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250623.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, June 23, 2025, Vol. 26, No. 124 Headlines A R G E N T I N A GAUCHO GROUP: Emerges From Chapter 11, Eyes Argentina Growth B R A Z I L BRAZIL: IDB OKs $100 Million to Foster Investment Environment JSL SA: Fitch Lowers LongTerm IDRs to 'BB-', Outlook Stable MOVIDA PARTICIPACOES: Fitch Lowers IDRs to 'BB-', Outlook Stable SIMPAR SA: Fitch Lowers LongTerm IDR to 'BB-', Outlook Stable D O M I N I C A DOMINICA: Economy Continues its Expansion, IMF Says D O M I N I C A N R E P U B L I C REASEGURADORA SANTO: A.M. Best Affirms 'bb+' Issuer Credit Rating H O N D U R A S HONDURAS: IMF Completes 3rd Reviews Under Extended Fund Facility J A M A I C A JAMAICA: BOJ Receives Strong Interest in Latest Bond Offer M E X I C O SCEND PERFORMANCE: Proofs of Claim Due July 23, 2025 P E R U ORAZUL ENERGY: Fitch Affirms 'BB' LongTerm IDRs, Outlook Stable P U E R T O R I C O AMBASSADOR VETERANS: Case Summary & 20 Top Unsecured Creditors - - - - - ================= A R G E N T I N A ================= GAUCHO GROUP: Emerges From Chapter 11, Eyes Argentina Growth ------------------------------------------------------------ Gaucho Group Holdings, Inc., a company that includes a growing collection of ecommerce platforms with a concentration on fine wines, luxury real estate, and leather goods and accessories, announced on June 16, 2025, that it has successfully emerged from Chapter 11 bankruptcy proceedings. With this significant milestone behind it, the Company has returned its full focus to executing its portfolio strategy in Argentina -- returning to operations unencumbered and with its core assets intact. Argentina's macroeconomic landscape is exhibiting notable improvement, creating a more conducive environment for long-term investment. Inflation has fallen to its lowest monthly level in over five years, and broader economic stabilization measures are gaining traction. Over the past several months, Argentines have begun to access long-term mortgage financing once again, which is freeing them from cash-only home purchases. That shift is unlocking renewed demand for housing, stimulating development across the country, and generating jobs not only in construction, but also in the materials, home-goods retail, and financial services sectors. Additionally, a healthier mortgage system supports capital formation, as banks and investors now have access to stable mortgage revenues, helping to mature Argentina's financial markets and reduce reliance on cyclical, short-term funding. This economic runway has been further bolstered by strengthened defense cooperation with the United States. In a marked shift from past alignments, Argentina has deepened its military coordination with U.S. leadership. Meetings between Argentina's President and U.S. defense officials, alongside joint maritime exercises in Argentine waters, reflect a clear realignment of strategic partnerships. These developments underscore Argentina's departure from closer ties with former allies and signal its intent to embrace renewed alignment with Western institutions. "Emerging from Chapter 11 positions Gaucho Holdings to re-engage fully in Argentina," states Scott Mathis, CEO and Founder of Gaucho Holdings. "With inflation at its lowest level in years, access to mortgage finance restored, and clear signals of institutional realignment - especially through enhanced U.S. military and economic ties - we are seeing the environment we've long anticipated. Our deepest gratitude to our legal team, stockholders, and every employee whose dedication and resilience made this possible. This marks the start of an exciting new chapter. Our existing assets are well--placed to participate in this evolving landscape, and we are energized to move forward together." Maria Echevarria, Chief Financial Officer of Gaucho Holdings, commented: "After seven transformative months, we're proud to announce that we have emerged from Chapter 11. This was a challenging journey, and while the decision to restructure was difficult, it was necessary - and it worked. Thanks to the extraordinary support, dedication, and resilience of our legal team, stockholders, and every employee. We've safeguarded the Company's assets and laid the groundwork for a stronger, more focused future. This moment marks the beginning of a new chapter. We move forward with renewed clarity, purpose, and confidence in what we're building together." The Company notes that, while the economic and structural reforms in Argentina are advancing, the foreign investment opportunity window remains in its early stages. Gaucho Holdings, having preserved its asset base and local infrastructure, believes it is positioned ahead of the curve to engage strategically with the country's renewed momentum. About Gaucho Group Holdings, Inc. Gaucho Group Holdings, Inc. is a Delaware holding company headquartered in Miami, Fla., which owns certain subsidiaries including operating companies that own a winery, boutique hotel and real property in Argentina. Gaucho filed Chapter 11 petition (Bankr. S.D. Fla. Case No. 24-21852) on November 12, 2024, with $10 million to $50 million in both assets and liabilities. Nathan G. Mancuso, Esq., at Mancuso Law, P.A. is the Debtor's legal counsel. =========== B R A Z I L =========== BRAZIL: IDB OKs $100 Million to Foster Investment Environment ------------------------------------------------------------- The Inter-American Development Bank (IDB) has approved new financing to support the Brazilian government's efforts to foster a favorable environment for investment and private sector activity. The operation strengthens the Institutional Reforms Program for Competitiveness and Business Improvement, in partnership with the Ministry of Development, Industry, Trade, and Services. With financing of $100 million, or approximately R$ 560 million, in the form of a policy-based loan (PBL), the program aims to consolidate progress made in this area and promote the medium- and long-term sustainability of reforms that reduce transactional costs for the private sector in the country. Expected results of the program by 2027 include strengthening institutional capacity for regulatory policy; increasing deposits and reducing processing time for patents; reducing the number of import licenses and processing times through the New Import Process of the Single Foreign Trade Portal Program; as well as increasing credit for MSMEs, women-led exporting companies, and the number of verified sustainable infrastructure projects. Brazil has been advancing a reform agenda to enhance competitiveness and improve the business environment. In recent years, the IDB has supported this agenda with knowledge and technical cooperation, which now gains new momentum with this approval. "Strengthening institutions so they increasingly act as catalysts for productivity and sustainable, inclusive growth is a central part of our strategy to support the country's development, and this operation is emblematic in that regard," said Annette Killmer, Head of the IDB Representation in Brazil. The program also aligns with the IDB's commitment to promote development in Latin America and the Caribbean by working with the public sector to create an enabling environment for private investment. The so-called "Custo Brasil" (Brazil Cost), identified by the private sector as one of the main factors increasing business operating costs and limiting investment in the country, amounts to R$ 1.7 trillion, according to a study by the Competitive Brazil Movement. The IDB-approved operation seeks to address this challenge by targeting the root causes of these structural difficulties. The $100 million loan has a 20-year amortization period, a 5.5-year grace period, and interest based on the SOFR rate. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian general election. He was sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. In October 2024, Moody's Ratings upgraded the Government of Brazil's long-term issuer and senior unsecured bond ratings to Ba1 from Ba2, the senior unsecured shelf rating to (P)Ba1 from (P)Ba2; and maintained the positive outlook. S&P Global Ratings raised on Dec. 19, 2023, its long-term global scale ratings on Brazil to 'BB' from 'BB-'. Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable Outlook. DBRS' credit rating for Brazil was last reported at BB with stable outlook at July 2023. JSL SA: Fitch Lowers LongTerm IDRs to 'BB-', Outlook Stable ----------------------------------------------------------- Fitch Ratings has downgraded JSL's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'BB-' from 'BB' and its Long-Term National Scale Rating to 'AA(bra)' from 'AA+(bra)'. Fitch has also downgraded the senior unsecured national issuances of JSL to 'AA(bra)' from 'AA+(bra)'. The Rating Outlook is Stable. Fitch equalizes the ratings of JSL and Simpar S.A. (Simpar, FC and LC IDR: BB-/Stable). This reflects the holding company's medium legal and strong operational and strategic incentives to support JSL, if needed. The downgrades reflect Simpar's consolidated net leverage consistently exceeding 'BB' rating thresholds. Persistently high interest rates, elevated capital expenditures and lower returns on invested capital are also expected to continue limiting the company's ability to convert EBITDA into cash flow, hindering potential deleveraging efforts. Key Rating Drivers Parent and Subsidiary Linkage: JSL's ratings reflect Simpar's medium legal and strong operational and strategic incentives to support its subsidiary, which equalize the ratings of both companies. In addition to the cross-default clauses on Simpar's debt and the relevant shareholding control, JSL has strong growth potential and important commercial synergies, which contribute to the group's greater bargaining power with customers, suppliers and in-vehicle purchases. In addition, Simpar's controlling shareholders and its managers form the majority of JSL's board of directors. On a standalone basis, JSL has a strong business profile due to its robust scale, diversified portfolio of services, and resilient profitability. It also maintains a leadership position in the Brazilian road logistics and dedicated services segments, where it has experienced rapid growth (both organic and via acquisitions). JSL's consolidated financial leverage should remain high due to still relevant capex and higher interest payments. The company's liquidity is also pressured by high debt maturities of BRL2.5 billion due up to YE2026, which needs to be addressed in the next few months. Strong Business Profile: JSL's strong business profile is a result of its robust scale in the fragmented and competitive outbound logistics market (FTL) in Brazil. FTL has relatively low capital intensity and average business risk, which is strongly correlated with the economic cycle. In addition, there are few barriers to entry. The company also benefits from its broad service portfolio, its diversified customer base and a relevant presence at inbound logistics, a more capital-intensive segment, where the strategic and operational nature of the services provided and the medium- to long-term contracts mitigate its exposure to more volatile economic cycles. JSL's robust scale provides greater bargain purchase power to buy assets for the inbound segment and in the routing of its outbound activities. Negative FCF: JSL's EBITDA generation should gradually increase to BRL1.7 billion in 2025 and BRL1.8 billion in 2026, versus BRL1.6 billion in 2024. EBITDA margins should average around 17% on the rating horizon, in line with the 17% average between 2021 and 2024 - despite the expected increase in rental/IFRS-16 expenses. Fitch projects cash flow from operations (CFFO) reaching BRL275 million in 2025 and BRL427 million in 2026, pressured by increasing interest expenses, and total annual capex of BRL1 billion, on average, in the same period. As a result, FCF should be negative around BRL500 million in the same period. Leveraged Capital Structure: Fitch expects net adjusted debt/adjusted EBITDA to remain around 3.6x over the next two years. Net adjusted leverage was 4.0x, on average, from 2021 to 2024 and 3.8x in 2024 - a result of JSL's several acquisitions and historically robust capex. Positively, total adjusted debt/adjusted EBITDA has come down after it peaked at 6.1x in 2021 to 5.0x in 2024, mainly due to EBITDA expansion. Peer Analysis Simpar's business profile is superior to that of Localiza Rent-a-Car S.A. (Localiza; Foreign and Local Currency IDRs BB+ and National Long-Term Rating AAA(bra), all with a Stable Outlook). Simpar has a scale similar to Localiza and a more diversified service portfolio, but its weaker financial profile — characterized by higher leverage and more pressured FCF — constrains its rating. Compared with Unidas Locações e Serviços S.A. (Unidas; Foreign and Local Currency IDRs BB- and National Long-Term Rating AA(bra), all with a Stable Outlook), Simpar has a much stronger business profile, greater liquidity, and better access to the credit market. These advantages are offset by slightly higher leverage compared to Unidas. Key Assumptions - Organic revenue growth of 10% in 2025 and 6% in 2026 and 2027; - EBITDA margin averaging 17% in 2025-2027; - Total capex of BRL1 billion, on average, in 2025-2027; - Dividend payout at 30%. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade of Simpar's ratings; - Deterioration of Simpar's legal, strategic and operational incentives to provide support. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of Simpar's ratings. Liquidity and Debt Structure JSL's adequate liquidity and access to capital markets help the company to manage its well-spread debt amortization schedule. The company, however, will be required to access new credit lines, as FCF should remain negative. As of March 2025, JSL had BRL1.7 billion of cash and equivalents, BRL500 million of undrawn committed credit lines and BRL8 billion of total debt (17% secured), with BRL1.5 billion due in the short term and an additional BRL1 billion in the last nine months of 2026 and BRL1 billion in 2027. The company's debt profile is mainly comprised of CRAs and CRIs (44%), local debentures (20%) and bank loans (36%). Issuer Profile JSL is Brazil's largest integrated road logistics company, serving corporate clients in Brazil, Mercosur and South Africa with outbound and inbound logistics. It is publicly traded on B3, with a 22.1% free float; Simpar is the main shareholder (71.9% stake). MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations 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 ----------- ------ ----- JSL S.A. LT IDR BB- Downgrade BB LC LT IDR BB- Downgrade BB Natl LT AA(bra) Downgrade AA+(bra) senior unsecured Natl LT AA(bra) Downgrade AA+(bra) MOVIDA PARTICIPACOES: Fitch Lowers IDRs to 'BB-', Outlook Stable ---------------------------------------------------------------- Fitch Ratings has downgraded Movida Participacoes S.A.'s (Movida) Long-Term Foreign Currency (FC) and Local Currency (LC) Issuer Default Ratings (IDRs) to 'BB-' from 'BB' and downgraded Movida and Movida Locacao de Veículos S.A.'s (Movida Locacao) Long-Term National Scale Ratings to 'AA(bra)' from 'AA+(bra)'. Fitch has also downgraded the senior unsecured bond issuances of Movida Europe S.A. to 'BB-' from 'BB' and the senior unsecured debentures issuances of Movida and Movida Locacao to 'AA(bra)' from 'AA+(bra)'. The Rating Outlook is Stable. Fitch equalizes Movida and Simpar S.A.'s ratings (Simpar; FC, LC IDR BB-/Stable), reflecting Simpar's medium legal and strong operational and strategic incentives to support Movida. Movida and Movida Locacao's ratings are equalized due to strong parental support. The downgrade reflects Simpar's consolidated net leverage remaining above 'BB' thresholds, with persistently high interest rates, elevated capex and lower returns on invested capital expected to continue limiting cash flow generation and deleveraging. Key Rating Drivers Parent and Subsidiary Linkage: Movida's ratings reflect Simpar's medium legal and strong operational and strategic incentives to support its subsidiary, which equalize the ratings of both companies. In addition to the cross-default clauses on Simpar's debt and the relevant shareholding control, Movida has strong growth potential and important commercial synergies, which contributes to the group's greater bargaining power with customers, suppliers and in-vehicle purchases. Simpar's controlling shareholders and its managers form the majority of Movida's board of directors. On a standalone basis, Movida has a solid position in the competitive Brazilian car and fleet rental business, with relevant scale and positive operating performance. Movida's consolidated financial leverage should not decrease materially due to still negative FCFs. The company's liquidity is also pressured by high debt maturities of BRL6.9 billion due up to YE2026 that need to be addressed in the next few months. Solid Business Position: As the second-largest player in the car and fleet rental industry in Brazil, Movida has a strong business position, supported by its relevant scale, positive operating performance, national footprint and an adequate used car sale operation. As of March 2025, Movida's total fleet of 257,000 vehicles, consisting of 113,000 in rent-a-car (RaC) and 144,000 in fleet management (GTF), secured meaningful market shares both in RaC and GTF. As such, Movida has proven bargaining power with auto manufacturers and is able to capture economies of scale. At YE 2025 and 2026, Fitch forecasts Movida's own total fleet at around 268,000 and 274,000 vehicles, respectively. Adequate Operating Performance: Movida's EBITDA should increase gradually based on organic growth and resilient margins as the company scale increases. Balanced demand and supply dynamics should continue to allow adequate rental rates, resulting in a gradual recovery of Movida's return on invested capital (ROIC), closer to historical levels. Fitch forecast consolidated net revenue of BRL14.6 billion (+8.8% over 2024) and adjusted EBITDA of BRL5.3 billion (36% margin and +18% over 2024) in 2025 and BRL15.1 billion and BRL6 billion (37% margin) in 2026, from BRL13.5 billion and BRL4.5 billion (33% margin), respectively, in 2024. Pressured FCFs: The rating scenario considers that increasing interest expenses will pressure Movida's cash flow from operations (CFFO). Fitch forecasts CFFO reaching BRL1.8 billion in 2025 and BRL2.2 billion in 2026. Movida operates in a capital-intensive industry, with FCF expected to remain negative, around BRL900 million, after average annual capex of BRL9.6 billion in 2025, 2026 and 2027, partially funded by the sale of used vehicles from rentals, and a dividend payout ratio of 30%. Moderate Leverage: Fitch expects net adjusted debt/adjusted EBITDA to remain around 3.5x over the next two years. Net adjusted leverage was 3.7x, on average, from 2021 to 2024 and 3.6x in 2024, a result of Movida historically aggressive growth strategy. Positively, total adjusted debt/adjusted EBITDA has come down after it peaked at 6.3x in 2021 to 4.5x in 2024, mainly due to EBITDA expansion. Peer Analysis Simpar's business profile is superior to that of Localiza Rent-a-Car S.A. (Localiza; Foreign and Local Currency IDRs BB+ and National Long-Term Rating AAA(bra), all with a Stable Outlook). Simpar has a scale similar to that of Localiza, a more diversified service portfolio, but a weaker financial profile — with higher leverage and more pressured FCF, which pressure the rating. Compared with Unidas Locações e Serviços S.A. (Unidas; Foreign and Local Currency IDRs BB- and National Long-Term Rating AA(bra), all with a Stable Outlook), Simpar has a much stronger business profile, greater liquidity, and better access to the credit market. These advantages are offset by higher leverage compared to Unidas. Key Assumptions - Total fleet flat in 2025 and increasing 3% on average in the next three years; - Average ticket for RaC increasing 7% in 2025 and 3% on average in the next three years; - Average ticket for GTF increasing 11% in 2025 and 3.5% on average in the next three years; - Capex of BRL9 billion in 2025, BRL9.6 billion in 2026 and BRL10 billion in 2027; - Dividend payout around 30% throughout the rating horizon. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade of Simpar's ratings; - Deterioration of Simpar's legal, strategic and operational incentives to provide support. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of Simpar's ratings. Liquidity and Debt Structure Movida has an important challenge to refinance high debt maturities and negative FCF in the upcoming months. As of March 2025, Movida had BRL3 billion of cash and equivalents and BRL20.7 billion of total adjusted debt, with BRL4 billion due in the short term and BRL2.9 billion from April to December 2026. Movida's debt profile is mainly comprised of local debentures (54%), bank loans (26%) and the fully hedged U.S. dollar denominated bonds due 2031 (20%). The company's ability to postpone growth capex to adjust to the economic cycle and the considerable number of the group's unencumbered assets, with a book value of fleet over net debt at around 1.3x, add to its financial flexibility. Issuer Profile Movida is Brazil's second-largest vehicle and fleet rental by fleet size and revenue, and also sells used vehicles. The company is publicly traded on B3, with a free float of 34.24%; Simpar is the main shareholder (67.7% stake). MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations 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 ----------- ------ ----- Movida Europe S.A. senior unsecured LT BB- Downgrade BB Movida Locacao de Veiculos S.A. Natl LT AA(bra)Downgrade AA+(bra) senior secured Natl LT AA(bra)Downgrade AA+(bra) Movida Participacoes S.A. LT IDR BB- Downgrade BB LC LT IDR BB- Downgrade BB Natl LT AA(bra)Downgrade AA+(bra) senior unsecured Natl LT AA(bra)Downgrade AA+(bra) SIMPAR SA: Fitch Lowers LongTerm IDR to 'BB-', Outlook Stable ------------------------------------------------------------- Fitch Ratings has downgraded Simpar S.A.'s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'BB-' from 'BB' and Long-Term National Scale Rating to 'AA(bra)' from 'AA+(bra)'. Fitch has also downgraded Simpar and its financial vehicles' senior unsecured bond issuances to 'BB-' from 'BB'. The Rating Outlook is Stable. The downgrades reflect Simpar's consolidated net leverage consistently exceeding 'BB' rating thresholds. Persistently high interest rates, elevated capital expenditures and lower returns on invested capital are also expected to continue limiting the company's ability to convert EBITDA into cash flow, hindering potential deleveraging efforts. The Stable Outlook reflects expectations for gradual improvement in EBITDA margins, supported by Simpar's strong competitive position in the Brazilian rental and logistics industry and greater operating cash flow predictability from long-term contracts. Key Rating Drivers Leveraged Capital Structure: Fitch forecast Simpar's consolidated net adjusted debt/adjusted EBITDA to remain around 4.6x in 2025 and 2026, amid rising interest rates in Brazil. Elevated interest expenses should consume, on average, about 86% of Simpar's expected EBITDA in 2025 and 2026, significantly limiting the group's deleverage capacity. Consolidated net adjusted leverage averaged 4.8x from 2022 to 2024 and stood at 4.7x in 2024, reflecting Simpar's historically aggressive growth strategy. Positively, consolidated total adjusted debt/adjusted EBITDA declined from a peak of 7.6x in 2021 to 6.0x in 2024, mainly due to EBITDA expansion. Simpar's net debt rose consistently to BRL49.0 billion in March 2025 from BRL31.7 billion in December 2022, driven by the group's aggressive growth strategy. Investments exceeded BRL30 billion during this period and were partly financed by used vehicle sales. Despite Fitch's expectation of gradual operating margin improvement, net debt will likely continue to rise over the next three years to finance negative FCF. Sustained debt reduction depends on Simpar's ability to reduce investments and/or sell assets. Negative FCF: The capital-intensive rental industry, which generates 78% of Simpar's EBITDA, requires sizable and regular investments to grow and renew the fleet, pressuring the group's cash flow. FCF should remain negative, averaging, BRL5 billion in 2025 and 2026, after annual average total capex of BRL15 billion, partly funded by used vehicle sales. Cash flow from operations (CFO) should reach BRL1.8 billion in 2025 and BRL2.3 billion in 2026, pressured by rising interest payments. Strong Business Profile: Simpar's large scale and leading position in the Brazilian rental and logistics industry provide a competitive advantage in asset purchases and operating costs compared with peers. The group's diversified service portfolio and presence across multiple sectors also support its credit profile. Simpar' strategic and operational role, competitive cost structure and revenue stream based on long-term contracts for most of its rental and logistics businesses minimize exposure to Brazil's more volatile economic cycles. Key Operating Segments: Movida (33% of net revenue and 45% of EBITDA, the second largest player) focuses on light vehicles and fleet rentals. JSL (22% of net revenue and 17% of EBITDA, the market leader) specializes in supply chain management and transportation. Vamos (12% of net revenue and 32% of EBITDA, the market leader) focuses on heavy vehicles and equipment rentals. Solid Profitability: Fitch forecast consistent, gradually improving consolidated EBITDA, driven mainly by organic growth. Balanced demand and supply dynamics should support adequate rental and service rates and high occupancy, leading to a gradual recovery in Simpar's return on invested capital (ROIC) toward historical levels. Fitch forecast consolidated net revenue of BRL45.5 billion (+11% over 2024) and adjusted EBITDA of BRL11.7 billion (26% margin and +17% over 2024) in 2025, and BRL48.5 billion in net revenue with BRL12.7 billion in EBITDA (26% margin) in 2026, up from BRL41 billion in revenue and BRL10 billion in EBITDA (24% margin) in 2024. Peer Analysis Simpar's business profile is stronger than that of Localiza Rent-a-Car S.A. (Foreign and Local Currency IDRs BB+ and National Long-Term Rating AAA(bra), all with a Stable Outlook). Simpar matches Localiza in scale and offers a more diversified service portfolio but has a weaker financial profile, with higher leverage and more pressured FCF, which pressure the rating. Compared with Unidas Locações e Serviços S.A. (Foreign and Local Currency IDRs BB- and National Long-Term Rating AA(bra), all with a Stable Outlook), Simpar has a much stronger business profile, greater liquidity, and better access to the credit market. These advantages are offset by slightly higher leverage compared to Unidas. Key Assumptions - Average consolidated annual revenue growth at 8% from 2025 to 2027; - Consolidated EBITDA margin at 26%, on average, from 2025 to 2027; - Average annual capex at around BRL15 billion from 2025 to 2027; - Cash balance remains adequate compared with short-term debt; - Dividends at 25% net income. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Limits to Simpar's unrestricted ability to access the operating companies' cash; - Failure to preserve liquidity and inability to access adequate funding; - Prolonged decline in demand coupled with company inability to adjust operations; - Consolidated net adjusted leverage above 5.5x on a sustainable basis; - Material deterioration on the group's fleet rental and logistics businesses. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Consolidated net adjusted debt/EBITDA below 4.5x on a sustainable basis; - Consolidated EBITDA Interest Coverage above 2.0x - Strengthening of the group's scale and profitability, without further deterioration of its capital structure. Liquidity and Debt Structure Simpar's adequate consolidated liquidity is a key credit factor, with cash covering adjusted short-term debt by 1.2x in March 2025. However, the group will need to access new credit lines as FCF should remain negative. As of March 2025, Simpar had BRL13.4 billion of cash and equivalents, BRL1.9 billion in undrawn committed credit lines, and BRL62 billion in total adjusted consolidated debt (about 5% secured), with BRL11 billion due in the short term. At the holding level, Simpar had BRL3.6 billion in cash and equivalents and BRL6.8 billion in total debt, with BRL200 million due in the short term and BRL100 million due in the last nine months of 2026. Structural subordination risk is mitigated by Simpar's board control and significant ownership in its operating companies, as there are no restrictions on dividend upstreaming or intercompany loans that a majority board vote cannot override. The consolidated debt profile consists of mainly local debentures (40%), bank loans (16%), CRAs and CRIs (19%), and fully hedged USD bonds (13%). Simpar's financial flexibility is also supported by the group's ability to defer growth capex to adjust to economic cycles and considerable unencumbered assets, with fleet market value over net debt at about 1.2x. Issuer Profile Simpar is a non-operational holding company that controls and manages eight independent companies providing mainly rental, logistics and mobility services, focused on long-term contracts. The company's main shareholder is JSP Holding S.A. (59.04%), the Simoes family holding company. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations 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 ----------- ------ ----- Simpar S.A. LT IDR BB- Downgrade BB LC LT IDR BB- Downgrade BB Natl LT AA(bra) Downgrade AA+(bra) senior unsecured LT BB- Downgrade BB senior unsecured Natl LT AA(bra) Downgrade AA+(bra) Simpar Europe senior unsecured LT BB- Downgrade BB Simpar Finance S.a.r.l. senior unsecured LT BB- Downgrade BB =============== D O M I N I C A =============== DOMINICA: Economy Continues its Expansion, IMF Says --------------------------------------------------- The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation[1] with Dominica and endorsed the staff appraisal without a meeting on a lapse-of-time basis. The authorities have consented to the publication of the Staff Report prepared for the consultation.[2] Dominica's economy has continued its expansion. Real GDP grew by 3.5 percent in 2024, supported by a recovery in tourism and targeted development investment to boost economic capacity and competitiveness. Inflation has eased from its 2023 peak of 7 percent, averaging 3.1 percent in 2024. Tourism arrivals have surpassed pre-pandemic levels by roughly 32 percent, but the composition has shifted towards cruise visitors over stayovers. The labor market recovery remains uneven, with formal employment lagging behind overall growth. Fiscal and external imbalances have narrowed but remain large. The primary balance improved by 2¼ percentage points (ppts) to a deficit of 2 percent of GDP in FY2023/24, reflecting dclines in primary current spending that more than offset moderately lower revenues. Public debt has steadily declined from its pandemic peak but remains elevated at 100 percent of GDP. The current account deficit narrowed by 2 ppts to 32¼ percent of GDP in 2024, reflecting higher tourism receipts. The financial system is liquid with a mixed credit picture and balance sheet fragilities that require monitoring. Bank credit has declined further since 2023 reflecting ongoing de-risking amid persistent balance sheet challenges, notably elevated non-performing loans (NPLs) and still fragile provisioning. Meanwhile, the credit union (CU) sector is expanding its lending portfolio rapidly, despite weak capitalization, high NPLs, and limited provisioning. Modernizing the supervisory framework governing these institutions is a priority to safeguard financial sector stability given their growing systemic importance. Dominica's economic outlook is positive, predicated on the implementation of the country's economic modernization and development agenda. External imbalances are projected to narrow on the back of increased tourism, a normalization of investment-related imports, and reduced fuel imports with the rollout of geothermal energy. Meanwhile, public debt is set to decline gradually in coming years, supported by sustained prudent fiscal management, but remains above the prudential currency union debt benchmark and is susceptible to shocks. Executive Board Assessment Dominica's economic expansion is poised to continue, but risks to the outlook are elevated and tilted to the downside. Real GDP growth is projected to average 3½ percent over the next three years, underpinned by ongoing investment in flagship infrastructure projects to boost tourism capacity and transition to lower-cost geothermal energy. The heavy import-related content of these projects has eroded the external position—which is assessed to be substantially weaker than implied by medium-term fundamentals and desirable policy settings—but gradual improvements are expected as major capital outlays wind down and fiscal consolidation intensifies. Risks are elevated reflecting Dominica's vulnerability to natural disaster shocks and amid the evolving trade policy and geopolitical environment. More ambitious fiscal consolidation than what is envisaged under the authorities' current policies is needed to reduce economic imbalances and mitigate disaster risks while helping to reinforce prospects for resilient growth. The overall risk of debt distress is high and as such, it is critical to rebuild fiscal buffers by achieving and maintaining a primary surplus of 3½ percent of GDP from 2026 onward to: (i) reduce public debt below 60 percent of GDP by 2035; and (ii) adequately capitalize the Vulnerability and Resilience Fund to mitigate disaster risks. The strategy should focus on broadening the revenue base, optimizing expenditures to preserve space for macrocritical investment, and enhancing the targeting and sustainability of social protection programs. Reducing balance sheet vulnerabilities and strengthening regulatory oversight are critical. For banks, priorities include stricter enforcement of provisioning and NPL standards, managing loan loss allowances, and facilitating the disposal of impaired assets, while closely monitoring sovereign and foreign investment exposures. For credit unions, reforms to modernize the prevailing regulatory regime is essential by reinforcing the Financial Services Unit's operational independence, enhancing risk-based supervision, updating regulatory thresholds, strengthening provisioning and loan management frameworks, and bolstering enforcement tools. Continued structural reforms are essential for fostering resilient and sustainable growth. Addressing structural challenges that hinder financial intermediation remains a priority. The upcoming launch of a regional credit bureau is welcome. Complementary reforms should aim at modernizing collateral, foreclosure, and bankruptcy frameworks. Eliminating gaps in education and training relative to economic needs is essential to improve labor market outcomes. A comprehensive approach is needed to foster innovation and allocative efficiency, including exploiting digitalization and streamlining administrative processes for tax compliance, business registration, and permitting. Concerted efforts to bolster institutional frameworks to mitigate risks and support surveillance, economic planning, and policy execution should continue. Ongoing efforts to strengthen AML/CFT legislation and procedures in line with the CFATF recommendations should help protect correspondent banking relationships. Progress on regional coordination across Citizenship-by-Investment (CBI) programs to improve due diligence and transparency is welcome. Proactive engagement to address evolving concerns around Dominica's CBI regime remains critical to safeguard this essential source of development financing. Finally, underdeveloped institutional frameworks and limited technical capacity—common among small developing states—complicate policy formulation, monitoring, and implementation. Alleviating these impediments is an important aspect of sustained engagement, where priorities include targeted measures to strengthen statistical capacity and improve public financial management across fiscal reporting, treasury operations, public investment management, and budget processes. =================================== D O M I N I C A N R E P U B L I C =================================== REASEGURADORA SANTO: A.M. Best Affirms 'bb+' Issuer Credit Rating ----------------------------------------------------------------- AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of "bb+" (Fair) of Reaseguradora Santo Domingo, S.A. (REASANTO) (Dominican Republic). The Credit Ratings (ratings) reflect REASANTO's balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The rating outlook revisions reflect AM Best's expectation that REASANTO will continue with its positive trend in operating performance, reflecting prudent underwriting practices and profit generation capabilities. REASANTO is a reinsurance company founded in 1973 in Santo Domingo, Dominican Republic. The company focuses its product offerings on the fire and allied business lines. In 2024, the company started underwriting business in Central America following its plan to expand operations to other countries; however, business continues to be concentrated in the Dominican Republic. The company's business profile is considered limited given its geographic and business line concentration. AM Best will continue to monitor the deployment of REASANTO's business strategy outside the country. REASANTO's balance sheet strength assessment of strong is based on its strongest level of risk-adjusted capitalization in 2024, as measured by Best's Capital Adequacy Ratio (BCAR). The company continues to adjust its exposures to probable maximum losses by actively managing its reinsurance program and aiming to reduce volatility in its capital base. Mitigating these factors is a conservative investment strategy and an adequate reinsurance panel. The company's operating performance is assessed as adequate, driven by consistent net income that is backed by contained expenses and claims targeted to diminish deviations in REASANTO's budget and improve its underwriting quality. The company's ERM is considered appropriate with defined policies and procedures to maintain risk tolerance levels. These are well-adhered to and reviewed periodically. Positive rating actions could occur if the company's underwriting performance and profit generation capabilities continue to strengthen, supporting the current level of risk-adjusted capitalization. Negative rating actions could take place if the company's risk-based capital erodes to a level no longer supportive of the current ratings resulting from a sharp deterioration in operating performance. The methodology used in determining these ratings is Best's Credit Rating Methodology (Version Aug. 29, 2024), which provides a comprehensive explanation of AM Best's rating process and contains the different rating criteria employed in the rating process. Key insurance criteria reports utilized: Available Capital and Insurance Holding Company Analysis (Aug. 15, 2024) Understanding Global BCAR (Aug. 1, 2024) Evaluating Country Risk (June 6, 2024) Catastrophe Analysis in AM Best Ratings (Feb. 8, 2024) Scoring and Assessing Innovation (Feb. 20, 2025) View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, relevant sources of information and the frequency for updating ratings, please refer to Guide to Best's Credit Ratings Previous Rating Date: July 3, 2024 Initial Rating Date: July 3, 2024 Date Range of Financial Data Used: December 31, 2019-March 31, 2025 =============== H O N D U R A S =============== HONDURAS: IMF Completes 3rd Reviews Under Extended Fund Facility ---------------------------------------------------------------- The Executive Board of the International Monetary Fund (IMF) on June 11, 2025, completed the third reviews under the Extended Fund Facility and Extended Credit Facility arrangements for Honduras. The completion of the reviews enables the authorities to draw about US$160 million (SDR 117.6 million), bringing the total disbursements under the programs so far to about US$485 million (SDR 356 million).[1] Honduras’ 36-month arrangements totaling about US$850 million (SDR 624.5 million) were approved on September 21, 2023. Program performance for the third reviews has been strong. In completing the reviews, the Executive Board assessed that all quantitative performance targets for end-December 2024 had been met. Through end-May 2025, three structural benchmarks were also met – including the adoption of a manual for budget execution programming, the launch of a digital investment portal, and the completion of a diagnostic study of the foreign exchange allocation system, while progress has been made on the implementation of three additional structural benchmarks. The Honduran economy continues to show resilience. Following growth of 3.6 percent in 2024, the economy is projected to expand by 3.5 percent in 2025, supported by a rebalancing of the economy, normalizing weather conditions, and favorable terms of trade. Inflation has declined close to the 4 percent objective. Fiscal performance continues to be strong, with the fiscal deficit outperforming the program target in 2024 at 1.0 percent of GDP and projected to increase modestly to 1.5 percent of GDP in 2025. International reserve coverage has strengthened since late 2024, supported by external market access, exchange rate and monetary policy adjustments, and favorable foreign exchange inflows in the context of high remittances and coffee prices. At the conclusion of the Executive Board's discussion, Ms. Gita Gopinath, First Deputy Managing Director and Acting Chair made the following statement: "The Honduran economy remains resilient in the face of a challenging economic landscape. Policies under the program have bolstered macroeconomic stability and contributed to a rebalancing of the economy, including a marked strengthening of the external position. That said, policy agility and steadfast program implementation are essential amid heightened external risks. The authorities' commitment to the Fund-supported economic program is strong. "Fiscal prudence continues to be a pillar of the authorities' agenda and is key to creating fiscal space for public investment and social spending while preserving debt sustainability. Importantly, containing non-productive spending is key to anchor stability this election year. Targeted efforts are underway to strengthen the social safety net and protect the most vulnerable. Continued progress on structural fiscal reforms is essential to improve public investment and strengthen budget execution. "The authorities' decisive recalibration of monetary and exchange rate policies has been instrumental to support low inflation, improve external competitiveness and international reserve buffers, and strengthen conditions in FX markets. Amid ongoing global uncertainty, including related to migration and trade policies, the authorities' readiness to adjust monetary and exchange rate policies as needed is essential to safeguard stability. The authorities also remain committed to improving the efficiency of the current system of foreign exchange allocation. "Significant progress is being achieved in the energy sector. The authorities' initiatives to reduce energy losses, including investments in energy transmission and distribution, are delivering positive results, while stronger coordination across government institutions is facilitating the reduction of arrears with private generators. These measures are contributing to a stronger financial position for the state-owned utility company, helping to reduce related fiscal risks and supporting medium-term economic growth. "Structural reforms are the cornerstone of the authorities' agenda to spur private sector investment and job creation. Advancements in public financial management, procurement modernization, and institutional transparency are strengthening governance. Concurrent efforts to improve the business environment, combat corruption, and reinforce the AML/CFT frame"ork are also progressing." ============= J A M A I C A ============= JAMAICA: BOJ Receives Strong Interest in Latest Bond Offer ---------------------------------------------------------- RJR News reports that the Bank of Jamaica has received strong interest in its latest bond offer. The central bank says it received 133 bids, valued at US$58.2 million, from institutional investors — including commercial banks, insurance companies, securities brokers, and pension funds — as well as the general public, according to RJR News. This was in response to its offer to raise US$80 million US through a four-year, US dollar-indexed bond at an interest rate of 4.25 per cent per year, the report notes. The BOJ said it accepted all 133 bids submitted, the report relays. The central bank noted that the average interest rate requested by investors was 5.9 per cent per year, discloses. The highest rate asked for was 8.5 per cent on a US$500,000 bid, while the lowest was 4.5 per cent on a bid of US$100,000, the report says. The total value of US dollar-indexed bonds now outstanding stands at US$326.5 million, 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 =========== SCEND PERFORMANCE: Proofs of Claim Due July 23, 2025 ---------------------------------------------------- The U.S. Bank Bankruptcy Court for the Southern District of Texas set July 23, 2025, at 4:00 p.m. (Central Time) as the last date and time for persons or entities to file proofs of claim against Ascend Performance Materials Holdings Inc. and its debtor-affiliates. The Court also set Oct. 20, 2025, at 4:00 p.m. (Central Time) as the deadline for all governmental units to file their claims against the Debtors. Completed forms can be sent to the following addresses, or you may file a claim online at https://tinyurl.com/45s8zca2. a) If by First-Class Mail: Ascend Performance Materials Holdings Inc. Claims Processing Center c/o Epiq Corporate Restructuring, LLC P.O. Box 4421 Beaverton, OR 97076-4421 b) If by Hand Delivery or Overnight Mail: Ascend Performance Materials Holdings Inc. Claims Processing Center c/o Epiq Corporate Restructuring, LLC 10300 SW Allen Blvd. Beaverton, OR 97005 A blank proof of claim form can be obtained at https://tinyurl.com/3wx6htat. For additional information and inquiries about these cases, please call the numbers listed below. U.S. & Canada based parties should use the toll-free numbers: (U.S.& Canada) (888) 890-9917 or (Non U.S.) +1 (971) 385-8728. About Ascend Performance Materials Ascend Performance Materials Holdings, together with their non-Debtor affiliates, are one of the largest, fully-integrated producers of nylon, a plastic that is used in everyday essentials, like apparel, carpets, and tires, as well as new technologies, like electric vehicles and solar energy systems. Ascend's business primarily revolves around the production and sale of nylon 6,6 (PA66), along with the chemical intermediates and downstream products derived from it. Common applications of PA66 include heating and cooling systems, air bags, batteries, and athletic apparel. Headquartered in Houston, Texas, Ascend has a global workforce of approximately 2,200 employees and operates eleven manufacturing facilities that span the United States, Mexico, Europe, and Asia. Ascend Performance Materials Holdings Inc. and its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 25-90127) on April 21, 2025. In the petitions signed by Robert Del Genio, chief restructuring officer, the Debtors disclosed $1 billion to $10 billion in both estimated assets and liabilities. Judge Christopher M. Lopez oversees the cases. The Debtors tapped Bracewell LLP and Kirkland & Ellis LLP as counsel; PJT Partners, Inc. as investment banker; FTI Consulting, Inc. as restructuring advisor; and Deloitte LLP as tax advisor. Epiq Corporate Restructuring LLC is the Debtors' claims, noticing, and solicitation agent. ======= P E R U ======= ORAZUL ENERGY: Fitch Affirms 'BB' LongTerm IDRs, Outlook Stable --------------------------------------------------------------- Fitch Ratings has affirmed Orazul Energy Peru S.A.'s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) and USD363.2 million senior unsecured notes at 'BB'. The Rating Outlook is Stable. Orazul Energy Peru S.A.'s ratings reflect the company's predictable cash flows supported by its contractual position, historically efficient and reliable hydroelectric generation assets and cost structure flexibility. Fitch estimates gross leverage (total debt/EBITDA) will average of 4.8x over the rating horizon. Key Rating Drivers Contracted Cash Flows: Orazul's ratings reflect cash flows supported by revenues from USD-linked power purchase agreements (PPAs) that cover around 65% of an average 2,000 gigawatt-hours (GWh) per year of generation, as well as exposure to the spot market for the balance of uncontracted energy. Orazul's PPAs have five years of remaining life as of 1Q25, with strong off-taker credit quality that include major distribution companies, reputable mining operations, and other large industrial clients. Fitch expects low re-contracting risk based on the company's solid market position as the fourth largest hydro company in the country, and its prioritized dispatch order as a low-cost energy producer. Spot Market Exposure: Orazul's average 60%-70% contracted PPA level and non-diversified resource base subjects the company to potentially volatile spot market risk. In 2023, a nationwide drought and baseload plant outages nearly doubled the average annual spot price to an unprecedented USD73/MWh. Orazul's required purchased energy costs reduced EBITDA by 8% and the company mitigated its cash flows by deferring dividends. Fitch's base case assumes spot prices of USD36/MWh through 2028 based on national hydrology estimates that incorporate historical drought periods and normalized national plant availability. The company will maintain at least a 63% contracted position and sustain a net spot seller position, yielding a 70% average EBITDA margin (72% at YE 2024). Leverage Profile; Coverage: Structural gross leverage will average 4.8x going forward based on non-amortizing debt and EBITDA that will step up to USD84 million (a 70% margin) in 2027 with certain PPA price increases. Projections assume total debt of USD363 million will be refinanced in the next 12 months and incorporate some new money for capex spending. Capex will total USD13.6 million in 2025 for improvements to hydroelectric plant Cañon del Pato, followed by renewal capex averaging USD4 million through 2028. EBITDA/interest expense will remain robust at over 3x. Fitch also measures contracted leverage, or total debt/approximated PPA-based EBITDA, to average 7x, reflecting the structural spot market exposure. Solid Market Position, Reliable Generation: Orazul is recognized as a baseload operator in Peru due to its low-cost energy generation and consistent contribution of nearly 5% to total injected energy. The company's two run-of-river hydroelectric plants are efficient generators with a typical average capacity factor of around 66% and a low variable energy production cost per MWh. The 266MW Cañón del Pato and 110MW Carhuaquero plants have a total installed capacity of 376MW and operate a combined 11 turbines in two separate rivers, the flows from which yielded minimal historical hydrological variation over time. Fitch's base case expects Orazul to sell its uncontracted energy to the spot market as planned, while successfully re-contracting existing PPAs or securing new off-takers to replace expiring contracts. Parent-Subsidiary Linkage Considerations: Per Fitch's Parent and Subsidiary Linkage Rating Criteria, Orazul is rated on a standalone basis from co-investors iSquared (68.5%), GIC Buckland Investment (16%), the International Finance Corporation (IFC, 8%) and ADIC Portman Limited (7.5%). Fitch views the ownership structure as neutral to Orazul's credit profile, as it has resulted in financial, managerial and operational continuity. Peer Analysis Orazul's closest peers are generation companies in the region, such as Kallpa Generacion S.A. (BBB-/Stable), Fenix Power Peru S.A. (BBB-/Stable), Investment Energy Resources Limited (IERL, BB/Stable) and AES Panama Generation Holdings SRL (AESPGH, BB+/Stable). Their ratings reflect stable, diversified asset bases and predictable cash flows, supported by solid contractual positions embodied by medium- to long-term PPAs with financially strong counterparties, and manageable volume exposure or strong shareholder support. Orazul is rated two notches below Kallpa and Fenix, as both companies benefit from highly efficient combined cycle natural gas generation capacity and have stronger market positions. Orazul is rated on par with IERL, which is also a fully renewable energy generation company with cash flow and spot market exposure to environmental variability. Orazul is rated one notch below AESPGH due to the latter's more diversified resource base, lower leverage and a longer-dated PPA average life. Key Assumptions - Spot injection prices average USD36/MWh, and average withdrawal prices of USD37/MWh through 2028; - 58% contracted position in 2025, then approximately 65% of capacity contracted, with spot sales accounting for the balance of capacity sold; - An increase in average regulated PPA prices to USD62/MWh and unregulated PPA prices to USD41/MWh in the next four years; - Average annual dividends of USD47 million, while maintaining a minimum year-end cash balance of USD10 million; - Capex of USD13.6 million in 2025, mostly from minor improvements to Cañón del Pato, then minor capex averaging USD4 million over the following three years; - Refinancing of the company's USD361 million note, due 2027, over the next 12 months; - Ongoing capacity factor averaging 61% between the two plants, and future hydrological conditions consistent with low historical volatility. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Total debt/EBITDA substantially exceeding 5.0x on a sustained basis; - Excessive cash distribution to shareholders; - Inability to refinance the series 2027 notes; - A material rebalancing of the contractual base, resulting in significant cash flow volatility. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Gross leverage, measured by total debt/EBITDA, falling below 4.0x on a sustained basis; - Maintenance of an adequate contracted position with similar terms contributing to cash flow predictability. Liquidity and Debt Structure Orazul's cash position was USD45.2 million at March 31, 2025 and USD26.3 million at YE 2024, with no short-term debt. Annual liquidity has averaged USD26 million over the past three years, supportive of interest and capital spending costs. It is driven by reliable cash flows and a USD25 million undrawn committed credit line. Fitch expects the company to maintain its liquidity policy of more than its year-end minimum cash balance of USD10 million following distributions of excess cash to shareholders. The company's only outstanding debt is a USD363.2 million bullet bond that matures in 2027, which Fitch expects to be ably refinanced well before maturity. Issuer Profile Orazul Energy Peru S.A. owns and operates two hydroelectric power plants in northern Peru with a combined capacity of 377MW, including a 1MW solar plant, and represents the fourth largest hydroelectric complex within the Peruvian system. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations 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 ----------- ------ ----- Orazul Energy Peru S.A. LT IDR BB Affirmed BB LC LT IDR BB Affirmed BB senior unsecured LT BB Affirmed BB ===================== P U E R T O R I C O ===================== AMBASSADOR VETERANS: Case Summary & 20 Top Unsecured Creditors -------------------------------------------------------------- Debtor: Ambassador Veterans Services of Puerto Rico LLC Bo Amuelas 115 Carr 595 Km 5.6 Juana Diaz, PR 00795 Business Description: Ambassador Veterans Services of Puerto Rico LLC operates a nursing and intermediate care facility for veterans in Juana Diaz, Puerto Rico. The Company provides residential healthcare services to eligible veterans at its location in Barrio Amuelas. Chapter 11 Petition Date: June 13, 2025 Court: United States Bankruptcy Court District of Puerto Rico Case No.: 25-02690 Debtor's Counsel: Javier Vilarino, Esq. VILARINO AND ASSOCIATES LLC PO Box 9022515 San Juan, PR 00902 Tel: (787) 565-9894 E-mail: jvilarino@vilarinolaw.com Total Assets: $2,567,403 Total Liabilities: $4,068,135 The petition was signed by Timothy Sadler as president and chief financial officer. A full-text copy of the petition, which includes a list of the Debtor's 20 largest unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/HBBUBHI/AMBASSADOR_VETERANS_SERVICES_OF__prbke-25-02690__0001.0.pdf?mcid=tGE4TAMA ********* 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 2025. 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 * * *