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250625.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, June 25, 2025, Vol. 26, No. 126 Headlines A R G E N T I N A BANCO MACRO: Fitch Rates USD400-Mil. Unsecured Notes 'CCC+' PETROLERA ACONCAGUA: Fitch Lowers LongTerm IDRs to 'C' B R A Z I L BANCO DO BRASIL: IDB OKs $250M Funding for Bioeconomy in the Amazon C O L O M B I A ARIS MINING: Fitch Affirms 'B+' LongTerm IDRs, Outlook Stable G U A T E M A L A INGENIO MAGDALENA: Moody's Affirms 'B1' CFR, Outlook Stable J A M A I C A DIGICEL GROUP: Discloses New Collaboration With Symptai Consulting JAMAICA: Oats Manufacturer Sounds Alarm on Unregulated Imports P E R U FERRELLGAS PARTNERS: Fiscal Q3 2025 Net Income Rises 12% to $59.1M INSTITUTO DE EDUCACION: Seeks to Tap Jose O. Ayala as Accountant PERU: Slows as Mining Struggles, Central Bank Cuts Forecast X X X X X X X X LATAM: IDB Creates Fund to Strengthen Caribbean Integration - - - - - ================= A R G E N T I N A ================= BANCO MACRO: Fitch Rates USD400-Mil. Unsecured Notes 'CCC+' ----------------------------------------------------------- Fitch Ratings has assigned a final rating of 'CCC+' to Banco Macro S.A.'s (Macro) USD400 million senior unsecured notes. The notes have a four-year maturity and an 8.0% fixed rate. The net proceeds will be used for the repayment and/or refinancing of debt, investments in fixed assets, working capital, acquisition of companies or businesses, capital contributions to and/or the financing of commercial activities of certain related companies, and/or general financing needs related to the bank's commercial activities. Key Rating Drivers Macro's senior unsecured notes are rated at the same level as Macro's Long-Term Issuer Default Rating (IDR) of 'CCC+', as the likelihood of default of the notes is the same as that of the bank. The notes will constitute Macro's direct, unconditional, unsecured and unsubordinated obligations and will rank at all times at least pari passu in right of payment with all other existing and future unsecured and unsubordinated obligations. Macro's 'ccc+' Viability Rating (VR) drives its IDRs. In Fitch's view, regardless of the bank's overall adequate financial condition, its ratings are constrained by Argentina's IDRs and the agency's assessment of the Operating Environment (OE). Additionally, the VR considers the bank's sound asset quality, adequate profitability, strong capitalization, as well as its adequate liquidity and funding metrics. For more details on Macro, see "Fitch Upgrades Four Argentine Banks Following Sovereign Rating Action," published May 19, 2025. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Macro's senior unsecured debt ratings are directly linked to the bank's Long-Term IDR. Any negative rating action on the IDR will result in a similar rating action on the debt ratings. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Macro's senior unsecured debt rating will generally move in tandem with the bank's Long-Term IDR. Date of Relevant Committee 09 June 2025 ESG Considerations Banco Macro S.A. has an ESG Relevance Score of '4' for Management Strategy due to the high level of government intervention in the Argentine banking sector, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Banco Macro S.A. senior unsecured LT CCC+ New Rating CCC+(EXP) PETROLERA ACONCAGUA: Fitch Lowers LongTerm IDRs to 'C' ------------------------------------------------------ Fitch Ratings has downgraded Petrolera Aconcagua Energia S.A.'s (PAESA) Long-Term Local Currency and Foreign Currency Issuer Default Ratings (IDRs) to 'C' from 'CCC-'. The downgrade reflects the initiation of a 10-day grace period following PAESA's election of non-payment of close to USD170,000 of interest on its Obligaciones Negociables (local bonds) Class VII, scheduled for June 17, 2025. Fitch will further downgrade the IDR to 'RD' (Restricted Default) if the interest payment deferral is not cured on expiry of the original grace period or if a debt restructuring occurs that constitutes a distressed debt exchange (DDE) under Fitch's rating definitions. Key Rating Drivers Initiation of Grace Period: PAESA announced that they opted not to make the interest payment scheduled for June 17, 2025. The initiation of a grace or cure period following non-payment of a material financial obligation is commensurate with a 'C' (Near Default) IDR, per Fitch's ratings definitions. Failure to cure the missed interest payment within the 10-day grace period would be an event of default and result in a further downgrade of PAESA's IDR to 'RD'. Alternatively, any changes agreed to by bondholders resulting in a worsening of terms that constitute a DDE per Fitch's definitions would also result in a downgrade to 'RD'. As of June 6, 2025, PAESA's cash and equivalents was USD6.1 million while short-term was debt of USD71 million, of which almost USD30 million is due in 3Q25. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Inability to cure the missed interest payment within the allowed grace period; - Initiation of a formal bankruptcy procedure reflected in an uncured payment default on any material financial obligation would lead to a downgrade of the IDRs to 'RD'. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Fitch does not expect to take a positive rating action at least unless the company addresses the interest payments during the cure period and resolves its liquidity issues. Issuer Profile PAESA is an Argentine independent energy company focused on conventional exploration and production of hydrocarbons. It operates in 14 areas located in the Cuyo and Neuquén basins, extending into the provinces of Mendoza, Río Negro, and Neuquén with conventional production. 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 PAESA has an ESG Relevance Score of '4' for GHG Emissions & Air Quality due to the growing importance of the development and execution of the company's energy-transition strategy, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Petrolera Aconcagua Energia S.A. LT IDR C Downgrade CCC- LC LT IDR C Downgrade CCC- =========== B R A Z I L =========== BANCO DO BRASIL: IDB OKs $250M Funding for Bioeconomy in the Amazon ------------------------------------------------------------------- The Inter-American Development Bank (IDB) approved a $250 million financing package to support the BB Amazônia Program, a joint initiative with Banco do Brasil (BB) aimed at promoting bioeconomy businesses and expanding sustainable infrastructure in the Brazilian Legal Amazon. The financing package includes a $175 million loan from the IDB and a $75 million loan from Green Climate Fund (GCF). The program will expand access to credit for local small bio-businesses across bioeconomy value chains, as well as for sustainable infrastructure projects focused on renewable energy and digital connectivity. As many as 11,700 micro, small and medium-sized enterprises, producers, entrepreneurs, family rural producers, cooperatives and community enterprises are expected to benefit from greater access to credit. Approved by the IDB's Board of Executive Directors, the package is part of the Amazonia Forever program — the IDB’s regional strategy to scale up financing for sustainable, inclusive, and resilient development in Amazonia, with the bioeconomy as one of its central thematic pillars. The initiative seeks to reduce long-standing financing barriers faced by micro, small, and medium-sized enterprises, family farmers, women-led businesses, and traditional populations. By investing in sustainable, forest-compatible business models, BB Amazônia will contribute directly to the conservation and restoration of the Amazon biome, income generation, and the strengthening of local value chains. The program is expected to enhance the investment capacity of target beneficiaries by alleviating credit constraints. Given the central role these businesses play in the bioeconomy, the program will ultimately contribute to the sustainable development of the Brazilian Legal Amazon. Expected results include increased access to credit for productive development of bio-businesses, expansion of renewable energy generation capacity distributed among different communities and improved digital connectivity in underserved regions of the Amazon. As such, the program will contribute directly to Brazil’s climate mitigation and adaptation goals. The program also includes specific resource allocation for women bio-businesses and will support the development of an action plan to expand credit access for traditional populations, thereby promoting the financial inclusion for historically marginalized groups. In addition to the loan, the financing package includes an $8.8 million IDB-GCF investment grant to support the implementation of a loss-coverage mechanism that will enable BB to expand lending to riskier bio-businesses. The program will leverage BB’s extensive presence across the Amazon region, especially with the BB Bioeconomy Hub, launched in 2024, which coordinates the delivery of financial services and technical assistance to bio-businesses. The Hub is currently supported by an IDB-GCF Technical Cooperation under execution and will be pivotal to the success of the program. The operation reinforces the strategic partnership between the IDB and Banco do Brasil in supporting economic solutions that combine development and conservation in the Brazilian Legal Amazon. The $175 million IDB loan features a 25-year maturity, a 5.5-year grace period, and an interest rate tied to the Secured Overnight Financing Rate (SOFR). The $75 million loan has a 20-year amortization period, a 5.5-year grace period, and a fixed interest rate of 0.75%. As reported in the Troubled Company Reporter-Latin America on Dec. 24, 2024, Fitch Ratings has affirmed the Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) of Banco do Brasil S.A. (BdB) at 'BB' and Long-Term National Rating at 'AAA(bra)'. The Rating Outlooks are Stable. Fitch has also affirmed BdB's Viability Rating (VR) at 'bb' and Government Support Rating (GSR) at 'bb'. =============== C O L O M B I A =============== ARIS MINING: Fitch Affirms 'B+' LongTerm IDRs, Outlook Stable ------------------------------------------------------------- Fitch Ratings has affirmed Aris Mining Corporation's (Aris Mining) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B+'. Fitch has also affirmed Aris Mining's senior unsecured notes at 'B+' with a Recovery Rating of 'RR4'. The Rating Outlook is Stable. Aris Mining's ratings reflect its low leverage and robust profitability, which bolster its growth and diversification strategy. However, the ratings are constrained by the company's relatively small operational scale, rising costs due to increased reliance on Contract Mining Partners, heavy dependence on a single mine (Segovia) for cash flow and the remaining execution risk from its diversification projects. Fitch's current forecast only factors in Aris Mining's brownfield expansions at Segovia and Marmato in Colombia. Fitch expects gross leverage to be about 1.9x throughout the rating period, with EBITDA interest coverage of approximately 7.8x. Key Rating Drivers Starting Ramp-Up: Management expects the Segovia plant expansion to be commissioned in June 2025 and to gradually ramp-up to its 3,000 tpd production rate during 2H25 and construction of the Marmato lower mine to be completed in late 2026. Fitch projects a production increase of approximately 260,000 oz of gold by 2025, 340,000 oz by 2026 and 475,000 oz by 2027. Segovia will contribute about 90%, 85% and 65% of total production in those years as the Marmato mines ramp up. Fitch expects Aris Mining to carefully manage its alternative capex plans while it evaluates the Soto Norte project in Colombia and the Toroparu project in Guyana, which are not included in Fitch's base case. Contract Mining Partners Reliance: Local artisanal contract mining partners accounted for approximately half of Segovia's production in 2024 but will decrease to around 45% as the plant undergoes expansion. This production model enhances community support and ensures operational continuity. Aris Mining also plans to utilize artisanal producers in the Marmato and Soto Norte municipalities. However, this model leads to increased cost pressures, since compensation for mill-feed purchases depends on the material's grade and the current gold price. Average Cost Structure: According to metals consultancy CRU Group, Aris Mining is expected to lower its cost towards the lower part of the third quartile of the gold production cost curve in 2025. The company reported a total all-in sustaining cost (AISC) of USD1,570/oz of gold for Segovia in the three months ending March 31, 2025, while surging prices expanded the AISC margin to USD1,285/oz from USD628/oz a year ago. The Segovia processing plant expansion and higher by-product credits should help alleviate cost pressures once high prices decrease. Moderate Leverage: Fitch expects Aris Mining to maintain manageable leverage during the construction of Marmato Lower and the Segovia plant expansion. The average gross and net leverage ratios are projected to be 1.9x and 1.1x, respectively, between 2025 and 2027, compared to 3.2x and 1.6x in 2024, with average gross debt of approximately USD485 million. Fitch treats the financing for Marmato Lower (a precious metals streaming arrangement with Wheaton Precious Metals Corp.) as non-debt and assumes the gold-linked notes will be fully repaid. Aris Mining is targeting a maximum gross leverage ratio of 3.0x. Expansion-Driven Negative FCF: Fitch anticipates that Aris Mining will produce over USD250 million in EBITDA in 2025. Fitch expects capex to remain at around USD200 million, which includes the development of the Marmato Lower mine and expansion of the Segovia processing plant as well as the Wheaton financing. Fitch also expects FCF to remain negative until Aris Mining completes its investment phase in 2027, at which time EBITDA should exceed USD300 million with assumed mid-cycle gold prices Peer Analysis Aris Mining produces 260,000 oz from two mining operations in Colombia, comparable to Ero Copper's 240,000 oz of gold equivalent from two Brazilian mines. However, this is lower than IAMGOLD's 800,000 oz from two mines in Burkina Faso and Canada, Eldorado Gold's 485,000 oz from mines in Canada, Greece, and Turkey, and Compania de Minas Buenaventura's 600,000 oz gold equivalent from mines in Peru. Aris Mining has a mine life of 21 years in reserves (seven at its largest mine), which is longer than Ero Copper's 18 years, Eldorado Gold's 15 years, and IAMGOLD's seven years. Buenaventura's main gold mines have a four-year mine life but benefit from significant silver and base metals production and stakes in long-lived assets like Cerro Verde. Aris Mining's third quartile cost position is more favorable than Ero Copper's, Buenaventura's, and IAMGOLD's fourth quartile positions but less competitive than Eldorado Gold's second quartile standing. Aris Mining's expected average gross and net leverage is 1.9x and 1.1x over three years. This is higher than IAMGOLD's 1.5x and 1.1x, Ero Copper's 1.6x and 1.2x, similar to Eldorado Gold's 2.2x and 1.1x, and lower than Buenaventura's 2.2x and 1.7x. Key Assumptions - Gold prices of USD2,400/oz in 2025, USD2,100/oz in 2026 and USD2,000/oz in 2027; - Gold sales reach 260,000 oz in 2025, 340,000oz in 2026 and 475,000oz in 2027; - Capex is USD190 million in 2025, about USD200 million in 2026 and nearly USD100 million in 2027. These amounts include expenses in Toroparu and Soto Norte. The Marmato expansion includes USD82 million of new streaming financing; - Dividends and stock buybacks remain suspended; - Wheaton Precious Metals financing for Marmato Lower of USD40 million in 2025 and USD42 million in 2026. Recovery Analysis The recovery analysis assumes that Aris Mining would be considered a going concern in an event of bankruptcy and that the company would be reorganized rather than liquidated. Fitch has assumed a 10% administrative claim. Aris Mining's going concern EBITDA assumption is based on a fall of gold prices in 2025 through 2028 and slow cost reductions. The going concern EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which it bases the enterprise valuation. An enterprise valuation multiple of 6.5x EBITDA is applied to the going concern EBITDA to calculate a post-reorganization enterprise value. The choice of this multiple considered the following factors: the historical bankruptcy case study exit multiples for peer companies were 4.0x-7.0x, improving financial subfactors, mid-quality assets, and high growth prospects, despite challenging dynamics in a volatile and commoditized industry. Fitch applies a waterfall analysis to the post-default enterprise valuation based on the relative claims of debt in the capital structure. These assumptions result in a recovery rate for Aris Mining's senior secured notes within the 'RR3' range, but due to the soft cap of Colombia at 'RR4', Aris Mining's senior unsecured notes are rated at 'B+'/'RR4'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Deterioration of the company's liquidity position; - Prolonged strikes or mine closures that would halt or significantly lower gold production; - Large debt-funded acquisitions; - Negative FCF on a sustained basis; - Gross leverage at 3x or higher on a sustained basis; Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Increasing size and diversification over the medium term; - A successful reduction of the company's dependence on Segovia; - An increase in the reserve life of Segovia. Liquidity and Debt Structure Aris Mining plans to fund its ongoing capital expenditures and negative free cash flow through cash on hand, ongoing cash flow generation from Segovia and proceeds from the Marmato stream with Wheaton. As of March 31, 2025, Aris reported Fitch-adjusted cash and equivalents of USD240 million and gross debt of USD523 million. Debt is comprised of USD450 million of senior unsecured notes due in 2029, and USD67 million gold-linked notes, fair value of premia and interests, with yearly payments that end in 2027. No convertible debentures remain after their last exercise in 2024. Future advance deposits of USD82 million from streaming contracts with Wheaton upon construction completion milestones will help to fund the final stage of the Marmato Lower mine project, which Fitch considers as operational expenditure. Issuer Profile Aris Mining is a Canadian-based precious metals miner. It is one of the two largest gold producers in Colombia with two underground operations. Aris is expanding its operations at Segovia and Marmato and considering projects in Colombia and Guyana. 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 Aris Mining Corporation has an ESG Relevance Score of '4' for Labor Relations & Practices due to the company's partial reliance on third-party contract mining partners for its gold production, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Aris Mining Corporation has an ESG Relevance Score of '4' for Human Rights, Community Relations, Access & Affordability due to the company's exposure to local unrest in the communities surrounding its Marmato and Segovia mining operations, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Aris Mining Corporation LT IDR B+ Affirmed B+ LC LT IDR B+ Affirmed B+ senior unsecured LT B+ Affirmed RR4 B+ ================= G U A T E M A L A ================= INGENIO MAGDALENA: Moody's Affirms 'B1' CFR, Outlook Stable ----------------------------------------------------------- Moody's Ratings has affirmed Ingenio Magdalena S.A. (Magdalena)'s B1 Corporate Family Rating. The outlook is stable. RATINGS RATIONALE Magdalena's B1 rating is supported by its competitive position as the largest sugarcane producer in Guatemala (Government of Guatemala, Ba1 stable), which is the fifth-largest exporter of sugar globally; the large scale of Magdalena's mills with an annual crushing capacity of 6.9 million tons; a stable production and price environment in Guatemala, with annual production quotas for the local market and stable local wholesale prices; its high percentage of energy sales with long-term contracts; its export focus on the higher priced refined white sugar; and efficiency of its operations with high agricultural yields and efficient logistics assets. The rating is constrained by Magdalena's small size on a global scale, although the company is a local leader in sugarcane crushing with 24% market share in Guatemala. The rating is constrained by the concentration in a single production site and in a single geographical region, which leaves the company highly exposed to event risks, be it weather, disease or even political risk, logistical and trade asymmetries. Exposure to the inherent volatility of the sugar business, coupled with a high share of own production, leads to high fixed costs of the agricultural activities, although it also allows for higher yield control and sugarcane availability. In 2025 Moody's have observed Magdalena deploying organic and inorganic growth which will increase leverage and lead to negative free cash flow generation in the year, but will help the company to diversify its energy portfolio, increase production capacity and distribution alternatives in the Retalhuleu region of Guatemala and also diversify abroad to Peru (Government of Peru, Baa1 stable). Magdalena is investing in solar energy thus further reducing the carbon footprint of energy generation assets. The company has invested in industrial assets in the Southwest region of the country, closer to the Mexico border, which also requires the investment in new hectares of sugarcane. Magdalena also announced an agreement with Grupo Romero to acquire 80% of Agricola del Chira (Caña Brava) with operating assets in the sugarcane industry in Peru. Moody's believes the company may add roughly $140 million in debt between 2024 and 2025 to fund these ventures. Moody's expects Magdalena's leverage to peak at 4.7x at year-end 2025 with a partial contribution from Caña Brava, or the equivalent of 4.2x pro-forma considering a full year contribution from the acquired asset. Overtime the company is expected to maintain adequate leverage levels for the rating level, between 3.5x - 4.0x. Moody's expects the company to continue actively refinancing its short-term debt in order to avoid liquidity pressures. Yearly debt amortizations are expected to remain at around USD24 million for the syndicated loans which represent the bulk of its indebtedness. The company also has a revolving credit facility in Quetzal equivalent to USD80 million which has been fully withdrawn. The facility is due in 2027 but the outstanding amounts have to be repaid annually. The company relies on its creditor banks for refinancing. The stable outlook incorporates that Magdalena will maintain an adequate gross leverage through the commodity price cycles and investment cycles; liquidity will remain adequate. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING A rating upgrade would require Magdalena to maintain a robust liquidity profile, represented by a cash position consistently above short-term debt levels, and stable margins through the harvest and through commodity price cycles, with an adequate debt maturity profile and a reduction in gross leverage. Quantitatively, an upgrade would require its total Moody's adjusted Debt/EBITDA to remain consistently below 3.5x, EBITDA/Interest Expense above 4.0x and Retained Cash Flow/Net Debt consistently above 15%. A rating downgrade could result from Magdalena's inability to maintain an adequate debt maturity schedule and liquidity profile. An increase in leverage, deterioration of credit metrics and liquidity could pose negative pressure on the rating. Quantitatively, a downgrade would happen if total adjusted Debt/EBITDA remains above 4.5x, EBITDA/Interest expense remains below 3.0x and Retained Cash Flow/Net Debt is expected to remain below 10%. COMPANY PROFILE Magdalena's main activity is the production and sale of sugar in local and international markets, exporting mainly white refined sugar, as well as the sale of electricity, ethanol and other products derived from its production process. Magdalena is fully owned by the Leal family, with five ultimate beneficial owners. In 2024, Magdalena posted $671 million in net sales and $201 million in Moody's-adjusted EBITDA, including Moody's standard adjustments, with a 29.9% EBITDA margin. The principal methodology used in this rating was Protein and Agriculture published in August 2024. ============= J A M A I C A ============= DIGICEL GROUP: Discloses New Collaboration With Symptai Consulting ------------------------------------------------------------------ RJR News reports that Digicel Group and Symptai Consulting are collaborating in what they says is an effort to offer businesses better access to world class solutions as well as the experts to support all their technology needs. This collaboration strengthens Digicel's initial stake in Symptai, which it acquired in 2021, according to RJR News. Symptai is a leading technology advisory and cyber security company, which has a 27-year track record as a regional cyber security, data privacy and protection, money laundering and risk compliance expert, according to RJR News. The current partnership will allow Symptai to use Digicel's ICT solutions to support governments, financial institutions and large enterprises across the Caribbean, the report notes. About Digicel Group Digicel Group is a mobile phone network provider operating in 33 markets across the Caribbean, Central America, and Oceania regions. The company is owned by the Irish billionaire Denis O'Brien, is incorporated in Bermuda, and based in Jamaica. As reported in the Troubled Company Reporter-Latin America in April 2020, Moody's Investors Service downgraded Digicel Group Limited's probability of default rating to Caa3-PD from Caa2-PD. At the same time, Moody's downgraded the senior secured rating of Digicel International Finance Limited to Caa1 from B3. All other ratings within the group remain unchanged. The outlook is negative. Also in April 2020, the TCR-LA reported that Fitch Ratings has downgraded Digicel Limited to 'C' from 'CCC', and its outstanding debt instruments, including the 2021 and 2023 notes to 'C'/'RR4' from 'CCC'/'RR4'. Fitch has also downgraded Digicel International Finance Limited to 'CCC+' from 'B-'/Negative, and its outstanding debt instruments, including the 2024 notes and the 2025 credit facility, to 'CCC+'/'RR4' from 'B-'/'RR4'. Fitch has removed the Negative Rating Outlook from DIFL. JAMAICA: Oats Manufacturer Sounds Alarm on Unregulated Imports -------------------------------------------------------------- RJR News reports that Jamaica's sole rolled oats manufacturer is sounding the alarm that local production of the commodity is being choked by unregulated imports, which could threaten the future viability of the Foska brand. Christopher Ramson, Managing Director of Caribbean Foods has reported that the company's sales of the product have declined by as much as 30 per cent because of the unregulated importation and distribution of bulk oats in plastic bags, according to RJR News. He cautioned as well that the sale of the unlabelled oats could pose a health and safety standard problem, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. ======= P E R U ======= FERRELLGAS PARTNERS: Fiscal Q3 2025 Net Income Rises 12% to $59.1M ------------------------------------------------------------------ Ferrellgas Partners L.P. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q for the quarterly period ended April 30, 2025. Financial Highlights: * Revenue growth, of 9% versus the prior year, was driven by positive demand in all customer segments in the third fiscal quarter. Retail and wholesale sales increased 9% and 8%, respectively. * Gross profit increased $16.9 million, or 6%, in the third fiscal quarter compared to the prior year. The increase was driven by an increase of $45.1 million, or 9%, in revenues, which was partially offset by an increase of $28.1 million, or 12%, in cost of product. Higher costs were driven by propane pricing increases. * The Company recognized net earnings attributable to Ferrellgas Partners, L.P. of $59.1 million and $52.8 million in the third fiscal quarter of fiscal 2025 and 2024, respectively. The $6.3 million increase was primarily due to the $16.9 million increase in gross profit, which was partially offset by an $8.8 million increase in operating expenses and $3.5 million increase in interest expense. The Company stated, "Our primary sources of liquidity and capital resources are cash flows from operating activities, our Credit Facility and funds received from sales of debt and equity securities. The operating partnership, the general partner and certain of the operating partnership's subsidiaries as guarantors are parties to a credit agreement dated March 30, 2021, as amended on January 15, 2025, with JPMorgan Chase Bank, N.A. as administrative agent and collateral agent, and the lenders and issuing lenders party thereto from time to time, which provides for a four-year revolving credit facility, with a maturity date of December 31, 2025, in an aggregate principal amount of up to $350 million. On March 31, 2025, in conjunction with the commencement of the Fifth Amendment, the commitment level for the Credit Facility was reduced from $350 million to $308.8 million. The Credit Agreement includes a sublimit not to exceed $300 million for the issuance of letters of credit." "As of April 30, 2025, our total liquidity was $263.2 million, which was comprised of $109.3 million in unrestricted cash and $153.9 million of availability under our Credit Facility. These sources of liquidity and short-term capital resources are intended to fund our working capital requirements, acquisitions and capital expenditures. As of April 30, 2025, letters of credit outstanding totaled $154.9 million. Our access to long-term capital resources, to the extent needed to refinance debt or for other purposes, may be affected by our ability to access the capital markets, covenants in our debt agreements and other financial obligations, unforeseen demands on cash, or other events beyond our control." "Our working capital requirements are subject to, among other things, the price of propane, delays in the collection of receivables, volatility in energy commodity prices, liquidity imposed by insurance providers, downgrades in our credit ratings, decreased trade credit, significant acquisitions, the weather, customer retention and purchasing patterns and other changes in the demand for propane. Relatively colder weather or higher propane prices during the winter heating season are factors that could significantly increase our working capital requirements." "In March 2025, the operating partnership's corporate rating was downgraded from B2 to B3 by Moody's Investors Service and our senior unsecured notes were downgraded from a B3 to a Caa1 rating by Moody's. In April 2025, the operating partnership's senior unsecured notes rating was downgraded from a B to a CCC+ rating by S&P Global Ratings." "Our ability to satisfy our obligations is dependent upon our future performance, which will be subject to prevailing weather, economic, financial and business conditions and other factors, many of which are beyond our control. Due to the seasonality of the retail propane distribution business, a significant portion of our propane operations and related products cash flows from operations is generated during the winter heating season. Our net cash provided by operating activities primarily reflects earnings from our business activities adjusted for depreciation and amortization and changes in our working capital accounts. Historically, we generate significantly lower net cash from operating activities in our first and fourth fiscal quarters as compared to the second and third fiscal quarters due to the seasonality of our propane operations and related equipment sales operations." "During periods of high volatility, our risk management activities may expose us to the risk of counterparty margin calls in amounts greater than we have the capacity to fund. Likewise, our counterparties may not be able to fulfill their margin calls from us or may default on the settlement of positions with us." "The liquidity available from cash flows from operating activities, unrestricted cash and the Credit Facility may not be sufficient to meet our capital expenditure, working capital and letter of credit requirements for the foreseeable future. Due to the timing of the maturities, as described in Note E "Debt" in the notes to our condensed consolidated financial statements, of both the 2026 Notes and the Credit Facility, and the $154.9 million in letters of credit which it secures as of April 30, 2025, there is substantial doubt about the Company's ability to continue as a going concern for at least one year from the date of issuance of this Quarterly Report. We have developed and received internal approval on a plan to restructure our capital structure, debt and refinance and/or extend the maturity date for the Credit Facility. External advisors have been engaged to assist in this process. The general partner believes that it is probable that the plans will be successfully implemented prior to the maturities of the 2026 Notes and Credit Facility, and these plans will alleviate the substantial doubt about the Company's ability to continue as a going concern." As of April 30, 2025, the Company had $1.5 billion in total assets, $1.8 billion in total liabilities, and total Ferrellgas Partners, L.P. deficit of $977.1 million. Management Commentary: Tamria Zertuche, President and Chief Executive Officer, commented, "We are very pleased to have delivered strong third quarter sales growth of 9%, which translated into solid gross profit, and net earnings growth of 12%. This growth was driven by our strong field performance in inclement weather and residential market growth." Ms. Zertuche continued, "The Company has been named once again by Newsweek as one of the Most Trustworthy Companies in America. The dedication and commitment our employee-owners make to our customers is a key driver in our growth. We are grateful for the outstanding efforts of our employees who continue to deliver operational excellence through efficiencies, and solid results. Our drivers braced against the elements to safely meet the needs of our customers. Safe driving by our experienced and highly tenured employees, aided by proven planning practices helped achieve opportunities for growth in Retail and solid Blue Rhino performance. I could not be prouder of the way our teams performed. We are well positioned to capitalize on the upcoming peak grilling season, and our prudent expansion efforts are paying off with the addition of several new national accounts with multi-year contracts." A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/496khkks About Ferrellgas Ferrellgas Partners, L.P., through its operating partnership, Ferrellgas, L.P., and subsidiaries, serves propane customers in all 50 states, the District of Columbia, and Puerto Rico. * * * S&P Global Ratings lowered its issuer credit rating on Ferrellgas Partners L.P. to 'CCC' from 'CCC+'. S&P said, "We also lowered our issue-level rating on its debt to 'CCC' from 'CCC+'. The '3' recovery rating on the senior unsecured notes are unchanged, indicating our expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default. The negative outlook reflects S&P Global Ratings expectation that it could lower its rating further if Ferrellgas cannot refinance the current notes in the next several months. INSTITUTO DE EDUCACION: Seeks to Tap Jose O. Ayala as Accountant ---------------------------------------------------------------- Instituto de Educacion y Tecnologia Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire Jose O. Ayala, CPA, MBA, an accountant practicing in Toa Alta, Puerto Rico. The accountant will render these services: (a) assist the Debtor in gathering and compiling the necessary information required to file the Chapter 11 petition and court required information and schedules; (b) provide consulting services and assist the Debtor and its attorney in documenting the reorganization plan to be filed in the case; (c) prepare monthly operating reports; (d) prepare all necessary tax returns to ascertain the Debtor is in full compliance with its fiscal responsibilities; and (e) assist the Debtor and its attorney in all matters related to court instructions, transactions, and or information requests of an accounting or financial nature. The accountant's hourly rates are as follows: Jose Ayala, CPA, MBA $190 Senior Accountant $125 Staff Accountant $75 In addition, the accountant will seek reimbursement for expenses incurred. Mr. Ayala also requires a retainer of $10,000 for this case. Mr. Ayala disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The accountant can be reached at: Jose O. Ayala, CPA, MBA Urb Ciudad Jardin III Toa Alta, PR 00953 Telephone: (939) 438-0254 Email: jayalacpa@gmail.com About Instituto de Educacion y Tecnologia Inc. Instituto de Educacion y Tecnologia Inc. is a non-profit educational institution operating in Puerto Rico that provides educational services through a contract with the Department of Education of Puerto Rico valid until June 30, 2025. Instituto de Educacion y Tecnologia Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. P.R. Case No. 25-02193-11) on May 16, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge Enrique S. Lamoutte Inclan handles the case. The Debtors are represented by Carmen D. Conde Torres, Esq. at C. CONDE & ASSOC. PERU: Slows as Mining Struggles, Central Bank Cuts Forecast ----------------------------------------------------------- Juan Martinez at Rio Times Online reports that Peru's Central Reserve Bank has slightly lowered its prediction for how much the country's economy will grow in 2025. The new forecast is 3.1%, down from the earlier estimate of 3.2%. This change comes mainly because Peru's important mining sector, especially metal mining, is not expected to do as well as previously thought, according to Rio Times Online. Mining is a big part of Peru's economy. It brings in a lot of money from exports, especially copper, gold, and zinc, the report notes. The Central Bank now expects metal mining to grow by just 0.3% in 2025, much less than the 2% they predicted before, the report relays. Hydrocarbons, like oil and gas, are also expected to grow less, with their forecast dropping from 5.5% to 4%, the report discloses. Despite these lower numbers, other parts of Peru’s economy are doing better, the report notes. In the first part of 2025, the country’s economy grew by 3.9%. Manufacturing, services, and mining led this growth, the report says. People and businesses also spent more, and exports of goods like grapes, natural gas, and fishmeal increased, the report discloses. Copper remains Peru's top export. The government expects copper production to reach 2.8 million metric tons in 2025, a small increase from last year, the report relays. Investment in mining is expected to be about $4.8 billion this year, the report discloses. However, the sector faces problems such as illegal mining and local disputes, which sometimes stop production, the report relays. Inflation is low and stable, at around 1.65% in April 2025, which is within the central bank’s target, the report notes. The country's currency has become stronger, and copper export earnings have gone up by about 12–15% compared to last year, the report says. Peru's government also expects to reduce its budget deficit to 2.4% of GDP in 2025, the report relates. Still, there are risks. Prices for metals can change quickly, and economic growth in countries that buy Peru’s exports, like China, has slowed, the report discloses. Political and social problems in Peru, especially near mining areas, also worry investors, the report says. The government hopes to attract $16 billion in private investment by 2026, focusing on new infrastructure and mining projects, the report relays. This could help the economy grow in the future, the report notes. Peru's economy has strengths, like stable prices and strong exports, but it also faces real challenges, the report says. The country's success depends on how well it manages its mining sector and deals with both local and global risks, the report adds. =============== X X X X X X X X =============== LATAM: IDB Creates Fund to Strengthen Caribbean Integration ----------------------------------------------------------- As part of the Brazil-Caribbean Summit, with the participation of Caribbean Community (CARICOM) nations, the Inter-American Development Bank (IDB) disclosed new measures to support the region through development and integration. In the IDB's view, the joint efforts of Brazil and CARICOM prove that regional integration works. One of the IDB’s most important initiatives is the creation of a multi-donor fund for the ONE Caribbean program, a platform for collective action focused on climate resilience and disaster risk management, citizen security, private sector development and food security. To date, the IDB has launched 11 regional initiatives, in addition to ONE SAFE Caribbean and a coordination mechanism for project preparation. “The IDB is fully committed to the development of Caribbean countries. Together with leaders from the region and Brazil, the IDB is working to strengthen resilience and security and generate opportunities throughout the region. In this regard, within the framework of our ONE Caribbean program, the IDB is ready to contribute, including with a new fund, by promoting integration by offering regional initiatives as well as providing resources and support to Haiti,” IDB President Ilan Goldfajn said. The main IDB announcements at the Summit, which brought together heads of state and government leaders at the Itamaraty Palace in Brasilia, are as follows: 1. Haiti: The IDB is providing R$1.6 billion ($283 million) in grants for projects such as school meals, hospital renovations, and basic infrastructure. The IDB will also finance projects with the private sector as part of the 2025-2030 Recovery Plan for Haiti, a broad program to promote economic opportunities in areas outside of Port-au-Prince. The IDB is leading the preparation of this plan at the request of Haitian authorities and in close collaboration with the UN, the European Union, and the World Bank. 2. Multi-Country Debt Swap: At the request of CARICOM Chair and Barbados Prime Minister Mia Mottley, the IDB is leading the coordination with other multilateral institutions for a first-of-its-kind regional standardized debt-for-resilience multi-country swap program. This initiative will unlock fiscal space, strengthen resilience, and channel savings into regional public goods. This new framework would help bring scale, transparency, and efficiency – crucial for small states that face high costs in such transactions. 3. Caribbean Multi-Donor Fund: The IDB is launching the Caribbean Multi-Donor Trust Fund, an IDB platform for collective action focused on resilience, citizen security, private sector development, and food security. The fund was created under the ONE Caribbean program with initial contributions of approximately $13 million from Canada and the United Kingdom. The IDB invites other countries and institutions to participate in the initiative, including Brazil. ********* 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 * * *