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260812.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 Wednesday, August 12, 2026, Vol. 27, No. 160 Headlines A R G E N T I N A ARGENTINA: IDB OKs $500M Loan to Support Energy Subsidies System ARGENTINA: Milei Cuts Section to Pass Property Bill Amid Backlash B E R M U D A ALEA HOLDINGS: Seeks to Hire Omni as Claims and Noticing Agent TFP GROUP: Fitch Assigns 'BB-' Long-Term IDR, Outlook Positive B R A Z I L BRASKEM SA: Creditors Seek Petrobras Capital as Deadline Nears GIGA MAIS: Fitch Assigns First-Time 'B+' LT IDR, Outlook Stable J A M A I C A JAMAICA: Remittance Inflows Expected to Decline M E X I C O LEISURE INVESTMENTS: Seeks Court OK to Sell Manatees, Dolphins T R I N I D A D A N D T O B A G O A.S. BRYDEN & SONS: Reports 90% Profit Decline For 1H of 2026 - - - - - ================= A R G E N T I N A ================= ARGENTINA: IDB OKs $500M Loan to Support Energy Subsidies System ---------------------------------------------------------------- The Board of Executive Directors of the Inter-American Development Bank (IDB) has approved a $500 million operation to support the implementation of Argentina's new Targeted Energy Subsidies System (SEF), aimed at protecting access to energy for vulnerable households and strengthening the sustainability of the country’s energy subsidy scheme. The operation will support the transition toward a more targeted, efficient, and fiscally sustainable subsidy system. To this end, it will finance subsidies for natural gas consumption through the gas distribution network and bottled gas (LPG) for eligible households, while also strengthening the institutional capacities required to implement, manage, and monitor the new scheme. The IDB-supported program will directly benefit approximately 1.2 million households receiving support for natural gas network consumption and 3.5 million bottled gas users. In addition, the operation will strengthen the technical and institutional capacities of the Secretariat of Energy and the National Gas and Electricity Regulatory Authority through the development of information systems, analytical tools, and improvements to targeting and monitoring mechanisms, contributing to more efficient and transparent program management. The IDB loan has a repayment term of 25 years, a 5.5-year grace period, and an interest rate based on SOFR. 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: Milei Cuts Section to Pass Property Bill Amid Backlash ----------------------------------------------------------------- Manuela Tobias at Bloomberg News reports that Javier Milei's government was forced to abandon another section of its private property legislation before it passed, underscoring the Argentine president's challenges in attracting private investment to the crisis-prone nation. The bill passed the Senate in a 37-33 vote after a lengthy debate, but not before Milei's party removed a key section that would have eased land-use restrictions in the aftermath of a fire, intentional or not, according to Bloomberg News. The government had already stripped out the bill's centrepiece, which eased limits on foreign property ownership, Bloomberg News notes. Protesters outside Congress railed against the legislation, clashing with security forces using tear gas, rubber bullets and water cannons to clear the streets, Bloomberg News says. Pop stars, actors and other public figures joined leftist politicians and labor unions accusing the government of trying to sell off Argentina's land, Bloomberg News relates. Bloomberg News discloses that the backlash against the bill is but one factor weighing heavily on Milei's public image. Some 62 percent of Argentines disapproved of the president in July, up four percentage points from June, compared to 37 percent who regarded him favourably, according to LatAm Pulse, a survey conducted by AtlasIntel for Bloomberg News. Milei's original bill, introduced in March, eliminated caps on foreign land ownership, from a current limit of 15 percent at the national, provincial and departmental level, Bloomberg News notes. A version introduced raised the limit to 25 percent before that section was scrapped in response to the uproar, Bloomberg News says. Surviving parts of the legislation would expedite evictions and ease property recovery after the state takes ownership, an attempt to spur investment after decades of interventionist state policies constrained property values, Bloomberg News relates. "While Milei retains a solid shot at re-election, his approval rates are far from compelling. Even if the manufacturing drag eases somewhat, he's unlikely to enjoy a smooth path to a second term. Lingering uncertainty should continue to weigh on Argentine assets through the vote," said Jimena Zuniga, Argentina economist for Bloomberg. The private 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 presidential election, Bloomberg News relays. 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 notes. The bill will now go to the lower house for another vote, 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. ============= B E R M U D A ============= ALEA HOLDINGS: Seeks to Hire Omni as Claims and Noticing Agent -------------------------------------------------------------- Alea Holdings US Company, and its affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Omni Agent Solutions, Inc. as claims, noticing, and solicitation agent. Omni will oversee the distribution of notices and will assist in the maintenance, processing, and docketing of proofs of claim filed in the Chapter 11 cases of the Debtors. Before the petition date, the Debtors provided Omni an advance in the amount of $50,000. Paul Deutch, an executive vice president at Omni Agent Solutions, 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 through: Paul H. Deutch Omni Agent Solutions, Inc. 5955 De Soto Ave., Ste. 100 Woodland Hills, CA 91367 Telephone: (917) 364-0508 About Alea Holding US Company Alea Holdings US Co. is an insurance services company owned by Catalina Holdings, a Bermuda-based provider of insurance run-off solutions. The company specializes in administering legacy insurance liabilities, including claims from discontinued or transferred insurance portfolios. Alea Holdings US operates within Catalina's platform of businesses focused on the efficient management and resolution of long-term insurance obligations. Alea Holding US Company and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 26-90714) on July 19, 2026. The case is jointly administered in Case No. 26-90714. In their petitions, the Debtors disclosed estimated assets between $10 million and $50 million and estimated liabilities between $1 million and $10 million. The Debtors tapped Sidley Austin LLP as bankruptcy counsel; Province LLC as financial advisor; and Greenberg, LLP as special committee counsel. Omni Agent Solutions Inc. is the Debtors' claims, noticing, and solicitation agent. TFP GROUP: Fitch Assigns 'BB-' Long-Term IDR, Outlook Positive -------------------------------------------------------------- Fitch Ratings has assigned TFP Group Limited (TFP, dba The Fidelis Partnership) a Long-Term Issuer Default Rating (IDR) of 'BB-'. The Outlook is Positive. Fitch has also assigned a 'BB(EXP)' rating with Recovery Rating of 'RR3' to the approximately USD2.0 billion senior secured debt and USD200 million RCF that TFP US Financing LLC and TFP Financing Bermuda Limited expect to issue as co-borrowers. The ratings reflect TFP's strong historic execution, robust profitability, moderate leverage and expected higher free cash flow generation. However, its smaller scale relative to the broader insurance distribution landscape and high carrier concentration partly offset these strengths. The Positive Outlook reflects Fitch's expectation that TFP's cash flow, leverage and interest coverage metrics will improve to levels compatible with a higher rating over the next 18 months. Key Rating Drivers Moderate Leverage; Strong Organic Growth: TFP's organic growth since its formation has been strong. Its strategy favours an incubator model through its Pine Walk platform, rather than execution-dependent debt-funded acquisitions. Fitch expects TFP's Fitch-defined EBITDA leverage to fall below 4.0x by 2028 from about 5.0x in 2025 due to earnings growth, annual debt amortisation and organic expansion. Fitch expects TFP to sustain a prudent financial policy. A sustained increase in leverage from debt-funded growth or more aggressive shareholder distributions could pressure the rating. Projected Improving Cash Flow: Fitch expects TFP's cash flow from operations (CFO) to strengthen as its working capital (WC) outflows decline with the maturation of its commission collection profile. The business's weighted cash collection pattern has constrained cash conversion in its early years of standalone operations since 2023, leading to a weak CFO less capex over debt metric (cash flow leverage) for the rating. Fitch expects this effect to moderate over time, with WC outflows declining materially as a percentage of revenue to 12% in 2028 from 27% in 2025. This is likely to support a Fitch-defined free cash flow (FCF) margin of 9% and cash flow leverage of 10.5% by 2028. This would be consistent with a higher rating and supports its Positive Outlook. High Carrier Concentration: TFP's extensive geographic reach covers more than 140 countries and Fitch considers this and its diverse product portfolio of over 150 lines of business supportive. However, high carrier concentration, with Pelagos Insurance Capital accounting for more than 50% of total premiums, offsets this. Growth of Lloyd's of London's capacity to USD1.3 billion from nil over the past two and a half years demonstrates progress in reducing concentration. Fitch expects TFP to continue diversifying its capacity providers and reach a more balanced written premium split, although this will remain concentrated with Pelagos Insurance Capital and Lloyds. Favourable Capacity Relationships: Capacity access is a key rating consideration for managing general agents (MGAs) as the business is largely commission-based and depends on premium underwriting volume. Fitch considers TFP's long-term relationships with capacity providers as supportive of its business profile. The company benefits from a 10-year rolling binder agreement with Pelagos Insurance Capital and underwrites on behalf of Lloyd's syndicates that are supported by investors with multi-year horizons, which provide stable underwriting capacity and reflect confidence in its underwriting performance and delegated authority controls. These arrangements mitigate, albeit do not eliminate, the risks associated with carrier concentration. Growth Execution Supports Scale: TFP remains fairly small in global insurance distribution, but it has expanded to become a top 10 global MGA, with revenue growing at a 20% CAGR over 2023-2025. Fitch expects revenue growth in the high single digits to low double digits through 2030. Strong underwriting discipline supports this, with TFP estimating a 45% loss ratio since 2017 for underwriting on behalf of Pelagos Insurance Capital compared with 64% for other public company carriers. This helps TFP secure placements on attractive insurance risks and act as lead underwriter on about 90% of placements, which Fitch expects to strengthen carrier relevance and pricing influence. High Margins; Scalable Operating Model: Fitch expects TFP's EBITDA margin to remain about 60% through 2030, due to the scalability of its delegated underwriting platform, the maturation of Pine Walk entities and embedded technology across underwriting and support functions. These features, along with insurance line diversification, will likely allow premium and revenue growth with limited incremental expense, supporting operating leverage and mitigating pressure from softer conditions in certain lines. Peer Analysis TFP's margins are high, but Ryan Specialty Holdings, Inc. (BB+/Stable) exhibits greater business diversification and larger scale. Ryan also has lower leverage, stronger EBITDA interest coverage, stronger cash flow leverage metrics (CFO less capex to total debt) and a higher free cash flow margin. Fitch also considers TFP's ratings relative to larger, more diversified peers in the insurance distribution landscape including Marsh & McLennan Companies, Inc. (A-/Stable), Aon Public Limited Company (BBB+/Stable), Willis Towers Watson PLC (BBB+/Stable), Arthur J. Gallagher & Co. (BBB+/Stable) and Brown & Brown Inc (BBB/Stable). Each of these issuers is larger, meaningfully more diversified and have a long-term track record of solid execution across their businesses in various parts of the economic and underwriting cycles. Fitch also considers TFP relative to a rated universe of private issuers in the insurance distribution and services landscape. TFP differentiates itself from lower-rated peers through its fully organic growth strategy, which reduces execution risk and places less pressure on its financial structure than acquisition-led models. Navacord Intermediate Holdings Inc. (B/Stable), a Canadian brokerage firm, for example, has much weaker credit metrics after an acquisition, despite a similar solid pattern of historic growth and positive FCF. TFP's carrier concentration is higher versus many Fitch-rated peers, but TFP benefits from product and geographic diversification, as well as a differentiated business model that relies on large, multi-year capacity lines with its key carriers (Pelagos Insurance Capital and to some extent Lloyd's). Fitch’s Key Rating-Case Assumptions - Organic revenue growth of around 11% in 2026 and more than 8% per annum afterwards; - Fitch-defined EBITDA margins decrease modestly in 2026 and remain near 60% throughout the forecast; - Effective interest rate declining to the range of 7% to 8%, following the refinancing of the capital structure; - FCF profitability improves in the next few years as collection patterns mature and WC outflows normalize; - Capex remains at 2.5% to 3% of revenue over the forecast horizon; - No M&A assumed in forecast. M&A has been a key strategy element for many rated peers, but Fitch believes TFP remains focused on organic growth for now; - Fitch assumes the company may use excess CF generation for shareholder returns in the form of dividends over the ratings horizon. 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', Lower), market and competitive positioning ('bb+', Moderate), diversification and asset quality ('b+', Higher), company operational characteristics ('bbb+', Lower), profitability ('bb+', Moderate), financial structure ('bb-', Higher), 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 'aa-' has no impact. The SCP is 'bb-'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'BB-'. Recovery Analysis Fitch rates TFP's senior secured debt following its generic approach for 'BB' rating category issuers. The senior secured term loan and RCF are rated at 'BB' with Recovery Rating of 'RR3'. The debt is rated one notch higher than the IDR, reflecting a high intangibles asset base and services-oriented business that Fitch believes could reduce recovery prospects for the senior secured debt class compared to 'BB' rated issuers with more tangible asset bases. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage sustained above 5x; - (CFO-capex)/debt sustained below 5%; - EBITDA interest coverage below 3x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA leverage sustained below 4x; - (CFO-capex)/debt sustained above 7.5%; - Higher EBITDA/FCF scale and/or more balanced carrier diversification. Liquidity and Debt Structure Fitch expects TFP's liquidity to remain sufficient throughout the rating horizon, supported by USD127 million of cash on balance sheet at end-December 2025 and USD150 million of available capacity under its RCF. Fitch also expects positive FCF to provide support liquidity. Additionally, except for the 1% amortization of the term debt, the company has no debt maturing before the revolver comes due in 2029 and a term loan matures in 2031. The contemplated refinancing is expected to extend these maturities further, to 2031 for the RCF and 2033 for the term loan and increase the RCF capacity to USD200 million. Issuer Profile TFP is a leading global MGA headquartered in Bermuda. It was established in 2023 following the separation of the original Fidelis Insurance Group (now known as Pelagos Insurance Capital) and is privately owned. Date of Relevant Committee 28-Jul-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 The results of its Climate.VS screener did not indicate an elevated risk for TFP. 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 Recovery ----------- ------ -------- TFP US Financing LLC senior secured LT BB(EXP) Expected Rating RR3 TFP Financing Bermuda Limited senior secured LT BB(EXP) Expected Rating RR3 TFP Group Limited LT IDR BB- New Rating =========== B R A Z I L =========== BRASKEM SA: Creditors Seek Petrobras Capital as Deadline Nears -------------------------------------------------------------- Milena Thomas, writing for Briefs Finance, reports that a group of creditors, including Elliott Investment Management and Contrarian Capital Management, wants Petrobras to put real money into Braskem S.A.. They have floated options like equity, working capital, or junior debt. Petrobras, for its part, has pushed back, notes Briefs Finance. The company has balked at committing fresh capital, worried that taking a bigger share would drag Braskem's liabilities onto its books. According to the report, the situation is complicated because Petrobras and the private equity firm IG4 Capital Group jointly control Braskem. Brazil is heading into an election year, and any decision that sends public money toward a struggling company will get scrutiny. Braskem has been operating under an emergency creditor protection order since late June, recounts the report. That order, which lasts 60 days, has suspended enforcement actions and given the company breathing room. But that room is about to close. To avoid a formal bankruptcy filing, Braskem must secure backing from creditors holding a minimum of one-third of its outstanding debt, the report relays. That is the threshold for an out-of-court deal, and it is not a given. The deadline to conclude such a deal is Aug. 24, it adds. As reported in the Troubled Company Reporter-Latin America on Aug. 11, 2026, Moody's Ratings has downgraded to Ca from Caa3 Braskem S.A. ("Braskem")'s Corporate Family Rating and the rating on Braskem America Finance Company's Backed Senior Unsecured Global Bonds, fully guaranteed by Braskem S.A. The outlook for both companies remains negative. The downgrade of Braskem's rating to Ca follows the 60 days standstill granted by a Sao Paulo Bankruptcy and Judicial Reorganization Court to Braskem. GIGA MAIS: Fitch Assigns First-Time 'B+' LT IDR, Outlook Stable --------------------------------------------------------------- Fitch Ratings has assigned a first-time Foreign and Local Currency Long-Term Issuer Default Rating (IDR) of 'B+' and a National Scale Rating of 'A(bra)' to Giga Mais Fibra Telecomunicacoes S.A. (Alloha Fibra). Fitch has also assigned Giga Mais Fibra Luxembourg S.a.r.l.'s planned senior secured notes, fully and irrevocably guaranteed by Alloha Fibra, a rating of 'B+' with a Recovery Rating of 'RR4'. The proceeds will be solely used for liability management. The Rating Outlook is Stable. Alloha Fibra's rating reflects its midsized scale and challenger position in Brazil's competitive fiber-optic broadband market for both retail and corporate customers, which has low barriers to entry. The rating also incorporates Fitch's expectation that the ongoing turnaround will support positive FCF generation and a stronger capital structure over the coming years. Key Rating Drivers Solid Regional Positioning: Alloha Fibra benefits from a solid competitive position within its footprint, ranking first or second in most of the 313 cities where it operates. This supports a subscriber base of approximately 1.3 million, aided by its multiservice bundle offering. In addition, the company's B2B segment, while still representing a moderate share of revenue, has been growing faster than the B2C business, providing some diversification to its revenue profile. The IDRs are constrained by Alloha Fibra's moderate scale in broadband, with a 2.5% market share, as well as in IPTV and fixed-line telephony. Its relatively limited scale leaves the business exposed to intense competition from large telecommunications operators and numerous small and midsize internet service providers (ISPs). Intense Competition: The residential broadband sector presents moderate to high risk due to intense competition and low barriers to entry, despite the favorable regulation of the National Telecommunications Agency (Anatel). Claro S.A. (Claro), Telefonica Brasil S.A. (Telefonica Brasil), and Nio AL S.A. (Nio) hold, respectively, 19%, 15%, and 6% of a market with 55.4 million users. However, smaller ISPs continue to grow above the market average, reaching almost a 58% share in May 2026, up from 47% in 2021. The more challenging macroeconomic environment has led Alloha Fibra to tighten the credit scores of prospective clients, resulting in a cleanup of its subscriber base. This competitive environment may limit ISP's ability to pass on inflation to monthly fees, pressuring margins. Positive FCF: Fitch expects the company to generate positive FCF thanks to improved EBITDA and lower capex. Fitch projects EBITDA of BRL770 million in 2026 and BRL840 million in 2027, up from BRL640 million in 2025, indicating margins of 47%. EBITDA margins of 44% in 4Q25 and 48% in 1Q26 already evidence efficiency gains compared with 39% in 2Q25 and 25% in 3Q25. Fitch forecasts positive FCF of BRL80 million in 2026 and BRL140 million in 2027, after average annual investments of BRL310 million during the period and no dividend distributions in the coming years. Satisfactory Capital Structure: Fitch projects net leverage to approach to 3.0x in 2026 and remain below that beyond 2027, down from almost 4.0x in 2025. Fitch assumes the company will continue advancing its business improvement initiatives, enabling a return to profitable net additions and supporting margin expansion and positive FCF. The base-case scenario considers no relevant debt-funded acquisitions. Fitch expects Alloha Fibra to comply with its declining net leverage covenant over the next five years, starting at 3.65x in 3Q26 and falling to 3.00x from 4Q27. Peer Analysis Alloha Fibra's credit profile would be weaker than that of the Mexican broadband provider Total Play Telecomunicaciones, S.A.P.I. de C.V. (B/Stable) if it was not for the two-notch discount on the latter's corporate governance concerns. Total Play is eight times larger, less leveraged, and has better EBITDA interest coverage rates. Alloha Fibra's rating is also below that of Millicom International Cellular, S.A. (BB+/Stable) which benefits from much larger geographic diversification, network quality and strong brand recognition that support its leading positions in Latin America, a robust subscriber base and solid EBITDA generation. In Brazil, Alloha Fibra's credit profile is commensurate with that of Alares Internet Participacoes S.A. (A(bra)/Stable) which also operates as a regional ISP. While the former had 2.5% market share in May 2026, the latter registered 1.5%. Alares' capital structure is slightly stronger, although the company is undergoing major investments that are pushing FCF into negative territory, while Alloha Fibra is expected to generate positive FCF from 2026. Alloha Fibra's rating is several notches below the ratings of large Brazilian telecommunications operators such as Telefonica Brasil and TIM Brasil Serviços e Participacoes S.A. (TIM Brasil), both rated 'AAA(bra)'/Stable on the National Long-Term Ratings scale. In addition to revenue diversification and a substantially larger customer base, both companies have conservative capital structures and stronger liquidity. Fitch’s Key Rating-Case Assumptions - Number of customers: 1.2 million in 2026 and 1.3 million in 2027; - Average revenue per user of BRL114 in 2026 and BRL125 in 2027; - Costs growing in line with inflation, leading to EBITDA margins of 47% in 2026 and 49% in 2027; - Average annual investments of around BRL300 million in 2026 and 2027; - No dividend payments; - No acquisitions; - Successful bond issuance, using most of the proceeds to pre-pay current debt. 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 ('b', Higher), diversification and asset quality ('bb', Moderate), company operational characteristics ('bbb', Moderate), profitability ('bbb', Moderate), financial structure ('b', Moderate), 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. 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 an IDR of 'B+'. Recovery Analysis The recovery analysis assumes Alloha Fibra would be reorganized as a going concern (GC) in bankruptcy rather than liquidated. Fitch assumes a 10% administrative claim. Alloha Fibra's GC EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the enterprise value. The GC EBITDA assumption of BRL500 million represents a 25% discount to the LTM 1Q26 EBITDA. A multiple of 5.0x the EBITDA is applied to the GC EBITDA to calculate a post-reorganization enterprise value, which is in line with historical bankruptcy case study exit multiples for peer telecommunication operators. Liquidation Approach The liquidation estimate reflects Fitch's view of the value of balance sheet assets that can be realized through sale or liquidation processes during a bankruptcy or insolvency proceeding and distributed to creditors. Fitch assigns standard discounts to the liquidation value of the company's accounts receivable, inventory and net property, and plant and equipment given the high uncertainty around assets values during a downturn. The allocation of value in the liability waterfall results in a recovery corresponding to 'RR2' for the USD350 million in senior secured notes and the remaining pari-passu debt. However, because 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 - Delay on the execution of the operational improvement of the company; - Net leverage above 4.0x on a sustained basis; - EBITDA margins near 40%; - Deterioration of financial flexibility. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Substantial gains in scale, combined with the maintenance of an adequate to conservative capital structure; - Net leverage below 2.5x on a sustained basis; - (CFO - capex) / total debt ratio above 7.5% on a recurring basis. Liquidity and Debt Structure Fitch expects Alloha Fibra's liquidity to substantially improve with the closing of the USD350 million senior secured notes issuance due 2031. In March 2026, cash of BRL388 million covered 0.8x the short-term debt of BRL479 million. Fitch's base case considers that Alloha Fibra will fully mitigate the FX exposure of both coupons and principal with plain vanilla hedge instruments, given that 100% of Alloha Fibra's revenues are in BRL terms. In March 2026, Alloha Fibra's debt totaled BRL2.9 billion, according to the agency's metrics, and consisted of BRL2.5 billion in debentures (84% of the total), about BRL295 million in bank loans (10%), around BRL100 million as sellers' finance (3%), and the remaining 3% as net hedge. Issuer Profile Alloha Fibra is a midsized ISP operating in 313 cities across 12 states and the Federal District. It has approximately 1.3 million customers, representing a 2.5% nationwide market share. The company is ultimately controlled by private equity firm EB Capital. 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 Alloha Fibra. 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 Recovery ----------- ------ -------- Giga Mais Fibra Luxembourg S.a r.l. senior secured LT B+ New Rating RR4 Giga Mais Fibra Telecomunicacoes S.A. LT IDR B+ New Rating LC LT IDR B+ New Rating Natl LT A(bra) New Rating ============= J A M A I C A ============= JAMAICA: Remittance Inflows Expected to Decline ----------------------------------------------- RJR News reports that remittance inflows to Jamaica could stagnate or decline as the US economy and employment market show signs of weakening. Jamaica received approximately US$1.5 billion in remittances during the first five months of this year, with about 68 per cent of the country's remittance inflows coming from Jamaicans living and working in the United States, according to RJR News. The outlook is being clouded by recent weakness in the US labour market, the report notes. The US economy lost about 23,000 jobs in July, despite projections for the creation of approximately 100,000 jobs, the report relays. Meanwhile, research conducted by Market Research Services found that the proportion of Jamaican households receiving remittances declined in the second quarter, the report discloses. The survey found that 27 per cent of Jamaican households are now receiving remittances, down from 30 per cent five years ago, the report says. The figures come against the backdrop of strong remittance flows across the wider region, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. =========== M E X I C O =========== LEISURE INVESTMENTS: Seeks Court OK to Sell Manatees, Dolphins -------------------------------------------------------------- Steven Church of Bloomberg News reports that the professionals overseeing the bankruptcy of The Dolphin Company have asked a Delaware judge to authorize the sale of several of the company's remaining marine parks in Mexico, including the dolphins and other animals living at those facilities. The proposed transaction forms part of the company's effort to liquidate assets and repay creditors through its Chapter 11 case. The aquatic-theme park operator filed for bankruptcy after lenders ousted founder and longtime CEO Eduardo Albor, triggering a court-supervised restructuring. Since the filing, the company has completed sales of parks located in the United States and Europe, leaving its Mexican operations as some of the most valuable remaining assets. The proposed sale would include parks in Cancun and approximately 87 dolphins, together with other marine mammals, the report relays. Ownership of the Mexican parks has been heavily contested throughout the bankruptcy, with Albor and the company's lenders engaged in years of litigation over control of the business. The bankruptcy advisers argue that moving forward with a sale will maximize value for creditors while providing operational certainty for the parks and their employees, according to Bloomberg. Any successful bidder would acquire the assets only after receiving bankruptcy court approval and satisfying applicable regulatory requirements governing marine wildlife and tourism operations. The advisers believe the sale will advance the company's liquidation strategy and help conclude the cross-border insolvency proceedings, the report states. About Leisure Investments Holdings Leisure Investments Holdings LLC and affiliates are operating under the name "The Dolphin Company," manage over 30 attractions, including dolphin habitats, marinas, water parks, and adventure parks, located in eight countries across three continents. Their primary operations are based in Mexico, the United States, and the Caribbean, with locations in Jamaica, the Cayman Islands, the Dominican Republic, and St. Kitts. These attractions are home to approximately 2,400 animals from more than 80 species of marine life, including a variety of marine mammals such as dolphins, sea lions, manatees, and seals, as well as birds and reptiles. As of 2023, the marine mammal population at the Debtors' parks includes roughly 295 dolphins, 51 sea lions, 18 manatees, and 18 seals. Leisure Investments Holdings LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case 25-10606) on March 31, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100 million and $500 million each. Honorable Bankruptcy Judge Laurie Selber Silverstein handles the case. The Debtors tapped Robert S. Brady, Esq., Sean T. Greecher, Esq., Allison S. Mielke, Esq., and Jared W. Kochenash, Esq. as counsels. The Debtors' restructuring advisor is RIVERON MANAGEMENT SERVICES, LLC. The Debtors' Claims & Noticing Agent is KURTZMAN CARSON CONSULTANTS, LLC d/b/a VERITA GLOBAL. ===================================== T R I N I D A D A N D T O B A G O ===================================== A.S. BRYDEN & SONS: Reports 90% Profit Decline For 1H of 2026 ------------------------------------------------------------- RJR News reports that A.S. Bryden & Sons Holdings is reporting a significant decline in profit for the first six months of 2026, amid softer demand in some of its key markets and a prolonged recovery in Jamaica's tourism and hospitality sector. Net profit attributable to shareholders plunged by 90 per cent to US$500,000, from US$5 million in the corresponding period last year, according to RJR News. Revenue also declined by 6.5 per cent to US$281 million in the first half of 2025, the report notes. For the second quarter, net profit plunged by 88.5 per cent to US$300,000, the report relays. Revenue declined by 6.8 per cent to US$139.8 million, year over year, the report notes. The company said second-quarter performance was affected by softer demand in the premium beverages and industrial equipment businesses in Trinidad & Tobago, as well as the slow recovery of Jamaica's tourism and hospitality sector, the report adds. A.S. Bryden & Sons Holdings Limited is a distributor of fast-moving consumer goods (FMCG) based in Trinidad and Tobago. A subsidiary of Jamaica's Seprod Group, the company supplies top international food, hardware, and premium beverage brands across the Caribbean. ********* 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 * * *