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T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, May 4, 2026, Vol. 27, No. 88
Headlines
A R G E N T I N A
ARGENTINA: Hunts for LNG Imports for Winter in War-Wrecked Market
B R A Z I L
CVLB BRASIL: Files for Bankruptcy Protection
GLOBO COMUNICACAO: Moody's Alters Outlook on 'Ba2' CFR to Positive
C H I L E
LATAM AIRLINES: Fitch Affirms 'BB' Long-Term IDR, Outlook Positive
G U A T E M A L A
GUATEMALA: Moody's Affirms 'Ba1' Issuer Ratings, Outlook Stable
J A M A I C A
JAMAICA: BOJ Injects Another US$50 Million Into Forex Market
JAMAICA: JMEA Urges Gov't. to Develop Comprehensive Energy Policy
P U E R T O R I C O
AEROAQUA CORP: Seeks to Hire Leislha G. Vasquez Murphy as Counsel
ZAGACITY TECH: Atbiz Taps Rosamar Garcia-Fontan as Special Counsel
U R U G U A Y
BANCO DE LA NACION: Fitch Affirms 'CCC+' Long-Term IDR
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A R G E N T I N A
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ARGENTINA: Hunts for LNG Imports for Winter in War-Wrecked Market
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Ruth Liao & Jonathan Gilbert at Bloomberg News reports that
Argentina is looking to purchase liquefied natural gas cargoes for
its upcoming winter heating season, adding demand to a market
already squeezed by the war in Iran.
State-run Energia Argentina SA is considering buying as many as 20
LNG cargoes through October for the Southern Hemisphere winter,
according to traders familiar with the matter, according to
Bloomberg News. The company, known as Enarsa, requested to buy
three cargoes for the second half of May, Bloomberg News relates.
Earlier the firm purchased its first cargo for the year, Bloomberg
News says. Winter in the region begins in May and typically goes
through September, Bloomberg News discloses.
A spokesperson for Argentina's energy department, which directs
Enarsa on its fuel procurement, didn't respond to a request for
comment, notes Bloomberg.
Bloomberg News notes that traders are closely monitoring any demand
for LNG as supply from Qatar and the United Arab Emirates has been
throttled due to the effective closure of the Strait of Hormuz and
damage to Qatar's Ras Laffan export facility in March. Argentina's
heating consumption comes at a time when Asian and Northern
Hemisphere buyers are snapping up the fuel to replace disrupted
supplies and cover peak summer cooling needs, Bloomberg News says.
Argentina's LNG imports have been on the decline for several years
as drilling ramps up in the Vaca Muerta shale patch and as
pipelines are being built to transport gas to industrial and
residential centers, Bloomberg News discloses.
In the longer term, Argentina is set to become an LNG exporter, but
it may still need some imports to meet winter usage spikes,
Bloomberg News notes. Enarsa imported 24 LNG cargoes in 2025, from
April through August, according to ship-tracking data compiled by
Bloomberg.
While choked-off supply from the war stands to push up prices for
Argentina in the upcoming bids, the impact on the country's energy
trade balance is expected to be offset by higher proceeds from
shale oil exports, Bloomberg News 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.
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B R A Z I L
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CVLB BRASIL: Files for Bankruptcy Protection
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Gabriel Araujo at Reuters reports that Brazilian retailer CVLB
Brasil has filed for bankruptcy protection, saying that it
needed to broaden and provide greater legal stability to
an ongoing debt restructuring process.
"The company clarifies that its sales ecosystem, which
includes physical stores and digital channels, remains
fully operational," said the retailer, which runs the
CASA&VIDEO and Le Biscuit store chains, according to Reuters.
GLOBO COMUNICACAO: Moody's Alters Outlook on 'Ba2' CFR to Positive
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Moody's Ratings affirmed Globo Comunicacao e Participacoes S.A.'s
("Globo") Ba2 Corporate Family Rating and Ba2 ratings on its senior
unsecured global notes. The outlook was changed to positive from
stable.
RATINGS RATIONALE
The change in outlook to positive reflects Globo's strengthened
business profile and materially reduced execution risk following
sustained progress in its digital transformation strategy and
continued improvement in operating performance. Globo has evolved
from a predominantly free to air television broadcaster into a more
diversified and integrated digital media platform, with digital and
data driven activities now representing a meaningful share of
revenues and earnings.
Since 2023, Globo has delivered clear execution results,
significantly expanding the scale and contribution of its digital
business bringing Globoplay to breakeven, and further diversifying
advertising revenues through the integration of Eletromidia. These
outcomes show that the integrated business model is delivering
economic returns and improving visibility on future earnings.
Globo's Ba2 ratings continue to be supported by its leading market
position in the Brazilian media market, robust liquidity, and
high-quality content portfolio, with scale and audience reach that
remain unmatched in Brazil. In 2025, Globo captured about 33% of
the overall national TV audience and 36% during prime time,
reinforcing its strong advertiser relevance and pricing power.
Traditional broadcast operations continue to generate stable and
recurring cash flows, supporting investment in digital growth and
diversification without materially weakening leverage or
liquidity.
Constraining factors for the ratings include exposure to Brazil's
economic cycles, revenue concentration in the Brazilian advertising
market, and continued competition from global streaming platforms
and digital media advertising. While streaming competition remains
intense, Globo mitigates these pressures through a diversified
distribution strategy across its digital businesses, combining
direct to consumer offerings with partnerships and indirect
distribution channels that support scale and broaden market reach.
Operating performance has strengthened materially since 2023,
supported by revenue expansion and improved operating efficiency.
Net revenues grew strongly in 2025, driven by the consolidation of
Eletromidia and Telecine, resilient performance in free to air TV
advertising, seasonal strength in fourth quarter advertising
demand, and continued expansion of digital and direct to consumer
offerings. Profitability has recovered meaningfully, reflecting
improved operating leverage, disciplined cost management, and
growing contributions from digital, streaming, content and out of
home (OOH) advertising activities. Moody's adjusted EBIT margin
expanded to approximately 15% in 2025, from 12.7% in 2023,
underscoring the improved scale and resilience of the group's
diversified revenue base.
Globo maintains a strong liquidity profile, supported by a
substantial cash balance of BRL9.6 billion ($2.0 bn) and a
conservative debt maturity schedule with no major maturities until
2029. As of December 2025, the company's strong liquidity covers
total adjusted debt of around BRL4.4 billion by 2.4x. Moody's
adjusted leverage has decreased significantly over the past two
years from 3.1x in December 2023 to 1.4x as of December 2025, while
interest coverage and cash flow generation have continued to
improve.
The positive outlook reflects Moody's expectations that Globo will
sustain improved operating performance, maintain strong liquidity,
and adhere to conservative financial policies while continuing to
execute its digital transformation strategy. Although competition
from global streaming platforms and digital media advertising will
remain intense, Globo's entrenched leadership in Brazil's media
market—anchored by its scale in free to air television and
expanding presence across digital, OTT and out of home
advertising—supports revenue growth and gradual improvement in
credit metrics as the business model continues to evolve. The
outlook also reflects Moody's expectations that Globo will
prudently manage shareholder distributions in order to preserve
ample liquidity and financial flexibility to meet its obligations.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Globo's ratings could be upgraded if the company continues to
successfully execute its digital transformation strategy while
preserving strong liquidity and credit metrics, including sustained
improvement in EBITDA margins, consistent positive free cash flow
generation, and Moody's Ratings adjusted leverage declining to
below 2.0x on a sustained basis.
Conversely, the ratings could face downward pressure if operating
performance weakens, leading to a deterioration in credit metrics.
This could occur if Moody's Ratings adjusted leverage were to
exceed 3.5x or interest coverage were to fall below 2.0x on a
sustained basis, without signs of improvement. A downgrade of
Brazil's sovereign rating could also trigger negative rating
actions for Globo.
Globo Comunicacao e Participacoes S.A., headquartered in Rio de
Janeiro and controlled by the Marinho family, is Brazil's largest
media group and leading broadcast TV network. The group operates
across free to air television, pay TV, streaming, digital
publishing and out of home advertising. In 2025, the group
generated BRL18.3 billion in revenues with Moody's-adjusted EBITDA
of 19.2%.
The principal methodology used in these ratings was Media published
in September 2025.
Globo's current scorecard indicated outcome is Ba1, one notch above
the assigned rating. Moving forward, Moody's expects the scorecard
to map to Baa3, two notches above the current scorecard-indicated
rating. Globo's ratings are constrained by its dependence on
Brazil's economic growth and the revenue concentration in the
cyclical Brazilian TV advertising market.
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C H I L E
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LATAM AIRLINES: Fitch Affirms 'BB' Long-Term IDR, Outlook Positive
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Fitch Ratings has affirmed LATAM Airlines Group S.A.'s (LATAM)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
at 'BB' and its secured notes at 'BB+' with a Recovery Rating of
'RR3'. Fitch has also affirmed its Long-Term National Scale Rating
at 'A(cl)', its unsecured and subordinated local issuances at
'A-(cl)', and Equity Rating at 'Primera Class Nivel 2(cl)'. The
Rating Outlook is Positive.
LATAM's ratings reflect its leading market position and diversified
service portfolio, supported by solid credit metrics, positive FCF,
and robust liquidity. The Positive Outlook reflects Fitch's
expectation that LATAM can withstand the current challenging
operating environment, and that its business profile, financial
strategy and financial metrics are commensurate with the upper end
of the 'BB' rating category. Greater visibility into jet fuel
prices stabilization, along with LATAM's ability to pass through
part of the higher costs to end customers should drive a positive
rating action in the short to medium term.
Key Rating Drivers
Strong Market Position and Diversification: LATAM's robust business
position is supported by its strong market share in key markets,
and its diversified hubs and routes across Latin America, North
America, and Europe, with smaller exposure to Africa and Oceania.
Fitch's analysis also incorporates the company's solid market
position in Brazil and international markets, and its joint venture
with Delta Air Lines, Inc. (BBB-/Stable). During 2025, Brazil
represented 45% of revenues, followed by Chile (15%), the U.S.
(10%), Peru (9%), Europe (8%), and Colombia (5%). LATAM's cargo
business has demonstrated business resilience in recent years.
Ability to Withstand a Challenging Environment: LATAM has
demonstrated a consistent and disciplined business and financial
strategy. Fitch expects the company to prioritize margin protection
through fare increases and other internal measures, while aiming to
strengthen liquidity. Under Fitch's base case, jet fuel prices are
assumed to average USD3 per gallon in 2026, with yields growing by
10%, supported by healthy traffic levels and LATAM's leading market
position.
LATAM is the only carrier in the region with a systemic
fuel-hedging policy, protecting up to certain price levels, which
as of Jan. 30, 2026, covered 48% of estimated fuel consumption for
1Q26, 44% for 2Q26, 31% for 3Q26, and 22% for 4Q26.
LATAM's high profitability margins, relative to peers in its rating
category, provide a cushion to absorb the temporary impact of
elevated jet fuel prices. Fitch expects LATAM's nominal EBITDAR in
2026 (USD4.2 billion) to remain broadly in line with 2025 levels
(USD4.1 billion). For 2026, Fitch expects EBITDAR margins to be
around 25%, down from 28% in the previous year. This margin remains
well above the 20% EBITDAR margin typical for the 'bb' rating
category, as referenced in Fitch's Airlines Navigator.
Positive FCF Generation: Under this more adverse scenario, LATAM's
commitment to maintaining strong credit metrics is critical. Fitch
expects the company to prioritize cost control and adopt a cautious
approach to growth and shareholder returns to limit any
deterioration in its credit profile. Fitch forecasts positive FCF
generation of USD845 million in 2026, after USD1.7 billion of capex
and USD38 million in dividends. Fitch considers LATAM has
flexibility to defer elevated capex levels should the industry face
a prolonged downturn.
Strong Credit Metrics: Fitch expects LATAM's credit metrics to
remain adequate over the forecast period. Fitch's base case
scenario forecasts EBITDAR leverage and EBITDAR net leverage ratios
of approximately 2.3x and 1.4x, respectively, in 2026, and 2.1x and
1.3x in 2027. As of Dec. 31, 2025, LATAM's total debt was USD8.1
billion. Fitch expects it to increase to USD9.5 billion in 2026 and
this mostly relates to fleet financing.
Solid Financial Flexibility: The company's financial flexibility is
enhanced by RCFs totaling USD1.575 billion that are fully undrawn,
as well as an unencumbered asset base of USD1.5 billion, including
aircraft and additional engines. Fitch expects LATAM to maintain
solid cash balances, with cash plus RCF to LTM revenues on average
above 25%, as it seeks to reduce exposure to short-term refinancing
risks and industry volatility.
Equity Rating: Fitch rates LATAM's shares at 'Primera Clase Nivel
2(cl)' based on its solvency and free float of 55%, according to
its ownership structure. In terms of liquidity, it has 100% market
presence and an average daily volume traded in the last month of
USD28 million, based on information as of March 2026.
Peer Analysis
LATAM's 'BB' ratings reflect its diversified business model, in
terms of product and geographic footprint, significant regional
market position, strong capital structure, robust liquidity, and
financial flexibility. These positive factors are tempered by the
industry's high business risks and exposure to exogenous shocks.
Fitch rates LATAM below global player Delta Air Lines
(BBB-/Positive) primarily due to the company's smaller business
scale, and lower diversification and financial flexibility. Fitch
rates LATAM one notch below United Airlines Holdings, Inc.
(BB+/Stable), due to its relatively weak business diversification
and higher exposure to countries with weaker operating
environments. However, LATAM has stronger credit metrics.
In terms of the Latin American players, Fitch rates LATAM above
Avianca Group International Limited (B+/Stable), AZUL S.A.
(B-/Stable), and GOL Linhas Aereas Inteligentes S.A.
(CCC+/Positive) due to its greater business diversification, and
stronger capital structure, liquidity and financial flexibility.
Fitch’s Key Rating-Case Assumptions
- Fitch's base case during 2026 and 2027 includes an increase in
available seat kilometers (ASK) by 9% and 5%, respectively;
- Load factors of around 82%-83% during 2026-2027;
- Yields increase around 10% in 2026 and declining to 5% in 2027
- Jet fuel costs of USD3/gallon in 2026 and USD2.6/gallon in 2027;
- Capex of USD1.7 billion in 2026 and BRL2.1 billion in 2027;
- Statutory dividends of around USD38 million in 2026, rebounding
to around USD430 million in 2027.
Corporate Rating Tool Inputs and Scores
Fitch scored the issuer as follows, using its Corporate Rating Tool
(CRT) to produce the Standalone Credit Profile (SCP):
- Business and financial profile factors (assessment, relative
importance): Management (bbb, Lower), Sector Characteristics (bb+,
Moderate), Market and Competitive Positioning (bb+, Higher),
Diversification and Asset Quality (bb+, Moderate), Company
Operational Characteristics (bb, Moderate), Profitability (bb,
Moderate), Financial Structure (bbb, Moderate), and Financial
Flexibility (bb+, Higher).
- The quantitative financial subfactors are based on standard CRT
financial period parameters: 20% weight for the latest historical
year 2025, 40% for the forecast year 2026 and 40% for the forecast
year 2027.
- The Governance assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'bb+' results in no
adjustment.
- The calibration adjustment applies and results in an adjustment
of -1 notch(es), reflecting uncertainties around current jet fuel
price scenario and LATAM's ability to pass-through as expected.
- The SCP is 'bb'.
LATAM's LC and FC IDR is BB.
Recovery Analysis
The recovery analysis assumes that LATAM would be considered a
going concern in bankruptcy and that the company would be
reorganized rather than liquidated. Fitch has assumed a 10%
administrative claim.
Going Concern Approach
LATAM's going concern EBITDA is USD1.65 billion, which incorporates
the low-end expectations of LATAM's EBITDA post-pandemic, adjusted
by lease expenses, and a discount of 20%. The going concern EBITDA
estimate reflects its view of a sustainable, post-reorganization
EBITDA level on which Fitch bases the valuation of the company. The
enterprise value (EV)/EBITDA multiple applied is 5.5x, reflecting
LATAM's strong market position in Latin America.
Fitch applies a waterfall analysis to the post-default enterprise
valuation (EV), based on the relative claims of the debt in the
capital structure. The debt waterfall assumptions consider the
company's total debt as of Dec. 31, 2025. These assumptions result
in a recovery rate for the first lien and secured bonds within the
'RR1' range and unsecured notes within the 'RR3' range. However,
LATAM is exposed to different operating environments and its
operations are spread over different jurisdictions.
Per Fitch's Criteria, LATAM's recovery rating is limited by the
soft cap of 'RR3', which represents the weighted average of its
recovery rating considering its diversified operating cash flow
generation. LATAM is based in Chile (recovery cap at RR2) but has a
large operation in Brazil (recovery cap at RR4), as well as
operations in Peru (recovery cap at RR4), Colombia (recovery cap at
RR4), US (recovery cap RR1), Europe and others. As a result,
LATAM's senior secured note is rated at 'BB+' with 'RR3', one notch
higher than its corporate IDR. For the local unsecured notes, the
notching down reflects the structural subordination as the majority
of the company`s debt is secured (98%).
LATAM's senior secured notes are secured by permanent collateral
that includes equity interests, intercompany and third-party loans,
third-party receivables of the cargo and airline loyalty program
assets with payment terms that are more than 120 days, intercompany
receivables of a loan party in respect of the airline loyalty
program assets and brand and intellectual property, as well as
certain slots and gates.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Gross and net leverage ratios consistently above 3.0x and 2.5x,
respectively;
- EBITDAR fixed-charge coverage sustained at or below 2.0x;
- Competitive pressures, leading to a severe loss in market share
or yield deterioration;
- Liquidity deterioration or difficulties in continued access
credit lines;
- Shareholder-friendly dividend distribution;
- Aggressive growth strategy or M&A seeking industry consolidation
that is financed with debt.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Gross and net leverage below 2.0x and 1.5x, respectively, on a
sustained basis;
- Sustainable positive FCF generation across different economic
cycles;
- Ability to maintain strong cost structure, with adjusted EBITDAR
margins above 26% on a sustained basis;
- Continued ability to refinance its high-cost debt at more
attractive terms and improvements on a secured and unsecured mix;
- Maintenance of strong liquidity position (cash above 20% LTM
revenues, besides RCF) and well-spread debt amortization profile
with no major refinancing risks in the medium term;
- EBITDAR fixed-charge coverage sustained above 3.5x.
Liquidity and Debt Structure
LATAM has a track record of maintaining robust liquidity position
supported by high cash balances and committed credit facilities.
Fitch expects the company to remain proactive on its liability
management strategy to continue to reduce financial costs, improve
its debt profile mix, and, ultimately, avoid refinancing risks
exposure.
LATAM held cash close to USD2.15 billion as of Dec. 31, 2025,
compared with short-term debt of USD745 million, including USD430
million of lease obligations. LATAM has two senior secured RCFs,
fully undrawn, of USD1.55 billion, as well as USD 25 million
undrawn under a spare engine facility (SEF). Including the RCFs,
the company's level of liquidity, measured as total cash and
marketable securities plus unused committed credit lines over LTM
revenue, was 27%.
The majority of LATAM's USD8.1 billion of debt is fleet related,
with lease liability and aircraft financial debt representing, 47%
and 20%, respectively, of the total amount. Non-fleet debt is
USD2.6 billion, with no amortizations until 2028 (USD275 million).
LATAM's 2030 bonds (USD1.4 billion) are callable in October 2026,
which Fitch expects to be refinanced. The next non-fleet debt is
2031 secured notes in amount of USD800 million.
Issuer Profile
LATAM is the largest airline in Latin America, with expansive
passenger and cargo operations and the largest loyalty program. As
of December 2025, its 371 aircraft fleet was concentrated in Airbus
(79%), including 20 cargo freighters, and Boeing (21%).
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Sector Forecasts Monitor
data file which aggregates key data points used in its credit
analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
Climate Vulnerability Signals
The Climate.VS for 2035 for Latam is 50, indicating an elevated
risk. This reflects the gradually growing costs linked to the
decarbonization of the sector. Climate transition risks do not have
a material influence on airline ratings at present because the
potentially disruptive changes due to transition are unlikely to
materialise in the next eight to ten years. For more detailed,
sector-specific information on how Fitch perceives climate-related
transition risks, see Climate Vulnerability Signals for
Non-Financial.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
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LATAM Airlines
Group S.A. LT IDR BB Affirmed BB
LC LT IDR BB Affirmed BB
Natl LT A(cl) Affirmed A(cl)
Nat Equity Rating
Primera Clase Nivel 2 Affirmed Primera
Clase
Nivel 2
senior
secured LT BB+ Affirmed RR3 BB+
senior
unsecured Natl LT A-(cl) Affirmed A-(cl)
subordinated Natl LT A-(cl) Affirmed A-(cl)
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G U A T E M A L A
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GUATEMALA: Moody's Affirms 'Ba1' Issuer Ratings, Outlook Stable
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Moody's Ratings affirmed the Government of Guatemala's Ba1
long-term foreign-currency and local-currency issuer ratings and
Ba1 senior unsecured bond ratings. The outlook remains stable.
The affirmation of Guatemala's Ba1 rating balances improving
institutional momentum, solid trend growth, a track record of
prudent fiscal management and limited external vulnerability,
against persistent structural economic and institutional
constraints relative to higher rated peers. The country's main
credit challenges include still-developing state capacity, a narrow
revenue base, and a significant infrastructure deficit as a result
of a long history of low physical and human capital formation,
partially mitigated by increased reform efforts. These constraints
weaken productive capacity, limit the government's ability to
effectively deliver administrative and regulatory functions, and
weigh on foreign direct investments (FDI) inflows and export
competitiveness. Meanwhile, fiscal strength is supported by a long
standing record of prudent debt management and a low government
debt burden, mitigated by the narrow revenue base and rigid
expenditure structure, which limit the government's fiscal
flexibility and debt affordability.
The stable outlook reflects Moody's expectations that gradual
institutional improvements will take time to translate into
materially stronger economic or fiscal fundamentals because of
persistent policy implementation challenges, while downside risks
remain contained. External and geopolitical risks, such as a
tightening in US migration policies, as well as exposure to
commodity price volatility, could weigh on the pace of remittance
inflows, although strong external buffers and prudent macroeconomic
management mitigate these risks.
Guatemala's local currency (LC) and foreign currency (FC) ceilings
remain unchanged. Namely, the local currency ceiling at Baa1, three
notches higher than the sovereign rating, reflects limited
government intervention in the economy and contained political
risk. The foreign currency ceiling at Baa3, two notches below the
LC ceiling, reflects the comparatively high FC loan-to-deposit
ratio at over 100% in Guatemala's banking system compared to
regional peers.
RATINGS RATIONALE
RATIONALE FOR THE Ba1 RATINGS AFFIRMATION
TREND GROWTH REMAINS SOLID, YET WEAK CAPITAL FORMATION AND STATE
CAPACITY LIMIT RESILIENCY
Large remittance inflows that have doubled to 21% of GDP in 2025
from 10% in 2015 have sustained Guatemala's solid trend growth at
3.5%-4% and bolstered the economy's large foreign exchange reserve
buffers at ten months of import cover. However, reflecting high
labor-market informality, remittances have largely fueled private
consumption and imports rather than productive investment, which
has remained persistently low at around 16–17% of GDP, well below
the global average of about 25%. Prolonged underinvestment in
physical and human capital has resulted in significant
infrastructure gaps, low income levels, and weak social indicators
relative to peers, while exports have declined to below 16% of GDP
from about 27% in 2011, underscoring structural competitiveness and
FDI constraints.
These challenges are compounded by a narrow public sector
footprint, which constrains the provision of public services and
infrastructure investment, thereby limiting economic resiliency and
the government's capacity to sustainably mobilize domestic
resources.
While the government's rising reform momentum could improve social
policies as well as the business and investment environment over
the medium term, Moody's believes it is unlikely to translate into
materially stronger economic fundamentals in the near term.
INSTITUTIONAL REFORM MOMENTUM IS IMPROVING CONDITIONAL ON
IMPLEMENTATION
Institutional quality has improved under the current
administration, supported by anti-corruption initiatives, enhanced
transparency, and progress on legislative reforms strengthening the
rule of law, as well as public investment and the business
environment. The adoption of the Priority Road Infrastructure Law,
the Public–Private Partnership Law, and the Competition Law,
alongside reforms aimed at ensuring the continuity of public
investment projects at the local level, helps lay the groundwork
for higher public, private, and foreign investment, which will be
critical to the government's objective of achieving higher-income
status.
In addition, the current turnover of key justice and oversight
institutions due this year, including the Supreme Electoral
Tribunal, the Constitutional Court, as well as the office of the
Attorney General among others, creates an opportunity to strengthen
judicial independence and institutional safeguards against vested
interests, a long-standing credit constraint. The degree to which
this reform window translates into stronger credit fundamentals
will depend on whether new appointments deliver tangible
improvements in legal certainty and governance outcomes.
FISCAL SUPPORT FROM LOW DEBT BURDEN IS BALANCED BY NARROW REVENUE
BASE
Guatemala's fiscal profile benefits from a long-standing track
record of prudent debt management, with government debt remaining
low at around 27% of GDP and gross financing needs contained at
about 4% of GDP. These strengths, however, are materially offset by
a structurally narrow government revenue base at just 12.6% of GDP
in 2025, which is one of the lowest in Latin America and well below
the Ba-rated median of 28.1%. While debt affordability, as measured
by interest-to-revenue at 12.7%, is broadly in line with the Ba
median, it leaves limited buffers to absorb macroeconomic or
environmental shocks. The narrow revenue base further constrains
the government's capacity to scale up priority public investment,
and implement social programs needed to support inclusive growth
and mitigate social risks amid high poverty and income inequality.
In addition, Guatemala's comparatively shallow and bank-centered
domestic funding base limits the scope for expanding domestic
financing absent a broader institutional investor base. The
government's planned update of the Capital Markets Law aimed at
diversifying investors, improving access to market-based financing,
and channeling domestic savings into investment, would help
strengthen funding capacity over time.
RATIONALE FOR THE STABLE OUTLOOK
The stable outlook reflects Moody's expectations that gradual
institutional improvements will take time to translate into
materially stronger economic fundamentals because of persistent
policy implementation challenges, while downside risks remain
contained. External and geopolitical risks, such as a tightening in
US migration policies and exposure to commodity price volatility,
could weigh on the pace of remittance inflows, although strong
external buffers and prudent macroeconomic management mitigate
these risks.
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
Guatemala's ESG Credit Impact Score (CIS-4) reflects its weak
governance profile and limited resilience due to low economic
development, its highly negative exposure to social risks, and a
moderately negative exposure to environmental risks.
Guatemala's exposure to environmental risks (E-4 issuer profile
score) is based on the country's exposure to climate change risks
from recurring droughts and hurricanes, which can deplete
agricultural production and harm Guatemalan exports. Exposure to
physical climate risk is the major concern for the country while
Moody's projects risks to access to water, the depletion of natural
capital, and waste and pollution will become more acute over time
for Guatemala.
Exposure to social risks (S-4 issuer profile score) stems from
long-standing levels of poverty, economic inequality, and social
exclusion. Guatemala is characterized by high levels of poverty,
limited educational outcomes, and lack of sufficient access to
basic services and housing, while previously high crime levels are
declining. Like many other emerging economies Guatemala benefits
from a comparatively benign demographic structure.
The influence of governance on Guatemala's credit profile is
moderately negative (G-3 issuer profile score) and includes issues
such as rule of law and control of corruption, which limit policy
effectiveness and reduce investment and growth. In recent years
accusations of political corruption have led thousands to protest,
raising the risk of domestic political turmoil.
GDP per capita (PPP basis, US$): 14,390 (2024) (also known as Per
Capita Income)
Real GDP growth (% change): 3.7% (2024) (also known as GDP Growth)
Inflation Rate (CPI, % change Dec/Dec): 1.7% (2024)
Gen. Gov. Financial Balance/GDP: -1% (2024) (also known as Fiscal
Balance)
Current Account Balance/GDP: 2.9% (2024) (also known as External
Balance)
External debt/GDP: 18.3% (2024)
Economic resiliency: baa3
Default history: At least one default event (on bonds and/or loans)
has been recorded since 1983.
On April 23, 2026, a rating committee was called to discuss the
rating of the Guatemala, Government of. The main points raised
during the discussion were: The issuer's economic fundamentals,
including its economic strength, have not materially changed. The
issuer's institutions and governance strength, have materially
increased. The issuer's fiscal or financial strength, including its
debt profile, has not materially changed. The issuer's
susceptibility to event risks has not materially changed.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Upward pressure on the rating could emerge if policy reforms are
increasingly likely to be effective, supporting expectations of a
durable improvement in the economic structure. Early evidence that
reforms are strengthening the investment climate, such as rising
public and private investment or increasing FDI inflows, would
support upward pressure. Over time, a longer track record of
effective reform implementation, including durability across
electoral cycles, that materially strengthens institutional
effectiveness and supports a more inclusive growth model would
further reinforce upward rating pressure.
Downward pressure on the rating could arise from a material
weakening of Guatemala's long standing commitment to prudent fiscal
management, particularly if higher public spending or policy
slippage leads to a sustained erosion of fiscal flexibility or debt
affordability without being accompanied by revenue enhancing
measures or clear improvements in economic outcomes. A reversal or
stalling of institutional reforms, heightened political
instability, and a prolonged weakening in economic performance that
exacerbates structural constraints and social vulnerabilities would
also negatively affect the credit profile.
The principal methodology used in these ratings was Sovereigns
published in November 2022.
The weighting of all rating factors is described in the methodology
used in this credit rating action, if applicable.
The net effect of any adjustments applied to rating factor scores
or scorecard outputs under the primary methodology(ies), if any,
was not material to the ratings addressed in this announcement.
=============
J A M A I C A
=============
JAMAICA: BOJ Injects Another US$50 Million Into Forex Market
------------------------------------------------------------
RJR News reports that the Bank of Jamaica intervened in the foreign
exchange market again, injecting another US$50 million to help ease
strong demand.
This follows the intervention when $40 million was supplied against
demand that exceeded that amount, according to RJR News.
Despite the additional supply, there remains some unmet demand from
members of the productive sector who require foreign exchange to
pay for imports such as raw materials, intermediate goods and spare
parts, the report notes.
Among the main purchasers on Friday were National Commercial Bank
Jamaica, Bank of Nova Scotia Jamaica, GraceKennedy Currency Trading
Services and First Global Bank, 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.
JAMAICA: JMEA Urges Gov't. to Develop Comprehensive Energy Policy
-----------------------------------------------------------------
RJR News reports that Chairman of the Jamaica Manufacturers and
Exporters Association's Energy Committee, Cecil Foster, says
although his members appreciated the government's revised decision
not to allow Petrojam to raise the price of fuel at more than $4.50
per litre, they want a comprehensive energy policy now.
He says the members of the JMEA want to partner with the government
in the development of a comprehensive strategy in which solar
energy would play a pivotal role given the abundance of sunshine in
Jamaica, according to RJR News.
Mr. Foster argued that this type of energy can be produced and
distributed at US$0.18 per kilowatt hour, 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
=====================
AEROAQUA CORP: Seeks to Hire Leislha G. Vasquez Murphy as Counsel
-----------------------------------------------------------------
Aeroaqua Corp. seeks approval from the U.S. Bankruptcy Court for
the District of Puerto Rico to employ Leislha G. Vazquez Murphy,
Esq., an attorney practicing in Cayey, Puerto Rico, as counsel.
The attorney's services include:
(a) assist and advise the Debtor relative to the
administration this proceeding;
(b) represent the Debtor before the Bankruptcy Court and
advise it on all pending litigations, hearings, motions and of the
decisions of the Bankruptcy Court;
(c) attend all meetings conducted pursuant to section 341(a)
of the Bankruptcy Code;
(d) review and analyze all applications, orders and motions
filed with the Bankruptcy Code by third parties in this proceeding
and advise the Debtor thereon;
(e) communicate with creditors and all other parties in
interest;
(f) confer with all other professionals, including any
accountants and consultants retained by the Debtor and by any other
party of interest;
(g) prepare, draft and prosecute the plan of reorganization
and disclosure statement; and
(h) assist and advise the Debtor in the discharge of all the
duties imposed by the applicable disposition of the Bankruptcy Code
and the Federal Rules of Bankruptcy Procedure.
The attorney received a retainer in the amount of $5,000 from the
Debtor, plus $1,738 for the court filing fee.
Ms. Vazquez Murphy disclosed in a court filing that she is a
"disinterested person" as the term is defined in Section 101(14)
of
the Bankruptcy Code.
The attorney can be reached at:
Leislha G. Vazquez Murphy, Esq.
P.O. Box 372519
Cayey, PR 00737
Telephone: (787) 263-2377
Email: lcdaleislha@gmail.com
About Aeroaqua Corp.
Aeroaqua Corp. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.P.R. Case No. 26-00442) on February 5,
2026, listing under $1 million in both assets and liabilities.
Judge Maria De Los Angeles Gonzalez oversees the case.
Leislha G. Vazquez Murphy, Esq., serves as the Debtor's counsel.
ZAGACITY TECH: Atbiz Taps Rosamar Garcia-Fontan as Special Counsel
------------------------------------------------------------------
ATBIZ, LLC seeks approval from the U.S. Bankruptcy Court for the
Southern District of Florida to employ Rosamar Garcia-Fontan,
Esq., an attorney practicing in Hato Rey, Puerto Rico, as special
counsel.
The attorney will represent the Atbiz in the pending Zagacity
Chapter 11 case in Puerto Rico.
Ms. Garcia-Fontan will be paid at her hourly rate of $125.
Ms. Garcia-Fontan disclosed in a court filing that she is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The attorney can be reached at:
Rosamar Garcia-Fontan, Esq.
270 Munoz Rivera Avenue
Hato Rey, PR 00918
As of April 17, 2026, Zagacity and ATBIZ LLC were ordered to file
a joint report regarding a dismissal request.
About Zagacity Tech
Zagacity Tech LLC distributes and sells technological products,
home appliances, audio and TV, in the home and commercial lines.
Zagacity Tech LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No.
23-03787)
on November 17, 2023. The petition was signed by Nestor G. Cardona
as president. At the time of filing, the Debtor estimated $1
million to $10 million in both assets and liabilities.
The Debtor tapped Javier Vilarino, Esq., at Vilarino & Associates
LLC as counsel and Albert Tamarez Vasquez, CPA, at Tamarez CPA,
LLC
as accountant. Cobian Roig Law Offices as Special Counsel was
tapped as special counsel.
About ATBIZ LLC
ATBIZ LLC is a Miami, Florida-based wholesale distributor and
exporter of appliances, consumer electronics, furniture, and
related products, serving retailers, importers, and distributors
across the United States, the Caribbean, Central America, and South
America. The company offers a catalog of products including TVs,
audio equipment, small and large home appliances, health and beauty
items, commercial appliances, and furniture. It also provides OEM
and private-label manufacturing services, handling product design,
quality control, and logistics for business clients.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 26-12500) on February
27, 2026. In the petition signed by Giovanni Ramos, manager, the
Debtor disclosed up to $50,000 in assets and up to $10 million in
liabilities.
The Debtor tapped Geoffrey Aaronson, Esq., at Aaronson Schantz
Bailey PA as bankruptcy counsel and Rosamar Garcia-Fontan, Esq., as
special counsel.
=============
U R U G U A Y
=============
BANCO DE LA NACION: Fitch Affirms 'CCC+' Long-Term IDR
------------------------------------------------------
Fitch Ratings has affirmed Banco de la Nacion Argentina (Sucursal
Uruguay) (BNAUY) Long-Term Foreign and Local Currency Issuer
Default Ratings (IDRs) at 'CCC+'.
Key Rating Drivers
Branch of Banco de la Nacion Argentina: BNAUY is a full branch of
Banco de la Nacion Argentina (BNA S.A.), which has a leading
franchise and systemic importance in Argentina. Additionally, BNAUY
has international coverage through branches and representative
offices in seven countries, mainly to attend domestic needs related
to intraregional foreign trade, and supporting the commercial
activity of Argentina in the region.
BNAUY is the same legal entity as BNA S.A. Therefore, its IDRs
reflect Fitch's opinion on BNA S.A.'s standalone credit profile in
absence of country risk constraints. BNA S.A. is 99.9% owned by the
Argentine state (Estado Nacional), and its liabilities (including
its branches abroad) are guaranteed by the sovereign. BNA S.A.'s
creditworthiness is highly influenced by Argentina's operating
environment.
However, BNAUY is one of the smallest banks in Uruguay due to its
size and narrow business focus. It is fully integrated with the
head office's structure, strategies, corporate governance,
practices, risk management procedures, and it operates through one
main office. BNAUY has a very liquid balance sheet, strong
capitalization, satisfactory asset quality and profitability
despite its limited lending activity.
Low-Risk Assets: As of December 2025, cash and due from banks
represented 47% of total assets, while gross loans represented only
9.4% of total assets. The bank's securities accounted for another
31% of total assets and are mainly comprised of sovereign bonds
from countries outside Latin America, with investment grade, and
corporate bonds with the same condition. BNAUY's credit growth has
been limited due to its narrow business strategy.
Good Capitalization: As of December 2025, BNAUY's Fitch Core
Capital to risk weighted assets (RWA) indicator had risen to 20.3%
from 16.1% a year earlier, the increase was mostly due to earnings
retention and a 16% decrease in the loan portfolio. Total capital
reached nearly USD19 million.
Lower Profitability: As of December 2025, the bank's profitability
decreased due to higher interest and operating expenses combined
with lower credit appetite and demand. Operating Profit/RWA fell to
2.9% from 4.1% in 2024 and from 4.0% reported in 2023. The bank's
net income for the year was USD2.6 million.
High Liquidity: BNAUY's main funding source comes from its deposit
base (mostly non-resident), which accounts for the bulk of the
bank's total funding. The funding base was stable from 2022 to
2025, with the bulk of the funding coming from customer deposits.
During 2025 the bank saw further diversification of funding as 87%
came from customer deposits and the remainder from deposits from
banks. The loans-to-deposits ratio remained low, at 11.7% at
December 2025 down from 18.3% at December 2024.
The outcome of the committee would be the same if applying Fitch's
methodology for rating Uruguay (from Sept. 28, 2023) or Fitch's new
"Bank Rating Methodology" published on March 21, 2025.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A downgrade of BNAUY's rating would be triggered by a downgrade
of Argentina's sovereign rating.
- The IDRs would also be pressured by a significant deterioration
in BNA S.A.'s financial profile caused by a deterioration in the
Argentine operating environment.
- Any policy announcement in Argentina that would de detrimental to
either BNA S.A. or BNAUY's ability to service their obligations
would be negative for their creditworthiness.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- The IDRs of BNA S.A. and, hence, BNAUY would benefit from an
upgrade of Argentina's sovereign rating.
Public Ratings with Credit Linkage to other ratings
BNAUY's IDRs reflect Fitch's opinion of BNA's standalone credit
profile.
ESG Considerations
ESG does not apply as this is a branch of an Argentine bank that
has its own ESG score.
Entity/Debt Rating Prior
----------- ------ -----
Banco de la Nacion
Argentina (Sucursal
Uruguay) LT IDR CCC+ Affirmed CCC+
LC LT IDR CCC+ Affirmed CCC+
*********
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
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Information contained herein is obtained from sources believed to
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