260720.mbx

260720.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 20, 2026, Vol. 27, No. 143 Headlines B R A Z I L ANDRE MAGGI: Fitch Lowers Long-Term IDR to 'B+', Outlook Stable AUREN ENERGIA: Fitch Affirms 'BB+' IDR, Alters Outlook to Neg. BRAZIL: U.S. Imposes New 25% Tariffs for "Unfair" Trade Practices FS INDUSTRIA: Fitch Lowers Long-Term IDR to 'B+', Outlook Stable C A Y M A N I S L A N D S SAAD INVESTMENT: Creditors' Meeting Set for July 29 C O S T A R I C A COSTA RICA: S&P Affirms 'BB/B' SCRs, Outlook Stable D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Gov't Shields Middle Class from Econ. Pressure G U A T E M A L A CT TRUST: Fitch Affirms 'BB+' Long-Term IDRs, Outlook Stable J A M A I C A JAMAICA: Bartlett Calls For Greater Focus On Community Tourism M E X I C O DEL MONTE: Minority Lenders' Ch. 11 Direct Appeal Move Fails FIDEICOMISO IRREVOCABLE 2400: Fitch Ups A-2 MXN Notes Rating to BB+ P A N A M A BANISTMO S.A.: Fitch Lowers Long-Term IDR to 'BB', Outlook Stable P U E R T O R I C O BED BATH: Investor Can Keep Profits, 2d Circuit Affirms BITCOIN DEPOT: Court Approves $1.4MM Chapter 11 Asset Sale PUERTO RICO: Bondholders Remain Ready to Lead Bankruptcy Exit V I R G I N I S L A N D S CHAMPION PATH: Fitch Lowers Rating on Senior Unsecured Notes to 'B' - - - - - =========== B R A Z I L =========== ANDRE MAGGI: Fitch Lowers Long-Term IDR to 'B+', Outlook Stable --------------------------------------------------------------- Fitch Ratings has downgraded Andre Maggi Participacoes S.A.'s (Amaggi) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'B+' from 'BB-' and its Long-Term National Scale Rating to 'A(bra)' from 'AA(bra)'. Fitch has also downgraded Amaggi Luxembourg International S.a r.l.'s senior debt to 'B+' from 'BB-' with a Recovery Rating of 'RR4'. The Rating Watch Negative (RWN) was removed. The Outlook for the IDRs and National Scale Rating is Stable. The downgrade follows the acquisition of a 40% stake in FS Industria de Combustiveis Ltda. (FS) and related companies, financed with USD700 million of new debt. Fitch believes the transaction weakens Amaggi's credit profile and financial flexibility. Readily Marketable Inventories (RMI) leverage and net leverage will rise to 7.1x and 4.0x, respectively, levels not commensurate with the 'BB' category. Metrics will likely remain elevated longer than previously expected as deleveraging progresses. Although the deal supports diversification, Amaggi's access to FS's cash flow will be limited to dividend distributions. Key Rating Drivers Prolonged High Leverage: The acquisition of a 40% stake in FS will substantially increase Amaggi's leverage and reduce its financial flexibility. Fitch expects the transaction to weaken the company's credit metrics relative to previous expectations, with RMI leverage of 7.1x in 2026, 6.6x in 2027 and 6.1x in 2028, and RMI net leverage remaining above 4.0x during the same period. This compares unfavorably with the current rating sensitivities and increases downside risks if operating performance is weaker than expected or deleveraging is delayed. Strategic Benefits Support Business Profile: Fitch believes the acquisition could strengthen Amaggi's business profile because it enhances diversification and increases integration in the corn value chain. The investment should expand the issuer's exposure to value-added products and support a broader operating platform. These benefits, however, are offset in the near to medium term by the additional pressure on the financial profile. Stable Soybeans Outlook: Fitch's base case assumes that soybean production in Mato Grosso in 2026 will be in line with 2025 at around 51 million tons. After a challenging 2024, expected production provides healthier competition for origination by improving margin spreads and diluting logistics expenses for traders, as well as improving margins for farmers in the region. However, El Niño developments in 2H26 add downside risk to Fitch's assumptions due to potential drought and irregular rainfall and could affect production and yields. For 2027, Fitch expects soybean production to decline due to higher fertilizer and freight costs from the Iran conflict. Commodities Prices: Fitch assumes soybean prices of USD11.30 per bushel in 2026 and USD11.10 per bushel in 2027, as well as corn prices of USD4.47 per bushel in 2026 and 2027. These prices should not pressure the working capital needs of commodity trading companies. However, fertilizer prices in the second half of 2026 warrant monitoring because they will affect soybean crop costs for harvest in the first quarter of 2027. Competitive Structure in Mato Grosso: Amaggi's capacity to process large volumes, thanks to its logistics, enables the group to compete with large multinational grain companies such as Archer Daniels Midland Company (ADM; A/Negative), Cargill Incorporated, and Bunge Global S.A. (Bunge; BBB+/Stable) in the acquisition of grains in Mato Grosso, which is the largest soy and corn producing region in Brazil. Counterparty Risks: Financing provided to farmers is subject to strict criteria and is secured by rural credit notes. No single producer represents more than 1.4% of Amaggi's annual origination. As a large agricultural producer with farmlands in different locations, the company follows the development of the crop over different locations in the state. EBITDA Margins Around 5.3%: Fitch forecasts EBITDA margins of around 5.3% in 2026 versus 3.6% in 2024 and 6.1% in 2025. The crop failure in Mato Grosso in 2024 impacted the group's overall performance, but the strong performance of the 2025 crop season was important for margin recovery. Fitch projects cash flow from operations of USD209 million in 2026 and USD252 million in 2027. Peer Analysis Fitch views Amaggi's business risk profile as weak relative to its peers Bunge, Cargill and ADM. Amaggi has a smaller operational scale, lower diversification, and substantial concentration in one region. Although Amaggi's consolidated profitability is adequate, it remains exposed to intense industry competition from large international groups with strong credit profiles. Fitch’s Key Rating-Case Assumptions - Soybeans prices of USD11.30 per bushel in 2026 and USD11.10 per bushel in 2027; - Corn prices of USD4.47 per bushel in 2026 and 2027; - Cotton prices of USD71 cents per pound in 2026 and USD74 cents per pound in 2027; - Capex of USD116 million in 2026 and USD115 million in 2027, not including the stake in FS; - Dividends around 30% of net income. 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+, Lower), sector characteristics (bb+, Moderate), market and competitive positioning (bb-, Higher), diversification and asset quality (bb, Moderate), company operational characteristics (bbb-, Moderate), profitability (a-, Moderate), financial structure (b-, Higher), and financial flexibility (b+, 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. - 'B+' to 'CC' considerations apply in its analysis and have no impact. - The Governance assessment of 'good' has no impact. - The Operating Environment assessment of 'bb+' has no impact. - The SCP is 'b+'. To derive the Long-Term IDR: - Fitch made no adjustments to the SCP, resulting in Foreign Currency and Local Currency IDRs of 'B+'. Recovery Analysis For entities rated 'B+' and below, Fitch undertakes a tailored, or bespoke, analysis of recovery upon default for each issuance. The resulting debt instrument rating includes a Recovery Rating (from RR1 to RR6) and is notched from the IDR accordingly. In this analysis, there are three steps: (i) estimating the distressed enterprise value (EV); (ii) estimating creditor claims; and (iii) distribution of value. Fitch's recovery analysis for Amaggi assumes it would be reorganized as a going concern (GC) entity rather than liquidated. Fitch assumes a 10% administrative claim. Amaggi's GC EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the enterprise value. Fitch assumes a GC EBITDA of about USD550 million and a distressed EV multiple of 5x due to the exposure to the agri-business sector and factors such as climatic events, logistic issues, potential strikes or a shutdown of exports markets. Given that the assets are concentrated in Brazil (Group D, as per Fitch's criteria), the recovery is capped at 'RR4'. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Loss of business diversification; - RMI-adjusted net leverage (RMI-adjusted total net debt to operating EBITDA) above 4.0x on a sustainable basis; - RMI-adjusted gross leverage (RMI-adjusted total gross debt to operating EBITDA) above 4.5x on a sustainable basis; - Liquidity ratio (cash and marketable securities + RMI + account receivables/total short liabilities) below 0.8x at year end. Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Improved scale and geographical diversification; - RMI-adjusted net leverage (RMI-adjusted total net debt to operating EBITDA) below 3.0x on a sustained basis; - RMI-adjusted gross leverage (RMI-adjusted total gross debt to operating EBITDA) below 3.5x on a sustainable basis; - Liquidity ratio (cash and marketable securities + RMI + account receivables/total short-term liability) above 1x on a sustainable basis. Liquidity and Debt Structure Amaggi's financial flexibility weakens post-transaction following an increase in gross leverage and higher medium-term refinancing risks. Liquidity headroom to absorb shocks inherent to the business have also diminished. However, the company has demonstrated access to diversified sources of external liquidity for short-term working capital along with cash, short-term marketable securities, and high levels of liquid RMI. As of March 31, 2026, Amaggi reported consolidated cash and marketable securities of USD1,217 million and USD1,523 million of short-term debt. The company also has access to several uncommitted bank lines and maintains a minimum cash policy of USD400 million. The company's liquidity ratio, based on cash, receivables, RMI and derivatives divided by total current liabilities, was 0.95x as of March 31, 2026. Amaggi's debt amortization profile as of March 2026 was USD1.5 billion in the next 12 months, USD1.2 billion in 13-24 months, USD320 million in 25-36 months and USD440 million billion in 2028 in 37-48 months. Issuer Profile Amaggi is Brazil's fourth largest soft commodity trader, trading around 18 million tons of grains annually. It is the third largest agricultural producer with 386,000 hectares of farmland. Amaggi operates across the agribusiness chain including farming, trading, processing and logistics. 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 Amaggi. ESG Considerations Andre Maggi Participacoes S.A. has an ESG Relevance Score of '4' for Waste & Hazardous Materials Management; Ecological Impacts due to the ecological impact of its land use. A large amount of the grain in its commodity business comes from the Amazon and Cerrado biomes, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. Andre Maggi Participacoes S.A. has an ESG Relevance Score of '4' for Group Structure due to existence of related-party transactions, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. Andre Maggi Participacoes S.A. has an ESG Relevance Score of '4' for Governance Structure due to the lack of board independence because the company is privately controlled, which has a negative impact on the credit profile, and is relevant to the rating[s] 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 Recovery Prior ----------- ------ -------- ----- Amaggi Luxembourg International S.a r.l. senior unsecured LT B+ Downgrade RR4 BB- Andre Maggi Participacoes S.A. LT IDR B+ Downgrade BB- LC LT IDR B+ Downgrade BB- Natl LT A(bra) Downgrade AA(bra) AUREN ENERGIA: Fitch Affirms 'BB+' IDR, Alters Outlook to Neg. -------------------------------------------------------------- Fitch Ratings has revised the Rating Outlook on Auren Energia S.A.'s Foreign and Local Currency Issuer Default Ratings (IDRs) to Negative from Stable and affirmed the ratings at 'BB+' and 'BBB-', respectively. Fitch has also revised the Outlook to Negative from Stable and affirmed Auren's National Scale Rating at 'AAA(bra)', together with the ratings of its subsidiaries and related debentures. In addition, Fitch has assigned a 'AAA(bra)' rating to Auren Operacoes S.A (Auren Operacoes) and its 14th debentures issuance, along with a Negative Outlook for the corporate rating. The Negative Outlook reflects the risk that Auren's consolidated leverage remains above rating sensitivities due to poor hydrology and high curtailment. The affirmation considers the expected support from its shareholder Votorantim S.A. (VSA; Local and Foreign Currency IDRs: 'BBB'; National Scale Rating: 'AAA(bra)'; Outlook Stable), if needed, as well as expected positive FCF generation and strong liquidity profile. Fitch has withdrawn Auren Participacoes S.A.'s 'AAA(bra)' rating following the group's corporate reorganization. Key Rating Drivers Slower Deleveraging: The Negative Outlook reflects Auren's weaker deleveraging trajectory relative to Fitch's prior rating case. Fitch previously projected net leverage of 5.2x in 2026, compared with the current expectation of 5.7x, driven by weaker cash generation. Adjusted EBITDA is now projected at BRL3.6 billion, below the previous forecast of BRL4.0 billion. The deterioration reflects higher energy purchase costs and payments related to the settlement of accumulated wind generation deficits, which could resume this year following a temporary suspension. Fitch projects net leverage to decline to 4.8x in 2027, supported by lower capex. Compensation receipts for curtailment and for CESP's non-amortized investments could further reduce this ratio to below 4.5x. The projections assume no dividend distributions in 2026 and a 25% payout thereafter. FFO interest coverage should remain constrained in 2026 and 2027 at around 1.5x-2.0x. If net leverage remains sustainably above 5.0x, this could lead to negative rating action of Auren's 'bb-' Standalone Credit Profile (SCP) and to the reassessment of the support incentives from VSA. VSA Support: Auren's ratings incorporate Fitch's view that VSA would provide support to Auren, if needed, through dividend flexibility, capital injections or other means. Auren offers meaningful long-term growth opportunities and, after deleveraging, may generate more relevant and predictable dividends than VSA's other businesses. High integration in management decisions supports operational ties. Fitch currently applies a top-down minus-one approach from the parent's IDR to define Auren's Local Currency IDR. Operational Challenges: Curtailment and poor hydrology continue to weigh on operating performance. Energy cuts on wind and solar generation may reduce annual average output by about 250 aMW over 2026-2028. Fitch estimates an annual loss of about BRL520 million, although this should fall after curtailment compensation related to grid constraints is implemented. Poor hydrology in 2026 may cut potential generation by about 300 aMW and leave an energy deficit of 450 aMW, to be settled at an average price of BRL200/MWh. Modulation gains of about BRL200 million a year partly offset these pressures. Positive FCF: Fitch expects Auren to continue reducing debt with positive FCF. Modulation gains, higher efficiency of wind assets and larger dividends in 2026 from non-consolidated hydro plants should partially compensate for the effects from lower contracted sales prices and higher short-term purchase costs. Fitch projects adjusted EBITDA of BRL4.1 billion in 2027, from BRL3.2 billion in 2026, supported by lower energy purchase cost. Capex should decline in 2027 after completion of the Cajuina III project. Strong Business Profile: Auren benefits from a large and diversified asset base across Brazil and a balanced portfolio of hydroelectric plants and renewables. Hydroelectric plants account for 57% of consolidated firm energy and renewables for 43%. Portfolio diversification and regulated-market contracted volumes reduce exposure to curtailment and the generation scaling factor (GSF). Concessions expiring through 2032 contribute about 30% of consolidated EBITDA, with renewal still uncertain. Subsidiary Linkage: The subsidiaries' ratings reflect Auren's consolidated credit profile because Auren has incentives to support them and can upstream cash from them. Auren guarantees most of the debt issued by Auren Operacoes, Tucano II, Santa Tereza, Potengi and Veleiros. Strategic incentives differ by subsidiary size, but each helps optimize Auren's portfolio. CESP has a stronger SCP, but Auren's full ownership and the absence of material ring-fencing support meaningful upstreaming of cash. Peer Analysis Support from VSA leads Auren to have the same Local Currency IDR as Engie Brasil Energia S.A. (Engie Brasil). Auren's SCP of 'bb-' is three notches below that peer and in line with Axia Energia's IDR of 'BB-'/Positive. Engie Brasil has a larger and more diversified asset base, with 5.2 aGW of firm energy versus Auren's 3.7 aGW. Its cash flow is also more resilient to curtailment because hydropower accounts for about 70% of its portfolio and transmission and gas midstream assets contribute about 15% of EBITDA. Fitch forecasts average EBITDA interest coverage of 3.7x and EBITDA net leverage of 3.8x for Engie Brasil in 2026-2028, stronger than Auren's 2.0x and 4.8x, respectively. Axia's ratings reflect a meaningful and diversified asset base. Its Positive Outlook reflects expected improvement in credit metrics from higher energy sales prices and relevant asset sales. Axia and Engie Brasil also post higher EBITDA margins because Auren has a greater share of trading activity. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to a Negative Rating Action/Downgrade For Auren: - A lower Brazil Country Ceiling could lead to a downgrade of Auren's Foreign Currency IDR; - Weaker incentives for support from VSA or a downgrade of its Local Currency IDR; - Increasing curtailment, delays or shortfalls in curtailment compensation, poor hydrology or other factors that prevent consolidated gross leverage and net leverage ratios from falling below 6.0x and 5.0x, respectively; - Worsening FFO interest coverage; - Negative FCF. For Auren Operacoes, Tucano II, Santa Tereza, Potengi and Veleiros: - A downgrade of Auren's National Scale Rating; - Weaker incentives for support from Auren. For CESP: - A downgrade of Auren's National Scale Rating. Factors that Could, Individually or Collectively, Lead to a Positive Rating Action/Upgrade For Auren: - An increase in Brazil's Country Ceiling could lead to an upgrade of Auren's Foreign Currency IDR; - Stronger legal incentives for support from VSA. For Auren's subsidiaries: - Upgrades are not possible because the subsidiaries' ratings are at the top of the National Scale. Liquidity and Debt Structure Auren has strong access to capital at a below-average cost and a comfortable liquidity profile after liability management transactions. In March 2026, the group had BRL4.7 billion in cash, including cash collateral, fully covering short-term debt of BRL2.3 billion. Around 20% of the consolidated cash was held in project-level reserve accounts. Consolidated debt of BRL24.7 billion consisted of debentures (72%), development bank financing (24%) and preferred shares treated as debt (4%). The holding company had BRL371 million in cash and BRL3.1 billion in debt, of which BRL182 million was short term and related to charges and funding costs. No principal amortization is due at the holding company until 2029. Fitch’s Key Rating-Case Assumptions - Average Selic from 2026 to 2028: 14.0%, 12.1% and 10.6%; - Average IPCA from 2026 to 2028: 5.0%, 4.0% and 3.8%; - Firm energy of 3.7 aGW in 2026 and 3.8 aGW from 2027, on a consolidated basis; - GSF of 0.84 in 2026, 0.87 in 2026 and 0.89 in 2027; - Curtailment of 18% on wind and solar generation in 2026, combined, and 19% in 2027; - Average reduction of 4% of total generation due to equipment unavailability; - Prices for new renewable energy sales contracts in 2026, 2027 and 2028 (BRL/MWh): 294, 263 and 244, respectively; - Average short-term prices in 2026, 2027 and 2028 (BRL/MWh): 326, 245 and 214, respectively; - Average short-term purchase price of BRL200/MWh in 2026 and annual modulation gains around BRL200 million; - Total investments of BRL1.3 billion from 2026 to 2028; - Dividends equivalent to 25% of the group's net income as of 2027; - Debt reduction of around BRL4.0 billion until end of 2029. 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 ('bbb-', Moderate), diversification and asset quality ('bbb-', Moderate), company operational characteristics ('bb+', Moderate), profitability ('bbb-', Higher), financial structure ('b', Higher), and financial flexibility ('b+', Moderate). The quantitative financial subfactors are based on custom CRT financial period parameters: 20% weight for the forecast year 2026, 30% for the forecast year 2027, 30% for the forecast year 2028 and 20% for the forecast year 2029. 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: Application of Fitch's Parent Subsidiary Linkage Rating Criteria results in a top-down -1 approach, therefore Auren's LC IDR is currently one notch below VSA's. Country Ceiling considerations apply and result in an adjustment of -1 notch. Issuer Profile Auren is a large listed Brazilian power generator with 3.5 aGW of firm energy. Its main shareholders are Votorantim Group and CPP Investments. Summary of Financial Adjustments - Cash collateral for debt service treated as cash for leverage calculation; - Marketable securities treated as cash; - Interest rate derivatives incorporated into debt; - Non-recurring revenues/expenses excluded from EBITDA; - Preferred shares hold by financial institutions treated as debt. 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 Climate.VS screener do not indicate material risk for Auren Energia or any of its subsidiaries. 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 Prior ----------- ------ ----- Potengi Holdings S.A. Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) CESP – Companhia Energetica de Sao Paulo Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) AES Tucano Holding II S.A. Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Auren Energia S.A. LT IDR BB+ Affirmed BB+ LC LT IDR BBB- Affirmed BBB- Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Auren Operacoes S.A. Natl LT AAA(bra) New Rating senior unsecured Natl LT AAA(bra) New Rating Ventos de Santa Tereza 07 Energias Renovaveis S.A. Natl LT AAA(bra) Affirmed AAA(bra) senior secured Natl LT AAA(bra) Affirmed AAA(bra) Veleiros Holdings S.A. Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Auren Participacoes S.A. Natl LT WD(bra) Withdrawn AAA(bra) senior unsecured Natl LT WD(bra) Withdrawn AAA(bra) BRAZIL: U.S. Imposes New 25% Tariffs for "Unfair" Trade Practices ----------------------------------------------------------------- CNN's Stephanie Yang, Anna Cooban and Hanna Ziady report that the U.S. plans to impose a 25% tariff on some Brazilian imports from [this] week, after a yearlong investigation concluded that the country had engaged in "unfair" trade practices. It's one of the first new tariffs to be imposed since President Donald Trump pledged to restore tariffs following a U.S. Supreme Court ruling that struck down the basis of his import taxes earlier this year, according to the report. According to CNN, United States Trade Representative (USTR) Jamieson Greer ‌announced the measures against Brazil in a statement late Wednesday (July 15), saying the US investigation concluded that Brazilian policies harm the interests of Americans on issues ranging from digital trade and ethanol market access to illegal deforestation. "President Lula and his government have not negotiated with the US in good faith," Secretary of State Marco Rubio wrote on X, notes the report. "His economic policies are bad for Americans and bad for Brazilians. For the past year, Lula has put his own ego ahead of making a deal for the welfare of the Brazilian people, and these tariffs are the price for that." The tariffs will go into effect on July 22, CNN relays. Brazilian President Luiz Inacio Lula da Silva said there was "no justification" for the "illegal and arbitrarily imposed tariffs," says the report. He posted on X that Brazil would take countermeasures under its Reciprocity Law, while also seeking a resolution through the World Trade Organization. CNN relates that the tariff will apply to a host of Brazilian products, but will exempt certain major exports including coffee, beef, avocados, Brazil nuts, petroleum oils and aircraft parts, according to a notice published by the Office of the USTR. Greer said the US remains open to continuing negotiations with Brazil to resolve the issues, notes CNN. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian general election. He was sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. In October 2024, Moody's Ratings upgraded the Government of Brazil's long-term issuer and senior unsecured bond ratings to Ba1 from Ba2, the senior unsecured shelf rating to (P)Ba1 from (P)Ba2; and maintained the positive outlook. S&P Global Ratings raised on Dec. 19, 2023, its long-term global scale ratings on Brazil to 'BB' from 'BB-'. Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable Outlook. DBRS' credit rating for Brazil was last reported at BB with stable outlook at July 2023. FS INDUSTRIA: Fitch Lowers Long-Term IDR to 'B+', Outlook Stable ---------------------------------------------------------------- Fitch Ratings has downgraded FS Industria de Biocombustiveis Ltda.'s (FS Ltda.) and FS I Industria de Etanol S.A.'s (FS SA) Long-Term Local and Foreign Currency Issuer Default Ratings (IDRs) to 'B+' from 'BB-' and National Long-Term Ratings to 'A(bra)' from 'AA-(bra)'. Fitch also downgraded FS Luxembourg S.a.r.l's senior unsecured bonds to 'B+' with a Recovery Rating of 'RR4' from 'BB-' and FS SA's debentures to 'A(bra)' from 'AA-(bra)'. The Outlook for the corporate ratings is Stable. The downgrades reflect Fitch's expectation that FS will sustain materially higher leverage through fiscal 2027 as it builds its fifth plant in Mato Grosso with full debt funding. Fitch forecasts EBITDA leverage and EBITDA net leverage will peak at 6.3x and 5.1x in fiscal 2027. FS's financial flexibility has weakened due to negative FCF expectations and lower interest coverage. The rating remains supported by FS's large scale in corn ethanol, but constrained by ethanol price volatility. Key Rating Drivers Higher Leverage: Fitch's base case assumes EBITDA leverage of 6.3x in fiscal 2027 and 4.5x in fiscal 2028 and EBITDA net leverage of 5.1x in fiscal 2027 and 3.7x in fiscal 2028, above Fitch's previous forecast. The announcement of the fifth plant in Mato Grosso materially increases the company's capex and overall debt, which Fitch has not previously incorporated. Capex for two simultaneous greenfield projects will significantly weaken significantly pressure leverage and coverage metrics, with EBITDA/interest falling to below 1.5x in fiscal 2027 and below 2x in fiscal 2028. The projects are adequately funded, supported by a recent capital injection from Amaggi and other long-term debt raised through capital markets and from BNDES. Even so, FS's leverage is more aligned with a credit profile of 'B+'. Negative FCF Through Fiscal 2027: Fitch projects negative FCF in fiscal 2027 due to large capex for the two new plants. From fiscal 2028, FCF is likely to gradually recover as the new plants begin operations. Stronger FCF is expected only in fiscal 2029 when both plants are fully operational and expansion capex moderates. The base case assumes dividends of BRL550 million in fiscal 2027, no dividends in fiscal 2028, capex of BRL3.1 billion in fiscal 2027 and BRL1.5 billion in fiscal 2028. Market conditions remain challenging in the next two years, as new capacity additions pressures ethanol prices. Weaker Corn and Ethanol Prices Correlation: FS faces price volatility for both corns, its main raw material, and ethanol, its main output, which have low correlation. Corn prices adjust rapidly to global supply and demand imbalances, while Brazilian ethanol prices largely depend on local gasoline prices set by Petrobras, which are influenced by the Brent crude prices in BRL. Ethanol prices are also indirectly influenced by sugar prices, as about 80% of local ethanol production comes from sugarcane. The base case assumes international corn prices of USD4.47 per bushel in 2026 and 2027 and average ethanol prices at BRL2.49/liter for fiscal 2027 and fiscal 2028. Large Ethanol Platform: FS benefits from production capacity of about 2.5 billion liters of ethanol and strong corn supply from nearby areas, which supports discounts to Chicago Board of Trade prices. Animal nutrition products partly offset volatility because their prices are closely linked to regional corn and soybean prices. FS's plants are in Mato Grosso, Brazil's largest corn-producing state, which reduces origination risk. The fourth corn ethanol mill is due by December 2026 and will add 580 million liters of annual ethanol capacity. The fifth plant is due by July 2027 and will add another 580 million liters. These projects should strengthen FS's scale and market position in the long term. Related-Party Exposure: Fitch's assessment of group structure has an ESG Relevance Score of '4' due to material related-party transactions with FS Florestal S.A. and FS Infraestrutura S.A., which are not included in FS's combined financial statements. FS also provides partial guarantees to these entities. Debt at FS Florestal is supported by long-term commercial agreements with FS. Fitch adjusted FS's debt to include BRL2.3 billion linked to its sister companies. Peer Analysis FS's 'B+' IDR is one notch below Ingenio Magdalena S.A. (IMSA; BB-/Negative). FS has access to local and international bond markets and has longer debt maturities, but will be more leverage than IMSA over the next 18 months. IMSA also benefits from higher exposure to the energy sector, which brings more stability of cash flows through the cycles. FS' 'A(bra)' National Long-Term Rating and Stable Outlook is one notch below Acucareira Quata S.A.'s (Zilor; A+[bra]/Stable). FS has stronger liquidity and financial flexibility and more satisfactory access to domestic and international capital markets than Zilor. FS' lower maintenance capex supports more robust FCFs than Zilor's in a no-growth capex scenario. Zilor's results are less volatile due to its business characteristics and currently has lower leverage than FS. Fitch’s Key Rating-Case Assumptions - Ethanol production capacity of 2.8 billion liters in fiscal 2027 and 3.6 billion in fiscal 2027; - Sales of animal nutrition products of over 2.6 million tons in fiscal 2027 and 3.3 million in fiscal 2028; - Animal nutrition products providing around 47% coverage for total corn costs; - EBITDA/liter of BRL1.0 in fiscal 2027 and fiscal 2028; - Corn prices at USD 4.47 per bushel in 2026 and 2027; - Hydrous Ethanol Prices - ESALQ of BRL 2.51 per liter in 2026 and of BRL 2.49 per liter in 2027; - Capital increase of USD100 million in fiscal 2027; - Total investments of BRL3.1 billion in fiscal 2027 and BRL1.5 billion in fiscal 2028 - Dividends of BRL550 million in fiscal 2027 and no dividends in fiscal 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): 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 ('bb+', Moderate), diversification and asset quality ('bb', Moderate), company operational characteristics ('bb', Moderate), profitability ('bb-', Moderate), financial structure ('b', Higher), and financial flexibility ('b+', Moderate).The quantitative financial subfactors are based on custom CRT financial period parameters: 20% weight for the historical year FY26, 20% for the forecast year FY27, 20% for the forecast year FY28, 20% for the forecast year FY29 and 20% for the forecast year FY30. B+ to CC considerations apply in its analysis and has no impact. The governance assessment of 'good' has no impact. The operating environment assessment of 'bb' has no impact. The SCP is 'b+'. To derive the Long-Term IDR: - Fitch made no adjustments to the SCP, resulting in Local Currency and Foreign Currency IDRs of 'B+'. Recovery Analysis For entities rated 'B+' and below, Fitch uses a tailored, or bespoke, analysis of recovery upon default for each issuance. The resulting debt instrument rating includes a Recovery Rating (from 'RR1' to 'RR6') and is notched from the IDR accordingly. In this analysis, there are three steps: (i) estimating the distressed enterprise value (EV); (ii) estimating creditor claims; and (iii) distribution of value. Fitch's recovery analysis for FS assumes it would be reorganized as a going concern (GC) entity rather than liquidated. Fitch assumes a 10% administrative claim. FS's GC EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the enterprise value. Fitch assumes a GC EBITDA of about BRL 2.5 billion and a distressed EV multiple of 5x, due to the exposure to the agri-business sector and factors such as climatic events and logistic issues. Due to the 'RR4' cap for Brazil's corporates, Fitch limits the recovery for the senior unsecured bond at 'RR4' despite a higher projected recovery. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Deterioration in liquidity and/or difficulties in refinancing short-term debt; - Combined EBITDA net leverage (including sister companies' debt) above 5.0x on a sustained basis; - Combined EBITDA gross leverage (including sister companies' debt) above 6.0x on a sustained basis. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Combined EBITDA net leverage (including sister companies' debt) below 3.5x on a sustained basis; - Combined EBITDA gross leverage (including sister companies' debt) below 4.5x on a sustained basis. Liquidity and Debt Structure FS' liquidity is satisfactory and strengthened following recent liability management that reduced short-term refinancing risks. As of Mar. 31, 2026, cash and marketable securities totaled BRL4.4 billion compared with short-term debt of BRL1.4 billion and total debt of BRL15.3 billion (including reverse factoring, guarantees to sister companies and derivatives). FS maintains good access to banking and domestic/foreign capital markets, with most debt now due from 2029 onward. The lengthened maturity profile reduces near-term refinancing risk and supports liquidity. However, higher indebtedness and negative FCF weaken the company's financial flexibility, particularly in a prolonged high-interest rate environment. Issuer Profile FS operates three plants with capacity to crush 5.8 million tons of corn and produce 2.5 billion liters of ethanol. Two new Mato Grosso plants will raise capacity to 8.6 million tons of corn and 3.7 billion liters of ethanol. 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. ESG Considerations FS Industria de Biocombustiveis Ltda. has an ESG Relevance Score of '4' for Group Structure because of growth at two sister companies, FS Infraestrutura S.A. and FS Florestal S.A. These companies have a commercial relationship with FS Group but are not included in the combined figures because they have different shareholders or businesses, which has a negative impact on the credit profile, and is relevant to the rating[s] 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 Recovery Prior ----------- ------ -------- ----- FS I Industria de Etanol S.A LT IDR B+ Downgrade BB- LC LT IDR B+ Downgrade BB- Natl LT A(bra) Downgrade AA-(bra) senior unsecured Natl LT A(bra) Downgrade AA-(bra) FS Industria de Biocombustiveis Ltda. LT IDR B+ Downgrade BB- LC LT IDR B+ Downgrade BB- Natl LT A(bra) Downgrade AA-(bra) FS Luxembourg S.a r.l. senior unsecured LT B+ Downgrade RR4 BB- =========================== C A Y M A N I S L A N D S =========================== SAAD INVESTMENT: Creditors' Meeting Set for July 29 --------------------------------------------------- Saad Investments Company Limited will hold a creditors meeting on July 29, 2016, at 10:00 a.m. by telephone conference. Creditors wishing to attend must notify the joint official liquidators no later than July 27, 2026 at 10:00 a.m. Notifications should be sent by email to: sicl.cayman@uk.gt.com The company's liquidator is: Mike Bayers Email: sicl.cayman@uk.gt.com =================== C O S T A R I C A =================== COSTA RICA: S&P Affirms 'BB/B' SCRs, Outlook Stable --------------------------------------------------- On July 16, 2026, S&P Global Ratings affirmed its 'BB' long-term and 'B' short-term foreign and local currency sovereign credit ratings on Costa Rica. The outlook remains stable. S&P also kept its transfer and convertibility assessment unchanged at 'BBB-'. Outlook S&P said, "The stable outlook incorporates Costa Rica's broad continuity in key economic policies following elections earlier this year. We expect the government's fiscal consolidation to continue, despite a mild deceleration in free-trade-zone activity and economic growth. "The outlook also incorporates our expectation of progress to obtain multiannual approval for external borrowing from the Legislative Assembly." Downside scenario S&P could lower the rating in the next 12-18 months if expansive fiscal policy or an unexpectedly severe and prolonged economic slowdown were to result in persistently worse fiscal outcomes. Continued delays in accessing external official and commercial borrowings could tighten conditions in the domestic debt market, weakening public finances and leading to a downgrade. Upside scenario S&P could raise the ratings in the next 12-18 months if the government were to strengthen its economic and fiscal resilience via a more pronounced fiscal consolidation path and keeping net general government debt on a downward trajectory. An enhanced policy coordination between the executive and the legislative branches of government allowing for approval of structural reforms that help ensure a favorable fiscal trajectory and sustained rapid economic growth could also result in an upgrade. Rationale S&P's 'BB' ratings on Costa Rica reflect the country's stable democracy, solid checks and balances, prosperous standard of living compared with those of regional peers, and the strengthening of external buffers over the past years. Costa Rica's fiscal and debt profile, which include spending rigidities and vulnerabilities related to slow policymaking that have at times limited the government's access to external financing, constrain its ratings. Such obstacles reduce the predictability of debt management and the government's financial flexibility. Institutional and economic profile: Lower political fragmentation could allow for more rapid passage of reforms as economic growth slows -- The stability of Costa Rica's political institutions and its comparatively high human development provide a solid base to attract foreign investment. -- Following elections in February 2026, the governing party's larger representation in the Assembly could resolve long-standing delays in passing legislation, such as approval of external borrowings, while sustaining fiscal consolidation efforts. -- S&P expects GDP growth at 3.5% over the next four years, slightly decelerating due to lower dynamism in free-trade zones. S&P believes that lower fragmentation in the Legislative Assembly could enable more timely passage of laws and more structural reforms. Costa Rica held presidential and legislative elections in February 2026, and conservative candidate Laura Fernandez won in the first round with 48% of the votes. The governing party increased its representation in the Assembly, achieving a simple majority with 31 out of the 57 seats. In addition, former President Rodrigo Chaves is the Minister of the Presidency and Minister of Finance. This is a stark difference with the last four years, in which the official party held only nine seats and had to negotiate across party lines, at times leading to delays in passing legislation. The government's capacity to approve legislation is being tested. It has already presented a bill authorizing external borrowing of $13.5 billion over nine years. If approved, the law could reduce the risk of delays in international debt issuances, which have caused stress in the domestic debt market over the past few years. The government continues to discuss the possibility of amending the constitution to streamline the external borrowing approval process by removing the need for a two-thirds majority for every debt issuance or multilateral loan. Passage of structural reforms that require a two-thirds majority (38 out of the 57 votes) is likely to be difficult, given the polarization in the Assembly. Following years of fast economic growth spurred by dynamic free-trade zones, Costa Rica's economy is marginally decelerating. S&P expects GDP growth of around 3.5% over the coming years, supported by Costa Rica's favorable business climate, stable institutions, and well-educated workforce, which have bolstered high-end export-oriented manufacturing (such as medical devices), nearshoring, tourism, and service industries. That said, global trade uncertainty and increased costs following exchange rate appreciation may dent the recent dynamism of the free-trade zones. S&P expects Costa Rica's GDP per capita to increase to $20,900 in 2026, from around $12,000 a decade ago. This is partly explained by the domestic currency's appreciation following large foreign currency inflows. Costa Rica's economy has been growing above its long-term trend growth rate over the past few years, although it projects a mild deceleration moving forward. Flexibility and performance profile: Continued improvement in external buffers mitigates the risk of potential delays in international debt issuances -- Costa Rica's external position has improved thanks to growing exports and solid foreign direct investment (FDI) inflows leading to higher international reserves. -- The government remains committed to fiscal consolidation but faces challenges from spending rigidities, worsening social security balances, and a high interest burden. -- Timid domestic demand and strong exchange rate appreciation have created deflationary pressures recently. Costa Rica's external position has improved on the back of higher exports and strong FDI inflows, which have led to exchange rate appreciation. International reserves rose to almost $21 billion in July 2026 from $6 billion-$8 billion during the past decade. As a result, S&P forecasts gross external financing needs to decline to around 87% of current account receipts (CAR) and usable reserves in the next three years. Furthermore, the country has negotiated contingent flexible credit lines that bolster its external buffers against potential shocks, such as a $1.5 billion flexible credit line from the IMF and a $160 million catastrophe deferred drawdown option (CAT-DDO) with the World Bank. There is also another contingent credit line and a deferred drawdown option with multilaterals to be approved by the Assembly. The export-driven growth over the past few years has translated into a consistent improvement in the country's external debt profile. S&P projects a mild deceleration of exports from free-trade zones, which consist mostly of high-tech manufacturing for electronic and medical devices and services. However, the country should post current account deficits (CADs) of 1.0%-1.5% of GDP for the next four years, which will be fully covered by FDI, estimated at around 4.5% of GDP annually. As a result, S&P expects narrow net external debt to continue falling and average 7% of CARs for the next four years. The government has remained committed to fiscal consolidation measures, although spending rigidities and fiscal risks from social security continue to weigh on public finances. S&P projects the government to gradually return to primary surpluses of around 1% of GDP over the next few years. However, a hefty interest burden of about 19% of government revenues (or 4.4% of GDP) will sustain moderately high overall fiscal deficits. S&P said, "We expect the annual change in net general government debt to average 4.4% of GDP for the next four years. Debt refinancings have helped reduce the interest cost of the more expensive domestic debt since 2022, although it continues to be one of the main constraints on Costa Rica's efforts to lower its fiscal deficit. "We expect net general government debt to remain just above 60% of GDP for the next four years. Lower political fragmentation in the Assembly should allow for timely passage of reforms and streamline the process for obtaining approval for external borrowing, which had reduced fiscal flexibility over the past few years. As a result, we expect the government to be able to tap the international markets by 2027." Having said that, the government has been able to find alternative sources of financing and would have room to maneuver in case international debt issuance is further delayed. S&P said, "Social security costs represent a long-term fiscal risk to our projections. According to actuarial studies, reserves in the pension and healthcare systems could be depleted over the next five to 10 years, adding to fiscal pressures. This is partly related to a sizable deterioration of social security contributions following the pandemic, from which the country has not fully recovered. Furthermore, public finances are vulnerable to potential off-budget claims related to health services provided by the Costa Rican Social Security Fund in the past, accounting for about 8.5% of GDP, although we consider the risk of materialization to be low." Soft domestic demand and exchange rate appreciation have led to sustained deflationary pressures. Costa Rica has had year-on-year deflation over the past 14 months, and the inflation rate has been below the central bank's lower bound target over the last 38 months. The central bank had been easing monetary policy until the end of 2025, when it lowered the monetary policy rate to 3.25%. High dollarization in the financial system and high concentration in the banking sector hamper monetary policy transmission mechanisms. S&P expects inflation to reach the central bank's target of 3% in the next three years, in part because of pressures from the current energy price shock. The sovereign rating benefits from the central bank's monetary policy credibility and execution of its inflation-targeting regime and exchange-rate flexibility under a managed float. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee's assessment of the key rating factors is reflected in the Rating Component Scores above. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. Ratings List Ratings Affirmed Costa Rica Sovereign Credit Rating BB/Stable/B Transfer & Convertibility Assessment Local Currency BBB- Senior Unsecured BB =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Gov't Shields Middle Class from Econ. Pressure ------------------------------------------------------------------ Dominican Today reports that President Luis Abinader said the government will continue implementing measures to shield the middle class and vulnerable households from global economic pressures while maintaining the country's macroeconomic stability. Speaking during an interview, Abinader said current conditions are not suitable for a comprehensive tax reform, stressing that the government's Anti-Crisis Plan is designed to protect most taxpayers, according to Dominican Today. He noted that salary indexation will boost the purchasing power of middle-class workers, while higher tax adjustments mainly target large companies and individuals earning more than RD$400,000 per month, the report notes. The president also clarified that increased tax withholding for some self-employed professionals is not a new tax but an advance payment that can be credited when filing annual tax returns, the report relays. Abinader acknowledged that inflation has affected household budgets but emphasized that the Dominican Republic has raised the minimum wage above inflation to help preserve workers' purchasing power, the report discloses. He added that the country's economy remains resilient, supported by strong tourism, free zones, a recovering construction sector, foreign investment, exports, and remittances, the report says. The president highlighted that the Dominican Republic attracted more than US$5 billion in foreign direct investment last year and said inflows are expected to increase further this year, reinforcing investor confidence and the strength of the Dominican peso, 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. ================= G U A T E M A L A ================= CT TRUST: Fitch Affirms 'BB+' Long-Term IDRs, Outlook Stable ------------------------------------------------------------ Fitch Ratings has affirmed CT Trust's Long-Term Foreign Currency (FC) and Local Currency (LC) Issuer Default Ratings (IDRs) at 'BB+' with a Stable Rating Outlook. Additionally, Fitch has also affirmed CT Trust's senior unsecured debt at 'BB+'. CT Trust (Comcel)'s ratings are linked to its parent company Millicom International Cellular S.A. (BB+/Stable), reflecting the absence of financial ring-fencing between the entities and Millicom's ability to upstream cash from the subsidiary through dividends and other measures. The ratings also reflect Comcel's leading market position and strong profitability, which are partly offset by the relatively weak operating environment in Guatemala (BB+/Stable) and low geographical diversification. CT Trust is a special purpose vehicle of the Comcel Group and a wholly owned subsidiary of Millicom. Key Rating Drivers Parent-Subsidiary Relationship: Fitch Ratings employs a consolidated approach to Comcel's and Millicom's ratings. Under Fitch's "Parent and Subsidiary Rating Linkage Criteria," this approach caps Comcel's ratings at the 'BB+' level of its parent, Millicom, despite Comcel's 'bbb-' Standalone Credit Profile (SCP). The absence of a legal ring-fencing mechanism to restrict cash flows to Millicom exposes Comcel to dividend distributions that could pressure its free cash flow (FCF), given Comcel's significant contribution to Millicom's consolidated financials. Access and control remain open, with no formal policy separating funding and upstream subsidiary lending. As a holding company, Millicom relies solely on upstream cash flows from its subsidiaries. Solid Market Position: Comcel's 'bbb-' SCP is supported by its dominant market position in Guatemala. It is the country's largest mobile operator, with around 62.5% mobile market share and the leader in fixed broadband with a 42% market share. These positions are bolstered by its reliable network, high service quality, and strong brand recognition, and allow the company to have a maintain strong cash flow generation. Weak Operating Environment: Comcel's ratings are limited/constrained by Guatemala's relatively weak operating environment of 'bb', which is characterized by regulatory, political and economic uncertainties. These conditions can weaken business stability, as well as economic circumstances. The operating environment also reflects governance weaknesses and ongoing institutional challenges in the country. Strong Margins Despite Leases: Comcel has one of the highest operating margins among regional telecom operators. In 2025, its EBITDA margin declined modestly to 47% (from 49% in 2024) following the sale of infrastructure to Lati Guatemala, S.A. (Lati) in March 2025 and the related increase in lease expenses. Fitch expects this margin to remain stable over the rating horizon, as operational savings from efficiency initiatives are likely to be partially offset by higher lease expenses. Low Leverage, Strong Cash Flow: Comcel's 'bbb-' SCP reflects its low leverage and strong FCF before dividends upstream to Millicom. Fitch projects cash flow from operations of around USD650-USD700 million annually through 2028, with annual capex in the range of USD160 million to USD180 million. Fitch expects this cash flow to be primarily upstreamed through annual dividends and shareholder loans to fund acquisition. Net debt/EBITDA ratio is expected to remain below 2.0x and improve toward 1.6x through the rating horizon, supported by strong profitability and cash flow generation. Peer Analysis Comcel's largest competitor is Claro Guatemala, a subsidiary of America Movil S.A.B. de C.V. (AMX; A-/Stable). While AMX has a stronger financial profile than Comcel's parent, Millicom, Fitch does not expect the company to materially take market share from Comcel over the rating horizon, as Comcel maintains a leading brand presence and robust network infrastructure. Comcel's credit profile compares favorably with regional telecom peers in the 'BB' rating category, supported by its high profitability, strong cash flow generation, and its leading market position in Guatemala. The company's credit profile is similar to that of its peers Telefonica Celular del Paraguay S.A.E. (Telecel; BB+/Stable), Millicom's subsidiary in Paraguay, and Telecomunicaciones Digitales, S.A. (BB+/Stable), Millicom's subsidiary in Panama. Another 'BB' category peer, Colombia Telecomunicaciones S.A. E.S.P. BIC (ColTel; BB+/Stable), has a solid market position in the competitive Colombian market and benefits from its diversified service offerings. ColTel has sustained weaker margins than Comcel, due in part to heightened competition in the Colombian market, while ColTel's FCF has also been pressured by high capital intensity and an upcoming spectrum renewal. Comcel's SCP is constrained by its low geographic diversification and weak operating environment. Fitch’s Key Rating-Case Assumptions - Mid- to low-single digit annual revenue growth driven primarily by migration from prepaid subscribers to postpaid; - Mobile subscriber growth flat to slightly positive over the rating horizon, with postpaid subscriber growth offsetting decline in prepaid; - Blended mobile average revenue per user (ARPU) growth in the mid-single digits over the rating horizon, driven by a strong postpaid migration and partly offset by softer postpaid ARPU; - Home ARPU growth flat to slightly positive over the forecast horizon; - EBITDA margins are expected to remain stable over the medium term as cost efficiency savings are partially offset by higher lease expenses; - Capital intensity is expected to remain relatively stable around 9.5%; - Annual shareholder distributions to be upstreamed to Millicom in line with Millicom requirement and the company's financial flexibility. 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', Moderate), sector characteristics ('bbb', Lower), market and competitive positioning ('a-', Higher), diversification and asset quality ('bb+', Moderate), company operational characteristics ('bb-', Moderate), profitability ('a-', Moderate), financial structure ('a', Lower), and financial flexibility ('bb+', 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' results in an adjustment of -1 notch(es). The SCP is 'bbb-'. To derive the Long-Term IDR: Application of Fitch's Parent Subsidiary Linkage Rating Criteria results in a consolidated approach with its parent company; Millicom. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A negative rating action on Millicom; - A material weakening of Comcel's SCP; - A multi-notch downgrade of Guatemala's sovereign rating or Country Ceiling could lead to a downgrade of Comcel's Foreign Currency Issuer Default Rating (IDR). Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of Millicom, Comcel's controlling shareholder, would have positive rating implications. Liquidity and Debt Structure Comcel maintains a robust liquidity profile supported by its stable cash flow from operations and well-distributed debt maturities. As of March 31, 2026, the company held USD447 million in cash and equivalents, with short-term debt of around USD51 million. Approximately 93% of cash and equivalents were held in USD, with the remaining amount in GTQ. The company's debt consisted of USD971 million in bank financing and USD738 million in bonds due 2032. Issuer Profile CT Trust is a special-purpose vehicle (SPV) created in the Cayman Islands to issue senior unsecured notes on behalf of Comcel Group, a group of several legal entities providing telecommunication services in Guatemala under the Tigo brand. Summary of Financial Adjustments - Lease adjustments Public Ratings with Credit Linkage to other ratings Comcel's ratings are linked to Millicom through Fitch's "Parent and Subsidiary Linkage Rating Criteria." 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 CT Trust (Comcel). 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 Prior ----------- ------ ----- CT Trust (Comcel) LT IDR BB+ Affirmed BB+ LC LT IDR BB+ Affirmed BB+ senior unsecured LT BB+ Affirmed BB+ ============= J A M A I C A ============= JAMAICA: Bartlett Calls For Greater Focus On Community Tourism -------------------------------------------------------------- RJR News reports that Tourism Minister Edmund Bartlett said Jamaica will not achieve its goal of generating US$10 billion in annual tourism earnings over the next decade by relying solely on the construction of 20,000 new hotel rooms. Mr. Bartlett said greater emphasis must be placed on community tourism and locally owned enterprises to ensure that more of the sector's earnings remain in the Jamaican economy, according to RJR News. Speaking at the recent Tourism Resilience Symposium, the minister noted that the tourism industry currently provides direct employment for about 175,000 people and supports another 350,000 jobs indirectly, the report notes. He argued that community tourism has a stronger multiplier effect than the traditional or inclusive model because it creates more opportunities for local businesses, farmers, artisans and other service providers, the report relays. 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 =========== DEL MONTE: Minority Lenders' Ch. 11 Direct Appeal Move Fails ------------------------------------------------------------ Vince Sullivan at law360.com reports that a New Jersey bankruptcy judge denied a motion from minority secured lenders of fruit company Del Monte seeking certification for a direct appeal of the company's Chapter 11 plan confirmation order, saying there aren't any pure legal issues to be decided by the circuit court. About Del Monte Founded in 1886 and headquartered in Walnut Creek, California, the Del Monte business has been a cornerstone of American grocery stores for more than 130 years. Del Monte Foods has been driven by its mission to nourish families with earth's goodness. As the original plant-based food company, Del Monte is always innovating to make nutritious and delicious foods more accessible to consumers across its portfolio of beloved brands, including Del Monte, Contadina, College Inn, Kitchen Basics, JOYBA, Take Root Organics and S&W. On the Web: http://www.delmontefoods.com/or http://www.joyba.com/ On July 1, 2025, Del Monte Foods Corporation II, Inc. and 17 affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. D.N.J. Lead Case No. 25-16984) to address $1.235 billion in funded debt obligations. At the time of the filing, the Debtors listed $1 billion to $10 billion in both assets and liabilities. Judge Michael B. Kaplan presides over the case. The Debtors tapped Herbert Smith Freehills Kramer (US), LLP and Cole Schotz P.C. as legal counsel; Jonathan Goulding, managing director at Alvarez & Marsal North America, LLC, as chief restructuring officer; and Stretto, Inc. as claims and noticing agent. The U.S. Trustee for Regions 3 and 9 appointed an official committee to represent unsecured creditors. The committee hired Morrison & Foerster LLP as counsel; Province, LLC as financial advisor; Kelley Drye & Warren LLP as co-counsel; and Stifel, Nicolaus & Co., Inc. as investment banker. FIDEICOMISO IRREVOCABLE 2400: Fitch Ups A-2 MXN Notes Rating to BB+ ------------------------------------------------------------------- Fitch Ratings has upgraded the International and National Scale ratings assigned to notes issued by Fideicomiso Irrevocable y Traslativo de Dominio Numero 2400 (Trust 2400 - Sponsored by GICSA). For Classes A-1 MXN and A-1 USD ratings were upgraded to 'BBB-sf' from 'BB+sf', and to 'AAA(mex)vra' from 'AA(mex)vra'. For Class A-2 MXN rating was upgraded to 'BB+sf' from 'BBsf', and to 'AA+(mex)vra' from 'A+(mex)vra'. The Rating Outlook is Stable. Entity/Debt Rating Prior ----------- ------ ----- Trust 2400 (Sponsored by GICSA) A-1 MXN XS2094574584 LT BBB-sf Upgrade BB+sf A-1 MXN XS2094574584 Natl LT AAA(mex)vra Upgrade AA(mex)vra A-1 USD 89835RAA2 LT BBB-sf Upgrade BB+sf A-1 USD 89835RAA2 Natl LT AAA(mex)vra Upgrade AA(mex)vra A-2 MXN XS2094576282 LT BB+sf Upgrade BBsf A-2 MXN XS2094576282 Natl LT AA+(mex)vra Upgrade A+(mex)vra KEY RATING DRIVERS Improved Cash Flow Inflows: Asset performance continues to show a positive trend, as evidenced by increasing collection proceeds and higher occupancy levels. Collection rates appear to have stabilized, with smaller variances between accrued and actual amounts collected. As of March 2026, the LTM average collections of MXN186 million exceeded those in the previous review (March 2025: MXN174 million). Overall performance remains in line with Fitch's assumptions used to determine the Fitch Net Cash Flow (FNCF), which was MXN1,354 million as of March 2026 (March 2025: MXN1,286 million). The LTM average occupancy as of March 2026 was 93.2%, higher than the 91.6% in March 2025. All properties have a positive or stable trend in occupancy. Stable Portfolio Characteristics: Fitch expects retail sector performance to remain flat and dependent on anchor stores spaces. The office sector continues it gradual recovery, although below pre-pandemic levels. Consequently, Fitch's cap rate was 11.5%, in line with market expectations and portfolio composition. Some portfolio characteristics have improved, as the weighted average remaining lease term increased to 37 months from 30 months in its previous review. The servicer said capex has been used to improve and expand available spaces at higher-demand properties. This could further increase the number of tenants and total revenue. Property Value Updated: Fitch property value was updated at MXN11,900.7 million considering the current cap rate of 11.5%. As of March 2026, the transaction classes had an outstanding balance of MXN6,439.5 million, USD89.4 million, and MXN536.6 million for Classes A-1 (MXN), A-1 (USD), and A-2 (MXN), respectively. The agency calculated an LTV of 67.7% for Class A-1 and 72.2% for Class A-2, both in line with the notes' rating levels, after considering the current outstanding balance of the notes and updated Fitch's property value. Adequate Structural Mechanisms: DSCR levels reported by GICSA have consistently remained above their minimum levels for both MXN DSCR and USD DSCR. As of March 2026, the reported MXN DSCR and USD DSCR were 1.43x and 2.23x, respectively (compared to 1.41x and 2.78x in 1Q25). Fitch views the transaction's structure as strong, which protects the notes from performance deterioration. It also contains triggers that could accelerate amortization or even result in property disposal. The transaction also maintains cash reserves that support payment obligations, although payment obligation of the notes is ultimate principal. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - If the occupancy rate and cash flow generation deteriorate beyond Fitch's expectations, resulting in a constant use of reserves and lower debt coverage. - An increase in operational risks that impacts collections and/or limits the transaction's liquidity. - Fitch analyzed the sensitivity of the rating to changes in the NCFF under additional stress scenarios. The results show that a 10% decrease in the NCFF could lead to a downgrade of at least one rating notch relative to the current ratings. Meanwhile, decreases of 20% or more in the NCFF could lead to a downgrade of multiple rating levels. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Currently the senior tranches are in the maximum achievable rating. Series A-2 is capped due to subordination. 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. 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. =========== P A N A M A =========== BANISTMO S.A.: Fitch Lowers Long-Term IDR to 'BB', Outlook Stable ----------------------------------------------------------------- Fitch Ratings has downgraded Banistmo, S.A.'s (Banistmo) Long-Term Issuer Default Rating (IDR) to 'BB' from 'BB+' and the National Long-Term Rating to 'AA(pan)' from 'AA+'. At the same time, the Viability Rating (VR), the Short-Term IDR and the National Short-Term Rating were affirmed at 'bb', 'B' and 'F1+(pan)', respectively. The Rating Watch Negative on the ratings was removed and the Rating Outlook on Banistmo's Long-Term Ratings is Stable. The agency has also withdrawn the Shareholder Support Rating (SSR) and assigned a Government Support Rating (GSR) of 'ns'. Simultaneously, Fitch downgraded the Long-Term Rating of the senior unsecured debt to 'BB' from 'BB+' and downgraded the National Long-Term Rating of the senior unsecured debt to 'AA(pan)' from 'AA+(pan)' following corresponding actions on their respective anchor ratings. These actions reflect the completion of Banistmo's sale by Grupo Cibest (Cibest) to Inversiones Cuscatlán Centroamarica S.A. (ICC; not rated by Fitch) on June 30, 2026. Following the transaction, Banistmo became a subsidiary of ICC through Banco La Hipotecaria S.A. (BLH), which acquired 100% of the bank's shares. As of the end of June 2026, Banistmo was consolidated within the group led by BLH and is no longer part of Cibest's group structure, ceasing the potential for shareholder support previously associated with Cibest. Banistmo's IDRs are driven by its VR. Fitch does not have analytical coverage of ICC; therefore, Fitch does not currently have sufficient information to assess ICC's potential ability and propensity to support Banistmo. The SSR was withdrawn given that it is no longer considered to be relevant to Fitch's coverage. Key Rating Drivers Intrinsic Creditworthiness: Banistmo's ratings are now driven by its Standalone Credit Profile, as evidenced by its VR of 'bb'. The VR was affirmed reflecting its good business profile and established presence in Panama's private banking system, where it is one of the top private players. The bank's franchise is supported by a strong corporate and retail banking business. Ratings also reflect the stable financial profile with pressured asset quality metrics, recent improvements in profitability ratios, sufficient capital buffers, and a sound and diversified funding structure. Fitch expects that the bank's standalone performance will remain commensurate with current ratings over the medium term. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A deterioration in asset quality that denotes a weakening in the bank's risk profile could pressure Banistmo's VR. The VR could also be downgraded because of a sustained deterioration of profitability and asset quality ratios that undermines the bank's financial performance, driving a decline in its CET1 ratio consistently below 10% and/or its operating profitability/RWA metric consistently below 0.5%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Over the medium to long term, an upgrade of Banistmo's VR would require its capital adequacy ratio — comprising CET1 and the counter cyclical buffer — to improve to and be maintained at 16% of RWAs or higher, together with a consistent and substantial strengthening of its core profitability ratio to levels closer to 2% and a significant improvement in asset quality (with a Stage 3 ratio at levels closer to 5%). OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Senior Debt Rating Equalized to Long-Term Ratings: Banistmo's senior unsecured debt rating is equal to the bank's ratings on both the international and local scales. This is due to Fitch's belief that the debt probability of default is the same as that of the issuer given that senior obligations have average recovery prospects. Government Support Rating: Fitch has assigned a GSR of 'no support' or 'ns' to Banistmo, which reflects that while support from the government is possible, it cannot be relied upon. Fitch believes Panama has a limited ability to support the banking system and domestic systemically important banks, primarily due to the size of the banking system and the lack of a lender of last resort. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES Senior Debt Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Banistmo's senior unsecured debt would mirror any potential downgrade on the bank's international and national ratings. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Banistmo's senior unsecured debt would mirror any potential upgrade on the bank's international and national ratings. GSR Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Because the GSR is currently at its lowest level on the respective scale, there is no downside potential for the GSR. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Because Panama is a dollarized country with no lender of last resort, an upgrade of the GSR is unlikely. VR ADJUSTMENTS The operating environment score of 'bb+' is below the 'bbb' category implied score due to the following adjustment reason: Sovereign rating (negative). The earnings & profitability score of 'b+' is below the 'bb' category implied score due to the following adjustment reason: Earnings stability (negative). The Viability Rating of 'bb' is above the 'bb-' implied Viability Rating due to the following adjustment reason: Business profile (positive). 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 Prior ----------- ------ ----- Banistmo S.A. LT IDR BB Downgrade BB+ ST IDR B Affirmed B Natl LT AA(pan) Downgrade AA+(pan) Natl ST F1+(pan) Affirmed F1+(pan) Viability bb Affirmed bb Government Support ns New Rating Shareholder Support WD Withdrawn bb+ senior unsecured LT BB Downgrade BB+ senior unsecured Natl LT AA(pan) Downgrade AA+(pan) ===================== P U E R T O R I C O ===================== BED BATH: Investor Can Keep Profits, 2d Circuit Affirms ------------------------------------------------------- Rick Archer of Law360 Bankruptcy Authority reports that the Second Circuit ruled Tuesday, July 7, 2026, that an investor may retain profits earned from trading Bed Bath & Beyond shares, affirming a lower court's dismissal of claims that the investor improperly avoided federal short-swing trading restrictions through contractual ownership limits. The bankrupt retailer's successor alleged that Hudson Bay Capital Management used derivative contracts with ownership blockers as a façade to sidestep Section 16(b) of the Securities Exchange Act. The appeals court disagreed, finding the provisions effectively prevented Hudson Bay from acquiring more than 9.99% of the company's stock and therefore shielded it from insider trading liability, the report relays. The panel concluded the complaint failed to plausibly allege that the ownership caps were illusory or that Hudson Bay ever crossed the statutory ownership threshold. As a result, the investor is entitled to keep the disputed trading profits, ending the company's effort to recover the proceeds, according to Law360. About Bed Bath & Beyond Bed Bath & Beyond Inc., together with its subsidiaries, is an omnichannel retailer selling a wide assortment of merchandise in the Home, Baby, Beauty & Wellness markets and operates under the names Bed Bath & Beyond, buybuy BABY, and Harmon, Harmon Face Values. The Company also operates Decorist, an online interior design platform that provides personalized home design services. At its peak, Bed Bath & Beyond operated the largest home furnishing retailer in the United States with over 970 stores across all 50 states, consistently at the forefront of major home and bath trends. Operating stores spanning the United States, Canada, Mexico, and Puerto Rico, Bed Bath & Beyond offers everything from bed linens to cookware to electric appliances, home organization, baby care, and more. Bed Bath & Beyond closed over 430 locations across the United States and Canada before filing Chapter 11 cases, implementing full-scale wind-downs of their Canadian business and the Harmon branded stores. Left with 360 Bed Bath & Beyond, and 120 buybuy BABY stores, Bed Bath & Beyond Inc. and 73 affiliated debtors on April 23, 2023, each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code to pursue a wind-down of operations. The cases are pending before the Honorable Vincent F. Papalia and requested joint administration of the cases under Bankr. D.N.J. Lead Case No. 23-13359. Kirkland & Ellis LLP and Cole Schotz P.C. are serving as legal counsel, Lazard Frares & Co. LLC is serving as investment banker, and AlixPartners LLP is serving as financial advisor. Bed Bath & Beyond Inc. has retained Hilco Merchant Resources LLC to assist with inventory sales. Kroll LLC is the claims agent. BITCOIN DEPOT: Court Approves $1.4MM Chapter 11 Asset Sale ---------------------------------------------------------- Rick Archer of Law360 Bankruptcy Authority reports that a Texas bankruptcy court has authorized cryptocurrency kiosk operator Bitcoin Depot to proceed with the sale of more than $1.4 million in assets following a competitive auction held last week. The approval marks another step in the company's Chapter 11 case as it works to liquidate selected assets and maximize recoveries for creditors. According to court proceedings, the assets were offered through a court-approved bidding process designed to attract competitive offers. After reviewing the auction results, the debtor selected the highest or best bids and requested authorization to finalize the sales, arguing that the transactions were in the best interests of the bankruptcy estate. With the court's approval, the successful purchasers may now complete the acquisitions. The sale proceeds are expected to support the company's ongoing restructuring and creditor repayment process under Chapter 11, the report states. About Bitcoin Depot Inc. Bitcoin Depot, Inc. is a Delaware corporation with its principal place of business in Georgia that operates the largest cryptocurrency kiosk network in North America, claiming to operate more than 8,400 Bitcoin ATMs across the United States, Canada, and Puerto Rico. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 26-90528) on May 18, 2026. In the petition signed by W. Alexander Holmes, director, the Debtor disclosed up to $50 million in both assets and liabilities. Paul E. Heath, Esq., at Vinson & Elkins LLP, represent the Debtor as legal counsel. PUERTO RICO: Bondholders Remain Ready to Lead Bankruptcy Exit ------------------------------------------------------------- Certain bondholders of the Puerto Rico Electric Power Authority on July 14, 2026, has issued the following statement: As the tenth year of the Puerto Rico Electric Power Authority bankruptcy commences, five points remain clear: (1) the Financial Oversight and Management Board continues to pursue an approach that does not account for the legal rights of PREPA's bondholders or the overwhelming evidence that repayment can be achieved with fair and reasonable rates; (2) PREPA's bankruptcy is impeding it from accessing the funding--including from the capital markets and from PREPA's bondholders--needed to repair, upgrade, and properly maintain PREPA's power system; (3) under the FOMB's oversight, more than $12 billion in available U.S. federal funding for PREPA's power grid remains underutilized while PREPA languishes in bankruptcy; (4) as PREPA's bankruptcy continues to drag on, the condition of PREPA's power system continues to deteriorate, affecting reliability, public safety, and economic growth in Puerto Rico; and (5) the FOMB's advisors extend their multi-billion-dollar payday. The FOMB's public disclosure of a two-paragraph mediation proposal to pay less than a quarter of the accreted bond claim is the most recent example of an approach that does not provide a constructive path toward resolution. The FOMB made the disclosure despite knowing that the proposal would not engender constructive engagement because it-- (a) lacked any relationship to PREPA's income-generating capacity or the legal rights of PREPA's bondholders as previously determined by the United States Court of Appeals for the First Circuit, (b) ignored the most recent data regarding Puerto Rico's financial performance, and (c) did not account for recent rulings of PREPA's regulator, PREB, including the importance of a reasonable estimate of expenditures and the impropriety of funding capital expenses from current revenues. Despite the fact that the FOMB's proposal was dead on arrival, certain of PREPA's bondholders' advisors nevertheless posed questions regarding its basis to try to gain some understanding of the FOMB's perspective. Rather than responding, the FOMB instead chose to publish the proposal. As such, the public disclosure appears designed to create the misimpression with the Court overseeing PREPA's bankruptcy case and the President of the United States (who appoints and has the power to remove and replace members of the FOMB) that the FOMB is engaging constructively to resolve PREPA's bankruptcy case, which it is not. PREPA's bondholders remain prepared to support a prompt resolution of PREPA's nine-year bankruptcy case, which has already taken longer to resolve than any municipal bankruptcy in history. This is not new. Over the past several years, PREPA's bondholders have made multiple proposals to resolve PREPA's bankruptcy, including two separate comprehensive restructuring proposals that the FOMB accepted but later terminated to pursue meritless litigation claims. Despite the FOMB's bad-faith course, PREPA's bondholders remain willing to resolve PREPA's bankruptcy on a consensual basis and provide, among other things, $2.5 billion of immediately available funding to pay the claims of all other creditors and to begin funding the long overdue capital expenditures required to restore PREPA's reliability. A prompt conclusion to PREPA's bankruptcy case as proposed by PREPA's bondholders would restore PREPA's access to the capital markets and facilitate PREPA's ability to access the billions of dollars of U.S. federal government aid previously promised. The FOMB has adopted the false narrative that PREPA cannot both pay the bonds that funded the buildout of PREPA's power grid while also funding future maintenance and upgrades. This is simply wrong. A consensual resolution of PREPA's bankruptcy remains the only path to securing the funding required to improve PREPA's power grid and achieve the associated economic benefits for the island within any relevant timeframe. Rather than continuing a strategy that will result in further delay and adverse consequences for the island, the FOMB should engage constructively with PREPA's bondholders toward a consensual resolution that benefits PREPA, its creditors, and the people of Puerto Rico. Contacts: Longacre Square Partners Joe Germani PREPA@Longacresquare.com About the Commonwealth of Puerto Rico; Puerto Rico Electric Power Authority (PREPA) PREPA is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico PROMESA petition is available at http://bankrupt.com/misc/1701578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agencies; Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case Web site https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. =========================== V I R G I N I S L A N D S =========================== CHAMPION PATH: Fitch Lowers Rating on Senior Unsecured Notes to 'B' ------------------------------------------------------------------- Fitch Ratings has downgraded Champion Path Holdings Limited's senior unsecured rating to 'B', from 'BB-', with a Recovery Rating of 'RR5'. The rating action is to correct the omission of Champion Path Holdings Limited from the previous rating action commentary published 22 May 2026. Champion Path Holdings Limited is a subsidiary of SJM Holdings Limited (SJMH, B+/Stable). Champion Path Holdings Limited's notes are rated at the same level as SJMH's senior unsecured rating, as they represent SJMH's unconditional and irrevocable obligations. Key Rating Drivers Please refer to the previous rating action commentary published 22 May 2026. Peer Analysis Please refer to the previous rating action commentary published 22 May 2026. Fitch's Key Rating-Case Assumptions Please refer to the previous rating action commentary published 22 May 2026. Corporate Rating Tool Inputs and Scores Please refer to the previous rating action commentary published 22 May 2026. Recovery Analysis Please refer to the previous rating action commentary published 22 May 2026. RATING SENSITIVITIES Please refer to the previous rating action commentary published 22 May 2026. Liquidity and Debt Structure Please refer to the previous rating action commentary published 22 May 2026. Issuer Profile Please refer to the previous rating action commentary published 22 May 2026. 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 Please refer to the previous rating action commentary published 22 May 2026. ESG Considerations Please refer to the previous rating action commentary published 22 May 2026. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Champion Path Holdings Limited senior unsecured LT B Downgrade RR5 BB- ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2026. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *