260706.mbx

260706.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, July 6, 2026, Vol. 27, No. 133 Headlines A R G E N T I N A BUENOS AIRES: Poverty Rate Rises After Five Quarters Of Decline C A Y M A N I S L A N D S PRIMERO AGILA: Fitch Assigns 'BB' Rating on Sr. Unsecured Notes D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Call to Keep Card Payments at Fuel Stations J A M A I C A ATLANTIC HARDWARE: JSE Suspends Shares Over Missing Financials JAMAICA: BoJ to Withdraw Another $20BB From The Financial System KINTYRE HOLDINGS: JSE Suspends Shares Over Missing Financials M E X I C O FIDEICOMISO IRREVOCABLE 2400: S&P Affirms 'BB' Rating on 3 Tranches P U E R T O R I C O TOPPER CORP: Taps Jamie E. Santiago as Financial Consultant S T . V I N C E N T A N D T H E G R E N A D I N E S ST. VINCENT & THE GRENADINES: Moody's Cuts Issuer Ratings to Caa1 T R I N I D A D A N D T O B A G O NESTLE: Begins Strategic Review of Trinidad and Tobago Operations - - - - - ================= A R G E N T I N A ================= BUENOS AIRES: Poverty Rate Rises After Five Quarters Of Decline --------------------------------------------------------------- Buenos Aires Times reports that poverty in the nation's capital rose in the first quarter of 2026, snapping a run of consecutive monthly year-on-year declines across five quarters, according to data from the IDECBA Buenos Aires City statistics bureau. At the close of the January-March period, 651,000 people - around 21 percent of the capital's population - were living in poverty, up 38,000 on the same period in 2025, said an IDECBA report, according to Buenos Aires Times. At the household level, 236,000 homes (17.2 percent) fell below the poverty line, compared with 15.2 percent a year earlier, the report notes. Extreme poverty also worsened, affecting 274,000 people (8.9 percent) and 93,000 households (6.8 percent) – a jump of 2.7 percentage points year-on-year, the report relays. Within the broader poverty figure, the share of households in extreme poverty rose from 27 percent to 39.6 percent over the year; measured by individuals, the proportion climbed from 32.2 percent to 42 percent, the report notes. The rise was driven largely by an expansion of non-extreme poverty, according to IDECBA's Quarterly Employment and Income Survey (ETOI), with warning signs for the middle class, the report discloses. The middle class remains the largest social stratum, accounting for 50.8 percent of households (698,000) and 47.2 percent of the population (1,458,000 people), though both figures fell by roughly 1.5 to 1.7 percentage points over the year, the report says. The bracket covers households whose monthly income is between 1.25 and 4 times the basic household basket (canasta total), the report relays. The fragile middle sector, whose income sits between one and 1.25 times the basket, comprised 8.5 percent of households and 9.7 percent of the population (117,000 and 300,000 respectively), registering a year-on-year decline of close to two percentage points, the report notes. Wealthier households – those earning four or more times the basket – reached 189,000 (13.8 percent) and 358,000 people (11.6 percent), with the report noting a modest but not significant increase, the report relates. Poverty was felt most acutely in the city's southern zone (24.9 percent) and in households with children under 14 (26.2 percent), with rates rising in line with the number of minors present, the report says. Households with elderly members recorded a poverty rate of 12.9 percent, below the City average, the report adds. As reported in the Troubled Company Reporter-Latin America in February 2025, S&P Global Ratings raised its foreign and local currency issuer credit ratings to 'B-' from 'CCC' on the City of Buenos Aires. S&P also raised its foreign and local currency issuer credit ratings to 'CCC+' from 'CCC' on Province of Buenos Aires (PBA). The outlook on the issuer credit ratings are stable. S&P also raised its issue-level ratings on the LRG to the current issuer credit rating level from 'CCC'. =========================== C A Y M A N I S L A N D S =========================== PRIMERO AGILA: Fitch Assigns 'BB' Rating on Sr. Unsecured Notes --------------------------------------------------------------- Fitch Ratings has assigned a 'BB' rating to the proposed senior notes to be issued by Philippine Airlines, Inc.'s (PAL, BB/Stable) wholly owned subsidiary, Primero Agila Limited. The notes will be unconditionally and irrevocably guaranteed by PAL and Air Philippines Corporation (APC), another subsidiary controlled by PAL's parent, PAL Holdings, Inc. (PHI). Fitch rates PAL based on the consolidated profile of PHI. PHI's consolidated financial profile is driven by PAL, which accounts for 90%-100% of revenue, EBITDAR, cash and debt. APC, which operates under the brand PAL Express, is 51% owned by PHI. PAL's rating reflects its leading market position in the domestic and international air passenger markets in the Philippines, where it is the national flag carrier. The rating is constrained by weaker EBITDAR fixed-charge coverage than rated airlines peers, although this is offset by sound liquidity. PAL's business profile is supported by its diversified network and business mix, stronger cost-efficiency as a hybrid airline with its sister company APC, and prudent fleet expansion strategy. Key Rating Drivers Leading Market Position; Adequate Diversification: PAL is the only full-service domestic carrier in the Philippines, with around 30% share of the domestic passenger market and a leading 23% share of international passenger traffic to and from the country. PAL has maintained its market share over the past decade in part due to capacity constraints and slot scarcity at Manila's Ninoy Aquino International Airport (NAIA) limited new entrants. The airline has adequate diversification, serving 30 domestic and 40 international destinations in 16 countries, and operating 88 routes. International operations accounted for 77% of revenue in 2025. PAL also benefits from limited diversification through its cargo business, which contributed 5% of revenue. Adequate Financial Flexibility: Fitch expects PAL's EBITDAR fixed-charge coverage ratio to improve to close to 2.0x by 2028 (2025: 1.6x). Coverage of 1.3x in 2026 was weaker than peers' but Fitch expects gradual improvement over the medium term. PAL's liquidity is adequate with readily available cash and committed facilities projected to average a mid-to-high teens percentage of the last 12 months (LTM) of revenue in 2026-2029, which provides a reasonable buffer against operating volatility. Fitch did not apply linkage between PAL and PHI in assessing PAL's rating, but Fitch views shareholder capital support for its restructuring as tangible and expect PHI to extend support in times of distress. Rising Fuel Prices to Squeeze Margins: Fitch expects temporary margin pressure in 2026 due to higher fuel costs, capacity adjustments and weaker demand on higher ticket prices. Fitch forecasts EBITDAR margins to normalise to the mid-to-high 20% range from 2027. PAL can offset around 40% of fuel cost increases through fare hikes, supported by fortnightly regulated fuel surcharge adjustments by the regulator. PAL's relatively short booking curve - about 30 days for domestic flights and 60 days for international - also limits exposure to fuel price movements. Temporarily Weaker Demand: Fitch expects PAL to face some impact from disruptions on Middle Eastern routes, which accounted for 8% of total revenue and 11% of capacity in 2025. Fitch believes the prolonged conflict will temporarily weaken travel demand, particularly on more price-sensitive routes. Fitch expects profitability and traffic to recover once the conflict abates, with metrics normalising from 2027. Competitive Cost Advantage: Fitch views PAL's competitive cost position as a strength among the globally rated airlines. It operates as a hybrid of full-service and low-cost carrier. Fitch forecasts PAL's average cost per available seat kilometre to average around 6.4 US cents, lower than global peers in the same rating category. PAL's cost advantage stems from streamlining operations, reduction in fleet complexity, focus on profitable routes and retiring of less efficient aircraft. Disciplined Management Strategy: The company has a record of disciplined strategy after its Chapter 11 restructuring in 2021. It returned to profitability while maintaining EBITDAR net leverage at an average of 1.6x post-restructuring. Fitch expect PAL to maintain revenue and cost discipline over the near term with prudent fleet expansion. It intends to expand its fleet of 82 aircraft at end-2025 by 25% over the next four years. Lease-Funded Fleet Expansion: PAL's aircraft have an average age of around 11 years, with around 40% of the fleet comprising A320/A330/A350 and 40% A321 NEOs/CEOs. PAL expects delivery of 20 new aircraft from 2026-2029, of which 13 are A321 NEOs and seven are A350s. The widebody A350s are more fuel-efficient and have larger seat capacity while the narrow-body A321 NEOs have premiums seats and entertainment systems. PAL plans to finance these aircraft through operating leases but retains flexibility to use finance leases. Moderate Capex, Deleveraging Pace: Fitch forecasts capex to rise to an average of USD385 million in 2026-2028 (2025: USD0.5 billion), driven by advance payments and aircraft maintenance. Fitch estimates EBITDAR net leverage to peak at 3.3x in 2026 (2025: 1.9x), before declining to 2.4x in 2027 and below 2.0x from 2029. While lease liabilities will increase with the new aircraft, EBITDAR net leverage will improve after 2026 with positive free cash flow (FCF) generation. Manageable Hedging Risk: Fitch views PAL's hedging risk and FX exposure to be manageable. PAL does not have an explicit fuel hedging policy, but it mitigates fuel price risk by adjusting ticket prices and the regulated fuel surcharge fortnightly, which covers around 40% of fuel costs. PAL's exposure to foreign-exchange risk is mitigated by 35% of revenue being earned in US dollars and its practice of converting excess pesos into US dollars as soon as practicable. Its peso revenue accounts for around 30% of revenue. Peer Analysis Fitch compares PAL with Wizz Air Holdings Plc (BB/Stable). Wizz Air is an ultra-low-cost carrier with a strong market position in Europe. It has larger scale, a younger fleet and better cost advantages than PAL. However, this is balanced by a weaker EBITDAR fixed-charge coverage ratio of around 1.5x and higher EBITDAR net leverage of 3.0x. Pegasus Hava Tasimaciligi A.S. (BB-/Negative) is rated one notch lower than PAL. It is similar in size, with a leading position in total passenger market share in Turkey, and has lower unit costs as an ultra-low-cost carrier. Pegasus also has a younger fleet. However, PAL is less exposed to the Middle East conflict and has more stable operating performance. PAL also has better EBITDAR net leverage and EBITDAR fixed-charge coverage ratios. The Negative Outlook on Pegasus's rating reflects deterioration in the Turkish airline group's operating performance and its expectation of weaker credit metrics in 2026. Allegiant Travel Company (BB-/Negative) is also rated one notch lower than PAL. It is of similar size, but PAL has better network diversification, a stronger fleet portfolio and a more prudent growth strategy. The Negative Outlook on Allegiant's rating reflects near-term cost pressure from sharply higher jet fuel prices and anticipated borrowing that will lift leverage. This is in addition to execution risk and costs tied to Allegiant's recently completed acquisition of Sun Country. Fitch's Key Rating-Case Assumptions - Available seat kilometres to rise by about 10% on average a year in 2026-2028, followed by growth of about 6% in 2029 - Load factor of 72% in 2026 before normalising to low-to-mid 80% range from 2027 - About 0.9% decrease in ticket yield (in US dollar terms) on average in 2026-2029 - Jet fuel price at about USD111/barrel in 2026 and averaging about USD82/barrel in 2027-2029 - Total capex of about USD1.2 billion in 2026-2029 - No dividends 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 (bbb-, moderate), market and competitive positioning (bb, moderate), diversification and asset quality (bb, moderate), company operational characteristics (bb+, moderate), profitability (bb+, moderate), financial structure (bb+, moderate), and financial flexibility (bb-, higher). The quantitative financial subfactors are based on custom CRT financial period parameters: 10% weight for the historical year 2025, 10% for the forecast year 2026, 26% for the forecast year 2027, 27% for the forecast year 2028 and 27% for the forecast year 2029. The governance assessment of 'good' has no impact. The operating environment assessment of 'bbb+' has no impact. The SCP is 'bb'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'BB'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDAR net leverage sustained above 3x and/or EBITDAR fixed-charge coverage below 1.5x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - No positive rating action given its small scale compared to peers. Liquidity and Debt Structure PAL had cash and cash equivalents of USD431 million at end-2025, against short-term debt of USD170 million, excluding leases. In addition, the company increased its securitisation programme to provide access to a USD200 million credit card receivables facility. Fitch forecasts negative FCF in 2026, as the Middle East conflict weighs on earnings and cash flow generation, but expect FCF to be positive from 2027, contributing to better liquidity ratios. Total liquidity of about 20% of LTM revenue in 2026 is adequate and Fitch expects the ratio to remain around the mid-to-high-teens level. PAL also reported USD68 million of unencumbered aircraft and engine assets at end-2025, supporting its liquidity position. Issuer Profile PAL is the Philippines' flag carrier, with a fleet of 82 aircraft at end-2025. It serves over 70 destinations across Asia, North America, Australia, the Middle East and domestically. 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 2025 revenue-weighted Climate.VS for PAL for 2035 is 55 out of 100, suggesting elevated exposure to climate-related risks in that year. This is in line with other airlines and reflects the gradually rising costs linked to the decarbonisation of the sector and the potential for lower demand over time. Climate transition risks currently do not have a material influence on airline ratings, including PAL's, as the potentially disruptive changes due to energy transition are unlikely to materialise in the next eight to 10 years. 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 ----------- ------ Primero Agila Limited senior unsecured LT BB New Rating =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Call to Keep Card Payments at Fuel Stations --------------------------------------------------------------- Dominican Today reports that Transportation businessman Williams Perez Figuereo has voiced concern over the National Association of Gasoline Retailers' (Anadegas) proposal to eliminate card payment terminals at fuel stations, warning that the measure could jeopardize the safety of drivers by forcing them to carry large amounts of cash. Pérez Figuereo said returning to cash-only transactions would expose transport workers to a greater risk of robbery, recalling that many drivers were previously targeted by criminals while traveling to fuel stations, according to Dominican Today. He argued that the country has made significant progress in improving security and should avoid measures that could reverse those gains, the report notes. The transportation leader called for dialogue among transport operators, fuel retailers, banks, and government authorities to reach a balanced solution that addresses merchants’ concerns over card processing fees—reported to range between 4% and 7%—while preserving electronic payment options, the report relays. He pointed to Mexico as an example where negotiations helped reduce transaction costs through agreements with financial institutions, allowing card payments to remain in place, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCR-LA reported in April 2019 that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Standard & Poor's credit rating for Dominican Republic was raised to 'BB' in December 2022 with stable outlook. Moody's credit rating for Dominican Republic was last set at Ba3 in August 2023 with the outlook changed to positive. Fitch, in December 2023, affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' and revised the outlook to positive. ============= J A M A I C A ============= ATLANTIC HARDWARE: JSE Suspends Shares Over Missing Financials -------------------------------------------------------------- RJR News reports that the Jamaica Stock Exchange has suspended trading in the shares of Atlantic Hardware and Plumbing Company for failing to submit their audited financial statements. Trading in the shares of Atlantic Hardware was suspended with immediate effect. The JSE said the company have failed to submit their audited financial statements for the year ended December 31, 2025, which were due on March 31 this year. According to the Exchange, the reports are now 91 days overdue, the report notes. Under the JSE Junior Market rules, companies whose audited financial statements are more than 90 days late must have trading in their shares suspended until the outstanding reports are filed, the report says. The Jamaica Stock Exchange said the suspension will remain in effect until Atlantic Hardware submit its required audited financial statements. JAMAICA: BoJ to Withdraw Another $20BB From The Financial System ---------------------------------------------------------------- RJR News reports the Bank of Jamaica was to withdraw another $20 billion from the financial system on July 1, 2026, as part of its efforts to contain inflation. The move follows the central bank's warning that inflation is likely to rise above its four to six per cent target range over the next eight quarters, driven largely by higher international commodity prices, linked to the conflict in the Middle East, according to RJR News. To absorb the excess liquidity, the bank will offer a $20 billion certificate of deposit, paying an interest rate of 5.7% per annum, the report notes. The certificate will be sold through a competitive auction to eligible institutional investors and individual market participants, 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. KINTYRE HOLDINGS: JSE Suspends Shares Over Missing Financials ------------------------------------------------------------- RJR News reports that the Jamaica Stock Exchange has suspended trading in the shares of Kintyre Holdings for failing to submit their audited financial statements. Trading in the shares of Kintyre Holdings was suspended with immediate effect. The JSE said the company have failed to submit their audited financial statements for the year ended December 31, 2025, which were due on March 31 this year. According to the Exchange, the reports are now 91 days overdue, the report notes. Under the JSE Junior Market rules, companies whose audited financial statements are more than 90 days late must have trading in their shares suspended until the outstanding reports are filed, the report says. The Jamaica Stock Exchange said the suspension will remain in effect until Kintyre Holdings submit its required audited financial statements. =========== M E X I C O =========== FIDEICOMISO IRREVOCABLE 2400: S&P Affirms 'BB' Rating on 3 Tranches ------------------------------------------------------------------- S&P Global Ratings affirmed its 'BB (sf)' ratings on three classes of notes issued by Fideicomiso Irrevocable y Traslativo de Dominio Numero 2400. At the same time, S&P removed the ratings from under criteria observation (UCO), where they were placed on Dec. 30, 2025, following the publication of its revised global criteria framework for rating CMBS transactions. Rationale The affirmations primarily reflect the expected recovery value from the portfolio of nine properties backing the transaction in a stressed scenario, as well as operational risks associated with the property manager Desarrolladora 2054 S.A.P.I. de C.V. (not rated), a subsidiary of Grupo GICSA S.A.B. de C.V. (not rated). The cash flow from the portfolio has strengthened since S&P's last review in 2025, reflecting mainly the improvement in overall occupancy rates and the higher rent income stemming from increasing base rent. S&P said, "We assessed the portfolio's asset quality and income stability as average, based on our view that the combination of prime location of the properties across seven Mexican states and the pool of tenants are strengths when compared to similar properties in Latin America, especially in the Mexican market." However, challenges persist: some of the properties are expected to face meaningful lease renewals over the next few years and uncertainties around demand for office spaces may affect vacancies in the short term. Also, despite the recent improvement in occupancy (weighted average occupancy increased to 94% from 92% last year), some of the properties have historically presented higher vacancy rates than the market average because they were still in the ramp-up phase. Valuation Methodology And Capitalization Rates S&P updated its valuation of the portfolio to incorporate the latest rent roll information and full-year 2025 results. S&P Global Ratings has adopted a conservative approach to income and expense assumptions to ensure long-term sustainability. S&P's valuation reflects the following factors: -- Income: the fixed rent levels reflect actual signed contracts, based on March 2026 grossed-up rent roll files. Nonrecurring income and "key money" are excluded to maintain a conservative baseline. -- Expenses: operating expenses are modeled using the maximum levels observed over the past five years to account for potential volatility. -- Capital expenditures (capex): a conservative sustainable capex assumption was applied that doubled the figures previously reported by the property manager to account for necessary maintenance in the following years. The weighted average capitalization rate used in the valuation increased slightly to 9.7% from 9.5% in the previous review. This adjustment reflects current market volatility and the need to encompass a full economic cycle. Portfolio Valuation Based on its CMBS Global Property Evaluation Methodology, S&P arrived at a total portfolio value of MXN 14,487.9 mil which is approximately 26% lower than the appraisal value provided by GICSA. The table below summarizes the key assumptions used in our valuation of the portfolio of properties. Portfolio valuation Valuation component Assumption/value WA vacancy assumption (%) 10.3 Delinquency assumption (% of total rental income) 3.0 Management fee assumption (% of EGI) 3.5 Tenant improvements (stabilized; % of EGI) 2.0 Leasing commissions (% of EGI) 1.5 Aggregate S&P Global Ratings' net cash flow (mil. MXN) 1,404.6 Weighted average cap rate (%) 9.7 Total S&P portfolio value mil. MXN) 14,487.9 WA--Weighted average. EGI--Effective gross income. After accounting for foreign exchange risk exposure and applying stress tests to the Mexican peso to U.S. dollar exchange rate related to the asset and liability currency mismatch, the 53.0% and 56.5% adjusted loan-to-value (LTV) ratios for the class A-1 and A-2 notes, respectively, allow the transaction to endure stresses at their current rating level and above. However, the ratings on both classes remain constrained by our assessment of the operational risk associated with GICSA, the manager of the properties backing the transaction. S&P said, "We continue to view severity risk as moderate, given GICSA's role as a property manager, which is typically not seen as a high demand servicing requirement. We also continue to assess portability risk as high, given the lack of track record of servicer replacements in Mexican CMBS transactions. In addition, we have maintained our view of GICSA's disruption risk as very high, which reflects ongoing capital structure and liquidity pressures that have led to GICSA restructuring its debts in recent years. We expect the company to continue to make efforts to implement measures focused on improving its leverage and cost of debt." Counterparty Risk The transaction remains exposed to counterparties. The replacement mechanisms for the paying agent and the bank account providers, which include minimum rating triggers, continue to support the ratings on the class A-1 and A-2 notes. Ratings Affirmed Fideicomiso Irrevocable y Traslativo de Dominio Numero 2400 Class senior A-1 MXN: 'BB (sf)' Class senior A-1 USD: 'BB (sf)' Class senior A-2 MXN: 'BB (sf)' ===================== P U E R T O R I C O ===================== TOPPER CORP: Taps Jamie E. Santiago as Financial Consultant ----------------------------------------------------------- Topper Corporation seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Jamie Santiago, CPA, a professional practicing in Puerto Rico, as financial consultant. The Debtor needs a financial consultant to assist its management in the financial restructuring of its affairs by providing advice in strategic planning and the preparation of its Monthly Operating Reports. Mr. Santiago will be paid at $100 per hour, plus expenses. Mr. Santiago disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Jamie E. Santiago, CPA P.O. Box 1536 Trujillo Alto, PR 00977 Telephone: (787) 460-0877 About Topper Corporation Topper Corporation sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 26-01815) on April 23, 2026, with $100,001 to $500,000 in both assets and liabilities. Jesus Enrique Batista Sanchez, Esq., at The Batista Law Group, Psc represents the Debtor as counsel. =========================================================== S T . V I N C E N T A N D T H E G R E N A D I N E S =========================================================== ST. VINCENT & THE GRENADINES: Moody's Cuts Issuer Ratings to Caa1 ----------------------------------------------------------------- Moody's Ratings has downgraded the Government of St. Vincent and the Grenadines' long-term local- and foreign-currency issuer ratings to Caa1 from B3, affirmed the short-term local- and foreign-currency Non-Prime ratings, and changed the outlook to negative from stable. The downgrade to Caa1 reflects intensifying government liquidity pressures, elevated gross financing needs, and a large and rising debt burden that has become increasingly difficult to manage for a small, undiversified economy with limited financing alternatives. Elevated financing needs are meeting an increasingly narrow and concentrated domestic funding base, while sustained fiscal deficits have also lifted the debt stock onto a sharply rising trajectory that Moody's projects to continue through 2029, narrowing the government's capacity to absorb additional shocks. The negative outlook reflects downside risks to the rating, including the possibility that the sovereign cannot avoid a restructuring on terms that would constitute a default under Moody's definitions. The authorities' active exploration of a debt swap is one channel through which this risk could materialize, as execution on terms consistent with Moody's definitions of a distressed exchange would constitute a credit event and could lead to private-sector losses higher than those consistent with a Caa1 rating. Slower-than-expected fiscal consolidation could further weaken credit quality, and materialization of contingent liabilities, given the rising sovereign-bank nexus, would add to these pressures. St. Vincent and the Grenadines' local- and foreign-currency ceilings were lowered to B1 from Ba3 and to B3 from B2, respectively. The three-notch gap between the local-currency ceiling and the sovereign rating reflects the country's limited economic diversification and vulnerability to shocks, balanced against moderate institutional strength and membership in the ECCU. The two-notch gap between the foreign-currency ceiling and the local-currency ceiling reflects SVG's external vulnerability and constrained foreign currency funding options. RATINGS RATIONALE RATIONALE FOR THE DOWNGRADE TO Caa1 LIQUIDITY PRESSURES, HIGH FINANCING NEEDS, AND A NARROW DOMESTIC FUNDING BASE WEIGH ON A SMALL, UNDIVERSIFIED ECONOMY Government liquidity pressures have intensified against a backdrop of high financing needs and an increasingly narrow domestic funding base. Gross financing needs are estimated at around 18% of GDP in 2025, above both the Caa1 (15%) and Caa2 (17%) peer medians. Domestic funding channels have become increasingly concentrated and are approaching saturation: commercial banks now hold 62.4% of domestic debt, up from 51.6% in 2024, with two institutions accounting for the bulk of that exposure. Secondary market trading in SVG sovereign bonds has effectively ceased, with no recorded trades on the Eastern Caribbean Securities Exchange (ECSE) since September 2024, and all EC$175.3 million of 2025 bond issuance was placed directly with three commercial banks, marking a full shift to private placement and a departure from the 2018-2023 pattern of regular RGSM auctions. The small size and limited diversification of the economy constrain the authorities' room to maneuver and amplify the credit impact of these funding dynamics. Taken together, these dynamics have materially raised government liquidity risk, a key driver of the downgrade to Caa1. In response to these pressures, the authorities are exploring a debt swap. Execution on terms that do not entail economic losses to private-sector creditors would ease rollover pressure but would not on its own reverse the weaker debt trajectory. The final structure, scope, and execution terms remain under development, and the credit implications of the transaction are discussed under the negative outlook section below. RISING FISCAL DEFICITS AND GROWING GOVERNMENT DEBT HAVE WEAKENED THE SOVEREIGN'S CAPACITY TO ABSORB ADDITIONAL SHOCKS A prolonged period of elevated fiscal deficits has materially weakened St. Vincent and the Grenadines' fiscal position and reset the debt trajectory onto a sustained upward path. The deterioration reflects a capex-heavy spending cycle, including the Kingstown Port modernization and broader infrastructure investments supporting new tourism capacity, alongside substantial outlays in response to three external shocks: the COVID-19 pandemic, the La Soufrière volcanic eruption in 2021, and Hurricane Beryl in 2024, which caused damage equivalent to around 22% of GDP. The central government deficit widened to 13.7% of GDP in 2024, when capital expenditure surged by 37.8%, and Moody's expects deficits to remain in double digits in 2025 and 2026. Although revenues recovered alongside tourism, revenue growth has been insufficient to offset elevated spending, leaving the sovereign with a structurally higher debt burden and less fiscal space relative to peers. General government debt rose to 103.0% of GDP in 2025 from 90.6% in 2023, and Moody's projects it to continue climbing to a peak of around 124% of GDP in 2029 before stabilizing, materially higher than expected at the time of the July 2024 affirmation. Moody's expects some moderation in capital spending after 2026 as the port modernization concludes and post-Beryl reconstruction tapers, but the cumulative deficit shock has lifted the debt stock to a level where stabilization, rather than meaningful reduction, becomes the central scenario. The resulting debt dynamics leave the sovereign materially weaker than Caa1 peers on debt metrics and narrow the policy space available to absorb additional shocks. RATIONALE FOR THE NEGATIVE OUTLOOK The negative outlook reflects downside risks to the rating, including the possibility that the sovereign cannot avoid a restructuring on terms that would constitute a default under Moody's definitions. Sustained liquidity pressures, elevated financing needs, and a concentrated domestic funding base could narrow the authorities' options and increase reliance on liability-management measures. The proposed debt swap is one channel through which this risk could materialize, with execution on terms consistent with Moody's definitions of a distressed exchange constituting a credit event and potentially leading to private-sector losses higher than those consistent with a Caa1 rating. Fiscal slippage, including failure to deliver the projected narrowing of the primary deficit from 2027 onward through revenue underperformance or persistence of capex commitments beyond the port and reconstruction cycle, would push the debt peak higher and later, further constraining the sovereign's capacity to service its obligations on original terms. Materialization of contingent liabilities is a further downside consideration, given the rising sovereign-bank nexus. Conversely, execution of the proposed swap on terms that do not entail economic losses to creditors would remove a key source of downside risk, while sustained delivery of the authorities' Medium-Term Debt Strategy would help stabilize the rating at Caa1. ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG) CONSIDERATIONS St. Vincent's CIS-4 score reflects high exposure to environmental and social risks, which increasingly interact with fiscal and liquidity dynamics. Recurrent natural disasters and structural social constraints contribute to sustained fiscal deficits and limit adjustment capacity, reinforcing financing pressures and heightening susceptibility to liquidity stress. St. Vincent's E-5 score reflects acute physical climate risks such as hurricanes and volcanic events. These shocks have both economic and fiscal transmission channels, given the country's high dependence on tourism and limited economic diversification. Recurrent disaster events have resulted in repeated fiscal outlays and reconstruction spending, contributing to a sustained increase in public debt and elevated financing needs. St. Vincent's S-4 score reflects structural constraints in income levels, human capital, and access to public services. Weaknesses in education outcomes and limited economic diversification weigh on productivity and revenue generation capacity. St. Vincent's G-4 score reflects a mixed track record of fiscal policy implementation and debt management, alongside constraints in transparency and disclosure given lags in the publication of external sector and national accounts statistics, which limit the timeliness of credit-relevant information available to investors and analysts. These weaknesses are balanced by relatively stable institutional frameworks and generally predictable policymaking. SUMMARY OF MINUTES FROM RATING COMMITTEE GDP per capita (PPP basis, US$): 20,777 (2025) (also known as Per Capita Income) Real GDP growth (% change): 3.4% (2025) (also known as GDP Growth) Inflation Rate (CPI, % change Dec/Dec): 0.5% (2025) Gen. Gov. Financial Balance/GDP: -12% (2025) (also known as Fiscal Balance) Current Account Balance/GDP: -16.1% (2025) (also known as External Balance) External debt/GDP: 58.7% (2025) Economic resiliency: ba3 Default history: No default events (on bonds or loans) have been recorded since 1983. On June 25, 2026, a rating committee was called to discuss the rating of the St. Vincent and the Grenadines, Govt of. The main point raised during the discussion was: The issuer's fiscal or financial strength, including its debt profile, has materially decreased. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Given the negative outlook, an upgrade is unlikely over the near term. The outlook could be returned to stable if downside risks recede, including clarity that the proposed debt swap will be executed on terms not consistent with a distressed exchange and evidence of fiscal consolidation in line with the authorities' Medium-Term Debt Strategy. Stabilization in the domestic funding base, including improved diversification of the investor base beyond the current concentration in commercial banks, would support the credit profile. Over the longer term, upward pressure could arise from sustained stronger-than-expected growth and a faster pace of fiscal consolidation than Moody's currently envisage, resulting in a meaningful improvement in debt dynamics, alongside a restoration of more regular access to market-based domestic financing channels. Downward pressure on the rating could arise if the likelihood of a debt restructuring that would constitute a default under Moody's definitions increases, including through execution of the proposed debt swap on terms consistent with a distressed exchange, leading to material losses to private investors. Further deterioration in government liquidity risk, including financing needs rising faster than refinancing capacity, materialization of contingent liabilities from the rising sovereign-bank nexus, or continued fiscal slippage that pushes the debt peak higher and later, would also place further pressure on the credit profile. Any material weakening in market access, including loss of concessional financing or higher borrowing costs, would add to downward pressure. The principal methodology used in these ratings was Sovereigns published in May 2026. 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. ===================================== T R I N I D A D A N D T O B A G O ===================================== NESTLE: Begins Strategic Review of Trinidad and Tobago Operations ----------------------------------------------------------------- RJR News reports that Nestle has begun the strategic review of its Trinidad and Tobago operations, including the possible sale of its dairy and juices business as part of a wider global restructuring exercise. The announcement was made at a meeting with employees at the company's facility, where more than 200 workers are employed, according to RJR News. Workers were told the company is exploring several options for the dairy and juices operations, including a potential sale, the report notes. No time that was given for the final decision, the report adds. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2026. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. 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