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260709.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 Thursday, July 9, 2026, Vol. 27, No. 136 Headlines A R G E N T I N A ARGENTINA: Milei Tries Again to Revive Dormant Mortgage Market B R A Z I L AMBIPAR PARTICIPACOES: Central Bank Seeks Advisory Role in Case NATURA COSMETICOS: Fitch Affirms 'BB+' LongTerm IDRs NEW FORTRESS: NFE Brazil Issues $973.5M Secured Notes YINSON BERGENIA: Fitch Affirms 'BB+' Rating on Senior Secured Notes J A M A I C A JAMAICA: Sangster Airport Passenger Traffic Drops 27% P U E R T O R I C O SPANISH BROADCASTING: Wins Approval of Chapter 11 Debt Plan V E N E Z U E L A VENEZUELA: IDB Provides $1MM to Support Emergency Response X X X X X X X X LATAM: CDB Highlights High Economic Cost of Crime for the Region - - - - - ================= A R G E N T I N A ================= ARGENTINA: Milei Tries Again to Revive Dormant Mortgage Market -------------------------------------------------------------- Ignacio Olivera Doll & Silvia Martinez at Bloomberg News report that President Javier Milei is trying to tackle Argentina's longstanding lack of home mortgages in a bid to turn around a construction sector that's losing jobs before his re-election bid next year. It's a big challenge in a country where most home buyers bring suitcases of cash to close a transaction, according to Bloomberg News. Mortgage-backed home sales surged early in Milei's Presidency only to evaporate as the government stemmed a currency run last year in part by raising interest rates above 100 percent, Bloomberg News notes. Bloomberg News says that Economy Minister Luis Caputo talked with banks and brokers in recent weeks about creating a real-estate fund where six or seven financial players pool capital that the government could leverage with multilateral institutions in a public-private partnership. Some of the efforts are similar to real-estate investment trusts, or REITs, in the United States, with the aim of spreading out risk and reviving the housing market, Bloomberg News relays. Mortgage credit currently finances only about 11 percent of home purchases in Buenos Aires City, down from a peak of 25 percent last year and far below the 40 percent reached about eight years ago under former president Mauricio Macri, Bloomberg News notes. Some of the mortgage loans in dollars that private banks and brokers would finance are starting with fixed rates in double-digits, Bloomberg News says. "Given the starting point – which is a country without credit – anything that appears will have demand," said Federico González Rouco, an economist at Empiria Consultores in Buenos Aires, noting there were only 1,500 mortgage-backed sales in May in a nation of 46 million people, Bloomberg News relays. "We're not talking about a market that's soaring," he added. Argentina's private banks have long struggled to lend at scale because they lack long-term, low-cost funding, Bloomberg News discloses. They also have few institutional investors willing to buy or absorb mortgage portfolios, leaving lenders with too much risk on their own balance sheets, Bloomberg News relates. The latest initiative is in its early stages as issuances are limited, liquidity is low and funding is concentrated in very short-term maturities, Bloomberg News says. The biggest lender now is state-owned Banco de la Nacion, which is offering mortgages at artificially low rates around six percent, below traditional US mortgage rates currently at 6.5 percent, Bloomberg News discloses. "Mortgage credit in Argentina is still just beginning to crawl. It hasn't really started walking yet," said Jose Rozados, director of Reporte Inmobiliario, a local real estate consultancy. "The biggest bottleneck today is bank funding." Most bank deposits in Argentina are concentrated in fixed-term deposits of less than 60 days, Bloomberg News says. It's a key issue for Milei's economic agenda heading into next year's presidential election as unemployment is up and traditional industries are in decline, Bloomberg News notes. Argentina's construction sector, a major employer, has lost 60,000 payroll jobs, or 14 percent of the total, since Milei took office as he slashed spending on public works. Construction employers intend to fire more than hire in the coming months too, government surveys show, Bloomberg News discloses. Turning around Argentina's mortgage market would be a first step, Bloomberg News says. In the first five months of the year, the number of mortgage-backed home sales was down more than 37 percent compared to the same stretch in 2025, according to the city's notary association, Bloomberg News says. "Housing demand exists, but it needs accessible financing to turn into actual transactions," said Magdalena Tato, president of the institution, Bloomberg News notes. To fix that, bank executives and Caputo are considering options, including a fund run by Argentina's social security agency ANSES known as the FGS, according to people with direct knowledge of the negotiations, who asked not to be named as talks continue, Bloomberg News relays. Another is the Labour Assistance Fund, created by a Milei reform this year and meant to ease severance payments, Bloomberg News notes. The government wants part of the answer to come from market brokers, known locally as Alycs, and their closed-end funds, Bloomberg News discloses. "There is an opportunity to grow in capital markets, especially with dollar-denominated loans," Caputo said at an event in Buenos Aires, Bloomberg News says. "I'm telling banks and brokers to create a real estate fund, to get six or seven of them together, and I can triple or quadruple that with funding from multilateral organisations," he added. Private banks have also proposed tools that were floated in the past but never implemented, such as interest-rate swaps. But the government’s preferred route is to use a public-private structure backed by multilaterals, Bloomberg News notes. The kind of solution Caputo is pushing is already starting to appear, though on a much smaller scale, Bloomberg News says. Argentine brokers such as Allaria, IEB and Bull Market are exploring, launching or offering real estate-linked products broadly similar to REITs, Bloomberg News relays. Behind that incipient demand is a hunt for higher yields, Bloomberg News notes. Investors see that Argentine financial assets have already rallied sharply, while real estate has lagged behind, Bloomberg News discloses. In recent years, many bonds and stocks have doubled in dollar terms, Bloomberg News says. Property prices, by contrast, have climbed no more than about 10 percent in dollars, Bloomberg News relays. For brokers, that gap is an opportunity – though most are still designing programs that require home buyers to pay for the majority of the home on their own, unlike more developed markets, Bloomberg News notes. For example, Allaria’s Lendar fund raises money from individuals and uses it to finance dollar-denominated mortgage loans managed by real-estate broker Remax. The mortgage would provide up to 35 percent of the property’s value in dollars at an interest rate of 12.5 percent, Bloomberg News relates. For investors, it offers returns close to nine percent a year, above many corporate bondsBloomberg News says. IEB REIT Ciclo Nova takes a different path. It allows small savers to gain exposure to real estate without buying a property directly, Bloomberg News notes. The fund buys properties, rents them out and distributes income and potential appreciation to investors, who can enter with as little as US$1,000 instead of needing at least US$150,000 to buy a home in Buenos Aires, Bloomberg News says. “This is a segment that is just beginning in Argentina’s capital markets,” said Jose Luis Pavesa, chief commercial officer at Bull Market Brokers, Bloomberg News relates. “They are relatively small issuances and still fairly illiquid assets,” he added. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country’s economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) — with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Fitch Ratings, on May 5, 2026, upgraded Argentina's Long-Term Foreign Currency and Local Currency Issuer Default Rating (IDR) to 'B-' from 'CCC+'. The rating Outlook is Stable. S&P Global Ratings, on Dec. 17, 2025, raised its local currency sovereign credit ratings on Argentina to 'CCC+/C' from 'SD/SD'. S&P also raised its long-term foreign currency sovereign credit rating to 'CCC+' from 'CCC' and affirmed its 'C' short-term foreign currency rating. The outlook on the long-term ratings is stable. In addition, S&P raised its issue ratings on local currency bonds to 'CCC+' from 'CCC'. Its 'B-' transfer and convertibility assessment is unchanged. Moody’s Ratings, on July 17, 2025 upgraded the Government of Argentina’s long-term foreign currency and local currency issuer ratings to Caa1 from Caa3 and changed the outlook to stable from positive. The upgrade reflects its view that the extensive liberalization of exchange and (to a lesser extent) capital controls, alongside a new International Monetary Fund (IMF) program, support the availability of hard currency liquidity and ease pressure on external finances. This reduces the likelihood of a credit event. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024, and confirmed such ratings in November 2025. =========== B R A Z I L =========== AMBIPAR PARTICIPACOES: Central Bank Seeks Advisory Role in Case --------------------------------------------------------------- globalinsolvency.com, citing Valor International, the Central Bank of Brazil requested permission from the 3rd Business Court of Rio de Janeiro to join as an "amicus curiae" (interested third party) in Ambipar's court-supervised reorganization case. The request, filed in July 2nd, aims to allow the monetary authority to provide technical arguments on the importance of derivative operation control rules, even though it is neither a creditor nor a defendant in the case, according to globalinsolvency.com. The court has yet to decide on the request, the report notes. As reported in the Troubled Company Reporter-Latin America in December 2025, S&P Global Ratings discontinued all of its ratings on Ambipar Participacoes e Empreendimentos S.A. (D/--). This follows its downgrade of the company after its precautionary injunction filing in September 2025 and the October bankruptcy protection filing in Brazil and the U.S. NATURA COSMETICOS: Fitch Affirms 'BB+' LongTerm IDRs ---------------------------------------------------- Fitch Ratings has affirmed Natura Cosmeticos S.A.'s (Natura) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB+' and Long-Term National Scale Rating at 'AAA(bra)' with a Stable Outlook. Fitch has also affirmed Natura &Co Luxembourg Holdings S.a.r.l's USD450 million and USD270 million unsecured notes due in 2028 and 2029 at 'BB+' and the BRL1.33 billion 13th debenture due in 2029 at 'AAA(bra)'. Natura's ratings reflect its strong position and brand reputation in the Cosmetics, Fragrances and Toiletries (CF&T) market, its geographic footprint across Latin America, adequate capital structure and good financial flexibility. The rating also incorporates temporarily soft performance with negative free cash flow (FCF) in 2026, due to macroeconomic backdrops, increasing competition and ongoing challenges to turnaround Avon amid weak brand awareness and changing consumer behavior. Fitch expects EBITDAR leverage of 2.6x in 2026 and 2.2x in 2027 as margins and FCF gradually recover. Key Rating Drivers Delayed Turnaround: Natura's turnaround is taking longer than expected. The company faces challenges to integrate its brands in Latin America, rebuild Avon's product pipeline and execute the restructuring of its consultant base, while weak macroeconomic conditions in Brazil, Mexico and Argentina continue to weigh on performance. Business simplification, including the Holdco extinguishment and administrative streamlining, should support a leaner structure and improve resilience. Medium term, Hispanic operations should drive profitability, with EBITDA margin moving to 8% in 2028, from 6% currently, while the Brazilian operations should sustain 18-20% range. Challenging Market Conditions in Latam: Fitch revised Latin American retail sector Outlook to 'Deteriorating' in June 2026. Slowing retail sales, persistent inflationary pressure, and weakening consumer purchasing power has pressured volumes and margins of companies in the sector. The ripple effects of the Iran conflict on inflation are likely to keep interest rates higher for longer, moderating household savings and further eroding purchasing power. Fitch also expects the Brazilian CF&T growth to decelerate to mid-single digits in 2026, from 11% average in 2023- 2025. Positive FCF in 2027: Fitch expects Natura's FCF to turn positive from 2027 onwards due to improving profitability, lower working capital requirements, and moderate investments. Consolidated EBITDAR margins should improve to 15.3% in 2027 and 15.8% in 2028, from 13.5% in 2026, following organizational restructuring that reduced 25% of corporate positions, alongside the ramp-up of Hispanic division. Fitch believes Avon's new product pipeline will gain traction, better positioning Natura in the under penetrated mass market. The rating case assumes capex of 2% of net revenues and dividends equivalent to 30% of net profit, leading to an FCF margin of 1.4% in 2027 and 1.9% in 2028. Adequate Leverage: Natura should preserve an adequate capital structure, with EBITDAR leverage of 2.6x in 2026 and below 2.5x in the following years, and EBITDAR net leverage of 1.8x in 2026 and below 1.5x onwards. Positive FCF from 2027 on and a gradual improvement in EBITDAR support the company's capital structure. In 2027, Fitch considered the amortization of approximately BRL200 million-300 million of debt. Strong Business Profile: Natura is one of the largest and most prestige CF&T brands in Latin America. The company operates in eight countries of the region, being Brazil (62% of revenues), Argentina (12%) and Mexico (12%) the largest ones. Its business model is based on direct sales through 2.6 million independent sales representatives (88% of revenues), 1.2 thousand franchised and owned retail stores (5%) and digital sales/others (7%). Peer Analysis Natura's IDR is at the same level of Coty ('BB+', Negative Outlook). Coty's ratings reflect its top three global position in the beauty market, manufacturing and distributing prestige and mass market products. The Negative Outlook incorporates a challenging business environment, with market share loss, weak like-for-like sales trends and an underperformance in the prestige fragrancies segment. This should result in above-average gross leverage around 4.3x-4.4x in 2026 compared with 2.6x of Natura. Fitch expects Coty's EBITDA margin to fall to around 15%, from +18% in previous years, still above Natura's FY26 13.5%. Spectrum Brands is rated a notch below Natura and Coty. The company operates in several segments, including global pet care, home and garden, and home and personal care. The company generates positive FCF and its EBITDA leverage will be below 3x in 2026. Still, its limited scale is an important credit consideration, with EBITDA around USD300 million, compared with Coty's USD0.8-1.0 billion and Natura's USD500-600 million. Natura also faces strong competition from local player, O Boticário (not rated), which has a solid business profile, supported mainly by its 4.0 thousand bricks-and-mortar franchise in Brazil and moderate leverage. Within the retail/consumer universe, Fitch rates MercadoLibre, Inc.'s (MELI) 'BBB-'/Stable. MELI's rating reflects its leadership position in the competitive and underpenetrated e-commerce and digital payments sectors in Latin America, solid credit metrics and robust financial flexibility. It is more diversified than Natura, operating in different product categories through its marketplace, and offers financial services like credit cards and loans. Fitch’s Key Rating-Case Assumptions - Net revenues of Brazilian operations flat in 2026, +4% in 2027 and +4% in 2028; - Net revenues of Hispanic operations of -9% in 2026, -3% in 2027 and flat in 2028; - EBITDA margin of Brazilian operations at 18% in 2026, 19.7% in 2027 and 20.1% in 2028; - EBITDA margin of Hispanic operations at 6% in 2026, 7.4% in 2027 and 7.9% in 2028; - Consolidated capex equivalent to 2% of net revenues; - Dividend payment equivalent to 30% of net income in 2026-2028. 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 ('bb', Moderate), sector characteristics ('bb+', Lower), market and competitive positioning ('bbb-', Higher), diversification and asset quality ('bb+', Moderate), company operational characteristics ('bb', Moderate), profitability ('bb', Higher), financial structure ('bbb-', Moderate), and financial flexibility ('bbb-', Moderate). The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the latest historical year 2025, 40% for the forecast year 2026 and 40% for the forecast year 2027. The governance assessment of 'good' has no impact. The operating environment assessment of 'bb' 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 - Reputational damages to the brand and/or relevant contingency materialization; - Consolidated EBITDAR leverage above 3.5x and EBITDAR net leverage above 3.0x; - EBITDAR fixed-charge coverage below 4.0x; - Competitive pressures leading to severe loss in market-share for either Natura and Avon; - Weakened liquidity and/or financial flexibility; - A downgrade of Brazil's sovereign rating could negatively affect Natura's IDRs. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Positive FCFs in the rating horizon; - Consistent EBITDAR margins improvements above 15%, commensurate with CF&T peers; - Consolidated EBITDAR leverage below 2.0x and EBITDAR net leverage below 1.5x on a consistent basis; - EBITDAR fixed-charge coverage above 5.5x; - Maintenance of robust financial flexibility. Liquidity and Debt Structure Natura has historically maintained robust financial flexibility with high cash reserves and an extended debt maturity profile. The company has good access to bank funding and both local and international capital markets, through diversified funding sources. Fitch expects Natura to maintain at least BRL2.5 billion of readily available cash and a well-staggered maturity schedule. Positive FCF from 2027 on is also factored in its financial flexibility. Relevant debt maturities include USD450 million (~BRL2.5 billion) in sustainability-linked bonds due in March 2028 and around BRL3.1 billion due in 2029, including a USD270 million of offshore bond and BRL1.33 billion local bonds. Fitch expects Natura to refinancing its 2028 bonds at least 12 months before maturity to preserve financial flexibility and avoid pressure on its liquidity profile. Issuer Profile Natura is one of the largest players in the Latin America's CF&T sector, managing renowned brands Natura and Avon in 14 countries of the region. The company operates through direct sales (88% of revenues), retail (5%) and digital sales/others (7%). Summary of Financial Adjustments - Fitch used balance sheet lease liabilities to calculate adjusted debt; - Extraordinary items were removed from EBITDAR. 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 results of its Climate.VS screener did not indicate an elevated risk for Natura. ESG Considerations Natura Cosmeticos S.A. has an ESG Relevance Score of '4' for Management Strategy due to its corporate governance practices regarding API's chapter 11 and execution strategy, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. 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 Prior ----------- ------ ----- Natura Cosmeticos S.A. LT IDR BB+ Affirmed BB+ LC LT IDR BB+ Affirmed BB+ Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Natura & Co Luxembourg Holdings S.a r.l. senior unsecured LT BB+ Affirmed BB+ NEW FORTRESS: NFE Brazil Issues $973.5M Secured Notes ----------------------------------------------------- NFE Brazil Financing Limited issued $973.5 million of 12% senior secured notes due 2029, according to a Form 8-K filed by New Fortress Energy Inc. with the Securities and Exchange Commission. NFE Brazil, a subsidiary of New Fortress Energy, issued the notes June 19 under an indenture with guarantors and Wilmington Savings Fund Society, FSB, as trustee and collateral agent. The notes bear interest in kind at 12% per year, payable semiannually on May 15 and Nov. 15, beginning Nov. 15, 2026. They mature Nov. 15, 2029. The notes are guaranteed by current and future NFE Brazil subsidiaries. NFE Brazil said proceeds will be used to refinance about $477 million of existing debt, with remaining proceeds available for operations, capital expenditures, working capital, letters of credit and similar requirements, restructuring costs and trade payables owed to other subsidiaries. About New Fortress Energy New Fortress Energy Inc. is a New York-based energy infrastructure company. The company develops, owns and operates natural gas and liquefied natural gas infrastructure, including terminals, power-generation assets and related logistics operations. Its business focuses on delivering gas-to-power and LNG solutions in markets served by its terminals and downstream energy assets. In an audit report dated April 13, 2026, Ernst & Young LLP issued a going-concern audit doubt, citing losses from operations and events of default under debt agreements. The conditions raised substantial doubt about the company's ability to continue as a going concern, E&Y said. As of March 31, 2026, New Fortress reported total assets of $10.39 billion, total liabilities of $10.45 billion, and a stockholders' deficit of $55.04 million. YINSON BERGENIA: Fitch Affirms 'BB+' Rating on Senior Secured Notes ------------------------------------------------------------------- Fitch Ratings has affirmed the senior secured notes issued by Yinson Bergenia Production B.V. at 'BB+'. The Rating Outlook remains Stable. The notes are collateralized by a charter agreement and the related proceeds from the operations of the Maria Quitéria floating-production storage and offloading (FPSO) vessel. Entity/Debt Rating Prior ----------- ------ ----- Yinson Bergenia Production B.V. Yinson Bergenia Production B.V. Senior Secured Notes 98585VAA6 LT BB+ Affirmed BB+ Transaction Summary The proceeds of this transaction were used to refinance the original funding of the floating-production storage and offloading (FPSO) unit, FPSO Maria Quitéria, in addition to funding the transaction reserve accounts, paying any transaction related costs, and completing distributions. The FPSO Quitéria operates in the Jubarte Field in the pre-salt layer of the Campos Basin. The transaction is backed by a first-priority mortgage on the vessel and cash flows from the underlying charter agreement between Yinson Bergenia Production B.V. (SPV), as owner and issuer, and Petróleo Brasileiro S.A. (Petrobras, BB/Stable), as offtaker. The agreement is in place until April 2047. KEY RATING DRIVERS Offtaker Obligation Strength Exceeds Petrobras' IDR: The offtaking party in the charter agreement is Petrobras, Brazil's state-owned oil company. Fitch rates Petrobras in line with the Brazilian sovereign (BB/Stable). The charter contract between the operator and an offtaker of an FPSO is considered a strategic long-term contract to produce hydrocarbons in a specific area, as FPSOs are built to suit. The contract's 22.5-year term, the relatively low operational costs against cash flow generation, and the vessel's complexity make the contract and the vessel's role highly strategic to Petrobras. Even under distressed environments, these contracts and obligations are expected to be honored and can be differentiated from other corporate debt obligations. The charter contract may be considered a net revenue adjustment for Petrobras to continue business operations and produces low break-even cash flow generation. For these reasons, Fitch determines the strength of the offtaker's payment obligation to be one-notch above Petrobras' credit quality at 'BB+'. Sovereign Event Risk; Transfer and Convertibility (T&C) Mitigated: The transaction's reserve account of six months of debt service and offshore payment obligations offer sufficient protection to mitigate potential transfer and convertibility (T&C) restrictions and exceed Brazil's Country Ceiling of 'BB+' by one notch. However, event risk is linked to the operating environment, with Petrobras as a state-owned enterprise, potentially subject to political interference, which limits the uplift over Brazil's sovereign rating (BB/Stable) to two notches at 'BBB-'. The transaction's limiting factor is Fitch's assessment of the strength of the offtaker's payment obligation, which is currently assessed at 'BB+'. Experienced Operator Mitigates Risk: The operator, Yinson Bergenia Serviços de Operação Ltda, is sponsored by Yinson Production, a global player in building and managing FPSOs and operates in Brazil, Ghana, Vietnam, Nigeria, and Malaysia. Yinson Production entered the Brazilian market five years ago and has three vessels under operation in the country. A Yinson Production bankruptcy could expose the transaction to a potential termination of the underlying charter and services agreements. Fitch assesses Yinson Production's credit quality to be near investment grade, and as a result, Yinson Production does not limit the rating. Strong Financial Metrics: Fitch's cash flow analysis has assessed the repayment of the fully amortizing debt, assuming timely interest and principal payments under a nondeferrable sculpted amortization schedule and a cash trapping condition if the debt service coverage ratio (DSCR) falls below 1.15x. Fitch's base case expects the DSCR to be between 1.31x and 1.32x, which is in line with investment-grade metrics and does not constrain the transaction rating. At the 'BB' stress case, the DSCR drops to 1.25x-1.26x, which remains sufficient to support the rating. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade As described in Key Rating Drivers, the rating of the transaction is linked to Petrobras' Long-Term IDR, with an uplift of one notch. Therefore, a Petrobras downgrade could trigger a downgrade of the notes. Both ratings have a Stable Outlook. The other counterparty that could constrain the rating is the operator, whose credit quality is assessed to be near investment grade, and as a result, does not limit the rating but could pose a constraint if the credit quality deteriorates. Finally, the cash flow analysis results in a sufficient output consistent with ratings in the 'BBB' category, and does not pose a constraint to the transaction's rating. Although the DSCR and ultimate debt repayment depend on uptime, maintenance days, opex and inflation, none of these variables is expected to materially affect the rating under Fitch's stress case. Any changes in these variables will be analyzed in a rating committee to assess the possible impact on the transaction ratings. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The rating is influenced by transaction counterparties, the operating environment and credit metrics. An upgrade of Brazil (which would likely also result in an upgrade of Petrobras) or an upgrade of the operator may result in an upgrade. However, as the rating has a Stable Outlook, such a scenario is not anticipated. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY The rating is influenced by transaction counterparties, the operating environment and credit metrics. An upgrade of Brazil (which would likely also result in an upgrade of Petrobras) or an upgrade of the operator may result in an upgrade. However, as the rating has a Stable Outlook, such a scenario is not anticipated. 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. ============= J A M A I C A ============= JAMAICA: Sangster Airport Passenger Traffic Drops 27% ----------------------------------------------------- RJR News reports that passenger traffic at Sangster International Airport has fallen by 27 per cent, with approximately 1.5 million passengers since the start of the year. This reflects the continued impact of Hurricane Melissa on Jamaica's tourist sector, according to RJR News. Aircraft movements also declined, totalling 12,861 year to date, the report notes. "The monthly data shows a consistent month to month recovery, and a year over year decline in flight frequencies from 38.2 per cent in January, to under 20 per cent in May. Again, we're seeing that the destination continues to recover. Significantly, the average load factor is 84.6 per cent. That's up 1.2 points over 2025, and that's a strong signal of route health, and we expect airlines to continue to add capacity as the demand increases," said Shane Munroe, CEO of MBJ Airports, the report relays. American Airlines remains the largest carrier, while Toronto remains the airport's busiest routes, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. ===================== P U E R T O R I C O ===================== SPANISH BROADCASTING: Wins Approval of Chapter 11 Debt Plan ----------------------------------------------------------- InsideRadio reports that Spanish Broadcasting System won confirmation of its Chapter 11 reorganization plan Thursday, June 25, 2026, after a Delaware bankruptcy judge approved the company's debt restructuring, paving the way for it to reduce its funded debt by more than three-quarters. The plan eliminates approximately $240 million in debt and hands ownership of the reorganized broadcaster to its creditors, primarily senior noteholders, once all closing conditions are met. The confirmation followed revisions addressing concerns raised by the U.S. government and digital royalty collector SoundExchange. SBS agreed to language reaffirming the FCC's exclusive authority over broadcast license transfers and preserving government rights to collect tax obligations. As a result, the government withdrew its objection, leaving SoundExchange's royalty dispute as the primary contested issue during the hearing, the report cites. SoundExchange maintained that an audit identified roughly $1.37 million in unpaid royalties, late fees and audit costs covering 2020 through 2022, while arguing that its claims should not be treated as unimpaired. SBS countered that it intends to satisfy any valid obligations and emphasized that confirmation would not impair SoundExchange's ability to pursue future litigation over royalty payments, according to report. Despite securing confirmation, SBS acknowledged it will remain in Chapter 11 until it receives FCC approval, a process the company expects could take several weeks or months. In the meantime, the broadcaster will continue operating under its existing debtor-in-possession financing, explore the sale of a significant non-core real estate asset, and implement a restructuring that includes new secured notes and an equity-based management incentive program, InsideRadio reports. About Spanish Broadcasting System Spanish Broadcasting System Inc. operates Spanish-language radio stations and media properties serving Hispanic communities across the U.S. and Puerto Rico. The company's business includes radio broadcasting, digital advertising, music programming and live entertainment initiatives. Through its portfolio of stations and online brands, the company delivers music, news, talk and cultural programming tailored to Latino listeners. Spanish Broadcasting System and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 26-10708) on May 11, 2026. In its petition, Spanish Broadcasting System disclosed estimated assets and liabilities between $100 million and $500 million each. The case is jointly administered in Case No. 26-10708. Bankruptcy Judge Brendan Linehan Shannon handles the case. The Debtors are represented by Robert J. Dehney, of Morris, Nichols, Arsht & Tunnell. Fried, Frank, Harris, Shriver & Jacobson LLP was retained as general bankruptcy counsel, while GLC Advisors & Company is serving as investment banker. Financial advisory and chief restructuring officer duties are being handled by Riveron Management Services LLC and Jesse York, and Kroll Restructuring Administration LLC is serving as claims agent and administrative advisor. ================= V E N E Z U E L A ================= VENEZUELA: IDB Provides $1MM to Support Emergency Response ---------------------------------------------------------- The Inter-American Development Bank Group (IDB Group) will provide a grant package totaling at least $1 million to support Venezuela's emergency response following the earthquakes that struck the country's central coast. The resources will support: Immediate humanitarian assistance, including $350,000 from the IDB, contributions from IDB member countries currently estimated at $300,000-$400,000, and $100,000-$200,000 raised through the IDB Group's internal "Together for Venezuela" solidarity campaign, with employees' contributions matched by the Bank. Assessment of damage and losses, with $150,000 from the IDB to guide early recovery and the restoration of essential public services. The humanitarian-assistance component will be implemented in coordination with Cáritas Venezuela, a nonprofit organization with nationwide reach and extensive experience in emergency response, as well as with other multilateral organizations involved in the response, ensuring rapid and effective delivery of aid to affected communities. "The IDB Group stands with the people of Venezuela during this difficult time," said IDB Group President Ilan Goldfajn. "This grant package will help meet urgent humanitarian needs while strengthening the country's damage assessment for emergency response. We will work closely with the government and our partners to support recovery efforts, mobilize resources, and help the affected communities rebuild." The IDB is providing its support through a non-reimbursable emergency technical cooperation, the financial instrument available to support borrowing members facing urgent needs due to extraordinary natural events. Additionally, this technical cooperation has been designed to facilitate further resource mobilization. In addition, the IDB Group's internal fundraising campaign "Together for Venezuela," launched in collaboration with the Office of the Executive Director for Venezuela and the Bank's employee associations, will support Caritas to provide emergency assistance and help affected communities recover and rebuild. The IDB Group will continue working with the government of Venezuela and partners, including United Nations agencies and other humanitarian stakeholders, to support recovery efforts and help strengthen the country's resilience. About Venezuela Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South America, consisting of a continental landmass and a large number of small islands and islets in the Caribbean sea. The capital is the city of Caracas. Moody's has withdrawn 'C' local currency and foreign currency ceilings for Venezuela in September 2022. Standard & Poors has also withdrawn its 'SD/D' foreign currency sovereign credit ratings and 'CCC-/C' local currency ratings on Venezuela in September 2021 due to lack of sufficient information. Fitch withdrew its own 'RD/C' Issuer Default Ratings on Venezuela in June 2019 due to the imposition of U.S. sanctions on the country's government. =============== X X X X X X X X =============== LATAM: CDB Highlights High Economic Cost of Crime for the Region ---------------------------------------------------------------- RJR News reports that the Caribbean Development Bank (CDB) says crime cost the region 3.4% of its gross domestic product (GDP) for the years 2014 to 2022. The bank said this had a negative impact on the region's productivity and competitiveness, according to RJR News. CDB economist Xavier Ajani Malcolm says this and other long-standing structural weaknesses are making the region more vulnerable to global shocks, the report notes. Mr. Malcolm noted that 70 per cent of the employment in the region is informal, compared with 50 per cent globally, the report relays. The CDB economist also observed that the prevalence of informal employment limits the region's ability to scale up production because businesses remain fragmented, rather than growing into larger enterprises that can immediately increase production of goods and services, 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. 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