolved and/or ring-fenced such that they can no longer impact BPGIC's operations. Certain transactions aspects are governed by English law, while other aspects are governed by the laws of Emirates of Fujairah, the federal laws of UAE and Cayman Islands. Fitch does not express an opinion on whether the relevant transaction documents are enforceable under any applicable law. However, Fitch's rating on the trust certificates reflects the agency's belief that BPGIC would stand behind its obligations. - Fitch does not express an opinion on the trust certificates' compliance with sharia principles when assigning ratings to the certificates to be issued Peer Analysis The certificate's ratings are derived from the guarantor's Long-Term IDR. Fitch's Key Rating-Case Assumptions The certificates are issued on behalf of Vertex via the SPV Etihad Energy Sukuk Ltd and guaranteed by BPGIC and Gulf Navigation. Recovery Analysis The recovery analysis assumes that BPGIC would be liquidated in a bankruptcy rather than reorganized as a going concern. This is driven by BPGIC's modern assets with several decades of remaining useful life and limited investment needs yielding an asset valuation which is higher than Fitch's post-restructuring going-concern enterprise value. For the purposes of recovery calculations Fitch includes going-concern EBITDA and asset values associated only with BPGIC's operating assets, conservatively assuming no residual cash flows or liquidation value from Gulf Navigation. The USD167 million senior secured sukuk certificates constitute the sole debt of BPGIC. Fitch's waterfall analysis, after a deduction of 10% for administrative claims, led to a waterfall-generated recovery computation (WGRC) in the 'RR2' band, indicating a 'B+(EXP)' instrument rating, which is capped by the company's operations being concentrated in the United Arab Emirates as per Fitch's Country-Specific Treatment of Recovery Ratings Criteria. RATING SENSITIVITIES Factors That Could, Individually Or Collectively, Lead To Negative Rating Action/Downgrade - A downgrade of BPGIC's IDR would lead to a similar action on the certificate's rating; - The certificate's rating may also be sensitive to adverse changes to the roles and obligations of Vertex, BPGIC and Gulf Navigation under the Trust Certificate structure and documents. Factors That Could, Individually Or Collectively, Lead To Positive Rating Action/Upgrade - An upgrade of BPGIC's IDR would lead to a similar action on the certificate's rating. Liquidity and Debt Structure Fitch said, "We view BPGIC's liquidity as sufficient, supported by the recent USD167 million sukuk issuance. This transaction has refinanced the BPGIC's existing bonds. BPGIC's low-cost structure will support sufficient cash generation to service the sukuk. Our rating case does not consider the cash sweep mechanism included under the new sukuk issuance, which may accelerate debt repayment further and would be an upside to our rating case in terms of lower gross leverage over the forecast period." Issuer Profile Etihad Energy Sukuk Ltd. is a special-purpose vehicle formed for the sole purpose of issuing the sukuk. Public Ratings with Credit Linkage to other ratings The ratings of the senior secured sukuk issued by Etihad are anchored to the Long-term IDR of BPGIC. RATING ACTIONS Rating ------ Etihad Energy Sukuk Ltd senior secured LT B+(EXP) Expected Rating RR2 ============= J A M A I C A ============= JAMAICA: BOJ Says External Accounts Likely to Weaken in Near Term ----------------------------------------------------------------- RJR News reports that the Bank of Jamaica is warning that the country's external accounts are likely to weaken in the near term, as imports rise and exports continue to decline. The central bank says the trade deficit, which stood at about US$3.5 billion during the first seven months of the year, is expected to widen further, according to RJR News. This has been attributed to increased imports of food, raw materials, capital goods, fuel and transport equipment, alongside falling merchandise exports, the report relays. The Bank of Jamaica notes that the wider trade gap will also translate into a larger current account deficit, driven by weaker-than-expected tourism and business process outsourcing earnings, as well as flat remittance inflows, the report says. However, the central bank says Jamaica is expected to have sufficient foreign exchange reserves to cover the shortfall, supported by disaster risk financing and loan inflows from multilateral agencies, the report discloses. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. JAMAICA: Melissa Causes Drop in Tourism Earnings, Job Losses ------------------------------------------------------------ RJR News reports that the Bank of Jamaica says tourism earnings are falling and jobs are being lost in the sector, following the impact of Hurricane Melissa, which forced the immediate closure of 43% of the country's hotel room stock. In its latest assessment, the central bank said widespread booking cancellations and the delayed reopening of major hotel chains, including Hyatt and Iberostar, now expected between May and as late as November next year, are likely to worsen unemployment in the tourism industry, according to RJR News. The BOJ noted, however, that some smaller properties which were not severely affected by the hurricane have already resumed operations, the report notes. Tourism remains Jamaica's second largest source of foreign exchange after remittances, generating net foreign exchange earnings of US$1.76 billion last year, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. TRANSJAMAICAN HIGHWAY: S&P's Outlook on 'BB' Rated Notes Now Stable ------------------------------------------------------------------- S&P Global Ratings revised the outlook on Transjamaican Highway Ltd.'s notes to stable from positive and affirmed its 'BB' rating on the notes. On Dec. 18, 2025, S&P Global Ratings revised the outlook on Jamaica to stable from positive and affirmed its 'BB' foreign currency and local currency ratings on the country. S&P said, "The stable outlook on TJH reflects the sovereign outlook, indicating our view that TJH's credit profile remains intrinsically linked to Jamaica's broader economic stability. We anticipate a gradual recovery in TJH's traffic volumes following the disruption caused by Hurricane Melissa, driven by the reactivation of commercial activity and tourism throughout 2026, supporting our projection of a minimum debt service coverage ratio (DSCR) consistently near 3.0x." TJH holds a 35-year concession contract to design, construct, operate, and maintain the Highway 2000 East-West until 2036. The toll road is fully operational and connects Jamaica's capital city, Kingston, and its greater metropolitan area to the west. The toll road has four active toll plazas: May Pen, Vineyards, and Spanish Town in the T1 Corridor; and Portmore in the T2 Corridor. Toll rates vary by vehicle class, as is the case for most of its rated toll roads, and are subject to an annual cap defined in the concession agreement. S&P said, "Following damage assessments and the incorporation of the impact of Hurricane Melissa, which made landfall in Jamaica on Oct. 28 and has taken time to assess, and following the economic and fiscal outlook in the government's budget update in December, we believe the likelihood of an upgrade for Jamaica over the coming 12 months has become more remote. As a result, on Dec. 18, 2025, we revised the outlook on our ratings on Jamaica to stable from positive. Despite a significant hit to growth in the near term and a need to fund rebuilding, Jamaica's solid institutions and preparedness for external shocks, in addition to an expected economic rebound, support the current ratings. "As a result, we revised the outlook on TJH to stable from positive, reflecting that the sovereign continues to constrain TJH's credit profile. This is due to the project's significant exposure to regulatory risks and its inherent dependence on local economic conditions. Our analysis incorporates stress testing--including scenarios involving a 100% currency depreciation, a 10% GDP contraction, and a doubling of inflation--to assess TJH's resilience. While a six-month cash funded debt service reserve account provides a limited buffer, our assessment indicates that cash flows would likely be insufficient to fully cover debt payments in a sovereign default scenario. A sovereign stress could also restrict future tariff increases, potentially affecting the project's cash flow. The 'a-' stand-alone credit profile (SACP) remains unchanged, reflecting TJH's current operational strengths. "The stable outlook on TJH aligns with the sovereign outlook, reflecting our view that TJH's performance is linked to Jamaica's broader economic stability. We anticipate a gradual recovery in traffic volumes following the disruption caused by Hurricane Melissa, driven by the reactivation of commercial activity and tourism throughout 2026. Beyond 2026, we expect traffic growth to track our forecast for Jamaica's GDP growth of approximately 2% per year, supporting our projection of a minimum DSCR consistently near 3.0x. "We would likely revise the outlook to negative if we were to take similar action on Jamaica. Furthermore, a downward revision of the SACP is possible if financial performance, passenger volume, or maintenance needs significantly deviate from our expectations, resulting in a minimum DSCR falling below 1.7x, accompanied by a significant traffic reduction of approximately 25%. A downgrade of National Commercial Bank Jamaica Ltd. (NCBJ; BB-/Positive/B), the project's primary bank account provider, could also trigger a downward adjustment to the SACP. "While we consider it unlikely, we could revise the outlook to positive or raise the rating on TJH's debt if we were to take similar action on Jamaica. However, we believe this scenario is contingent on a substantial and sustained improvement in Jamaica's economic outlook." ======= P E R U ======= PETROLEOS DEL PERU: S&P Lowers ICR to 'B-', On Watch Negative ------------------------------------------------------------- S&P Global Ratings lowered its issuer credit and issue-level ratings on Petroleos del Peru Petroperu S.A. to 'B-' from 'B'. At the same time, S&P placed the ratings on CreditWatch with negative implications. S&P said, "The CreditWatch negative reflects the likelihood that we could lower our ratings on the company in the next few months if the restructuring process results in a debt repurchase or similar restructuring that we consider distressed and therefore tantamount to a default, and/or if additional government support to alleviate company's short term debt maturities does not materialize in the next 90 days. "We believe uncertainties have risen about the government's ability to implement sustainable corrective measures to support Peruvian government-owned refiner and fuels supplier Petroleos del Peru S.A. (Petroperu), and we now view the likelihood of government support as lower." Petroperu's financial performance also continues to be weak, with limited EBITDA to cover its financial obligations. S&P said, "The downgrade reflects that recent developments have weakened our view of the likelihood of government support. We acknowledge that Petroperu has benefited from government support in recent years, such as from the approval of a $1.0 billion loan contract with a government guarantee in 2024. However, we think the government's ability to implement sustainable corrective measures for Petroperu is uncertain amid persistent political changes, which could translate into subpar governance and uncertainty about the government's future policies. "As a result, we view the role between Petroperu and the government as important (from our previous view of very important), and we view the likelihood of government support to Petroperu as moderately high (from our previous view of high). We believe that while a default of Petroperu would still have a major impact on the government, we now consider the consequences of nonintervention more manageable. "Petroperu is working on a restructuring process. The company is actively working on measures to implement this restructuring. While this process may take some time, we expect that the primary focus to be on operational improvements rather than financial restructuring. However, to evaluate the impact on the company's current operational situation, we will need to have further disclosure of this plan, including more detailed information about the specific operational goals and the timeline for execution." On the other hand, the company faces significant debt amortizations in the short term, which are challenging given its limited cash flow generation. As of Sept. 30, 2025, Petroperu faces semiannual amortizations of the CESCE loan (Compañía de Seguros de Crédito a la Exportación) of $86 million, around $81 million of interest from the international bonds due 2032 and 2047, and $5 million of interest payments from the loan with the Ministry of Finance (MEF loan). S&P said, "We think the company will cover its December 2025 debt maturities on a timely basis. However, given that Petroperu has not been able to generate positive cash flow in recent years, and we expect forward-looking cash flow to remain very limited, we don't expect the possibility of debt reduction in the coming years." S&P said, "Petroperu's capital structure remains unsustainable, in line with our 'ccc' stand-alone credit profile (SACP). High debt levels, low or nonexistent cash flow, and operational challenges have continued to increase the company's leverage metrics. Total reported debt was $5.450 billion (excluding accrued interests) as of the third quarter of 2025, and about 10% of that amount (or $580 million) was to come due within the next 12 months. In August 2025, the company was able to refinance its material short-term debt maturities for around $1.0 billion with a loan backed by the government with Banco de la Nacion, which extended its maturity to 2028. "However, for the 12 months ended Sept. 30, 2025, EBITDA generation was negative $122.8 million, contrary to our expectations of positive EBITDA and resulting in weaker credit metrics. We expect that the company will generate positive EBITDA going forward, based on already positive EBITDA during third-quarter 2025. Still, its financial risk profile will remain highly leveraged, with a debt-to-EBITDA ratio well above 5x. Given S&P Global Ratings-adjusted debt to EBITDA of 44x and weak interest coverage below 1x as of Sept. 30, 2025, we believe that Petroperu's liquidity pressure remains on a stand-alone basis." The company's financial results remain weak, despite better third-quarter results. Petroperu's financial performance somewhat recovered in third-quarter 2025. Sales increased about 3% compared to the same period last year. This increase mainly resulted from higher production from the Talara refinery, which boosted sales volumes and increased exports with a higher commercial value. Moreover, product purchases were significantly lower, allowing the company to reduce costs. As a result, Petroperu generated positive EBITDA of about $38.7 million in the third quarter, compared with negative $98.6 million during third-quarter 2024. However, the company's financial results continue to be below S&P's expectations, and limited EBITDA barely covers 20% of interest expenses. ===================== P U E R T O R I C O ===================== JUAN MANUEL GINORIO: Condado Loses Bid to Dismiss Bankruptcy Case ----------------------------------------------------------------- Judge Enrique S. Lamoutte of the United States Bankruptcy Court for the District of Puerto Rico denied Condado 5, LLC's urgent motion for entry of an order pursuant to Section 1112(b)(3) of the Bankruptcy Code with respect to its motion to dismiss or convert the bankruptcy case of Juan Manuel Barreto Ginorio. Condado argues there is cause for dismissal of the bankruptcy case under Section 1112(b) of the Bankruptcy Code for the Debtor's unexcused failure to satisfy timely any filing or reporting requirement. Condado avers that, as of the date of filing of the motion to dismiss, the Debtor had not yet filed the Monthly Operating Reports for August 2025 and September 2025. The Debtor argues that both MORs were not due until October 21, 2025 pursuant to Fed. R. Bankr. P. 2015(a)(6) because the Opinion and Order issued by the U.S. District Court for the District of Puerto Rico, whereby this case was remanded back to the Bankruptcy Court, was entered on August 20, 2025. The Debtor also argues that the MOR for October was not due until November 21, 2025. The Bankruptcy Court acknowledges that the Debtor did not timely file the MORs for August and September 2025. In ruling against the motion, however, the Court holds that the Debtor was up to date with the filing of MORs prior to the entry of the Opinion and Order, whereby the case was dismissed; (2) the Debtor has cured his noncompliance by filing both MORs on November 6, 2025; and (3) the Debtor timely filed the MOR for October 2025. The Bankruptcy Court also finds that dismissal is not in the best interest of creditors and the estate. The lengthy and protracted history of this case and the related case, Bankr. Case No. 22-02380, together with the substantive matters pending before the Bankruptcy Court following the District Court's Opinion and Order dated August 20, 2025, constitute compelling circumstances. A copy of the Court's Opinion and Order dated December 8, 2025, is available at https://urlcurt.com/u?l=OT5Ux2 from PacerMonitor.com. Juan Manuel Barreto Ginorio filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 23-03681) on November 8, 2023, listing under $1 million in both assets and liabilities. The Debtor is represented by Jesus Batista Sanchez, Esq. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. 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