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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 25, 2026, Vol. 27, No. 103
Headlines
B R A Z I L
BRF SA: S&P Affirms 'BB+' ICR & Alters Outlook to Negative
MARFRIG GLOBAL: S&P Affirms 'BB+' ICR & Alters Outlook to Negative
C O L O M B I A
COLOMBIA TELECOMUNICACIONES: S&P Ups ICR to 'BB-', Outlook Stable
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Dealing With Spirit Closure & Cuts at JetBlue
DOMINICAN REPUBLIC: Senate Advances Bill to Promote Investment
H A I T I
HAITI: IMF OKS Third Review & Extends Staff-Monitored Program
J A M A I C A
JAMAICA: BOJ Injects US$30MM Into Forex Market Amid Strong Demand
JAMAICA: Not in Recession Despite Two Negative Quarters
M E X I C O
FIBRA SOMA: Moody's Alters Outlook on 'Ba1' CFR to Positive
P U E R T O R I C O
CONVENTION CENTER: Taps Juan Valedon & Modesto Mendez as Counsels
FULL HOUSE: Taps Juan Valedon and Modesto Bigas Mendez as Counsels
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B R A Z I L
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BRF SA: S&P Affirms 'BB+' ICR & Alters Outlook to Negative
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S&P Global Ratings revised its outlook on BRF S.A. to negative from
stable and affirmed its 'BB+' issuer credit rating on the company.
S&P also revised up BRF's stand-alone credit profile (SACP) to
'bb+' from 'bb'. In addition, S&P affirmed the 'BB+' issue-level
ratings on the senior unsecured notes issued by BRF GmbH and the
recovery rating of '3' (65%).
The negative outlook reflects that the ratings on Marfrig will
continue limiting those on BRF.
S&P expects that sound profitability for poultry production
(although comparably weaker), controlled grain costs, and benefits
from its ongoing efficiency initiatives will keep BRFS.A.'s
profitability solid, with nominal EBITDA at R$10 billion-R$11
billion and margins of 15%-16% in 2026 and 2027.
Capital expenditures and dividends will remain high, but solid cash
flow will allow the company to maintain leverage--measured as
adjusted debt to EBITDA--below 2.0x, with adequate cushion to
support potential downturns.
S&P revised the outlook on BRF's parent company, Marfrig Global
Foods S.A. (BB+/Negative/--) to negative from stable on May 20,
2026. Marfrig continues to have elevated leverage, following years
of poor performance in U.S. beef, and sizable capex, interests, and
dividends.
BRF's stronger stand-alone credit profile incorporates our
expectation of sustained adequate profitability. With significant
exposure to the Middle East, S&P anticipates the company will face
higher logistics costs from redirecting routes to let it continue
delivering products in the region. Still, the resilient demand,
which was already growing and is intensified by the current
conflict, has been keeping prices in the region high as many
consumers prioritize food security. Also, overall global demand for
poultry and related products is resilient, underpinned by the
protein's affordability and perceived health advantages relative to
other meat types. This demand resiliency--along with strong demand
from Asia, increasing export destinations, and still limited
increase in global production--should support export prices.
Domestic competition in Brazil remains higher due to sizable
production and lower consumption due to consumers' higher debt
levels.
At the same time, the company's sourcing strategy for grains and
expectations of robust harvests for corn and soybean will likely
keep key costs controlled in the next two years. These factors,
coupled with volume growth allowing for cost dilution and synergies
derived from the integration with Marfrig (MBRF), will mitigate
higher logistics costs, the impact from the Brazilian real
appreciation on exports, and reduced pricing flexibility locally.
This should enable BRF to maintain consolidated margins at 15%-16%
in 2026 and 2027, stable compared with the 15.5% in the 12 months
ended March 31, 2026. S&P also expects BRF to post nominal EBITDA
of Brazilian real (R$) 10 billion-R$ 11 billion in the next two
years.
S&P said, "We expect BRF's ongoing cost-control initiatives to
support margin resilience under stress scenarios. We see the
poultry sector as exposed to occasional challenges from potential
capacity overexpansion, foreign exchange impact on export profits,
price volatility driven by global trade dynamics, uncertainties
around climate impact on harvests and grain costs, and the risk of
avian influenza outbreaks, which could disrupt pricing and pressure
margins."
To mitigate the potential effects of such downside risks, BRF has
been following a stricter approach to costs. It has initiatives
focused on simplifying its cost structure, streamlining its
distribution and logistics networks, and, more recently, using
potential synergies from its merger with Marfrig. S&P believes
these efforts, coupled with an improving product mix shifting to
higher value-added products, will add stability to profitability
during industry downturns, helping the company avoid significant
margin drops as seen in 2022 and 2023.
High capital expenditures (capex) will persist for ongoing
expansion and diversification. Given favorable industry dynamics,
S&P anticipates continued investment in both capacity expansion and
product-mix optimization in the coming years. BRF directs primary
investments toward increasing capacity for both domestic and
international markets, most notably the expansion of the Lucas do
Rio Verde plant in Brazil. The company expects this project to
increase total slaughtering throughput by approximately 50% from
the current 300,000 birds per day by 2027-2028.
Additionally, S&P expects BRF to intensify investments to
strengthen its presence in the halal market following the
establishment of Sadia Halal, its joint venture (JV) with the Halal
Products Development Co. (HPDC), a subsidiary of Saudi Arabia's
Public Investment Fund (PIF). After the transfer of its Middle
Eastern assets (excluding Turkey), BRF currently holds a 90% stake
in the JV. However, the agreement allows HPDC to increase its stake
to 30%, with the option to reach 40% through primary and secondary
offerings. BRF ultimately targets an IPO for the JV by 2027, which
could provide the necessary capital to fund further regional
growth.
S&P said, "We forecast capex at R$4.25 billion per year in 2026 and
2027, from R$4.1 billion in 2025. We also forecast BRF to receive
around $100 million from HPDC under the agreement to raise the
latter's stake in the JV.
"We anticipate Marfrig will continue upstreaming cash from its
subsidiary, but leverage at BRF will remain controlled. We expect
dividends will also stay high, as Marfrig increases the upstreaming
of cash from the subsidiary. In our forecast, we continue to assume
a payout of R$3.5 billion in 2026 and 2027, but BRF's discretionary
cash flow (DCF) to remain positive at R$1.6 billion and R$2.3
billion in the same years, respectively.
"We think dividends payout could increase depending on the parent's
strategy. Regardless, we believe BRF has enough cushion to support
potential higher cash outflows while keeping leverage below 2.0x
and a liquidity cushion comfortably above 50%.
"The negative outlook mirrors that on Marfrig. On May 20, 2026, we
revised the rating outlook on Marfrig to negative from stable owing
to challenges in reducing its leverage amid the struggling recovery
in U.S. beef. The outlook reflects our view of the company's
inability to deleverage until National Beef's profitability
recovers, and that the visibility of when deleveraging will occur
is limited. These factors leave Marfrig highly vulnerable to a
continued high interest burden and capex, hindering free operating
cash flow (FOCF) and keeping leverage high.
"We align our ratings and outlook on BRF with those on Marfrig
since the latter fully incorporated the subsidiary in 2025."
The negative outlook reflects that on the ratings on the parent,
Marfrig.
S&P would lower the ratings on BRF if it lowers the ratings on
Marfrig.
S&P could revise downward BRF's SACP if it sees weakening industry
conditions, with players' increasing processing capacity resulting
in excess supply or much higher input costs creating distorted and
volatile margins, despite the company's efficiency initiatives.
Such conditions, coupled with a more aggressive approach to capex
and higher dividends, would cause leverage to exceed 2.0x
consistently and DCF to become more pressured or even negative.
S&P could revise the outlook to stable if it takes the same action
on Marfrig.
S&P said, "Although unlikely, we could revise upward BRF's SACP in
the next 12-18 months if the company maintains more stable margins,
in line with our base-case scenario, even amid industry downturns,
while it continues to expand and diversify its operations,
strengthening its position as one of the main global poultry
producers. In such a scenario, we would expect BRF to manage
dividends and capex to maintain debt to EBITDA below 2.0x, as
measured by a three-year moving average over the normal course of
the industry cycle, while it sustains positive DCF."
MARFRIG GLOBAL: S&P Affirms 'BB+' ICR & Alters Outlook to Negative
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S&P Global Ratings revised its outlook on Marfrig Global Foods S.A.
to negative from stable, while affirming its 'BB+' corporate and
issue credit ratings.
S&P is also revising its recovery rating from '3' to '4', due to a
significant structural subordination of the debt at the holding
level not guaranteed by BRF.
The negative outlook reflects one in three chances of a downgrade
in the next 12 months if S&P thinks leverage will remain above 3.5x
on a sustained basis, or if leverage further deteriorates due to
weaker than forecasted operational performance, higher capital
expenditure, or sizable working capital outflows.
The negative outlook is primarily driven by S&P's expectation that
the company will struggle to reduce its debt through 2026 and 2027.
S&P Global Ratings expects Marfrig's leverage to be well above 3x
over the next two years given the company's high interest burden,
an industry downturn affecting its subsidiary National Beef Packing
Co., and high investments at subsidiary BRF S.A.
While top-line revenues are projected to grow, driven by higher
beef prices in the U.S. and South America, we anticipate that
EBITDA will remain flat due to margin pressures across key
segments. Consequently, S&P expects debt to EBITDA to remain around
4x in 2026 and 2027, and funds from operations (FFO) to debt in the
12%-14% range (from 4.2x debt to EBITDA and 13% FFO to debt as of
March 2026), as sizable capital expenditures (R$5 billion) and a
heavy interest burden (R$6 billion) limit the company's capacity to
reduce nominal debt.
Most notably, S&P forecasts that free operating cash flow (FOCF)
after leasing will be about R$900 million in 2026 and R$1.4 billion
in 2027, limiting nominal debt payment and hindering the company's
ability to reduce debt.
The outlook is further weighed down by a challenging operating
environment in North America. National Beef (NB) is currently
navigating an unfavorable cycle characterized by the lowest U.S.
cattle inventory in 75 years, which has driven cattle prices to
record highs and compressed processors' margins. S&P expects these
high input costs and compressed margins to persist until at least
2028, when a slow herd rebuilding process is expected to occur.
In addition, the lack of visibility regarding NB's profitability
recovery adds a layer of uncertainty to the company's ability to
contribute to group-wide deleveraging in the near term. Although
S&P thinks the risk of an unfavorable ruling from a new U.S.
Department of Justice antitrust investigation is low, the
investigation could still put downward pressure on the current
rating. In Brazil, while beef export volumes remain robust,
significant headwinds are emerging that threaten profitability. The
imposition of Chinese safeguards on Brazilian beef
imports--establishing a quota that is significantly lower than 2025
levels--is expected to cause a major interruption in exports to
China as early as mid-2026. This could lead to downward price
pressure in exports, along with fiercer competition in the domestic
market amid the high level of consumers' indebtedness.
Additionally, while the poultry and pork cycles remain favorable
for BRF, the company faces margin pressure from lower Brazilian
domestic demand, an appreciated FX, somewhat higher but still
controlled input costs, and increased freight costs. Geopolitical
tensions in the Middle East, specifically the closure of the Strait
of Hormuz, have also introduced risks of route diversion and higher
logistics costs for BRF's significant MENA-bound exports.
Despite these pressures, Marfrig's robust scale and successful
diversification continue to support its business profile. The
recent creation of Sadia Halal in partnership with Saudi Arabia's
PIF represents a strategic move to secure long-term growth and
demand and help mitigate regional volatility. While the current
industry downturn at NB and the high investment requirements for
BRF have kept leverage metrics well above our initial 3x target for
the current rating, the company's ability to navigate these cycles
through its diversified footprint remains a core strength. However,
until the company has a clear path toward positive FOCF and
improved EBITDA margins, there is negative pressure on ratings.
S&P said, "The negative outlook reflects our expectation that
Marfrig will be unable to meaningfully reduce its debt through 2026
and 2027. While top-line revenue is expected to grow due to
favorable beef prices in the U.S. as well and in the South American
export markets, significant profitability headwinds--including high
U.S. cattle costs, Brazilian export quota impacts, and increased
freight costs--are expected to keep EBITDA flat. We anticipate that
sizable capital expenditures (R$5 billion) and a high interest
burden (R$6 billion) will constrain cash flow, keeping leverage
elevated at around 4x.
"We can lower our ratings in the next 12 months if we think that
current leverage around 4.0x will persist, while FFO to debt points
to be below 12%. Further margin deterioration due to input cost
strains, working capital mismanagement, or higher capex could also
trigger a downgrade.
"We could stabilize the ratings in the next 12 months if Marfrig
demonstrates a more rapid deleveraging profile than currently
anticipated, bringing leverage towards 3x. This would require a
more pronounced recovery in profitability at NB, or a larger equity
inflow to support BRF's sizable capex, along with significantly
stronger free cash flow generation to aggressively reduce both
nominal debt and interest expenses."
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C O L O M B I A
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COLOMBIA TELECOMUNICACIONES: S&P Ups ICR to 'BB-', Outlook Stable
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S&P Global Ratings raised its issuer and issue-level credit ratings
on Colombia Telecomunicaciones S.A. E.S.P. BIC (Coltel) to 'BB-'
from 'B+' and removed its ratings on the company from CreditWatch
with developing implications where it placed them on Feb. 13,
2026.
The stable outlook reflects our expectation that Coltel's
debt-to-EBITDA ratio will move toward 3.5x over the next two years,
following its consolidation within Millicom, and that the company
will take a more proactive approach to managing its debt
maturities.
On April 27, 2026, Millicom International Cellular S.A. (not rated)
completed its acquisition of 99.99% of Colombia Telecomunicaciones
S.A. E.S.P. BIC (Coltel).
Coltel will now be part of a more geographically diversified group,
and we estimate Coltel's operations will account for about 20% of
the group's revenue, making it strategically important to
Millicom.
S&P said, "We raised our ratings on Coltel by one notch, reflecting
the support provided by its parent company, Millicom. We believe
Coltel will benefit from becoming part of a company with a stronger
telecommunications platform in Colombia, broad geographic
diversification across 11 Latin American countries, and increased
investment capacity to upgrade Coltel's network, spectrum, and
technology. This capacity will also support the accelerated
nationwide rollout of fiber and 5G."
Strategically, the acquisition significantly strengthens Millicom's
position in Colombia, where it already operates under the Tigo
brand. For now, the group plans to operate under one brand only
(Tigo) but to maintain both companies in the next few years.
Millicom's strategy is to prioritize accelerated investment in
fibertothehome (FTTH) infrastructure and 5G deployment, alongside
improving operational efficiency and service quality for both
residential and enterprise customers.
Coltel only accounts for about 20% of the group's total revenue,
and we have yet to see an integration of Coltel within the group
and a track record of consistent group support to the company.
However, S&P believes that Millicom would support Coltel in most
foreseeable circumstances and consider it strategically important
to the group, resulting in one notch of support from its 'b+'
stand-alone credit profile (SACP). that results in the final 'BB-'
rating on Coltel.
Coltel navigated a challenging environment in 2025, while remaining
a key player in the telecommunications industry in Colombia.
Coltel, operating under the Movistar brand, had its topline
contract 7.3% last year, mainly driven by weaker performance of its
business-to-business segment as few projects were executed,
although this was partially compensated by growth of fiber optic
services and resiliency of mobile services.
Mobile services had demand growth of around 2.5% in 2025 as a
result of continued improvement in its competitive position
following the unified Radio Access Network (RAN) agreement with
Tigo, which has strengthened Coltel's mobile coverage, capacity,
and service quality. These improvements supported postpaid
subscriber additions and improved customer retention during the
year.
Although Coltel's EBITDA has slightly declined, margins remain
resilient at 22.6%, underscoring the effectiveness of ongoing cost
efficiencies. S&P expects Coltel to continue expanding its FTTH
network, gradually phasing out fixed-line infrastructure and
further enhancing operating efficiencies. Now that the company is
part of a larger group, the Coltel-Tigo platform will be the
secondlargest telecom operator in Colombia, intensifying
competition with market leader Claro Colombia.
S&P said, "In our view, the greater scale should enable more
efficient cost structures, optimized infrastructure deployment, and
enhanced pricing and bundling strategies. These should support
higher average revenue per user (ARPUs) and stronger profitability.
As a result, we anticipate higher EBITDA generation increasing the
EBITDA margin to 30%-35%, which will be more in line with industry
peers.
"We believe Coltel's financial performance will also improve.
During 2025, the company's adjusted debt increased to Colombian
peso (COP) 5.8 trillion from COP5.4 trillion in 2024. The increase
in debt corresponds to the acquisition of debt for working capital
and refinancing loans. It also includes the higher valuation of
hedging instruments, generated by the 14.79% appreciation of the
Colombian peso against the dollar, and the variation in interest
rate curves, which mainly affects the valuation of the senior bond
swaps.
"The combination of a decrease in EBITDA and higher debt pushed
leverage higher than we expected in 2025, with debt to EBITDA of
4.2x. However, we expect that Coltel's cash flow will improve as a
result of its integration within its parent company, leading to a
three-year average debt to EBTIDA of about 3.5x and free operating
cash flow (FOCF) to debt of about 8%. We also expect the company to
strengthen its capital structure by enhancing its debt maturity
profile, as we believe Millicom will take proactive measures ahead
of upcoming debt maturities.
"The stable outlook reflects our expectation that Coltel's
debt-to-EBITDA ratio will decrease to about 3.5x over the next two
years, following its consolidation within Millicom, and that the
company will take a more proactive approach to managing its debt
maturities.
"We could downgrade Coltel in the next 12 months if we were to
revise our view of the group credit profile (GCP) to a weaker
category, or if we revise downward our assessment of the support
from its parent, Millicom." Additionally, S&P could revise Coltel's
SACP if:
-- The company fails to strengthen operating cash flow, with
average debt to EBITDA above 4.0x and FOCF to debt remaining below
10%; on a consistent basis, or
-- Liquidity pressures continue from short-term debt maturities,
cash shortfalls, or higher-than-expected cash expenses, leading the
company to rely on higher debt or refinancings.
S&P could upgrade Coltel in the next 12-18 months if it revises the
GCP upward or if S&P strengthen its view of the likelihood of group
support to the company. S&P could also revise upward Cotel's SACP
if:
-- Leverage falls below 3x and/or FOCF to debt strengthens above
10% on a sustained basis,
-- Coltel is successfully integrated within Millicom, illustrated
by steady customer churn, consistently higher EBITDA, and adequate
liquidity sources,
-- The company covers capital expenditures and working capital
needs without requiring additional debt or reducing its cash
balance, and
-- Coltel improves its capital structure with more evenly
distributed maturities, reducing the risk of short-term refinancing
pressure.
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D O M I N I C A N R E P U B L I C
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DOMINICAN REPUBLIC: Dealing With Spirit Closure & Cuts at JetBlue
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Dominican Today reports that the rising cost of jet fuel, driven by
the armed conflict between the United States and Iran, continues to
wreak havoc on the global aviation sector, an issue initially
thought not to affect tourism in the Dominican Republic directly.
However, the remnants of the crisis are already being felt in
Caribbean tourism. Spirit Airlines was the first to stop flying,
and recently, JetBlue announced the elimination of its flights
between Newark Airport in New Jersey and Santo Domingo and Punta
Cana, according to Dominican Today.
Given this situation, it is uncertain whether more airlines will
cease flights to the country, the report notes. For this reason,
the Minister of Tourism, David Collado, indicated that the Ministry
of Tourism (Mitur) is monitoring seat losses and working to
compensate for them by filling capacity, either from the same
market or from others, the report relays.
"We have a map where we monitor seat losses to compensate. For
example . . . we just arrived from Canada, and in that market we
increased seats with Air Transant, WestJet, Sunwing Airlines and
Air Canada. So what we do is fill in that board so as not to lose
the number of seats," he explained, the report notes.
He indicated that despite reports of route cancellations, the
country continues to show positive numbers, the report relates.
"We know it's a delicate moment and we have to be monitoring what's
happening day by day," Collado said, the report discloses.
He stated that, in addition, to mitigate the effect, they are
working hand in hand with Arajet, encouraging them to create new
routes to compensate, 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.
DOMINICAN REPUBLIC: Senate Advances Bill to Promote Investment
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Dominican Today reports that the Senate of the Dominican Republic
approved in first reading a bill designed to promote both domestic
and foreign investment by establishing a legal framework that
guarantees equal rights and obligations for investors. Introduced
by Senator Alexis Victoria Yeb, the proposal aims to boost capital
inflows, strengthen legal certainty, and support economic growth
and national development, according to Dominican Today.
The legislation also requires investors seeking incentives under
the law to comply with environmental protection standards and
responsible natural resource management, the report notes. The
measure is intended to make the Dominican Republic more attractive
to investors while ensuring sustainable development, the report
relates.
During the same session, senators approved several resolutions,
including requests for sports facility renovations in Villa
Vásquez and Salcedo, the construction of a blood bank in Hermanas
Mirabal Province, and new police stations in Sabaneta and Villa
Tapia, the report says. The Senate also approved recognitions
honoring notable figures in education, literature, medicine, and
the arts, along with an amendment to the air transport agreement
between the Dominican Republic and Cuba, 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.
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H A I T I
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HAITI: IMF OKS Third Review & Extends Staff-Monitored Program
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Management of the International Monetary Fund (IMF) approved on May
5, 2026, the third review of Haiti's Staff-Monitored Program (SMP),
including the authorities' request for an extension of the SMP
through June 19, 2027. SMPs are informal agreements between country
authorities and the IMF to monitor the implementation of the
authorities’ economic program and build a track record of policy
implementation that could pave the way for financial assistance
from the IMF’s upper credit tranche (UCT). Haiti’s SMP is
tailored to its context of acute security challenges, institutional
fragility, and capacity constraints. It supports the authorities’
priorities of economic stabilization, improved governance,
anticorruption, and strengthening the social safety net.
Haiti continues to face a severe humanitarian and security crisis,
compounded by recurrent shocks and a fragile political transition.
Gangs continue to undermine state authority, leaving approximately
5.7 million people facing food insecurity and 1.45 million people
internally displaced. The oil price shock stemming from the war in
the Middle East has emerged as a major headwind, significantly
raising the fuel import bill and implicit subsidy cost, and
aggravating an already weak fiscal position. These pressures add to
the impact of Hurricane Melissa in October 2025, which disrupted
economic activity and exacerbated humanitarian needs. Haiti is also
navigating a fragile political transition that is expected to
culminate in
general elections later this year—the first in a decade. The
UN-supported Gang Suppression Force began arriving in April 2026
and is expected to be fully deployed by October 2026, which could
help restore security and support recovery.
Economic conditions remain dire. Real GDP contracted for a seventh
consecutive year in FY2025 and a further contraction is expected in
FY2026. Inflation has eased recently but remains elevated. Against
the backdrop of weak economic activity and heightened uncertainty,
financial intermediation has continued to contract. Retrenchment in
bank lending and financial disintermediation have contributed to
improvements in non‑performing loan ratios, while capital
adequacy ratios remain well above regulatory minimums.
Despite a deteriorating external environment, international reserve
buffers remain adequate. Higher international oil prices are
weighing on the external position, but strong remittance partly
offset these pressures. The current account is expected to weaken
in FY2026 but will remain broadly balanced. Gross international
reserves are projected at US$3.4 billion at end FY2026—over seven
months of prospective imports of goods and services. The nominal
exchange rate has remained stable.
Fiscal policy remains constrained by persistent security
challenges, institutional weaknesses, and limited policy space.
Revenue performance in FY2026 has been weak, due to disruptions to
economic activity, administrative fragilities, and institutional
paralysis triggered by the termination of the Transitional
Presidential Council’s mandate. Higher international oil prices
are expected to add further pressure through higher implicit
subsidy costs, despite the authorities’ decision to increase
domestic fuel prices in April. Budget execution has remained
uneven, underscoring the importance of prioritizing spending while
safeguarding support for the most vulnerable.
Risks to the outlook are tilted to the downside. A further
deterioration in security conditions, together with persistently
higher global oil prices, could further strain economic activity,
aggravate humanitarian conditions through higher food prices, and
intensify fiscal pressures. Potential shifts in foreign immigration
policies could slow remittance inflows, with adverse implications
for the external position.
All program targets were met at end-December 2025. Reserve
accumulation has been strong with net international reserves
reaching USD 1.76 billion in December 2025. The revenue, primary
balance, and social spending targets all remained on track. The
monetary financing target was also met despite an increasingly
constrained fiscal space. The reform agenda—covering governance,
public financial management, safeguards, and data
provision—continues to advance, albeit with delays in some
areas.
While security remains the top priority, the SMP will continue
emphasizing:
Strengthening governance and reducing corruption are critical to
rebuilding trust in public institutions and overcoming fragility.
Reforms anchored in the Governance Diagnostic Report aim to improve
the integrity and effectiveness of public institutions, including
more transparent management of public finances, stronger safeguards
in revenue administration, and more effective mechanisms to deter
and address corruption, organized crime, and illicit financial
activities. Efforts to further strengthen the anti‑money
laundering and combating the financing of terrorism
framework—including through the publication of the recently
concluded national risk assessment and closing remaining gaps—are
also critical to reinforcing financial integrity and supporting
Haiti’s exit from the Financial Action Task Force grey list.
Stepping up revenue mobilization efforts given Haiti’s low
revenue base and large security and development needs. Higher
international oil prices are straining fiscal space, reinforcing
the importance of accelerating tax and customs administration
reforms, including operationalizing the new tax code, strengthening
the digital infrastructure, and improving compliance—particularly
among large taxpayers. The fuel price adjustment will reduce
foregone revenues resulting from the oil price shock. However, it
is critical to complement these decisions with measures to protect
the most vulnerable, including by leveraging the remaining
resources from the IMF 2023 Food Shock Window.
Improving budget execution to ensure that limited public resources
are effectively directed toward priority social, humanitarian, and
security spending amid rising needs. This requires stronger cash
management, tighter commitment controls, and better preparation and
prioritization of public investment projects. It is also critical
to ensure the timely and effective delivery of public assistance,
strengthen social spending execution, and safeguard support to
vulnerable households. Together, these steps will help improve
spending efficiency, strengthen the management of fiscal risks, and
enable public spending to better support development and
reconstruction efforts.
Consolidating the central bank’s policy framework and
credibility. Exchange rate stability has provided an important
nominal anchor for the economy. In the face of the oil shock,
preserving reserve adequacy while using available buffers in a
temporary and carefully calibrated manner will be critical to
managing external pressures. Fully operationalizing the new reserve
management framework, including updated investment policies and
guidelines will help strengthen governance at the central bank.
Enhancing the regulatory and supervisory frameworks in the
financial system. The authorities are making progress in
strengthening risk‑based banking supervision, including through
the continued rollout of on‑site inspections and enhancements to
off‑site monitoring of banks’ risk profiles. Efforts are
underway to operationalize the new
supervisory framework, integrate risk‑assessment tools into the
BRH’s supervisory architecture, and finalize a new chart of
accounts for financial institutions. These reforms will safeguard
financial stability and reinforce the resilience of the banking
system.
Improving data quality and timeliness. The Bank of the Republic of
Haiti completed the FY2023 audit and financial statements and has
initiated the FY2024 audit. Continued implementation of the
safeguards assessment recommendations will strengthen central bank
governance and risk management. Efforts continue to strengthen data
reporting frameworks, including the International Reserves and
Foreign Currency Liquidity template, external sector and government
finance statistics, and the reporting of financial soundness
indicators.
Collaborating with development partners to manage elevated fiscal
risks and preserve macroeconomic stability, and the reform agenda.
Amid heightened oil price pressures, there is an increasing risk
that financing gaps could translate into domestic debt
accumulation, undermining the public sector’s balance sheet.
External support should be provided primarily in the form of grants
rather than non‑concessional borrowing. Together with rigorous
appraisal and transparency requirements for donor‑financed
operations, this support would help safeguard the public sector
balance sheet, consolidate progress achieved under the program, and
support a durable recovery that improves living conditions for the
Haitian people.
In line with the Fund Strategy for Fragile and Conflict-Affected
States, IMF staff will continue to collaborate closely with
Haiti’s main development partners, particularly on governance and
strengthening institutional capacity.
=============
J A M A I C A
=============
JAMAICA: BOJ Injects US$30MM Into Forex Market Amid Strong Demand
-----------------------------------------------------------------
RJR News reports that the Bank of Jamaica says demand for US
currency significantly exceeded supply in its latest foreign
exchange intervention operation.
According to the central bank, applications were opened on
Thursday, May 21, for the sale of US$30 million through its B-FXITT
standard intervention tool, with settlement scheduled, the report
notes.
The BOJ said it received 49 eligible bids valued at US$78.65
million, more than double the amount being offered, according to
RJR News.
Twenty-one bids were eventually allocated with a full US$30 million
taken up, the report notes.
The central bank says a settlement price for its allocated bids was
$157.14 to one US dollar, 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: Not in Recession Despite Two Negative Quarters
-------------------------------------------------------
RJR News reports that the Planning Institute of Jamaica (PIOJ) says
the country is not in a recession.
The statement comes after Jamaica recorded two consecutive quarters
of negative growth -- the first being the negative 7.5 per cent
recorded for the period October to December 2025, which was after
Hurricane Melissa, and now the negative 5.9 per cent recorded for
the period ending March 2026, according to RJR News.
But, according to Senior Director of Economic Planning Research and
Policy Logistics at the PIOJ, James Stewart, although the
projections are negative, the economy is showing signs of recovery,
the report notes.
"[There is] no possibility of a recession. STATIN will publish the
seasonalised quarter-on-quarter performance in their report. But we
are suspecting that as . . . the negative conditions from Melissa
eases, each successive quarter, there will be a growth relative to
the preceding quarter. So you wouldn't find two consecutive
quarters of decline during the quarter-on-quarter comparison," he
explained, the report relates.
Jamaica's economy contracted by 5.9 per cent for the first quarter
of the year, the report notes. The growth was stifled by Hurricane
Melissa, the report says. But what about economic growth for the
fiscal year that ended March 2026?
"The economy is now estimated to have contracted by 1.6 per cent
for fiscal year 2025-26. This revised projection compares with an
initial projection for growth of 1.9 per cent, indicating that the
shock of Hurricane Melissa resulted in a loss of 3.5 percentage
points in real value added output," said PIOJ Director General Dr.
Wayne Henry, 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.
===========
M E X I C O
===========
FIBRA SOMA: Moody's Alters Outlook on 'Ba1' CFR to Positive
-----------------------------------------------------------
Moody's Ratings has changed the outlook on Fibra SOMA Fideicomiso
F/6185 (Fibra SOMA or SOMA) to positive from stable. At the same
time, Moody's have affirmed their Ba1 LT Corporate Family Rating
and Senior Unsecured rating, and assigned a Ba1 rating to the
company's proposed senior unsecured notes (benchmark size).
Net proceeds from the proposed senior unsecured notes are expected
to be used primarily to refinance existing corporate and
development debt and for general corporate purposes.
The rating of the proposed notes assumes that the final transaction
documents will not be materially different from draft legal
documentation reviewed by us to date and assume that these
agreements are legally valid, binding and enforceable.
RATINGS RATIONALE
The outlook change to positive reflects SOMA's stronger financial
profile, reduced execution risk, and improved capital structure,
following a series of strategic actions that have enhanced credit
quality and financial flexibility. The positive outlook also
reflects Moody's expectations that the company will continue
strengthening its credit metrics and financial policies, supported
by stabilized operations and disciplined capital allocation.
SOMA's financial profile has strengthened meaningfully following
its capital raising efforts during 2025–26, which totaled
approximately MXN13.0 billion (around $750 million). The company
has allocated the majority of these proceeds to development capex,
acquisitions and debt repayment, which has contributed to lower
funding costs and a stronger balance sheet. At the same time,
SOMA's execution risk has declined materially as its development
pipeline advances toward completion. Assets under development are
expected to decrease to around 12% of gross leasable area (GLA) by
the third quarter of 2026, down from approximately 60% in 2021,
supporting greater cash flow visibility and a transition to a more
stabilized operating profile.
Credit metrics have also strengthened, with recent results recently
reaching or exceeding Moody's upgrade reference thresholds for
scale and leverage. This improvement reflects both the impact of
the capital injection and the contribution of newly delivered and
acquired assets to operating income. In addition, the proposed
issuance will further support SOMA's credit profile through the
refinancing of corporate and development debt. The transaction is
expected to extend the company's weighted average debt maturity and
significantly reduce variable rate exposure, thereby strengthening
its interest rate risk profile and overall financial flexibility.
Fibra SOMA's credit profile continues to be supported by its
high-quality and diversified real estate portfolio, comprising
retail (72% of GLA as of March 2026), office (17%) and hotels
(11%), located in prime urban and commercial areas across Mexico.
The company benefits from a diversified tenant base of more than
1,600 tenants across luxury, entertainment and technology sectors,
with no single tenant representing more than 6.3% of GLA. The
rating also incorporates SOMA's solid liquidity position, supported
by high cash balances and access to fully undrawn committed
revolving credit facilities.
At the same time, the rating remains constrained by the company's
geographic concentration in Mexico, which exposes it to domestic
economic cycles and consumer spending trends, as well as by
relatively short lease tenors in the retail segment, averaging
around three years, which increases renewal risk. SOMA also remains
exposed to foreign currency and interest rate volatility, given
that a significant portion of its debt is denominated in US dollars
and has historically been at variable rates; however, these risks
are partially mitigated by strong operating margins, natural
currency hedges and the expected reduction in variable rate
exposure following the proposed refinancing transaction.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
SOMA's ratings could be upgraded if the company continues to
successfully execute and deliver its development pipeline, leading
to a more stabilized portfolio with stronger and more predictable
cash flow generation. Quantitatively, upward rating pressure would
require sustained improvement in key credit metrics, including
Moody's-adjusted net debt to EBITDA levels close to 5.5x, gross
assets exceeding $3.5 billion, EBITDA to interest expense above
2.0x, and total debt to gross assets below 30%. Continued evidence
of disciplined capital allocation, stable operating performance and
a more conservative financial policy would also support an
upgrade.
Conversely, Fibra SOMA's ratings could be downgraded if the company
underperforms relative to expectations or fails to execute its
development pipeline as planned, resulting in weaker operating
performance or deterioration in credit metrics. Downward pressure
could also arise from a more aggressive financial strategy,
including sustained increases in leverage or reduced liquidity.
Quantitatively, a downgrade could be triggered if Moody's-adjusted
net debt to EBITDA rises above 6.5x, total debt to gross assets
remains above 45% on a sustained basis, or EBITDA to interest
expense remains below 1.0x over a prolonged period.
COMPANY PROFILE
Fibra SOMA Fideicomiso F/6185 is a Mexico-based real estate
investment trust focused on the development, ownership and leasing
of premium retail, office and hotel assets in major urban markets,
primarily Mexico City. As of March 2026, SOMA had 14 operational
properties with operating gross leasable area of approximately
566,520 square meters, generating stable cash flows from a
predominantly retail portfolio, complemented by office and hotel
assets. The company is supported by a diversified tenant base of
more than 1,600 tenants, with no individual tenant representing a
significant share of gross leasable area.
SOMA's ownership includes strategic and institutional investors,
notably SOMA, Ontario Teachers' Pension Plan and the Del Valle
family, alongside a broad base of investors including Mexican
pension funds.
The principal methodology used in these ratings was REITs and Other
Commercial Real Estate Firms published in March 2026.
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.
=====================
P U E R T O R I C O
=====================
CONVENTION CENTER: Taps Juan Valedon & Modesto Mendez as Counsels
-----------------------------------------------------------------
Convention Center Parking, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ Juan C.
Bigas Valedon, Esq. and Modesto Bigas Mendez, Esq. to serve as its
legal counsels.
Mr. Juan C. Bigas Valedon and Mr. Modesto Bigas Mendez will provide
these services:
(a) give the Debtor and Debtor-in-Possession legal advice with
respect to its powers and duties in these proceedings;
(b) prepare on behalf of the Debtor and Debtor-in-Possession the
necessary applications, answers, orders, reports, and other legal
papers;
(c) represent the Debtor before the Bankruptcy Court in all
proceedings; and
(d) perform all other legal services for the Debtor and
Debtor-in-Possession which may be necessary in the case.
Mr. Bigas Valedon and Mr. Bigas Mendez will receive compensation at
an hourly rate of $350, plus expenses, subject to Court approval. A
retainer in the amount of $10,000 from a total of $100,000 has been
advanced and will be applied against fees, with additional
compensation subject to interim and final approval of the Court.
The professionals are "disinterested persons" within the meaning of
Section 101(14) of the Bankruptcy Code, as they do not represent
creditors, equity holders, insiders, or any party with an adverse
interest, and have no prior connections with the Debtor, its
officers, creditors, or the United States Trustee.
The firm can be reached at:
Juan C. Bigas Valedon, Esq.
Modesto Bigas Mendez, Esq.
Urb. Santa Maria, 515 Calle Ferrocarril
Ponce, PR 00730
Telephone: (787) 259-1000
(787) 844-1444
Facsimile: (787) 842-4090
E-mail: cortequiebra@yahoo.com
bigaslawoffices@gmail.com
About Convention Center Parking
Convention Center Parking, Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D.P.R. Case No.
24-04516) on Oct. 21, 2024. In the petition signed by David
Santiago Martinez, president, the Debtor disclosed $1 million in
assets and $45,229,691 in liabilities.
Judge Maria De Los Angeles Gonzalez oversees the case.
The Debtor tapped Alexis Fuentes-Hernandez, Esq., as counsel and
Albert Tamarez Vasquez, CPA, at Tamarez CPA, LLC as accountant.
FULL HOUSE: Taps Juan Valedon and Modesto Bigas Mendez as Counsels
------------------------------------------------------------------
Full House Development, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to hire Juan C.
Bigas Valedon, Esq. and Modesto Bigas Mendez, Esq. to serve as
legal counsel.
The attorneys will provide these services:
(a) give the Debtor and Debtor-in-Possession legal advice with
respect to its Chapter 11 reorganization proceedings; and
(b) represent and assist the Debtor in the bankruptcy case as
Debtor-in-Possession in accordance with applicable provisions of
the Bankruptcy Code.
The attorneys shall receive a retainer in the amount of $10,000
from a total of $100,000, and will bill at an hourly rate of $350
per hour plus expenses.
Juan C. Bigas Valedon, Esq. and Modesto Bigas Mendez, Esq. are
"disinterested persons" within the meaning of Section 101(14) of
the Bankruptcy Code, according to court filings, as they do not
represent any creditors, equity holders, or insiders and have no
materially adverse interest in the Debtor or its estate.
The professionals can be reached at:
Juan C. Bigas Valedon, Esq.
P.O. Box 7011
Ponce, PR 00732-7011
Telephone: (787) 259-1000
Facsimile: (787) 842-4090
E-mail: cortequiebra@yahoo.com
- and -
Modesto Bigas Mendez, Esq.
P.O. Box 7462
Ponce, PR 00732-7462
Telephone: (787) 844-1444
Facsimile: (787) 842-4090
E-mail: bigaslawoffices@gmail.com
About Full House Development
Full House Development, Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D.P.R. Case No.
24-04515) on Oct. 21, 2024. In the petition signed by David
Santiago Martinez, president, the Debtor disclosed $700,000 in
assets and $45,229,691 in liabilities.
Judge Maria De Los Angeles Gonzalez oversees the case.
Alexis Fuentes-Hernandez, Esq., represents the Debtor as 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.
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