260810.mbx

260810.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, August 10, 2026, Vol. 27, No. 158 Headlines A R G E N T I N A ARGENTINA: Milei Guts Bill to Ease Property Laws in Face of Uproar ARGENTINA: Renews US$19-Billion China Swap for Another Five Years B E R M U D A TFP INTERMEDIATE: Moody's Assigns 'Ba3' CFR, Outlook Stable B R A Z I L BANCO BMG: Fitch Affirms 'BB-' Long-Term IDR, Outlook Stable BANCO COOPERATIVO: Fitch Assigns 'BB' Long-Term IDR, Outlook Stable D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Raises Gasoline and Diesel Prices for Aug.8-14 J A M A I C A DIGICEL INTERNATIONAL: Fitch Hikes IDR to 'B+', Outlook Stable P A N A M A LOS DORADOS: Seeks Court Approval to Hire PM Law PC as Counsel P A R A G U A Y TELEFONICA CELULAR: Fitch Affirms BB+ Long-Term IDR, Outlook Stable P U E R T O R I C O ANCARLO BROTHERS: Hires Mr. Monroig as Real Estate Broker GOVASSIST LLC: Hires Juan C. Bigas Valedon Law Office as Counsel X X X X X X X X LATAM: IDB Expands Financing for Security in Region to $4 Billion - - - - - ================= A R G E N T I N A ================= ARGENTINA: Milei Guts Bill to Ease Property Laws in Face of Uproar ------------------------------------------------------------------ Manuela Tobias at Bloomberg News reports that President Javier Milei's latest push to lure private investment to Argentina suffered a setback as lawmakers watered down legislation to ease limits on foreign land ownership in response to fierce backlash. The bill will still head to the Senate for a vote, but without a key chapter that would have increased a cap on how much rural territory foreigners may own, according to a statement from Milei's top senator, Patricia Bullrich, Bloomberg News notes. Protesters are expected outside Congress to push back against the legislation, which was already delayed last month and is seen by some citizens as selling off the country, according to Bloomberg News. The combination of public uproar and Milei's approval ratings lingering near the lowest level of his Presidency appear to have forced his government to withdraw the most contentious measures, Bloomberg News says. Labour unions and opposition leaders are summoning their supporters to the streets, while pop stars, football players, actors and other public figures have piled on, accusing Milei's government of trying to reap profit from Argentina's land, Bloomberg News notes. The national team's World Cup match against England last month also stoked patriotic fervour, reviving tensions in a decades-long territorial dispute over the Falkland Islands, the UK-controlled archipelago off the Argentine coast known locally as Las Malvinas, Bloomberg News relays. Milei's original bill, introduced in March, eliminated caps on foreign land ownership, from a current limit of 15 percent, Bloomberg News notes. A version introduced raised the limit to 25 percent at the national and provincial levels, but that portion of the bill has been shelved now, Bloomberg News says. The surviving parts of the legislation would expedite evictions, ease property recovery after the state takes ownership and remove land-use restrictions after fires, Bloomberg News relates. The decision came after a meeting of Senate bloc leaders representing the 44 senators from Milei’s party and its allies, out of the chamber's 72 members, Bloomberg News relays. "The decision was adopted unanimously among the members of the space in order to keep working on this chapter and reach a greater level of consensus," Bullrich's press office said in a statement. "The postponement does not represent its elimination," Bloomberg News notes. The property bill was seen by some in the government as a bellwether for an electoral reform that seeks to eliminate, or at least suspend, primaries during the 2027 election, Bloomberg News says. Markets are paying close attention to that reform as it's expected boost Milei's chances of re-election and reduce the market volatility that typically shakes Argentina's economy throughout the prolonged electoral period, Bloomberg News adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The countryâ€™s economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) â€” with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Moody's Ratings, on July 21, 2026, has upgraded the Government of Argentina's long-term local and foreign-currency issuer ratings to B3 from Caa1 and changed the outlook to positive from stable. The upgrade reflects Moody's assessments that Argentina's default risk has declined materially as macroeconomic stabilization has advanced beyond the initial adjustment phase into a more durable improvement in credit fundamentals, a sign of improving governance. Fitch Ratings, on May 5, 2026, upgraded Argentina's Long-Term Foreign Currency and Local Currency Issuer Default Rating (IDR) to 'B-' from 'CCC+'. The rating Outlook is Stable. S&P Global Ratings, on Dec. 17, 2025, raised its local currency sovereign credit ratings on Argentina to 'CCC+/C' from 'SD/SD'. S&P also raised its long-term foreign currency sovereign credit rating to 'CCC+' from 'CCC' and affirmed its 'C' short-term foreign currency rating. The outlook on the long-term ratings is stable. In addition, S&P raised its issue ratings on local currency bonds to 'CCC+' from 'CCC'. Its 'B-' transfer and convertibility assessment is unchanged. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024, and confirmed such ratings in November 2025. ARGENTINA: Renews US$19-Billion China Swap for Another Five Years ----------------------------------------------------------------- Manuela Tobias at Bloomberg News reports that Argentina secured a key source of reserves through the 2027 presidential election after the Central Bank renewed its roughly US$19-billion currency swap with the People's Bank of China for five years. The renewal covers the entire swap line and the activated portion that Argentina has been using since 2023 remains at about US$5 billion, the monetary authority said in a statement, according to Bloomberg News. The duration of the new deal has been extended by two years, Bloomberg News relates. "This agreement strengthens the close cooperation between the two institutions and the excellent relationship they have maintained over the 17 years since the first agreement was signed in 2009," the bank said, Bloomberg News notes. Bloomberg News says that Central Bank Governor Santiago Bausili met with PBOC Governor Pan Gongsheng during a June symposium hosted by the Bank for International Settlements in Shanghai. Ahead of the meeting, Bausili signalled the two sides were engaged in discussions to renew their swap under the same conditions as in the past, Bloomberg News discloses. "We're talking with them to extend it, as always," Bausili said at a May press conference in Buenos Aires. "This continues to be stable and quasi-permanent," he added. Bloomberg News relays that Milei's leftist predecessor activated a portion of the swap line in 2023 to make payments owed to the International Monetary Fund and finance imports ahead of the election. Milei has already paid down the vast majority of those US$5 billion, with only about US$680 million remaining, according the latest Central Bank figures, Bloomberg News discloses. Geopolitical strains between the Unied States and China at one point cast doubt on the renewal of the swap line, especially after a Trump administration official said it was an extortionary arrangement that should come to an end, Bloomberg News says. While US Treasury Secretary Scott Bessent said Milei was "committed to getting China out of Argentina" after throwing him a US$20-billion lifeline last year, he never specified the swap should come to an end. Bessent did, however, say Milei's economic reforms should give Argentina enough foreign exchange inflows to pay off the active US$5-billion portion, Bloomberg News notes. Economy Minister Luis Caputo, alongside Foreign Minister Pablo Quirno, are expected to travel to China soon after the two countries settle trade talks ahead of a separate trip by Milei, Quirno said in a recent radio interview, Bloomberg News adds. Milei faces a re-election bid in late 2027, at the same time as the country must pay more than US$25 billion in debt maturities, Bloomberg News relays. Election years in Argentina have historically strained the Central Bank as demand for dollars surges, Bloomberg News says. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The countryâ€™s economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) â€” with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Moody's Ratings, on July 21, 2026, has upgraded the Government of Argentina's long-term local and foreign-currency issuer ratings to B3 from Caa1 and changed the outlook to positive from stable. The upgrade reflects Moody's assessments that Argentina's default risk has declined materially as macroeconomic stabilization has advanced beyond the initial adjustment phase into a more durable improvement in credit fundamentals, a sign of improving governance. Fitch Ratings, on May 5, 2026, upgraded Argentina's Long-Term Foreign Currency and Local Currency Issuer Default Rating (IDR) to 'B-' from 'CCC+'. The rating Outlook is Stable. S&P Global Ratings, on Dec. 17, 2025, raised its local currency sovereign credit ratings on Argentina to 'CCC+/C' from 'SD/SD'. S&P also raised its long-term foreign currency sovereign credit rating to 'CCC+' from 'CCC' and affirmed its 'C' short-term foreign currency rating. The outlook on the long-term ratings is stable. In addition, S&P raised its issue ratings on local currency bonds to 'CCC+' from 'CCC'. Its 'B-' transfer and convertibility assessment is unchanged. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024, and confirmed such ratings in November 2025. ============= B E R M U D A ============= TFP INTERMEDIATE: Moody's Assigns 'Ba3' CFR, Outlook Stable ----------------------------------------------------------- Moody's Ratings has assigned a Ba3 corporate family rating and Ba3-PD probability of default rating to TFP Intermediate Holdings I Limited. Moody's have also assigned a Ba3 rating to the backed senior secured term loan (TL) to be issued by TFP Financing Bermuda Limited, and its co-borrower TFP US Financing LLC. The outlook assigned to all entities is stable. TFP Intermediate Holdings I Limited sits at the top of the TFP group's restricted perimeter, above both borrowing entities and all operating companies comprising The Fidelis Partnership (TFP), including its managing general agents (MGAs), and will act as the top holding company guarantor of the group's TL. It is directly owned by TFP Group Limited, the Bermuda-based ultimate holding company of the TFP group. The TFP group in its current form was established following the 2023 bifurcation of Fidelis Insurance Holdings Limited, a specialist insurer originally founded in 2014, into an MGA and risk allocator (The Fidelis Partnership or TFP) and an insurance carrier, Fidelis Insurance Holdings Limited, which was recently rebranded to Pelagos Insurance Capital Limited (Pelagos, issuer rating Baa2, stable). RATINGS RATIONALE --- Corporate Family Rating --- The Ba3 CFR assigned to TFP Intermediate Holdings I Limited reflects the TFP group's strong franchise and relevance in the specialty insurance market, its high level of underwriting leadership, and its position as a scalable, well diversified MGA and risk allocator. The group's credit profile is further reinforced by its exceptionally high profit margins and good quality earnings, underpinned by the group's ability to generate high-margin placement fee income on the business it originates which, in turn, reflects its over-the-cycle strong underwriting performance track-record. These strengths are somewhat tempered by TFP's limited scale relative to the global commercial insurance market and high debt burden, which will continue to constrain financial flexibility over the coming 12-18 months. Notwithstanding the group's strong long-term underwriting track record, a sustained weakening in results would not only reduce profit commissions in the near term, but could also undermine the confidence of capital providers, potentially leading to reduced capacity or less favourable placement terms, which over time could result in a more pronounced impact on growth and earnings. TFP's close relationship with Pelagos under a long-term framework agreement introduces some concentration, however, Moody's views the partnership as credit positive overall as Pelagos provides stability, strong visibility and a dependable baseline level of capacity to TFP. At the same time, TFP continues to diversify and expand its panel of capital providers, benefiting from underwriting capacity sourced from a range of providers, including third-party backed Lloyd's syndicates. The group has delivered robust organic revenue and EBITDA growth since its separation from the balance sheet carrier, which Moody's expects to continue. This will be augmented by its ability to attract underwriting talent and scale up its plug-and-play Managing General Agent (MGA) platform, Pine Walk. Moody's also expects high margin placement fees to continue to support market leading EBITDA margins of around 60%, and strong net profit margins above 15%. Whilst some earnings volatility risk is an inherent feature of the MGA business model and profit commission income, TFP's disciplined underwriting approach, strong risk selection capabilities, expertise in its chosen niche specialty segments, and diversified, short-tail specialty portfolio should help sustain robust underwriting performance through future insurance and macroeconomic cycles. The proceeds from the new $2.04 billion backed senior secured TL issuance will be used to refinance the group's existing debt, which primarily stems from the 2023 separation. Following the refinancing transaction, debt-to-EBITDA will stand around 4.7x with relatively modest earnings coverage of interest of around 2.5x on a YE2025 pro-forma basis. However, Moody's expects these metrics to improve in line with organic EBITDA growth. More positively, the new term loan extends the group's debt maturity profile, reduces its interest expense, diversifies its funding sources, and demonstrates TFP's access to public debt markets. The assigned ratings also incorporate TFP's environmental, social and governance (ESG) considerations, as per Moody's General Principles for Assessing Environmental, Social and Governance Risks methodology. Moody's assessments of TFP's exposure to governance risks is reflected in a Governance Issuer Profile Score (IPS) of G-3, driven by its concentrated private ownership and relatively high debt burden. --- Probability of Default Rating and Term Loan Ratings --- The Ba3-PD PDR is in line with the CFR reflecting Moody's assumptions of a 50% family recovery rate, which is standard for covenant-lite loan structures. The Ba3 rating on the backed senior secured TL is in line with the CFR. This reflects the largely senior secured debt within the group's capital structure. --- Outlook --- The stable outlook reflects Moody's expectations that TFP will continue to deliver robust organic revenue growth whilst maintaining strong profit margin, consistent with its recent track record, with a steady improvement in earnings coverage of interest and leverage. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Factors that could lead to an upgrade include: (1) a material expansion in the group's revenue base without diluting the group's underwriting performance; (2) debt-to-EBITDA ratio below 3.5x; (3) (EBITDA - capex) coverage of interest above 4.5x; and (4) free-cash-flow-to-debt ratio exceeding 10%. The following factors could lead to a ratings downgrade: (1) debt-to-EBITDA above 4.5x; (2) a sustained material decline in EBITDA margins or underwriting performance; and/or (3) a weakening in the group's liquidity or cash flow generation with (EBITDA - capex) coverage of interest consistently below 3.5x. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Insurance Brokers and Service Companies published in February 2024. =========== B R A Z I L =========== BANCO BMG: Fitch Affirms 'BB-' Long-Term IDR, Outlook Stable ------------------------------------------------------------ Fitch Ratings has affirmed Banco BMG S.A.'s (BMG) Long-Term Foreign Currency and Local Currency Issuer Default Ratings (IDRs) at 'BB-', with a Stable Outlook. Fitch has also affirmed the bank's National Long-Term Rating at 'A(bra)' and maintained its Positive Outlook. The Positive Outlook on BMG's National Rating reflects its strengthening financial profile. This is supported by improving profitability, a more favorable portfolio mix toward higher-margin products, and a credible capital recomposition strategy. If sustained, these trends could support an upgrade of the National Rating over the next 12 months. BMG remains concentrated in payroll-deductible loans, which have faced recent regulatory changes. These include interest rate caps, shorter maximum terms, operational limits, and the discontinuation of certain products. Further changes to payroll loans or other secured lending products could affect profitability and competition within the segment. Key Rating Drivers IDRs Driven by VR: Banco BMG S.A.'s (BMG) ratings reflect its role as a significant mid-sized participant in Brazil's payroll lending market, with a franchise anchored in secured credit and strong origination capabilities. These attributes support credit quality and provide balance sheet flexibility through recurring credit assignments. Liquidity is also a credit strength, supported by a large buffer of highly liquid assets. These factors partially offset the structural constraints posed by modest capitalization and a large volume of deferred tax assets. The National Long-Term Rating reflects BMG's credit quality relative to other Brazilian issuers. Fitch considers the bank's strengthened profitability and gradual progress in capital recovery as increasingly positive factors. Sustained improvements in these areas could close the gap with higher-rated peers on the national scale. Operating Environment at 'bb': The Operating Environment score for Brazil's banks is based on Brazil's GDP per capita of USD12,000 and Fitch's Operational Risk Index (ORI) of 47.5 (percentile ranking). Fitch expects growth to decelerate further to 1.9% in 2026 from 2.3% in 2025, reflecting the lagged effect of tight monetary policy and waning effects of past fiscal stimulus. A resilient labor market, income tax changes and other credit-related policy stimulus ahead of elections will provide support. Resilient Niche Franchise: BMG is a mid-sized Brazilian bank with a long-established franchise in payroll-deductible lending, focused on lower-income retail clients, particularly Instituto Nacional do Seguro Social (INSS) retirees and pensioners aged 50 and above. As of March 2026, the bank served over 9.3 million customers and had gross loans of BRL24.1 billion, with payroll loans accounting for 71.7% of the portfolio. Its solid niche positioning and strong customer reach support recurring revenue generation. This was reflected in annualized total operating income of USD752 million in 1Q26, up from a four-year average of USD634 million. At the same time, BMG continues to rely on portfolio sales to support profitability and preserve capital. This provides balance sheet flexibility but limits earnings retention over time. Moderate Risk Profile: BMG's credit risk cost remains low, reflecting the large share of secured payroll loans, which represented 71.7% of the loan book at the end of 1Q26. However, the bank operates in a competitive and regulated segment, where interest rate caps and long average durations introduce market and repricing risk. While the bank actively manages this exposure through hedging, the entire payroll sector experienced headwinds in early 2025 from regulatory developments such as biometric verification requirements and heightened fraud scrutiny at INSS. Stable Asset Quality: BMG's asset quality metrics remained stable in recent quarters despite the new regulatory framework under CMN Resolution 4,966. Fitch's core metric of Stage 3 loans to total loans ratio, was 6.0% at end-March 2026, unchanged from 1Q25 and 4Q25. The 2021-2024 average of D-H loans under the Resolution CMN 2,682 was 5.8%. Fitch expects BMG's focus on the payroll business and tight underwriting standards to contain impaired loan formation, supporting stable core metrics at current levels. Profitability Consistently Improving: BMG's profitability has improved materially over recent years, supported by the run-off of lower-yielding businesses, tighter cost control and stronger cross-selling. Operating profit/RWAs was 1.3% at end-March 2026, in line with 2024 and 2025 and above 0.1% in 2022 and 0.4% in 2023, while the four-year average reached 1.5%. Earnings were also supported by improving efficiency, with the efficiency ratio at 52.4% in 1Q26 versus 57.8% in 4Q25 and 3Q25, and by rising client engagement and product penetration. Fitch expects profitability to continue benefiting from scale gains, a more profitable business mix and disciplined execution, although still-elevated civil litigation costs related to payroll clients remain a constraint on earnings. Capitalization Still Constrained: The CET1 ratio fell to 8.61% at end-March 2026 from 9.72% at end-2025, mainly reflecting the phased implementation of CMN Resolution 4,966/21, a regulatory impact expected to recur in early 2027. This was partially offset by a BRL214 million capital injection approved in March 2026 and homologated in April 2026, which lifted pro forma Tier 1 and total capital ratios to 9.8% and 12.9%, respectively, reflecting continued shareholder support and capital flexibility. Fitch expects a leaner cost structure, improving profitability, RWA-mitigating credit assignments, and gradual tax-credit monetization to support a CET1 ratio approaching 10% over 2026. If that trajectory is sustained, it would strengthen the bank's capital buffers relative to its risk profile. Diversified Funding, Robust Liquidity: BMG has made significant progress in diversifying its funding base and expanding access to institutional and capital markets, evidenced by recent issuances — including subordinated financial bills, senior debt, and payroll-backed debentures — priced at tighter spreads, which support the bank's funding cost management. The bank's core funding metric, gross loans/customer deposits, stood at a conservative 106.5% as of March 2026, broadly in line with its four-year average of 105.2%, reflecting a stable relationship between the loan book and the deposit base despite the ongoing shift toward institutional and capital markets funding. This is further underpinned by strong liquidity buffers, with the liquidity coverage ratio reaching 284% and the net stable funding ratio reaching 123%, both well above regulatory minimums, reinforcing Fitch's view of the bank's credit-supportive liquidity position. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade IDRs and Viability Rating (VR) BMG's ratings could be negatively affected if the CET1 to risk-weighted asset (RWA) ratio consistently fell below 9% and the operating profit to RWA ratio declined to below 1%. Fitch believes this would likely result from sharp asset quality deterioration. National Ratings Fitch could revise the Outlook to Stable if there is an unexpected deterioration in profitability, asset quality, or liquidity metrics, or delays in the execution of the bank's capital strengthening strategy. Increased risk appetite or weakening of the secured lending focus would also be negative from a credit perspective. Additional regulatory risks, including volatilities in the payroll market, could also pressure BMG's National Ratings. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade IDRs and VR In the long term, positive rating actions on BMG'S IDRs and VR would most likely result from a significant improvement in its business profile, driven by consistent increases in TOI, an operating profit to RWA ratio sustained above 3% and a CET1 ratio consistently above 12%. National Ratings An upgrade of the National Long-Term Rating could result from continued strengthening in earnings generation and internal capital formation, particularly if profitability is sustained and leads to an operating profit to RWA ratio of about 2% on a sustained basis. A sustained improvement in capitalization and execution of the recapitalization plan, with a CET1 ratio above 10%, would also support a higher rating. If the payroll segment in Brazil remains challenging, an upgrade could still occur if BMG maintains stronger buffers in credit metrics, especially profitability and capitalization, with a Basel ratio above 13% consistently. Government Support Rating The GSR of 'No Support' (NS) reflects BMG's small franchise within the Brazilian financial system (less than 1% of customer deposits at 2025). In Fitch's view, there is no reasonable assumption of forthcoming support. Government Support Rating Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade BMG's GSR could be upgraded by a material improvement of its system importance. Factors that Could, Individually or Collectively, Lead to Downgrade Rating Action/Upgrade BMG's GSR downgrade potential is not possible as it is at the lowest level of the scale VR ADJUSTMENTS The asset quality score of 'bb-' is above the 'b & below' category implied score due to the following adjustment reason: collateral and reserves (positive). The earnings & profitability score of 'b+' is below the 'bb' category implied score due to the following adjustment reason: earnings stability (negative). 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 ----------- ------ ----- Banco BMG S.A. LT IDR BB- Affirmed BB- ST IDR B Affirmed B LC LT IDR BB- Affirmed BB- LC ST IDR B Affirmed B Natl LT A(bra) Affirmed A(bra) Natl ST F1(bra) Affirmed F1(bra) Viability bb- Affirmed bb- Government Support ns Affirmed ns BANCO COOPERATIVO: Fitch Assigns 'BB' Long-Term IDR, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has assigned Banco Cooperativo Sicoob S.A. (Banco Sicoob) a first-time Foreign and Local Currency Long-Term Issuer Default Rating (IDR) of 'BB' and a Foreign and Local Currency Short-Term IDR of 'B'. The Rating Outlook is Stable. Fitch has also assigned Banco Sicoob a Government Support Rating (GSR) of 'b' and a Viability Rating (VR) of 'bb'. Key Rating Drivers IDRs Driven by Group Viability Rating: Banco Sicoob's IDRs are driven by the 'bb' group VR, which reflects the consolidated credit profile of the Sistema de Cooperativas de Credito do Brasil - Sicoob (Sicoob) cooperative system, analyzed by Fitch on a combined basis. The VR is positioned at the level of Brazil's sovereign rating (BB/Stable) and is constrained by the operating environment and the system's material exposure to the Brazilian public sector through its treasury. The Stable Outlook mirrors that of the sovereign. Strategic Relevance in the System: The ratings reflect the essential role of Banco Sicoob in the Sicoob System, which comprises 14 centrals, 328 singular cooperatives, and more than 8.5 million members. The bank acts as treasury and liquidity provider for the group, as well as the main channel of access to markets and institutional credit lines, granting the system business scale, revenue generation and stable deposit funding. Strong Support Mechanisms: Banco Sicoob operates in close integration with the system's cooperatives, with which it shares its brand and centralizes controls, governance and strategy. The Sicoob structure does not yet have mutual guarantee mechanisms across all cooperatives, but there is a long track record of cooperation and incorporation, with no losses to members in recent economic cycles Strong, Diversified Cooperative Franchise: Sicoob is one of the two largest Brazilian cooperative financial systems, accounting for around 36% of the cooperative segment's assets, with the country's largest physical service network and growing regional diversification. It is also one of only two domestic cooperative systems that own a bank. These factors translate into a clear competitive advantage over cooperative peers in scale, access to stable deposits and business diversification. At the end of 2025, on a combined basis, the system held BRL430.0 billion in assets (up 19.5% in 2025), BRL266.9 billion in customer deposits (up 15.8%) and BRL216.4 billion in gross loans (up 11.5%). Well-Managed Risk Amid Rapid Growth: Credit risk remains the principal exposure. The loan book is highly granular — the sixth largest borrowers represent less than 5% of loans — and benefits from a high level of collateral, which contains loss severity. Several years of rapid, double-digit loan growth are a key risk consideration, mitigated by centrally monitored controls, a system-wide risk appetite framework and a centralized collections hub. The migration to the expected-loss framework (Resolution CMN 4,966) was completed without material disruption. Adequate Asset Quality; Strong Reserve and Collateral Cover: Impaired (Stage 3) loans were around 9% of the loan book at the end of 2025, having normalized from a 2024 peak, with a four-year average close to 10%. Asset-quality ratios are elevated in absolute terms but are supported by strong loss-allowance coverage (total allowances of about 7% of gross loans and reserve coverage of impaired loans that rose markedly to above 80% on adoption of the new regime), a high level of collateral and very low single-name concentration. Fitch views the conservative, centrally governed classification and provisioning policies as supportive of the assessment. Recovering Profitability: Profitability strengthened in 2025 as net income rose 25.6% to BRL10.4 billion, lifting return on average equity to 17.7% (16.5% in 2024) and operating profit to risk weighted assets at about 3.7%. The improvement reflected a lower cost of risk — from the 2024 level, when provisions had been reinforced ahead of the new regulation — alongside continued growth in net interest income and fees. Structurally low taxation, stemming from the income tax exemption on activities within the cooperative system, remains a recurring advantage for capital generation; pre-impairment operating profit was close to 5% of average assets. Sound System Capitalization: The cooperative system is not subject to a consolidated regulatory capital requirement; capitalization is monitored at the bank and central-cooperative level and is sound. Audited combined equity stood at BRL62.7 billion at the end of 2025 (14.6% of assets) and the managed combined Basel ratio was around 20.9% in December 2025, sustained by strong internal capital generation. For Banco Sicoob's prudential conglomerate, the Common Equity Tier 1 ratio was 17.4% and the Basel ratio was 19.2% at the end of 2025, reflecting the conservative and well-managed capital structure. Stable, Deposit-Based Funding: A diversified, low-cost funding structure, underpinned by the broad base of member deposits, is a structural advantage over peers. Customer deposits were the system's main funding source at the end of 2025, representing roughly three-quarters of total funding, and are highly granular, with the 10 largest depositors at around 5% of the total. The loans-to-customer deposits ratio averaged close to 97% over four years. Surplus liquidity is managed centrally by Banco Sicoob, predominantly in Brazilian federal government securities and short-term repos; this concentration links the liquidity profile to the sovereign. Government Support: Sicoob's Government Support Rating (GSR) of 'b' reflects Fitch's view that there is a moderate, albeit limited, probability of extraordinary support from the Brazilian sovereign for the cooperative system in a stress scenario. While Sicoob's national market shares in loans and deposits are below the level Fitch generally associates with domestic systemic importance, the agency considers the group to be systemically relevant, reflecting its role in bancarization and financial inclusion, a membership base of more than 9.5 million, and its position as the sole financial institution presence in over 400 municipalities. The GSR is underpinned by the group's liability structure, which is heavily weighted toward retail household deposits; in Fitch's view, this granular, deposit-based funding profile raises the authorities' propensity to support the institution in order to protect depositors and preserve financial stability. Nonetheless, the GSR is lower than that of Brazil's largest and more systemically important banks, reflecting its sub-D-SIB market shares and lower interbank interconnection. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade of Brazil's sovereign rating, given that the VR is positioned at the sovereign level and the system carries material sovereign exposure through its treasury; - A sustained deterioration in profitability — for example, operating profit falling below about 1.25% of risk-weighted assets on a sustained basis — whether driven by a marked weakening in asset quality or by extraordinary events; - A sustained reduction in the system's capitalization, a decline in the managed common-equity ratio toward 14%; - A material and sustained contraction of the deposit base, or a marked weakening of intrasystem cohesion, that weakens the group's liquidity or credit profile. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of Brazil's sovereign rating, provided the system maintains its current financial profile, given the close linkage between the VR and the sovereign; - Upside is otherwise limited as the implied VR is at the sovereign level, and the system's large sovereign exposure and domestically concentrated, deposit-funded model constrain the standalone profile to the sovereign. Date of Relevant Committee 03-Jul-2026 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 ----------- ------ Banco Cooperativo Sicoob S.A. – Banco Sicoob LT IDR BB New Rating ST IDR B New Rating LC LT IDR BB New Rating LC ST IDR B New Rating Viability bb New Rating Government Support b New Rating =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Raises Gasoline and Diesel Prices for Aug.8-14 ------------------------------------------------------------------ Dominican Today reports that for the week of August 8–14, 2026, the Ministry of Industry, Commerce and MSMEs (MICM) announced increases of RD$3.00 per gallon for premium gasoline and optimal diesel, and RD$2.00 for regular gasoline and regular diesel. Prices for LPG and natural gas will remain unchanged. According to the report, the Official Fuel Prices for August 8–14, 2026, are: -- Premium Gasoline: RD$341.10 (+RD$3.00) -- Regular Gasoline: RD$304.50 (+RD$2.00) -- Optimal Diesel: RD$293.10 (+RD$3.00) -- Regular Diesel: RD$256.80 (+RD$2.00) -- LPG: RD$135.20 (unchanged) -- Natural Gas: RD$43.97 (unchanged) Effective Date: The new prices take effect every Saturday at 12:00 AM, the report notes. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCR-LA reported in April 2019 that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Standard & Poor's credit rating for Dominican Republic was raised to 'BB' in December 2022 with stable outlook. Moody's credit rating for Dominican Republic was last set at Ba3 in August 2023 with the outlook changed to positive. Fitch, in December 2023, affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' and revised the outlook to positive. ============= J A M A I C A ============= DIGICEL INTERNATIONAL: Fitch Hikes IDR to 'B+', Outlook Stable -------------------------------------------------------------- Fitch Ratings has upgraded Digicel International Finance Limited's Long-Term Issuer Default Rating (IDR) to 'B+' from 'B'. Fitch also upgraded Digicel's senior secured notes and term-loan issuances (co-issued by DIFL US LLC) to 'B+' with a Recovery Rating of 'RR4'. The Rating Outlook is Stable. The upgrade reflects Digicel's consistent financial improvement and ongoing deleveraging. The company has partially repaid its term loan B and should continue to generate consistent FCF. Adequate profitability, moderate capex, and no dividend payments support this cash flow, which can be used to further reduce net debt. Digicel's ratings reflect its position as the leading Caribbean telecom operator. While its credit metrics are consistent with a higher rating than 'B+', the IDR is constrained by weak operating environments in Haiti and El Salvador, currency depreciation risks and expected still low interest coverage ratios. Digicel's liquidity is strong, with no significant debt maturity until 2032. Key Rating Drivers Financial Strategy Progress: The upgrade reflects Digicel's steady progress on its financial strategy. Management remains committed to deleveraging, and Fitch expects Digicel to generate FCF that it can continue to use to strengthen its balance sheet. Digicel's voluntary USD100 million term-loan B repayment in April 2026 supports this view. Together, these factors support the IDRs. Deleveraging Trend: Fitch expects adjusted gross leverage to decrease to 3.7x in fiscal 2027 (3.9x in fiscal 2026) based on improved EBITDA, interest expenses of about USD230 million and the term-loan downsizing. Fitch expects net leverage to trend toward 3.1x by fiscal 2027 (3.4x in fiscal 2026). Strong Competitive Position: The ratings reflect Digicel's strong market and diversification across 25 Caribbean markets, where duopoly conditions often reduce the risk of new entrants and sustain consistent EBITDA margins (before leases) of about 40%. In the mobile segment, most of Digicel's subscribers are pre-paid consumers, making them more price sensitive. While Digicel is expanding into higher-growth business-to-business (B2B) solutions and home entertainment (business-to-consumer [B2C] broadband and TV), these segments contribute about 25% of revenues. Positive FCF: Fitch expects Digicel to generate positive FCF based on its moderate capex and lack of dividend payments. Fitch projects adjusted EBITDA (post leases) of approximately USD730 million-USD740 million for fiscal 2027, from approximately USD710 million reported in fiscal 2026, which incorporates Hurricane Melissa's impact. This is driven by low single-digit growth in the B2B and fixed operations, steady subscriber base from its mobile operations, single digit increase in ARPU and lower costs due to operating efficiency measures. Fitch projects capex-to-sales to remain close to 10% in fiscal 2027. Financial Flexibility Constrains SCP: Digicel's Standalone Credit Profile (SCP) remains constrained by its financial flexibility score. The high cost of debt keeps expected EBITDA interest coverage at 3.0x to 3.5x over the next few years. FX risk also constrains the SCP because Digicel's debt is in U.S. dollars, while part of its revenue is in weaker local currencies. At the same time, Digicel has improved its debt maturity profile and liquidity. In 2025, the company raised about USD2.7 billion in new secured financing, extended major debt maturities to 2032, and established a new USD200 million secured RCF. Weak Operating Environment: Digicel's weak operating environment has a one-notch impact on the company's SCP. Fitch estimates that 20% of Digicel's revenues comes from Haiti and El Salvador. Exposure to weak and volatile operating environments constrains the rating. Haiti represents about 16% of the company's revenues, and the current civil unrest there could cause earnings volatility and operating losses. Peer Analysis Digicel has a stronger credit profile compared with Liberty Communications of Puerto Rico LLC (LCPR; CCC). Digicel has a larger scale and better geographical diversification, despite its presence in weaker economic environments. LCPR also faces higher refinance risks and cannot count on support from its shareholder, LLA. Digicel's rating is lower than its regional diversified telecom peers in the speculative grade rating categories, including Millicom International Cellular S.A. (BB+/Stable) and Cable & Wireless Communications Limited (BB-/Positive). Digicel's business profile is relatively smaller and less diversified on a service basis due to its reliance on mobile and exposure to non-investment-grade countries with significant exchange rate volatility. Fitch’s Key Rating-Case Assumptions - Revenue growth of about 1%-2%; - EBITDA margins (post leases) of about 38%-40%; - Average capex of close to 10% of revenues; - No dividend payments to controlling shareholders. - Fitch assesses the group's credit profile using Digicel Holding (Bermuda) Limited's financials, which are closely aligned with Digicel's metrics. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('bb+', Moderate), sector characteristics ('bbb', Lower), market and competitive positioning ('bbb', Moderate), diversification and asset quality ('bbb', Moderate), company operational characteristics ('bbb', Moderate), profitability ('bb+', Moderate), financial structure ('bb+', Moderate), and financial flexibility ('b', Higher). The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the latest historical year FY26, 40% for the forecast year FY27 and 40% for the forecast year FY28. The governance assessment of 'good' has no impact. The operating environment assessment of 'b+' results in an adjustment of -1 notch(es). The SCP is 'b+'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'B+'. Recovery Analysis The recovery analysis assumes the company would be reorganized as a going concern in bankruptcy rather than liquidated. Fitch has assumed a 10% administrative claim. Digicel's going concern EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the enterprise value. The going concern EBITDA assumption of USD604 million represents a 15% discount to Fitch's FY26 EBITDA. Fitch uses an enterprise value/EBITDA multiple of 5.0x, reflecting the company's long-term prospects and good market shares in mostly duopoly markets amid a scenario of financial distress. Fitch forecasts recovery rates commensurate with 'RR1' for DIFL's senior secured notes and term loan. The secured debt instrument recovery ratings are all capped at 'RR4' as most of the countries Digicel operates are in Category D. This results in ratings equal to the IDRs, in accordance with Fitch's Country Specific Treatment of Recovery Ratings Criteria, which constrains the upward notching of instruments. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Deterioration of liquidity or performance; - Negative FCF on a sustained basis; - Debt/EBITDA above 4.0x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Higher visibility around long term growth and ownership structure; - CFO-capex/debt above 7.5% on a sustained basis; - Debt/EBITDA below 3.0x and EBITDA net leverage below 2.5x on a sustained basis; - EBITDA Interest Coverage above 4.0x on a sustained basis; - Improvement in the company's main operating environments; Liquidity and Debt Structure Fitch expects Digicel's liquidity to remain robust over the rating horizon, mainly supported by its cash balance and the expectation that the company will generate positive FCF over the next three years. The extension of Digicel's debt maturity schedule to 2032 and the addition of the new USD200 million RCF have improved its financial flexibility. Issuer Profile Digicel is a diversified telecom operator that provides mobile and fixed-line services to consumers and businesses in the Caribbean. 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 Digicel International Finance Limited. ESG Considerations Digicel International Finance Limited has an ESG RS of '4' for Exposure to Environmental Impacts due to its presence in a hurricane prone region, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- DIFL US LLC senior secured LT B+ Upgrade RR4 B Digicel International Finance Limited LT IDR B+ Upgrade B senior secured LT B+ Upgrade RR4 B =========== P A N A M A =========== LOS DORADOS: Seeks Court Approval to Hire PM Law PC as Counsel -------------------------------------------------------------- Los Dorados Cargo Inc. seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York to hire PM Law PC to serve as bankruptcy counsel. The firm will provide these services: (a) advise the Debtor of its rights, powers, and duties as a debtor-in-possession in continuing to operate and manage its business and assets; (b) advise and consult Debtor on the conduct of this Chapter 11 case, including all of the legal and administrative requirements of operating in Chapter 11; (c) attend meetings and negotiations with representatives of creditors and other parties-in-interest; (d) taking all necessary actions to protect and preserve Debtor's estate, including prosecuting actions on Debtor's behalf, defending any action commenced against Debtor, and representing Debtor in negotiations concerning litigation in which Debtor is involved, including objections to claims filed against Debtorâ€™s estate; (e) review the nature and validity of agreements relating to Debtor’s business and property and advise the Debtor in connection therewith; (f) review the nature and validity of liens, if any, asserted against Debtor and advise as to the enforceability of such liens; (g) advise Debtor concerning the actions Debtor might take to collect and recover property for the benefit of its estate; (h) prepare on Debtor's behalf all necessary and appropriate applications, motions, pleadings, orders, notices, petitions, schedules, and other documents, and review all financial and other reports to be filed in the Debtor's Chapter 11 case; (i) advise Debtor concerning, and preparing responses to, applications, motions, pleadings, notices, and other papers which may be filed in the Debtor’s Chapter 11 case; (j) representing Debtor in connection with obtaining authority to continue using cash collateral and post-petition financing; (k) appear before the Court and any appellate courts to represent the interests of Debtor's estate; (l) advise Debtor concerning tax matters; (m) advising Debtor in connection with any potential sale of assets; (n) counsel Debtor in connection with formulation, negotiation and promulgation of a Chapter 11 Plan; (o) litigation with respect to competing plans; and (p) perform all other legal services for and on behalf of the Debtor which may be necessary or appropriate in the administration of its Chapter 11 case. PM Law PC will receive hourly rates of $650 for Members, $450 for Associates, and $375 for Paralegals. The firm will also seek reimbursement of expenses incurred in connection with this Chapter 11 case, subject to Court approval. PM Law PC is a "disinterested person" within the meaning of 11 U.S.C. Sec. 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached at: Pankaj Malik, Esq. PM LAW PC 14 Penn Plaza 225 West 34th Street, 9th Floor New York, NY 10122 Telephone: (888) 657-5755 Facsimile: (516) 494-0461 E-mail: pankaj@pmlawpcny.com About Los Dorados Cargo Inc. Los Dorados Cargo Inc. is an Elmhurst, New York-based international freight forwarding and courier services provider. The company offers cross-border shipping and logistics solutions, serving customers in more than a dozen Latin American countries, including Panama, Peru, and Venezuela, while also operating a courier location in Jackson Heights, New York. Los Dorados Cargo Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-43341) on July 9, 2026. In its petition, the debtor reported estimated assets of $0 to $50,000 and estimated liabilities of $1 million to $10 million. Honorable Bankruptcy Judge Elizabeth S. Stong handles the case. The debtor is represented by Pankaj Malik, Esq., of PM Law PC. =============== P A R A G U A Y =============== TELEFONICA CELULAR: Fitch Affirms BB+ Long-Term IDR, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed Telefonica Celular del Paraguay S.A.E.'s (Telecel) Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB+'. The Rating Outlook is Stable. Telecel's ratings are linked to its parent company, Millicom International Cellular S.A. (Millicom; 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 Telecel's leading market position, strong profitability, and low leverage which is partially offset by the relatively weak operating environment in Paraguay (BB+/Positive) and the company's low geographic diversification. Key Rating Drivers Open Parent-Subsidiary Relationship: Fitch employs a consolidated approach to Telcel's and Millicom's ratings. Under Fitch's Parent and Subsidiary Rating Linkage Criteria, this approach caps Telcel's ratings at the 'BB+' level of its parent despite Telecel's 'bbb-' Standalone Credit Profile (SCP). The absence of a legal ring-fencing mechanism to restrict cash flows to Millicom exposes Telcel to dividend distributions that could pressure its FCF. Access and control remain open, with no formal policy separating funding and upstream subsidiary lending. Telecel's surplus cash is maintained in the cash pool as a liquidity framework with Millicom. As a holding company, Millicom relies solely on upstream cash flows from its subsidiaries. Strong Profitability: Fitch expects Telcel's EBITDA margins to improve towards 45% through the rating horizon, supported by lower fixed costs and increased prices paired with its strong market position. In 2025, the company improved its profitability margin to 42.7% from 39% in 2024, and margins in LTM 1Q26 expanded to 44%. Fitch expects to see further improvement, driven by operational savings from efficiency initiatives. Telecel historically has one of the highest operating margins among regional telecom operations. Solid Market Position: Fitch believes Telecel will preserve its market leadership, supported by strong network quality in mobile and fixed-line services, strong brand recognition, and investments to modernize and expand its fixed network. Telecel is the leading mobile operator in Paraguay, with a market share of around 55%, and maintains the leading position in broadband and Pay-TV services. Its credit profile benefits from a well-established market position and the country's most extensive network. Cash Flow Drives Deleveraging: Fitch projects solid FCF generation before dividends supported by cash flow from operations that comfortably covers annual capex of around PYG550 billion. In 2026, the company used excess cash flow to pay the remaining USD140 million balance of its USD bond. Fitch expects the company to delever towards 1.0x net leverage through the rating horizon, compared to 1.5x in 2025, driven by debt payments and backed by strong operation cash flows. Fitch anticipates excess cash to be upstreamed to Millicom as annual dividends beginning in 2026. Weak Operating Environment: Paraguay's weak operating environment ('bb') is a limiting factor to Telecel's improvement in its Standalone Credit Profile. Paraguay (BB+/Positive) has a low sovereign rating reflecting weak governance indicators, low revenue base, shallow local capital markets, and vulnerability to climactic shocks. Paraguay's positive outlook reflects strong growth performance and expectations of further improvements. Peer Analysis Telecel compares well with telecom peers in the 'BB' category, given its 'bbb-' SCP, which is supported by a strong financial profile with high profitability and low leverage. Telecel also benefits from its leading position in Paraguay's mobile market backed by solid brand recognition. The SCP is constrained by its low geographic diversification and weak operating environment. Telecel's rating is consolidated with its parent Millicom (BB+/Stable). Telecel's business profile is broadly comparable to that of Colombia Telecomunicaciones S.A. E.S.P. BIC (ColTel, BB+/Stable), an integrated telecom operator in Colombia (BB/Stable). Telecel has a stronger market position than ColTel, although Telecel has a higher reliance on leases. Telecel's credit profile is also stronger than that of Axtel, S.A.B. de C.V. (BB/Stable), reflecting Axtel's lack of service diversification and a weaker financial profile. Telecel's financial profile is stronger than that of higher-rated Empresa Nacional de Telecomunicaciones S.A. (Entel, BBB-/Stable), supported by lower leverage. However, it is less geographically diversified and smaller compared to Entel and other investment-grade peers like America Movil S.A.B. de C.V. (A-/ Stable). The company's credit profile is similar to that of its peers CT Trust (Comcel) (BB+/Stable), Millicom's subsidiary in Guatemala, and Grupo de Comunicaciones Digitales S.A. (BB+/Stable), Millicom's subsidiary in Panama. Fitch’s Key Rating-Case Assumptions - Low-to-mid single digit revenue annual revenue growth with 2026 impacted by the discontinuation of the mobile financial services (MFS) business; - Mobile subscriber growth flat to slightly positive over the rating horizon, with growth in postpaid outpacing decline in prepaid; - Blended mobile average revenue per user (ARPU) growth in low single digits driven by postpaid migration; - Home ARPU growth flat to slightly positive; - EBITDA margins improving to around 45%, benefiting from operational efficiencies; - Stable capital intensity around 12%, with Spectrum renewals in 2026; - Value-creating fees around 5% of revenues; - 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 ('bbb', 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' has no impact. 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 Telecel's 'SCP'. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of Millicom, Telecel's controlling shareholder, would have positive rating implications. Liquidity and Debt Structure Telecel maintains an adequate liquidity position, supported by its readily available cash balance, conservative leverage and strong FCF generation. The company held a cash balance of PYG2,015 billion against short-term debt of PYG533 billion as of March 31, 2026. The company's total debt at 1Q26 was PYG4,552 billion, which consisted mainly of a USD140 million (approximately PYG910 billion) senior unsecured bond due 2027 and local currency bank and bond financing. In 2Q26, the company fully paid the remaining balance of the 2027 bond. Issuer Profile Telecel is the largest telecom operator in Paraguay, providing mobile, fixed broadband, and pay-TV, operating under the Tigo brand. The company has the most extensive mobile and HFC networks in the country. Summary of Financial Adjustments Fitch applied standard lease adjustments. Public Ratings with Credit Linkage to other ratings Telecel'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 Telefonica Celular del Paraguay S.A.E. 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 ----------- ------ ----- Telefonica Celular del Paraguay S.A.E. LT IDR BB+ Affirmed BB+ ===================== P U E R T O R I C O ===================== ANCARLO BROTHERS: Hires Mr. Monroig as Real Estate Broker --------------------------------------------------------- Ancarlo Brothers Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Jorge Odix Feliciano Monroig as real estate broker. Mr. Monroig will market and sell the Debtor's real property located at Road 866 Km. 3.4 Sabana Seca Ward, Toa Baja, Puerto Rico. Mr. Monroig will be paid 3 percent of the gross sales price. As disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Jorge Odix Feliciano Monroig PO Box 632741 San Juan, PR 00936 Tel: (787) 239-0694 Email: happy_commercialjf@yahoo.com About Ancarlo Brothers Inc. Ancarlo Brothers owns a 20,791.76-square-meter parcel of land located at Road 866, Km 3.4, Sabana Seca Ward, Toa Baja, PR, with a comparable sales value estimated at $1.43 million. Ancarlo Brothers Inc. in Toa Baja, PR, sought relief under Chapter 11 of the Bankruptcy Code filed its voluntary petition for Chapter 11 protection (Bankr. D.P.R. Case No. 26-00423) on Feb. 4, 2026, listing $1,433,490 in assets and $1,303,440 in liabilities. Javier Eladio Lopez Quinones, signed the petition. LANDRAU RIVERA & ASSOC. serve as the Debtor's legal counsel. GOVASSIST LLC: Hires Juan C. Bigas Valedon Law Office as Counsel ---------------------------------------------------------------- GovAssist LLC seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Juan C. Bigas Valedon of Juan C. Bigas Valedon Law Office to serve as legal counsel. Mr. Bigas Valedon will provide these services: (a) represent the Debtor in this bankruptcy proceedings; and (b) perform work performed or to be performed by Juan C. Bigas Valedon, Esq., upon application(s) and approval of the Court. Mr. Bigas Valedon will receive a retainer in the amount of $20,000, and will bill on the basis of $350 per hour, plus expenses, for work performed or to be performed, subject to Court approval. Juan C. Bigas Valedon and his law firm is a "disinterested attorney" as defined in 11 U.S.C. Sec. 101(14), according to court filings. The firm can be reached at: Juan C. Bigas Valedon, Esq. Juan C. Bigas Valedon Law Office Urbanizacion Santa Maria 515 Ferrociarril Street Ponce, PR00732 P.O. Box 7011 Ponce, PR 00732-7011 Telephone: (787) 259-1000 Facsimile: (787) 842-4090 E-mail: cortequiebra@yahoo.com About GovAssist LLC GovAssist LLC provides online visa, passport, immigration and travel-document assistance services from its leased office at Metro Office Park in Guaynabo, Puerto Rico. GovAssist LLC, filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 26-03377) on July 22, 2026, with $1,052,987 in total assets and $15,870,949 in total liabilities. The petition was signed by Scott Jason Zuckerman as president. The Debtor hires Juan C. Bigas Valedon Law Office as counsel. =============== X X X X X X X X =============== LATAM: IDB Expands Financing for Security in Region to $4 Billion ----------------------------------------------------------------- At the Regional Security and Justice Summit in Brazil, the Inter-American Development Bank (IDB) announced a historic expansion of financing for security in Latin America and the Caribbean from its previous target of $2.5 billion to $4 billion, reinforcing its commitment to strengthen citizen security, justice, and institutions in the region. This year, the IDB's operational pipeline for security reached $1.42 billion, almost 60% of the three-year (2026-2028) financing target announced during last year's summit in Argentina. This progress has exceeded expectations and reflects a growing demand from member countries seeking comprehensive responses to increasingly sophisticated security challenges. The expanded pipeline builds on the success of the Alliance for Security, Justice, and Development, launched in 2024 in Ecuador. "Last year, we made the commitment to move the Alliance toward a new stage, with a large-scale investment in the region. Now, we are doubling down on our success to bring more security and more sustainable development to the people in the region. We also emphasized a faster and more effective response," said IDB Group President Ilan Goldfajn. "Organized crime brings violence and threatens the well-being of communities. But it also has profound development consequences: it discourages investment, weakens institutions, and ultimately, limits growth and job creation. Security is no longer only a matter of law enforcement. It has become one of the essential conditions for development," Goldfajn added. The IDB project pipeline for citizen security currently spans eight countries, with operations already approved or in preparation in Argentina, Brazil, Costa Rica, Ecuador, Uruguay, Guatemala, Peru, and Chile. The pipeline of the Alliance concentrates on three pillars: preventing violence and protecting vulnerable populations; strengthening security and justice institutions; and combating illicit markets and criminal financial networks. Together, these pillars are helping countries move towards a more coordinated, evidence-based approach to addressing organized crime. The portfolio prioritizes violence prevention, police modernization, public security, interoperability and digital transformation, justice systems, correctional systems, institutional strengthening, and responses to organized crime. In addition to its expanding scale, the Alliance has promoted more agile procedures. Its Rapid Response Task Force, launched at last year’s summit, has already supported Peru, Jamaica, Guatemala, and Brazil by providing specialized technical assistance to address urgent security and justice challenges. To strengthen the Rapid Response Task Force, the IDB and INTERPOL, the world's largest international police network, are developing a historic collaboration across Latin America and the Caribbean. The Alliance is Successfully Promoting Regional Initiatives The Alliance plays a crucial role in translating regional cooperation into practical tools. It is advancing regional public goods to strengthen cooperation across borders. Three regional initiatives highlight its success: Criminal-records exchange system – modeled on Europe's system, it is now moving into a pilot phase and will allow countries to securely exchange criminal records directly across borders. Asset-recovery cooperation – to help countries identify, recover, manage, and return criminal assets more effectively, with the Basel Institute on Governance as a new strategic partner of the Alliance. Observatory on Transnational Organized Crime in South America - beginning with Chile, Colombia, and Brazil, strengthening regional analysis and cooperation against organized crime. The summit marks the launch of this regional initiative. The Alliance is also expanding collaborations with academic institutions that support training and professional development. Brazil Assumes Alliance presidency and signs MOU with the IDB The summit also marks the transition of the Alliance's pro tempore presidency from Argentina to Brazil, which will lead the next phase of regional cooperation. Under Brazil's leadership, the Alliance will continue promoting a common regional agenda focused on prevention, enforcement, justice, and institutional strengthening, while mobilizing the financial and technical resources needed to address organized crime and its impact on development across Latin America and the Caribbean. The IDB and Brazil's Ministry of Justice and Public Security signed a memorandum of understanding to strengthen cooperation in the fight against organized crime, supporting institutional capacity in homicide investigations, arms-trafficking enforcement, asset recovery, and prison security. ********* 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 * * *