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260113.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 Tuesday, January 13, 2026, Vol. 27, No. 9 Headlines A R G E N T I N A ARGENTINA: Backs Trump's Plan to Run Venezuela, Downplays Election B R A Z I L AZUL SA: Court Confirms Joint Chapter 11 Plan of Reorganization BANCO MASTER: Brazil Judge Considers Blocking Asset Sales in Case J A M A I C A JAMAICA: JCEA Welcomes Commitment to Rehabilitate Coffee Industry JAMAICA: NIR Climbs to US$6.3 Billion as at December P U E R T O R I C O FACEBANK INTERNATIONAL: DBRS Keeps BB LongTerm Issuer Rating V E N E Z U E L A VENEZUELA: U.S. Says It Will Control Oil Exports Indefinitely - - - - - ================= A R G E N T I N A ================= ARGENTINA: Backs Trump's Plan to Run Venezuela, Downplays Election ------------------------------------------------------------------ Buenos Aires Times reports that President Javier Milei is reasserting his alignment with the United States and backing US President Donald Trump's removal of Nicolas Maduro from power. The alignment extends to cooling his support - in line with Trump's new position - for Venezuelan opposition leader Maria Corina Machado, despite Milei's previously enthusiastic backing for the winner of last year's Nobel Peace Prize, according to Buenos Aires Times. The shift reflects Washington's assessment that Maduro's dramatic ouster will not bring down the Chavista regime's core political and security structures, ruling out the chances of a rapid democratic transition, the report relays. As a result, key figures such as former vice-president, interim leader Delcy Rodriguez, the military high command and the intelligence apparatus remain in charge as the US steps in to take control of Venezuela's oil production capabilities and massive reserves, the report notes. That reading has led both Trump and Milei to downplay the prospect of swift elections or an opposition-led transition led by Machado and her allies, the report relays. Casa Rosada sources, quoted by the Noticias Argentinas news agency midweek, said calls for immediate elections were unrealistic, the report discloses. "Calling elections would be delirious," said one senior official with access to the presidential office, arguing that "there could not be any free electoral process" while the regime's structure remains intact, the report relays. Milei endorsed the US operation in an interview last week, describing Maduro's removal as a "surgical" act carried out with "admirable precision," the report relays. Venezuela, he said, remained "a dictatorship, a terrorist narco-state," signalling full political backing for Trump's intervention, the report notes. That marked a recalibration from the Argentine's previous praise of Machado, whom he has championed as a symbol of democratic resistance, the report says. As recently, during a conversation with French President Emmanuel Macron, Milei had spoken favourably of Machado, even as US troops were landing in Venezuela, the report discloses. The turning point came after Trump publicly questioned Machado's viability as a national leader, notes the report. "I think it would be very tough for her to be the leader. She doesn't have the support or respect within the country," said the Republican leader, adding that the United States would "run" Venezuela for the foreseeable future, the report relays. Milei soon followed suit, with Argentina's government closing ranks behind Washington, the report notes. Foreign Minister Pablo Quirno used social media to deny reports that Milei had told Macron he was working towards the inauguration of opposition presidential candidate Edmundo Gonzalez Urrutia, the report relays. The message from Buenos Aires is now clear: Argentina will follow the US lead not only on Maduro's removal, but also on managing the uncertain future that lies ahead, the report discloses. Davos Speech The report relays that Milei will reiterate his backing of Trump's position during his appearance at the annual edition of the World Economic Forum in Davos, Switzerland, later this month, the report notes. Argentina's head of state is working on the speech, which will include a resounding endorsement of Trump's actions in Venezuela and a defence of the Western world and its values, government sources confirmed to the Noticias Argentinas news agency, the report discloses. President Milei will travel to Switzerland for the January 19-23 event, the report says. He will be accompanied by a small delegation, which will include his sister, Presidential Chief-of-Staff Karina Milei and Quirno, Argentina's foreign minister, the report notes. According to reports quoting his speechwriting team, Milei will dedicate passages to a defence of the family, Western tradition, free trade and capitalism, the report relays. "The President will expose the need for the Western world to regain common sense," a source told Noticias Argentinas, the report relays. Trump's intervention in Venezuela will also be cited, notes the report. Milei will make no attempt to hide its support for the US intervention, which led to the detention of Maduro, Hugo Chavez's heir, after more than a decade in power, the report discloses. "It was a surgical, successful and efficient operation," a Casa Rosada source said, hinting at the language Milei will deploy, the report relays. Milei is expected to use his speech at Davos to once again call for the staging of a summit of regional right-winger leaders, an idea he has previously voiced during international appearances, the report notes. Argentina's president wants to closer align with like-minded leaders, including Jose Antonio Kast (Chile), Rodrigo Paz (Bolivia), Daniel Noboa (Ecuador), Santiago Pena (Paraguay), Nayib Bukele (El Salvador) and Jose Jeri (Peru), the report adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. S&P Global Ratings on Dec. 17, 2025, raised its local currency sovereign credit ratings on Argentina to 'CCC+/C' from 'SD/SD'. S&P also raised its long-term foreign currency sovereign credit rating to 'CCC+' from 'CCC' and affirmed its 'C' short-term foreign currency rating. The outlook on the long-term ratings is stable. In addition, S&P raised its issue ratings on local currency bonds to 'CCC+' from 'CCC'. S&P's 'B-' transfer and convertibility assessment is unchanged. Moody's Ratings on July 17, 2025, upgraded Argentina's long-term foreign currency and local currency issuer ratings to Caa1 from Caa3 and changed the outlook to stable from positive. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. =========== B R A Z I L =========== AZUL SA: Court Confirms Joint Chapter 11 Plan of Reorganization --------------------------------------------------------------- Judge Sean H. Lane of the United States Bankruptcy Court for the Southern District of New York entered a modified bench ruling and order granting confirmation of the Joint Chapter 11 Plan of Reorganization of Azul S.A. and its debtor affiliates. The sole objection to the Plan has been filed by the Office of the United States Trustee. On December 4, 2025, the UST filed its objection to confirmation, echoing prior arguments that it raised at the hearing on the adequacy of the Debtors' Disclosure Statement. As of the confirmation hearing, the UST had three remaining objections. The UST argues the Plan's exculpation of parties is overbroad to the extent it includes parties who are not fiduciaries of the estate in violation of Section 1125 of the Bankruptcy Code. The UST also argues that the Plan's exculpation improperly extends to parties who "reasonably rely on the advice of counsel" because that would purportedly provide an unjustifiable "absolute bar against liability." The UST objects that the opt-out provisions of the plan impermissibly impose a third party release on parties who have not unambiguously consented to granting such releases, thus violating the Supreme Court decision in Harrington v. Purdue Pharma. The UST contends that the Plan's payment of Indenture Trustee expenses must satisfy the substantial contribution standard for administrative expenses in Section 503(b) of the Bankruptcy Code. Consistent with prior discussions that occurred with the parties, the Court has already approved the confirmation order, which was entered on December 19, 2025. As reported by the Troubled Company Reporter on Nov. 11, 2025, Azul S.A. and affiliates submitted a Revised Disclosure Statement for the Joint Plan of Reorganization dated November 1, 2025. Azul was founded in 2008 in Brazil by the experienced aviation entrepreneur David Gary Neeleman and a group of American executives who believed in the opportunities of aviation in Brazil. Azul is the largest airline in Brazil in terms of departures and cities served and, prior to the COVID-19 pandemic, was sufficiently capitalized to continue its operational initiatives and take advantage of its strategic partnerships. The Plan is the result of extensive good-faith negotiations, overseen by Azul's board of directors, among the Debtors and their key economic stakeholders. The Plan is supported by, among others, the Secured Ad Hoc Group, DIP Debtholders, the Consenting Stakeholders, the Consenting Shareholders and AerCap. The transactions contemplated by the Plan also have the support of United and American. The transactions contemplated in the Plan will strengthen the Company by substantially reducing its debt and increasing its cash flow and, importantly, will preserve over 15,000 jobs in Brazil, the United States and around the world. As part of the restructuring: * The Reorganized Debtors will conduct an Equity Rights Offering through which the Reorganized Debtors will raise up to $950,000,000 of New Equity Interests. $650,000,000 of the Equity Rights Offering will be backstopped by the Backstop Commitment Parties pursuant to the Backstop Commitment Agreement. * The Strategic Investors, subject to certain conditions, will participate in the Equity Rights Offering up to $300,000,000, thereby solidifying a long-term partnership among the Reorganized Debtors and the Strategic Investors. * The 1L Claims and 2L Notes Claims will exchange their Claims for New Equity Interests, subject to dilution from, among other things, the Equity Rights Offering. * A Management Incentive Plan will be adopted by the New Azul Strategy Committee subject to the Significant Shareholders satisfactory performance of their obligations under the Bondholder RSA, which will provide for the grants of equity and equity-based awards (in the form of MIP Interest), totaling up to seven percent of the New Equity Interests of the Reorganized Debtors. * On the Effective Date, the GUC Trust will be established for the benefit of the GUC Trust Beneficiaries and, in accordance with the Plan and pursuant to the GUC Trust Agreement, will receive, hold, and administer the following GUC Trust Assets: -- The GUC Trust Cash meaning $2,500,000 or $5,000,000 in Cash as determined by the Cash-Out Percentage. -- The GUC Warrants meaning warrants to purchase up to 5.5% of the total outstanding New Equity Interests (calculated on a fully-diluted basis) which shall be exercisable for a 5-year period commencing on the Effective Date and subject to various conditions set forth in the Plan and the GUC Warrant Documents. -- The GUC CVR meaning that certain non-transferable contingent value note issued by the Reorganized Debtor providing for an annual payment of $6,500,000 with respect to each of the fiscal years ending December 31, 2027, 2028, and 2029 (respectively), subject to certain conditions. * Holders of Allowed General Unsecured Claims will receive either (i) its Cash-Out Relative Portion of the Cash-Out Pool (if such Holder has made the Cash-out Election) or (ii) its Trust Relative Portion of the GUC Trust Interests (if such holder has made the GUC Trust Election), provided that if a Holder of an Allowed General Unsecured Claim does not make a valid GUC Trust Election, such Holder shall be subject to the Cash-Out Default. * Unsecured Convenience Class Claims will receive a Cash payment equal to their Pro Rata share of the Unsecured Convenience Class Cash Pool consisting of $3,000,000 in Cash. The Plan is the result of extensive, good faith negotiations among the Debtors, the Secured Ad Hoc Group and the Creditors' Committee. Before engaging in Plan negotiations, the Creditors' Committee conducted an extensive, months' long investigation into, among other things, the Debtors' capital structure and various prepetition transactions. As part of that investigation, the Creditors' Committee engaged with the Debtors and the Secured Ad Hoc Group regarding the claims which the Creditors' Committee believed could be asserted in connection with the capital structure and certain prepetition transactions, among other potential claims and causes of action. The Debtors, the Secured Ad Hoc Group and the Creditors' Committee engaged in months of extensive, productive negotiations, which ultimately culminated in an agreement on the terms of the Plan. Accordingly, the Plan represents a global settlement of many complex legal issues, the litigation of which would have significantly lengthened the Chapter 11 Cases, depleted the Debtors' assets and risked the Debtors' ability to consummate a successful restructuring. Ultimately, the parties agreed on treatment for Holders of Allowed General Unsecured Claims and Unsecured Convenience Class Claims in a manner that they believe reasonably resolves these issues and treats all unsecured creditors fairly and equitably. Class 6 consists of General Unsecured Claims. Each Holder of an Allowed General Unsecured Claim shall receive either: * if such Holder has made the Cash-Out Election, its Cash-Out Relative Portion of the Cash-Out Pool; or * if such Holder has made the GUC Trust Election, its Trust Relative Portion of the GUC Trust Interests; provided, that, for the avoidance of doubt, no Holder of an Allowed General Unsecured Claim shall receive both forms of recovery set forth in the foregoing (A) and (B) on account of such Claim; provided, further, that, pursuant to the AerCap Settlement Order and AerCap Term Sheet, AerCap has waived any rights to receive a distribution with respect to: (i) $284,799,546 of the Allowed AerCap Unsecured Claim against ALAB and (ii) the Allowed AerCap Unsecured Claims in their entirety against Azul on account of any guarantee claims; provided, further, that the Holders of any 1L Deficiency Claims or 2L Notes Deficiency Claims (in their capacity as such) shall not receive any portion of the Cash-Out Pool or GUC Trust Interests, nor any recovery from the GUC Trust or the GUC Trust Net Assets, on account of such 1L Deficiency Claims and 2L Notes Deficiency Claims, respectively. For the avoidance of doubt. If a Holder of an Allowed General Unsecured Claim does not make a valid GUC Trust Election, such Holder shall be subject to the Cash-Out Default. The allowed unsecured claims total $2,359,233,281 to $3,049,305,661. This Class will receive a distribution of 0.7% to 1.9% of their allowed claims. Class 7 consists of Unsecured Convenience Class Claims. Each Holder of an Allowed Unsecured Convenience Class Claim shall receive a Cash payment in an amount equal to its Pro Rata share of the Unsecured Convenience Class Cash Pool. The allowed unsecured claims total $251,294,737. This Class will receive a distribution of 1.2% of their allowed claims. Existing Azul Interests shall be Reinstated, subject to dilution by the transactions contemplated by the Plan and the Transaction Steps. The Existing Azul Interests have no value, and retained Existing Azul Interests will have de minimis value, if any, following the implementation of the Plan and the Transaction Steps. Notwithstanding anything to the contrary in the Plan, no Holder of an Existing Azul Interest (in its capacity as such) shall be a Releasing Party, Released Party, or Exculpated Party except as expressly provided in the Plan. The Reorganized Debtors shall fund distributions under this Plan required to be paid in Cash, if any, and provide for the conveyance and funding of the GUC Trust Assets, as applicable: (1) with Cash on hand, including Cash from operations, (2) with Cash received under the DIP Facility and refinanced pursuant to the Exit Notes (if any), (3) with any proceeds (if any) arising from the exercise of statutory preemptive rights within the context of the transactions implemented to carry out the equitization of 1L Claims and 2L Notes Claims (as applicable); (4) with any proceeds from the Equity Rights Offering, (5) from the Cash proceeds from the issuance of Other Exit Financing (if any), and (6) from the Cash proceeds of an Additional Investment (if any). A full-text copy of the Revised Disclosure Statement dated November 1, 2025 is available at https://urlcurt.com/u?l=hPD2fc from Stretto, claims agent. Counsel to the Debtors: Marshall S. Huebner, Esq. Timothy Graulich, Esq. Joshua Y. Sturm, Esq. Jarret Erickson, Esq. Richard J. Steinberg, Esq. DAVIS POLK & WARDWELL LLP 450 Lexington Avenue New York, NY 10017 Telephone: (212) 450-4000 There is overwhelming support for the Plan based on the voting. The Debtors received over 90% of ballots in each class, with the exception of the Unsecured Convenience Class Claims in Class 7, which only returned about 7% of their ballots. The Court found that the Plan satisfied all the requirements for confirmation and overruled the UST Objection. The Court finds that the Exculpation Provision in the Plan is appropriate. According to the Court, the Exculpation Provision is included to protect the Exculpated Parties that are involved in the Debtors' cases and the restructuring transactions that underpin the Debtors' reorganization, which the Court is approving under the Plan. As to the estate fiduciaries, the record establishes that they have exercised, and continue to exercise, their fiduciary duties to the Debtors and the Debtors' estates, including through assisting with, advising on, overseeing, and authorizing various facets of the Debtors' restructuring, and have done so with care, loyalty, good faith, and diligence. The Court also notes that the Debtors included language in the Exculpation Provision that tethers the exculpation of Related Parties to their activities in the case. Additionally, the scope of the provision is temporally limited to claims arising during the period between commencement of the Debtors' bankruptcy cases and the Effective Date of the Plan. The Court concludes that the third-party releases using an opt-out in this case are permissible. The use of the opt-out is permissible because the Debtors amended the Plan to provide that the releases are provided only by creditors that both returned a ballot and did not elect to opt-out. The Court finds that "clarity and prominence of the language used for the release" was adequate in this case. The language of the releases is clearly worded and prominently presented in all of the Plan materials, including the court-approved ballots, court-approved physical Opt-Out Forms, and on the online balloting portal. Neither the UST nor any other party has suggested that these materials were anything but clear. As expressly laid out in the Plan, only the general unsecured creditors in Class 6 that elect the GUC Trust option over the default cash treatment will be responsible for the Indenture Trustee expenses. Because Section 1123(a)(4) expressly permits holders of claims to agree to less favorable treatment -- such treatment includes payment of the Indenture Trustee expenses and a pro rata share of the GUC Trust's net assets over the cash treatment -- and only those creditors that elect into the GUC Trust are responsible for the Indenture Trustee expenses, the Court rejects the UST's contention that the Plan violates Section 1123(a)(4). A copy of the Court's Order dated January 6, 2026, is available at https://urlcurt.com/u?l=goWtB6 from PacerMonitor.com. About Azul S.A. 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 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 MASTER: Brazil Judge Considers Blocking Asset Sales in Case ----------------------------------------------------------------- Ricardo Brito and Marcela Ayres, writing for Reuters, report that a judge on Brazil's federal audit court (TCU) on Thursday, January 8, agreed to a request from the central bank to submit for a plenary decision on whether the court should inspect central bank documents related to the liquidation of Banco Master. Earlier this week, TCU Judge Jhonatan de Jesus had ordered the inspection in a single-judge ruling, a move challenged by the central bank on the grounds that, under the court's own rules, a decision of that nature must be taken collectively by the full panel, notes Reuters. The report says Jesus' move triggered a public backlash after he also suggested he could take steps to block asset sales during Banco Master's liquidation. Markets have been tracking TCU and Supreme Court actions in the case, considered unusual for a bank wind-down in Brazil, as uncertainty grows over investor compensation, Reuters relays. Lawyers for Banco Master's controlling shareholder, Daniel Vorcaro, cited the possibility of TCU reversing the liquidation in a motion opposing a request by the central bank-appointed liquidator, EFB Regimes Especiais de Empresas, for U.S. recognition of the process in the Southern District of Florida bankruptcy court, relates the report. Despite the motion filed by Vorcaro's lawyers, the court ruled for the recognition of the process, a decision showed on Thursday, Reuters says. According to the report, local media have reported that Vorcaro, a young banker with strong political ties, owns multiple properties and assets in the United States through indirect holdings. In a filing seen by Reuters, EFB said through its lawyers Vorcaro "is suspected of having transferred massive wealth to himself at the expense of creditors and investors." Vorcaro's lawyers did not respond to a request for comment, notes Reuters. The central bank ordered Banco Master's liquidation in November on the same day federal police arrested Vorcaro in a probe over fraudulent credit securities, recalls the report. He was later released with an ankle monitor. Although Banco Master accounts for less than 1% of banking assets in Latin America's largest economy, its collapse has drawn scrutiny because the lender helped fuel rapid growth by issuing high-yield debt marketed as being covered by Brazil's private deposit guarantee fund (FGC), the report states. Investors who financed that expansion are awaiting potential FGC payouts totaling about 41 billion reais ($7.6 billion), the report notes. Banco Master, S.A., formerly known as Banco Maxima, is a financial institution that provides corporate credit, foreign exchange, and treasury services, and later expanded into real estate credit as well as fund and wealth management activities. The bank began operations in 1974 and broadened its business lines in the mid-1990s as part of its growth strategy within the financial service sector. Banco Master filed a Chapter 15 Petition with the U.S. Bankruptcy Court for the Southern District of Florida on December 10, 2025 (Case No. 25-24568), with the Hon. Scott M Grossman presiding. ============= J A M A I C A ============= JAMAICA: JCEA Welcomes Commitment to Rehabilitate Coffee Industry ----------------------------------------------------------------- RJR News reports that President of the Jamaica Coffee Exporters Association (JCEA), Dr. Norman Grant, has welcomed the government's commitment to rehabilitate the coffee industry. Jamaica marked another Blue Mountain Coffee Day, according to RJR News. Dr. Grant said the country's more than 5,000 coffee farmers and exporters have also embraced the initial $35 million disbursement from the $120 million support package announced by the Government, the report notes. However, he stressed that a far more sustained intervention is required, noting that the sector has suffered losses of about $2.5 billion over the last four years, the report says. He pointed out that an additional 100,000 boxes of coffee were destroyed due to the impact of Hurricane Melissa, resulting in estimated farm-gate losses of $1 billion, the report discloses. Dr. Grant explained that the hurricane caused extensive damage to coffee farms, farm roads, and processing routes, adding that these challenges must be addressed in a sustainable manner if the industry is to fully realise its potential in foreign exchange earnings, job creation, and national development, 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. In December 2025, Moody's Ratings upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to Ba3 from B1, and the senior unsecured shelf rating to (P)Ba3 from (P)B1. The outlook has been changed to stable from positive. Also in December 2025, S&P revised its outlook on Jamaica to stable from positive. At the same time, S&P affirmed its 'BB' long-term and 'B' short-term foreign and local currency sovereign credit ratings on Jamaica. S&P's transfer and convertibility assessment remains 'BB+'. Fitch Ratings in November 2025, affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' and revised its Outlook to Stable from Positive. JAMAICA: NIR Climbs to US$6.3 Billion as at December ---------------------------------------------------- RJR News reports that Jamaica's Net International Reserves rose by US$157.4 million to US$6.3 billion at the end of December, up from US$6.1 billion at the end of November. The increase was driven mainly by a US$148 million rise in foreign assets, which climbed to US$6.3 billion in December, as well as a reduction in foreign liabilities, according to RJR News. Foreign liabilities fell by about US$10 million to US$13 million from US$22.4 million in November, the report relays. As a result, the country's reserves were sufficient to cover 52 weeks of imports in December, compared with 51 weeks the month before, the report discloses. The Net International Reserves were also able to finance 33 weeks of imports of goods and services, marginally higher than the almost 33 weeks recorded in November, 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. In December 2025, Moody's Ratings upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to Ba3 from B1, and the senior unsecured shelf rating to (P)Ba3 from (P)B1. The outlook has been changed to stable from positive. Also in December 2025, S&P revised its outlook on Jamaica to stable from positive. At the same time, S&P affirmed its 'BB' long-term and 'B' short-term foreign and local currency sovereign credit ratings on Jamaica. S&P's transfer and convertibility assessment remains 'BB+'. Fitch Ratings in November 2025, affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' and revised its Outlook to Stable from Positive. ===================== P U E R T O R I C O ===================== FACEBANK INTERNATIONAL: DBRS Keeps BB LongTerm Issuer Rating ------------------------------------------------------------ DBRS, Inc. maintained the Under Review with Developing Implications for the credit ratings of FACEBANK International Corporation (FACEBANK or the Company), including the Company's Long-Term Issuer Rating of BB Under Review with Developing Implications. The ratings were previously place Under Review with Developing Implications following FACEBANK's announcement on October 3, 2025, that it intends to recapitalize and merge with Eastern National Bank (ENB), with ENB becoming the surviving entity, which will be rebranded as FACEBANK, N.A. KEY CREDIT RATING CONSIDERATIONS The maintenance of the Under Review with Developing Implications designation reflects that there remains a number of items that still need to be completed to complete the transaction, including new equity investors, various regulatory approvals and the formation of a holding company to complete the transaction. Once the new structure becomes more certain and the post-transaction credit profile clearer, Morningstar DBRS will evaluate the transaction's impact on the Company's operating model, financial performance, risk profile, funding and liquidity, and capitalization. Completion of the transaction is subject to required regulatory approvals, including that of its current regulator, the Oficina del Comisionado de Instituciones Financieras (OCIF) of Puerto Rico, as well as the OCC, the FDIC and the Federal Reserve Board. Following the merger, the combined bank is expected to have more than $600 million in total assets including $316 million in loans funded by approximately $535 million in deposits. There will be benefits from the new charter, including the addition of deposit insurance as well as access to other avenues of liquidity. However, the challenge will be to improve earnings by reducing expenses, while integrating the two franchises and continuing to invest in systems and technology. CREDIT RATING DRIVERS When there is more clarity on the final terms, approval process, and timeline for completion of the transaction, Morningstar DBRS may take one of the following actions: If Morningstar DBRS believes that the merger under the final terms would only modestly alter FACEBANK's credit fundamentals, the current credit ratings with Stable trends and would remove the Under Review with Developing Implications status. If Morningstar DBRS views the completion of the merger under the final terms as having a material positive and sustainable impact on FACEBANK's operating model, risk profile, funding and liquidity, and/or capitalization, it would place the credit ratings Under Review with Positive Implications. This could be driven by continued strong execution on strategic initiatives resulting in increased franchise scale, including a more diverse funding mix. Conversely, if Morningstar DBRS views the completion of the potential merger under the final terms as having a material negative impact on FACEBANK's credit profile, it would place the credit ratings Under Review with Negative Implications. This might include, an increased risk appetite, a perceived inability to return to strong profitability metrics including reducing the combined entities' expense base. CREDIT RATING RATIONALE On October 8, 2025, Morningstar DBRS had placed the credit ratings Under Review with Developing Implications because of the unknowns related to the merger, including the successful completion of an equity raise and the timeline of regulatory approval from multiple agencies. Morningstar DBRS will evaluate the transaction's impact on the Company, as there is more clarity on the approval timeline and post-transaction credit profile. Established in 2006, FACEBANK operates as an International Bank Entity (IBE) under the laws of the Commonwealth of Puerto Rico. The IBE charter offers a tax-efficient platform for the bank to provide U.S. dollar deposit and payment services to foreign customers. Through its Florida-based mortgage subsidiary, Florida Home Trust, the Company provides residential mortgage loans to foreign nationals primarily in South Florida. A key component of FACEBANK's franchise is the online connection with the Federal Reserve Bank of New York (FRBNY), which it has had since 2016 as well as the recent approval of FedNow capabilities. This relationship allows the Company to efficiently clear deposits for its customers, saving both time and expense. We view this connectivity as a competitive advantage for FACEBANK, which is contingent on the Company maintaining strong BSA/AML and corporate governance practices and ongoing reviews from the FRBNY. All deposits are uninsured. Venezuelan nationals account for a large percentage of deposits although this percentage has been trending down as the Company expands into other jurisdictions. Despite the recent events in Venezuela, deposits are expected to remain relatively stable, as they have during other political events, as a U.S. dollar denominated deposit account would continue to be viewed as a safe haven. Additionally, account openings may increase as new customers also seek safety. Founded in 1969, ENB is a bank based in Miami, Florida that provides community and international banking services, including personal and business banking, and real estate mortgages. Over the past several years, ENB has faced financial challenges and, as a result, has downsized its loan portfolio to meet regulatory capital requirements. Consequently, the bank has become structurally unprofitable and requires additional Notes: All figures are in U.S. dollars unless otherwise noted. ================= V E N E Z U E L A ================= VENEZUELA: U.S. Says It Will Control Oil Exports Indefinitely ------------------------------------------------------------- Bloomberg News reports that the Trump administration plans to control future sales of Venezuelan oil and hold the proceeds in U.S. accounts, Energy Secretary Chris Wright said, making the clearest statement yet on Washington's strategy to bring the impoverished nation's crude to market and control its most valuable resource. Wright, who spoke at a Goldman Sachs Group Inc. conference in Miami, said initially the barrels would come from crude Venezuela is holding in storage, which has been filling up amid the U.S. blockade and threatening to force some production off line, the report adds. About Venezuela Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South America, consisting of a continental landmass and a large number of small islands and islets in the Caribbean sea. The capital is the city of Caracas. Hugo Chavez was president to Venezuela from 1999 to 2013. The Chavez presidency was plagued with challenges, which included a 2002 coup d'etat, a 2002 national strike and a 2004 recall referendum. Nicolas Maduro was elected president in 2013 after the death of Chavez. Maduro won a second term at the May 2018 Venezuela elections, but this result has been challenged by countries including Argentina, Chile, Colombia, Brazil, Canada, Germany, France and the United States who deemed it fraudulent and moved to recognize Juan Guaido as president. The presidencies of Chavez and Maduro have challenged Venezuela with a socioeconomic and political crisis. It is marked by hyperinflation, climbing hunger, poverty, disease, crime and death rates, social unrest, corruption and emigration from the country. Moody's has withdrawn its 'C' local currency and foreign currency ceilings for Venezuela in September 2022. Standard & Poors has also withdrawn its 'SD/D' foreign currency sovereign credit ratings and 'CCC-/C' local currency ratings on Venezuela in September 2021 due to lack of sufficient information. Fitch withdrew its own 'RD/C' Issuer Default Ratings on Venezuela in June 2019 due to the imposition of U.S. sanctions on the country's government. ********* 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 2026. 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. Additional e-mail subscriptions for members 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. . * * * End of Transmission * * *