260414.mbx

260414.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, April 14, 2026, Vol. 27, No. 74 Headlines B R A Z I L BANCO DE BRASILIA: Gov't. Sets Conditions for Rescue BRASKEM SA: Boosted by Petrochemical Prices But Debt Problem Looms NEW FORTRESS: Secures 95% Support for $5.8BB Restructuring Plan C O L O M B I A BANCO DAVIVIENDA: S&P Downgrades ICR to 'BB-', Outlook Stable CARDIF COLOMBIA: S&P Downgrades ICR & FSR to 'BB', Outlook Stable ISAGEN SA: S&P Cuts Issuer Credit Rating to 'BB-', Outlook Stable SEGUROS DE VIDA: S&P Cuts LT FSR to 'BB', Outlook Stable D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: March Inflation Reaches 4.63% J A M A I C A JAMAICA: BOJ Reports Decline in Monetary Base For March P U E R T O R I C O SIMPRE NUNCA: Hires Vilarino & Associates LLC as Counsel - - - - - =========== B R A Z I L =========== BANCO DE BRASILIA: Gov't. Sets Conditions for Rescue ---------------------------------------------------- Rio Times Online reports that the federal government doesn't want to rescue Banco de Brasilia (BRB). But if it has to, it will extract a political price from Brasiilia -- and use the crisis to rewrite the rules on how federal money flows to the capital. A Brazil BRB rescue is not the Lula administration's preferred outcome, but officials are preparing for the possibility, according to a Bloomberg report citing a government official with knowledge of internal deliberations, notes Rio Times Online. If the federal government is forced to intervene, it will condition any assistance on concessions from the Distrito Federal government, which controls 71.9% of BRB and presided over the bank's disastrous purchase of nearly R$13 billion ($2.5 billion) in what authorities allege were fraudulent credit portfolios from the now-liquidated Banco Master, the report notes. The Price of a Rescue The primary concession under discussion is reform of the fund that channels federal transfers to the Distrito Federal's regional economy -- a mechanism expected to disburse up to R$30 billion ($5.8 billion) this year, the report notes. Former Finance Minister Fernando Haddad, now running for governor of Sao Paulo, previously attempted to revise the fund's formula without success, the report relays. That proposal could return to the table as part of any rescue package, effectively using the Master crisis as leverage to restructure how federal money reaches the capital, the report says. Rio Times Online notes that the political calculus is delicate. Lula's government views a BRB bailout as potentially toxic -- it would tie the administration to a scandal created under former Governor Ibaneis Rocha and former President Jair Bolsonaro's watch, while simultaneously weighing on Lula's approval ratings ahead of his 2026 reelection campaign, the report notes. At a recent event launching Haddad's gubernatorial candidacy, Lula called the Master affair "the serpent's egg" of Bolsonaro and former Central Bank President Roberto Campos Neto, arguing the bank was authorized to operate in 2019 under their supervision. Neither Bolsonaro nor Campos Neto has been implicated in the ongoing investigation, the report adds. The R$8.8 Billion Capital Plan BRB has called an extraordinary shareholder meeting for April 22 to approve a capital increase of up to R$8.8 billion ($1.7 billion), with a target completion date of May 30, the report relays. The plan rests on two pillars: a R$4 billion ($755 million) loan from the FGC (Fundo Garantidor de Creditos) and a real estate fund backed by Distrito Federal government properties -- primarily Terracap assets -- expected to raise a similar amount, the report notes. The bank is also evaluating potential sales of equity stakes in subsidiaries and some of the healthier portfolios it acquired from Master, the report discloses. But the plan has already hit obstacles, notes Rio Times Online. Caixa Economica Federal analyzed BRB's payroll lending portfolio -- considered healthy and liquid -- but talks collapsed after BRB missed deadlines for submitting documentation, the report relays. Banco do Brasil did not examine BRB's assets at all, the report says. The Finance Ministry has instructed both federal banks to evaluate any BRB assets using the same criteria they would apply to private-sector transactions -- a signal that no preferential treatment will be extended, the report notes. The Portfolio Math BRB acquired R$21.9 billion ($4.2 billion) in portfolios from Banco Master, recalls the report. Of that total, approximately R$15 billion ($2.9 billion) is considered good quality, the report says. Roughly R$2.6 billion ($500 million) is expected to be a total loss, the report relays. The remainder -- an estimated R$4.3 billion ($830 million) -- sits in a gray zone of less liquid assets whose recovery value remains uncertain, the report notes. The R$13 billion that authorities allege was fraudulent has been partially replaced by other Master assets, but those replacements are considered significantly less liquid than what was originally acquired, the report relates. Why It's Systemic Unlike Banco Master -- whose liquidation was absorbed by the FGC -- a BRB failure could create genuine systemic risk, the report notes. The bank holds more than R$30 billion ($5.8 billion) in judicial deposits from tribunals across five states, serves as a critical economic lever for the Distrito Federal (one of Brazil's ten wealthiest states), and is deeply embedded in the region's public payroll and government operations, the report discloses. The April 22 vote and the May 30 deadline will determine whether BRB can recapitalize on its own terms,or whether the federal government will be forced into a politically costly intervention that ties the Master scandal to Lula's doorstep, the report adds. As reported by the Troubled Company Reporter - Latin America on January 1, 2026, S&P Global Ratings withdrew its long-term 'B-' and short-term 'B' issuer credit ratings on BRB - Banco de Brasilia S.A. at the issuer's request. The ratings were on CreditWatch with negative implications at the time of the withdrawal, and the bank didn't have any outstanding international issuances or short-term plans to issue abroad. S&P's ratings reflected the bank's tight margins and profitability, constrained capital metrics, and governance and risk management, particularly in light of investigations into alleged fraud in loans acquired from Banco Master. BRASKEM SA: Boosted by Petrochemical Prices But Debt Problem Looms ------------------------------------------------------------------ Reuters reports that rising petrochemical prices have buoyed the long-term prospects for Brazil's Braskem even as the company is racing against the clock to deal with looming interest payments on its debt. The petrochemical producer, with operations ‌in Brazil, the U.S. and Mexico, is considering whether to seek an injunction to avoid a painful debt restructuring, as the stronger market outlook is not enough to provide short-term relief, according to the report. Brazilian newspaper Valor was first to report that Braskem could file a petition seeking ⁠protection from its creditors, the report notes. As reported in the Troubled Company Reporter - Latin America on Jan. 06, 2026, Fitch Ratings has downgraded Braskem S.A.'s (Braskem) Long-Term Local Currency Issuer Default Rating (IDR) and Long-Term Foreign Currency IDRs to 'CC' from 'CCC+'. Fitch has also downgraded Braskem America Finance Company's senior unsecured rating to 'CC', with a Recovery Rating of 'RR4', from 'CCC+'/'RR4'; and Braskem Netherlands Finance B.V.'s senior unsecured rating to 'CC'/'RR4' from 'CCC+/RR4', and its subordinated rating to 'C'/'RR6' from 'CCC-'/'RR6'. Fitch has also downgraded Braskem's National Scale and Senior Unsecured ratings to 'CC(bra)' from 'CCC+(bra)' and 'CC(bra)'/'RR4' from 'CCC+(bra)'/'RR4', respectively. NEW FORTRESS: Secures 95% Support for $5.8BB Restructuring Plan --------------------------------------------------------------- New Fortress Energy Inc. previously announced on March 17, 2026 that it entered into a Restructuring Support Agreement with its creditors as part of a consensual UK Restructuring Plan. NFE has received strong indications of support for the previously announced transaction, to be implemented through a UK RP, from its stakeholders, including holders and lenders representing over 95% of its approximately $5.8 billion principal amount of NFE's aggregate indebtedness, including, approximately: -- 93% of holders of the 2026 Legacy Notes; -- 87% of holders of the 2029 Legacy Notes; -- 98% of holders of the 2029 New Notes; -- 100% of lenders of the Term Loan A; -- 88% of lenders of the Term Loan B; and -- 100% of lenders of the Revolving Credit Facility. To ensure all holders who intend to accede to the RSA have ample time to submit directions via their custodians, the Company extended the deadline for creditors to accede to the RSA and, provided certain conditions are met, be eligible for an early consent fee, to 5:00pm, New York City time, last April 8, 2026. Any questions on how to accede to the RSA including submitting direction through the clearing systems were directed to the information agent, Kroll Issuer Services Limited, at the email address nfe@is.kroll.com and further information is available on its website https://deals.is.kroll.com/nfe As previously announced, the Company expects to launch the UK RP process in April and the transaction is expected to be completed by the third quarter of 2026, subject to court availability, customary conditions and regulatory approvals. This expected timeline is on track and remains unchanged. About New Fortress Energy Inc. New Fortress Energy Inc., a Delaware corporation, is a global energy infrastructure company founded to help address energy poverty and accelerate the world's transition to reliable, affordable and clean energy. The Company owns and operates natural gas and liquefied natural gas infrastructure, ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. The Company has liquefaction, regasification and power generation operations in the United States, Jamaica, Brazil and Mexico. The Company has marine operations with vessels operating under time charters and in the spot market globally. As of September 30, 2025, the Company had $11.9 billion in total assets, $10.8 billion in total liabilities, and a total stockholders' equity of $1.1 billion. * * * In November 2025, S&P Global Ratings lowered its issuer credit rating on New Fortress Energy Inc. (NFE) to 'SD' (selective default) from 'CCC'. At the same time, S&P lowered its issue level rating on NFE's 12% senior secured notes due 2029 to 'D' from 'CCC-'. The downgrade reflects NFE's decision to enter into a forbearance agreement. S&P will reevaluate its ratings on NFE before the end of November as more information becomes available. The Company has initiated a process to evaluate its strategic alternatives to improve its capital structure. It has retained Houlihan Lokey Capital, Inc. as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as legal advisor to assist it in this evaluation. The Company, along with its advisors, is considering all options available, including asset sales, capital raising, debt amendments and refinancing transactions, and other strategic transactions that seek to provide additional liquidity and relief from acceleration under its debt agreements. As part of this process, the Company is engaging in discussions with various existing stakeholders and potential investors. There are inherent uncertainties as the outcome of these negotiations and potential transactions are outside management's control, and therefore there are no assurances that management will be successful in these negotiations and that any of these potential transactions will occur. In addition, there can be no assurances that these transactions will sufficiently improve the Company's liquidity or that the Company will otherwise realize the anticipated benefits. Moreover, if the Company fails to obtain amendments and forbearance, the Company may be required or compelled to pursue additional restructuring initiatives to preserve value and optionality, including possible out-of-court restructurings, or in-court relief, which could have a material and adverse impact on the Company's stockholders. =============== C O L O M B I A =============== BANCO DAVIVIENDA: S&P Downgrades ICR to 'BB-', Outlook Stable ------------------------------------------------------------- S&P Global Ratings lowered its long-term issuer credit ratings on seven Colombian financial entities and their subsidiaries. The outlooks on the entities are stable. Short-term ratings on these entities remained unchanged. The entities are: -- Nonoperating holding company (NOHC) Grupo Cibest S.A. and its Colombian core subsidiary Bancolombia S.A. y Compañías Subordinadas (Bancolombia); -- Banco de Bogota S.A. y Subsidiarias (BdBogota); -- Banco Davivienda S.A. (Davivienda); -- Financiera de Desarrollo Territorial S.A. (Findeter); -- Financiera de Desarrollo Nacional S.A. (FDN); and -- NOHC Grupo de Inversiones Suramericana (Grupo Sura). S&P said, "In addition, we also downgraded Panama-based Cibest subsidiary Banistmo S.A. because, in our view, the bank's operations remains integrated to its parent and, thus, its creditworthiness remains linked to that of Cibest's until its current sale process concludes. The outlook on the bank is developing. We also downgraded Panama-based Cibest core subsidiary Bancolombia Panama S.A. The outlook is stable. "Finally, we affirmed our 'B-/B' ratings on Banco Agricola S.A., Cibest's core Salvadorian subsidiary. The outlook on the entity remains stable." The sovereign downgrade to 'BB-' from 'BB' was based on the country's limited fiscal flexibility, high debt burden, weak external position (including volatile terms of trade), and moderate GDP per capita. Fiscal policy has become less predictable, as highlighted by the government's decision to suspend the country's fiscal rule, and the use of decrees to pass budgets without formal legislative approval, contributing to large fiscal deficits. Expansive government primary spending, high interest rates, and lower-than-expected revenue collections have caused large deficits since 2024. Fiscal slippage and other economic policies have created expectations of higher inflation, leading Colombia's central bank to tighten monetary policy. The ratings reflect the monetary flexibility that comes from Colombia's independent central bank, which has pursued an inflation-targeting monetary policy with a floating exchange rate that provides buffers against external shocks. The ratings also consider Colombia's long-term democracy and political stability, with checks and balances. Offsetting these institutional strengths are Colombia's persistent security challenges. S&P said, "As a result, we're downgrading seven banks to 'BB-' from 'BB'. We're downgrading Bancolombia, Bancolombia Panama, Banistmo, BdBogota, and Davivienda. This is because we don't rate Colombian financial institutions above the foreign currency sovereign ratings due to the direct and indirect effects sovereign stress would have on banks' business operations and creditworthiness. The ratings on the government-related entities Findeter and FDN reflect the entity's key role for--and very strong link to--the government and, thus, move in tandem with the ratings on Colombia. "In addition, we lowered our rating on the NOHC Grupo Cibest to 'B+' from 'BB-' "At the same time, we lowered our ratings on the NOHC Grupo Sura to 'BB-' from 'BB' after revising its group credit profile (GCP) to 'bb' from 'bb+'. We maintain Grupo Sura's GCP one notch above the long-term rating on Colombia due to the sound geographic diversification of its subsidiaries, with most of its business exposure and revenues generated outside Colombia. Because of Grupo Sura's dependence on dividends from its subsidiaries to service its financial obligations, we rate it one notch below its GCP. "Our trend on the economic and industry risks in Colombia's Banking Industry Country Risk Assessment (BICRA) remains negative. We believe there are contingent risks for the banking system, which could lead to a deterioration in asset quality or profitability. Although both indicators have shown a gradual recovery lately, we will continue monitoring whether fiscal deterioration, the sovereign's high debt levels, shocks in energy prices, and ongoing inflationary pressures could dent the financial system's performance. "If one of these risks arises in the next 12 months, resulting in increased credit losses or pressure on banks' bottom line results, we could revise our economic risk or industry risk score. This would lower the anchor for banks operating mainly in Colombia to 'bb' from 'bb+'." Grupo de Inversiones Suramericana S&P said, "Our stable outlook on Grupo Sura for the next 12 months mirrors that on the sovereign. The stable outlook also reflects our expectation that our 'bb' GCP on Grupo Sura--based on the weighted average creditworthiness of its three financial subsidiaries--will remain one notch above the sovereign rating on Colombia. This is because we expect the sound geographic diversification of Grupo Sura's subsidiaries to continue providing the capacity to surpass our sovereign stress test, allowing the GCP to remain one notch above our sovereign rating on Colombia." Downside scenario If S&P revises the outlook or lower the ratings on Colombia in the next 12 months, it could take the same action on the entity. In addition, if Grupo Sura's credit quality worsens, S&P could lower the rating in the next 12 months. This could occur if: -- The individual creditworthiness of any of the group's main subsidiaries weakens; -- Grupo Sura's liquidity position weakens due to either a reduction in received dividends, a higher dividend distribution, or major unexpected obligations; or -- Its double leverage ratio doesn't gradually shrink toward 130% in the next 12 months, Upside scenario If S&P revises the outlook on Colombia to positive in the next 12 months, it would take the same action on the company. Grupo Cibest S&P said, "The stable outlook on Grupo Cibest mirrors our stable outlook on Colombia. Likewise, the stable outlooks on its subsidiaries Bancolombia and Bancolombia Panama mirror the outlook on Grupo Cibest. The ratings on these subsidiaries will move in tandem with those on their parent because we consider them integral to the group's operations and strategy." Downside scenario S&P said, "If we revise the outlook or downgrade Colombia in the next 12 months, we could take the same action on Grupo Cibest's consolidated credit profile, and therefore on the ratings on its subsidiaries Bancolombia and Bancolombia Panama. Additionally, we could downgrade Grupo Cibest if its double leverage ratio increases consistently above 120% in the next 12 months." Upside scenario If S&P revises the outlook on Colombia to positive in the next 12 months, it would take the same action on Cibest and its subsidiaries Bancolombia and Bancolombia Panama. Banistmo S.A. S&P said, "The developing outlook on Banistmo reflects our view that we could raise, lower, or affirm the issuer credit rating on the bank in the next six to 12 months. This reflects our expectation that the bank's creditworthiness might strengthen or weaken depending on the credit profile of the new parent (pending regulatory approvals) and the final financing conditions after the proposed acquisition, which remain uncertain. In addition, we would also need to assess Banistmo's relevance to its new group to evaluate potential sources of extraordinary support, if necessary." Moreover, the outlook also reflects that until the transaction closes, the bank will remain integrated with its current group (Grupo Cibest) and the ratings on the subsidiary will move in tandem with those on its parent until the sale is completed. The ratings will also continue mirroring those of its group if the acquisition does not materialize. Downside scenario S&P said, "We could lower the ratings if we conclude that the new parent's credit profile is weaker than the current rating on Banistmo, once the transaction closes. Because our ratings on Grupo Cibest currently cap those on Banistmo, we could also downgrade Banistmo if we lower the ratings on Grupo Cibest before the sale is completed." Upside scenario S&P could raise the ratings if it concludes that the new parent's group credit profile is stronger than the current rating on Banistmo, once the transaction closes. Banco de Bogota and Davivienda The stable outlook for the next 12-18 months on Davivienda and BdBogota mirrors that on Colombia. Downside scenario If S&P revises the outlook or downgrade Colombia in the next 12 months, it could take the same action on both entities Upside scenario If S&P revise the outlook on Colombia to positive in the next 12 months, it would take the same action on both entities. Findeter and FDN The stable outlook on Findeter and FDN for the next 12-18 months reflects that on Colombia. Therefore, the ratings on the government-related entities will continue to move in tandem with those on the sovereign, reflecting the entity's key role for--and very strong link to--the government, as both entities support and develop the infrastructure sector in the country. Downside scenario S&P could lower the ratings on the entity if it downgrades Colombia in the next 12-18 months. Upside scenario S&P could upgrade the ratings if it was to take the same action on Colombia. Ratings List Downgraded; Outlook Action To From Banco Davivienda S.A. Issuer Credit Rating BB-/Stable/B BB/Negative/B Banco de Bogota S.A. y Subsidiarias Issuer Credit Rating BB-/Stable/B BB/Negative/B Senior Unsecured BB- BB Bancolombia S.A. y Companias Subordinadas Bancolombia Panama S.A. Issuer Credit Rating BB-/Stable/B BB/Negative/B Financiera de Desarrollo Nacional S.A. Issuer Credit Rating BB-/Stable/-- BB/Negative/-- Financiera de Desarrollo Territorial S.A. FINDETER Issuer Credit Rating BB-/Stable/B BB/Negative/B Grupo Cibest S.A. Issuer Credit Rating B+/Stable/B BB-/Negative/B Grupo de Inversiones Suramericana S.A. Issuer Credit Rating BB-/Stable/-- BB/Negative/-- Senior Unsecured BB- BB Downgraded To From Banistmo S.A. Issuer Credit Rating BB-/Developing/B BB/Developing/B Ratings Affirmed Banco Agricola S.A. Issuer Credit Rating B-/Stable/B CARDIF COLOMBIA: S&P Downgrades ICR & FSR to 'BB', Outlook Stable ----------------------------------------------------------------- S&P Global Ratings lowered the issuer credit and financial strength ratings on Cardif Colombia Seguros Generales S.A. (Cardif Colombia) to 'BB' from 'BB+'. The outlook is stable. The rating action on Cardif Colombia follows a similar action on Colombia, where the company's operations are based. S&P said, "Our ratings and outlook on Cardif Colombia reflect our views of its intrinsic credit profile and the influence of the sovereign ratings. Typically, our foreign currency rating on the country of domicile limits our ratings on strategically important insurance subsidiaries of international groups, such as Cardif Colombia, if we don't think they would withstand a sovereign default scenario on their own. Cardif Colombia passes our sovereign stress test in foreign currency because of its high capitalization and liquidity, which will enable it to withstand shocks better than other domestic insurers. As a result, we rate Cardif Colombia above the 'BB-' foreign currency rating on Colombia." On April 8, 2026, S&P Global Ratings lowered its sovereign credit ratings on Colombia because S&P expects the country to have consistently large fiscal deficits over the next few years, posing risks for long-term economic growth. However, S&P doesn't think the company would withstand a sovereign default in the country's local currency-denominated obligations, given deeper adverse effects on the economy and on Cardif Colombia's investment portfolio in such a scenario. Therefore, the local currency rating on Colombia limits the ratings on the insurer. As a result, the recent action on the sovereign local currency rating results in the same action on Cardif Colombia. The downgrade of Colombia reflects a less predictable fiscal policy that poses risks for long-term economic growth and a sustainable fiscal position. Fiscal policy has become less predictable, highlighted by the government's decision to suspend the country's fiscal rule last year. The political environment has not been supportive of meaningful tax reforms. Expansive government primary spending, high interest rates, and lower-than-expected revenue collections have caused large deficits since 2024. Fiscal slippage and other economic policies have created expectations of higher inflation, leading Colombia's central bank to tighten monetary policy. The sovereign ratings still reflect the monetary flexibility that comes from Colombia's independent central bank, which has pursued an inflation-targeting monetary policy with a floating exchange rate that provides buffers against external shocks. The ratings also take into account Colombia's long-term democracy and political stability, with checks and balances. Offsetting these institutional strengths are Colombia's persistent security challenges. The outlook on Colombia is stable, reflecting S&P's expectation that the government will only gradually lower its fiscal deficit while sustaining moderate GDP growth. The process of reducing inflation to within the central bank's target range and reanchoring inflation expectations is likely to take time. The stable outlook also incorporates a moderate widening of the current account deficit. S&P expects Cardif Colombia will maintain its solid intrinsic creditworthiness in the next few years, while its SACP remains at 'bbb'. The company benefits from a robust competitive position across its major business lines, thanks to its successful bancassurance-like model, ability to build value for its major commercial partners, and favorable profitability prospects. In addition, S&P expects the company's capitalization and liquidity to remain satisfactory in the next two years. S&P said, "The stable outlook on Cardif Colombia mirrors that on the local currency sovereign rating. The latter limits the rating on the insurer because we don't believe it could withstand a hypothetical sovereign default on the country's local-currency-denominated obligations, given the company's large asset concentration in Colombia. The stable outlook on Cardif Colombia also reflects our expectation that it will retain sufficient capital and liquidity buffers to surpass our sovereign stress test in foreign currency in the next months. "We could downgrade the insurer if we take the same action on the local currency rating on Colombia, which we don't expect to do in the next six to 18 months, given the stable outlook on the sovereign. We could also downgrade Cardif Colombia to the foreign currency sovereign rating level if we think the company's capital and liquidity buffers are insufficient to withstand a sovereign default scenario in foreign currency. "We could upgrade Cardif Colombia if we were to take the same action on the local currency rating on Colombia, while the insurer's all other credit factors remain equal, including its ability to pass our sovereign stress test in foreign currency." ISAGEN SA: S&P Cuts Issuer Credit Rating to 'BB-', Outlook Stable ----------------------------------------------------------------- S&P Global Ratings lowering the ratings on Colombia-based infrastructure entities ISAGEN S.A. E.S.P., Oleducto Central S.A.S. (Ocensa), and Termocandelaria Power S.A. to 'BB-' from 'BB'. In addition, S&P lowered the issue-level rating on A.I. Candelaria Spain to 'B-' from 'B'. S&P said, "In addition, we lowered the ratings on Enel Americas S.A., Enel Colombia S.A. E.S.P., and the group--comprising EnfraGen Chile SpA, EnfraGen Spain S.A.U., and EnfraGen Energia Sur S.A.U. (collectively, EnfraGen)--to 'BB+' from 'BBB-'. "The stable outlook on these companies mirrors the one on Colombia, and we continue to expect the ratings on them to move in tandem with the sovereign rating for the next 12-24 months. "On April 8, 2026, we lowered our foreign currency rating on Colombia to 'BB-' from 'BB' and our local currency rating on it to 'BB' from 'BB+'. The outlook is now stable." The sovereign's downgrade occurred because of consistently large expected fiscal deficits and their associated consequences: rising inflation expectations, widening current account deficit, and increased external debt. While pro-cyclical fiscal policy provides some short-term economic support, the stable outlook on Colombia reflects our anticipation of a gradual fiscal deficit reduction alongside continued moderate GDP growth. S&P said, "Following the sovereign rating action, we downgraded Isagen, Ocensa, Termocandelaria, and A.I. Candelaria's issuance. These entities continue to be exposed to Colombia, given that they operate in what we conceive as highly regulated sectors (dependent on regulatory-approved rate adjustments), while demand for their services is in some cases correlated to the country's GDP growth pace. Consequently, we believe these entities could suffer from heavier regulation in a sovereign stress scenario, weaking their credit worthiness. "Isagen sells about 75% of its energy to generators, marketers and distributors in Colombia, which have their rates set by the regulator. Therefore, we believe payments to the company could weaken in case of regulatory or political interference in distributors' rates. Moreover, Isagen sells a portion of its energy output on the spot market, the prices in which we believe could also drop to the regulatory floor amid the sovereign stress. Consequently, the sovereign rating on Colombia continues to cap the rating on Isagen. "In addition, we downgraded Ecopetrol S.A., and therefore its subsidiary, Ocensa, as we continue to view it as a core operating unit of Ecopetrol and we don't believe there are meaningful regulatory mechanisms or other structural barriers that restrict the parent from accessing Ocensa's cash flow in a stress scenario. Moreover, Ecopetrol is Ocensa's main client, representing the bulk of volumes transported and revenue. "Termocandelaria has exposure to domestic distributors and spot prices. Therefore, we believe entity's cash generation and leverage metrics could take a hit from the regulator's intervention in setting the rates or prices in sovereign stress scenario. "We also lowered the issue-level rating on A.I. Candelaria Spain because we continue to incorporate the company's subordination to, and reliance on, dividend payments from its operating subsidiary, Ocensa, which distributes them after funding its operating and financial needs. "We also lowered the ratings on entities that generate a large portion of their cash flow in Colombia, but due to operations in other jurisdictions, they provide resilience and could withstand a sovereign stress. Therefore, we lowered the ratings on EnfraGen's debt to 'BB+' from 'BBB-'. The project has a portfolio of 23 power assets across Chile, Colombia, Panama, and Costa Rica, totaling 2.1 gigawatts (GW) of installed capacity, using multiple technologies. Despite our expectation that the project will generate about 50% of its EBITDA in Colombia, we expect it will withstand a sovereign stress. This assessment is supported by a cash-sources-to-uses ratio under a hypothetical sovereign stress scenario that remains above 1x. However, due EnfraGen's high sensitivity to sovereign risk and our view that the maximum rating differential with that on Colombia is two notches, we lowered the ratings on the project." The resilience is driven by cash flow from the Chilean and Panamanian operations, as well as debt reserve accounts of approximately $50 million, which include the first-demand letter of credit, an $8 million additional cash-funded debt service reserve account, $15 million of sweep funding, and the $10 million operations and maintenance account. S&P also consider that the project's remaining cash flow from operations is deposited in offshore accounts--in the coissuers' accounts in Chile and Spain--compensating for foreign-exchange conversion risk. S&P said, "Taking the same approach, we downgraded Enel Americas. Our analysis of Enel Americas incorporates our expectation of financial support from the parent company, Enel SpA (BBB/Positive/A-2), even under the scenario of a sovereign default. We also incorporate the company's exposure to Brazil (53% of 2025 EBITDA) and Colombia (37%), both of which are speculative-grade countries with macroeconomic, regulatory, and political risks. The rating incorporates the company's sensitivity to sovereign risks and the deterioration of weighted country risk following the downgrade Colombia and increased contributions from the assets in Argentina. "We rate Enel Americas and Enel Colombia at the maximum number of notches above the sovereign foreign currency rating. This is due to their intrinsic credit factors, sensitivity to country risk, and liquidity cushion under the sovereign stress tests that we run for entities with higher ratings than on the sovereign. Considering Enel Americas' stand-alone credit profile (SACP) of 'bbb-', we cap our ratings on it at two notches above the foreign currency sovereign rating. "Similarly, we equalize the ratings on Enel Colombia to those on controlling shareholder Enel Americas, since we believe the company is integral to the group's identity and strategy and should receive parental support under any foreseeable circumstances. This view allowed us to rate Enel Colombia a maximum of two notches above the sovereign foreign currency rating." The stable outlook on Isagen, Ocensa, and Termocandelaria reflects ultimately that on Colombia's stable outlook. S&P said, "The outlook on Enel Americas, Enel Colombia, and EnfraGen reflects our view that these entities will continue to be rated at the maximum number of notches above the sovereign foreign currency rating due to their intrinsic credit factors, sensitivity to country risk, and liquidity cushion under the sovereign stress tests that we run for such entities. "We could lower the rating on Isagen, Ocensa, Termocandelaria, Enel Americas, Enel Colombia, and EnfraGen within the next 12 months if we take a similar negative action on the sovereign rating, which could occur if economic growth is below our expectations. "We could raise the ratings on Isagen, Ocensa, Termocandelaria, Enel America, Enel Colombia, and EnfraGen if we take a similar rating action on Colombia in the next 12-24 months." Ratings List Downgraded; Outlook Action To From Oleoducto Central S.A. (OCENSA) Issuer credit rating BB-/Stable/-- BB/Negative/-- Isagen S.A. E.S.P. Issuer credit rating BB-/Stable/-- BB/Negative/-- Enel Americas S.A. Issuer credit rating BB+/Stable/-- BBB-/Negative/-- Enel Colombia S.A E.S.P. Issuer credit rating BB+/Stable/-- BBB-/Negative/-- EnfraGen Chile SpA Senior secured BB+/Stable BBB-/Negative EnfraGen Spain, S.A.U Senior secured BB+/Stable BBB-/Negative EnfraGen Energia Sur, S.A.U. Senior secured BB+/Stable BBB-/Negative Termocandelaria Power S.A. Issuer credit rating BB-/Stable/-- BB/Negative/-- Downgraded To From A.I. Candelaria Spain Senior secured B- B Oleoducto Central S.A. (OCENSA) Senior unsecured BB- BB Termocandelaria Power S.A. Senior unsecured BB- BB Enel Americas S.A. Senior unsecured BB+ BBB- SEGUROS DE VIDA: S&P Cuts LT FSR to 'BB', Outlook Stable -------------------------------------------------------- S&P Global Ratings lowered its long-term financial strength rating on Seguros de Vida Suramericana S.A. and its long-term issuer credit and financial strength ratings on Seguros Generales Suramericana S.A. to 'BB-' from 'BB'. The outlooks on the ratings are stable. The rating action on Suramericana's operating insurers mirrors the action on Colombia, where the companies' operations are based. S&P base its ratings on the group's core operating insurance subsidiaries--Seguros de Vida Suramericana and Seguros Generales Suramericana--on Suramericana's 'bb-' group credit profile (GCP). The 'BB-' foreign currency sovereign credit rating on Colombia constrains the credit quality of Suramericana and its subsidiaries because we don't think the group could withstand a sovereign default scenario, given its large asset concentration in the country. As a result, S&P's ratings on Suramericana's core subsidiaries move in tandem with the foreign currency rating on Colombia. The recent rating action on Colombia reflects a less predictable fiscal policy that poses risks for long-term economic growth and a sustainable fiscal position. Fiscal policy has become less predictable, highlighted by the government's decision to suspend the country's fiscal rule last year. The political environment has not been supportive of meaningful tax reforms. Expansive government primary spending, high interest rates, and lower-than-expected revenue collections have caused large deficits since 2024. Fiscal slippage and other economic policies have created expectations of higher inflation, leading Colombia's central bank to tighten monetary policy. The sovereign ratings still reflect the monetary flexibility that comes from Colombia's independent central bank, which has pursued an inflation-targeting monetary policy with a floating exchange rate that provides buffers against external shocks. The ratings also take into account Colombia's long-term democracy and political stability, with checks and balances. Offsetting these institutional strengths are Colombia's persistent security challenges. The outlook on Colombia is stable, reflecting our expectation that the government will only gradually lower its fiscal deficit while sustaining moderate GDP growth. The process of reducing inflation to within the central bank's target range and reanchoring inflation expectations is likely to take time. The stable outlook also incorporates a moderate widening of the current account deficit. S&P expects the Suramericana group's intrinsic credit quality to remain unchanged in 2026. The group has a potential GCP (its measure of creditworthiness before accounting for sovereign influence) of 'bbb', based on its strong competitive position due to its brand recognition, well-diversified income sources, and satisfactory profitability. In addition, capital adequacy prospects are reasonable, supported by good internal capital generation, moderate growth, and dividend payments. Seguros de Vida Suramericana and Seguros Generales Suramericana benefit from strong competitive advantages. In particular, they have a well-positioned brand among policyholders and intermediaries, as well as leading positions in Colombia's life and property/casualty insurance industries. Additionally, the companies have diversified revenue sources because they underwrite a broad variety of insurance policies over a wide area in Colombia, which helps stabilize their underwriting results. Their profitability prospects are good, in part because of favorable investment yields, and S&P expects them to continue operating with prudent capitalization and adequate liquidity in the next few years. The stable outlook on Seguros de Vida Suramericana and Seguros Generales Suramericana for the next six to 18 months reflects the outlook on Colombia. The ratings on the insurers will move in tandem with the foreign currency sovereign credit rating because S&P doesn't think the Suramericana group can withstand a sovereign default scenario, given the group's large asset concentration in the country. The stable outlook also incorporates its expectation that the group will maintain its credit fundamentals and level of support to its core insurance subsidiaries. S&P said, "We could downgrade the insurers if we downgrade Colombia, which is not part of our base-case scenario for the next six to 18 months, given the stable outlook on the sovereign. In addition, we don't expect to downgrade the companies due to changes in the Suramericana group's credit fundamentals because its potential GCP is currently four notches above the ratings on the insurers. "We could upgrade the insurers if we were to take the same action on the sovereign." =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: March Inflation Reaches 4.63% ------------------------------------------------- Dominican Today reports that annual inflation in the Dominican Republic slowed slightly to 4.63% in March, down from 4.67% in February, remaining within the Central Bank's target range for the 35th consecutive month, according to the Central Bank of the Dominican Republic (BCRD). The BCRD reported that the Consumer Price Index (CPI) increased 0.27% in March, driven mainly by higher prices in transportation, restaurants and hotels, miscellaneous goods and services, housing, and health, according to Dominican Today. Meanwhile, declines in food and non-alcoholic beverages and communications helped limit overall inflation, the report notes. The Central Bank also said core inflation reached 0.23% in March, bringing the annual core rate down to 4.58%, its second straight monthly decline, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCR-LA reported in April 2019 that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Standard & Poor's credit rating for Dominican Republic was raised to 'BB' in December 2022 with stable outlook. Moody's credit rating for Dominican Republic was last set at Ba3 in August 2023 with the outlook changed to positive. Fitch, in December 2023, affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' and revised the outlook to positive. ============= J A M A I C A ============= JAMAICA: BOJ Reports Decline in Monetary Base For March ------------------------------------------------------- RJR News reports that the Bank of Jamaica is reporting a decline in the amount of money in the financial system for the month of March. The central bank says the monetary base fell by $22.8 billion to $433.7 billion in March, according to RJR News. Despite the overall decline, cash in circulation increased slightly by $927 million to $304.2 billion, the report notes. Commercial banks also held more in statutory reserves, which rose to $81.8 billion, the report relays. However, the biggest drop came from the funds banks keep in their current accounts at the central bank, which fell sharply by $24.1 billion to $47.7 billion, the report notes. The Bank of Jamaica says these movements reflect changes in liquidity conditions within the financial system, 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. ===================== P U E R T O R I C O ===================== SIMPRE NUNCA: Hires Vilarino & Associates LLC as Counsel -------------------------------------------------------- Simpre Nunca LLC seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Vilarino & Associates, LLC as counsel. The firm will render these services: (a) advise the Debtor with respect to its duties, powers, and responsibilities in this case under the laws of the United States and Puerto Rico in which it conducts its operations, does business, or is involved in litigation; (b) advise the Debtor in connection with a determination whether reorganization is feasible and, if not, helping it in the orderly liquidation of its assets; (c) assist the Debtor with respect to negotiations with creditors for the purpose of proposing and confirming a viable plan of reorganization; (d) prepare, on behalf of the Debtor, the necessary legal paper or documents; (e) appear before the Bankruptcy Court, or any court in which the Debtor asserts a claim interest or defense directly or indirectly related to this bankruptcy case; (f) perform such other legal services for the Debtor as may be required in these proceedings or in connection with the operation of/and involvement with its business; and (g) employ other professional services, if necessary. The firm will be paid at these rates: Javier Vilarino, Senior Attorney $375 per hour Associates $250 per hour Paralegals $150 per hour In addition, the firm will seek reimbursement for expenses incurred. The firm received a $10,262 retainer from the Debtor. Mr. Vilarino disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Javier Vilarino, Esq. Vilarino & Associates, LLC P.O. Box 9022515 San Juan, PR 00902 Telephone: (787)565-9894 About Simpre Nunca LLC Simpre Nunca LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 26-01040) on March 11, 2026, with $500,001 to $1 million in assets and $100,001 to $500,000 in liabilities. Javier Villarino, Esq. at Vilarino & Associates LLC represents the Debtor as legal counsel. ********* 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 * * *