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250626.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 Thursday, June 26, 2025, Vol. 26, No. 127 Headlines A R G E N T I N A ARGENTINA: Deregulation Offers Upside for Globant B A H A M A S FTX GROUP: Trust Slams Three Arrows' 'Illogical' $1.5B Claim B R A Z I L BRAZIL: Property Rents Outpace Inflation, But Sales Slow C A Y M A N I S L A N D S AT HOME GROUP: S&P Affirms 'D' Issue-Level Rating on Cayman Notes J A M A I C A JAMAICA: BoJ Reports 2.1% Increase in Net Remittances for February M E X I C O ASCEND PERFORMANCE: Panel Taps AlixPartners as Financial Advisor BRASKEM IDESA: S&P Lowers ICR to 'B-' on Higher Leverage P E R U PERU: Mining Boom Masks Crisis of Illegal Gold & Violence U R U G U A Y NAVIOS SOUTH: S&P Assigns 'B' Issuer Credit Rating, Outlook Pos. - - - - - ================= A R G E N T I N A ================= ARGENTINA: Deregulation Offers Upside for Globant ------------------------------------------------- Valentina Fuentes at Bloomberg News reports that Argentina is becoming a bright spot in what has been a rough period for software company Globant SA, with the deregulation of the local financial industry prompting companies to step up investment in technology systems. US-traded shares in the Argentine-based company have slumped 55 percent this year as clients delay projects amid uncertainty triggered by US President Donald Trump's tariff plans, according to Bloomberg News. Within Latin America, Mexico and Brazil have been particularly hard hit, while Argentina has outperformed, company CEO Martin Migoya said in an interview, Bloomberg News relays. "Deregulation leads to growth and unleashes a virtuous cycle in which companies are being forced to invest and renew their technologies," he said. All this in a "market that has had below-standard investment levels for a long time," he added. Argentina's President Javier Milei has removed capital controls and eased regulations since coming to power in December 2023, policies that are beginning to revive growth in an economy marked by years of instability and repeated defaults, Bloomberg News relays. Latin America accounts for 20 percent of Globant's total revenue and Argentina is the country with the greatest weight within the region, according to the company, Bloomberg News notes. Last month, the company lowered its revenue growth forecast for this year from 10 percent to two percent, Bloomberg News says. This triggered a record intraday drop in its shares of more than 33 percent, Bloomberg News notes. Globant's slump comes after a decade of rapid growth in its operations in 36 countries on five continents, during which time its total workforce increased tenfold to over 31,000 employees, Bloomberg News discloses. Looking ahead, Migoya expects Globant's AI Pods project, a new subscription model for Artificial Intelligence-based services launched recently, to have a significant impact on its business, as it has been "tremendously well received by customers," he added. Migoya believes that the current complex situation is "transitory," Bloomberg News relays. "It is a period of adjustment, and we are already seeing some signs of recovery," said the CEO, Bloomberg News adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. The upgrade reflects the launch of a new IMF program, among other things. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. Moody's Ratings, in January 2025, raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. ============= B A H A M A S ============= FTX GROUP: Trust Slams Three Arrows' 'Illogical' $1.5B Claim ------------------------------------------------------------ Lauren Berg at law360.com reports that the FTX bankruptcy recovery trust objected to a $1.53 billion claim made by the now-liquidated cryptocurrency hedge fund Three Arrows Capital Ltd., saying the "illogical and baseless" claim grossly inflates the actual value of assets associated with its customers' FTX accounts, while offering zero supporting evidence. About FTX Group FTX is the world's second-largest cryptocurrency firm. FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that FTX paused customer withdrawals after it was hit with roughly $5 billion worth of withdrawal requests. Faced with liquidity issues, FTX on Nov. 9, 2022, struck a deal to sell itself to its giant rival Binance, but Binance walked away from the deal amid reports on FTX regarding mishandled customer funds and alleged US agency investigations. SBF agreed to step aside, and restructuring vet John J. Ray III was quickly named new CEO. FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc. (d/b/a FTX US), Alameda Research Ltd. and certain affiliated companies then commenced Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022. Additional entities sought Chapter 11 protection on Nov. 14, 2022. FTX Trading and its affiliates each listed $10 billion to $50 billion in assets and liabilities, making FTX the biggest bankruptcy filer in the US this year. According to Reuters, SBF shared a document with investors on Nov. 10, 2022, showing FTX had $13.86 billion in liabilities and $14.6 billion in assets. However, only $900 million of those assets were liquid, leading to the cash crunch that ended with the company filing for bankruptcy. The Hon. John T. Dorsey is the case judge. The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal North America, LLC as financial advisor. Kroll is the claims agent, maintaining the page https://cases.ra.kroll.com/FTX/Home-Index The Official Committee of Unsecured Creditors tapped Paul Hastings as counsel, FTI Consulting, Inc., as financial advisor, and Jefferies LLC as the investment banker. Young Conaway Stargatt & Taylor LLP is the Committee's Delaware and conflicts counsel. Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory T. Donilon, Edward L. Schnitzer, and David M. Banker, is representing Sam Bankman-Fried in the Chapter 11 cases. White-collar crime specialist Mark S. Cohen has reportedly been hired to represent SBF in litigation. Lawyers at Paul Weiss previously represented SBF but later renounced representing the entrepreneur due to a conflict of interest. =========== B R A Z I L =========== BRAZIL: Property Rents Outpace Inflation, But Sales Slow -------------------------------------------------------- Rio Times Online reports that Brazil's commercial real estate market is showing mixed signals. Official data from the FipeZAP index reveals that in May 2025, prices for buying small office spaces rose by just 0.18%, according to Rio Times Online. Meanwhile, rents for these spaces increased by 0.62%. Both numbers are lower than the previous month, suggesting the market is slowing down a bit, the report notes. Over the past year, rents for commercial spaces have jumped by 7.3%, the report relays. This is higher than Brazil's main inflation rate, which was 5.32%, the report discloses. In contrast, the price to buy these properties only grew by 1.42% in the same period, the report says. This means that renting out commercial property has become more profitable, while buying and selling has slowed, the report notes. Some cities stand out, the report discloses. Curitiba saw the biggest jump in sale prices, up 12.55% over the year, the report relays. Niteroi led in rental increases, with rents rising 19.18%, the report notes. Sao Paulo remains the country's most expensive market, with average sale prices at R$10,290 per square meter and rents at R$56.43 per square meter, the report relays. Investors find commercial property attractive because the average rental return is 6.87% per year, which is higher than the 5.93% return from residential properties, the report says. Salvador offers the highest rental yield at 10.05% per year, the report discloses. Brazil's central bank has raised interest rates since late 2024 to fight inflation, the report notes. Normally, this would slow down both sales and rentals, the report relates. So far, only rent growth has eased a bit, while sale prices have barely moved, the report notes. Strong job numbers and retail sales are helping keep demand for commercial spaces steady, the report says. The big story is that owning commercial property in Brazil is still a good way to beat inflation, especially for landlords and investors, the report notes. For businesses renting space, however, rising rents mean higher costs, the report discloses. The market's future will depend on how the economy, interest rates, and business demand evolve, the report adds. 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. =========================== C A Y M A N I S L A N D S =========================== AT HOME GROUP: S&P Affirms 'D' Issue-Level Rating on Cayman Notes ----------------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on U.S.-based home decor retailer At Home Group Inc. to 'D' from 'SD' (selective default). In addition, S&P lowered its issue-level ratings on At Home's senior secured term loan due 2028, $300 million senior secured notes due 2028, exchange notes due 2028, and senior unsecured notes due 2029 to 'D'. S&P's recovery ratings on the facilities are unchanged. At the same time, S&P affirmed its 'D' issue-level rating on the company's Cayman notes. S&P's recovery rating on the facility is unchanged. S&P expects to withdraw all its ratings on At Home in the next 30 days. S&P downgraded At Home after it filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. The company entered Chapter 11 with a restructuring support agreement that provides it with $200 million in new money as part of a $600 million debtor-in-possession (DIP) financing package, which it will use to finance its operations and pay bankruptcy-related expenses. The DIP facility will subsequently convert to equity when At Home emerges from bankruptcy. At the time of the filing, the company had outstanding debt totaling almost $2 billion, which comprised $378 million drawn under its asset-based lending (ABL) facility, $579 million outstanding under its senior secured term loan facility, $300 million of senior secured notes, $200 million of Cayman notes, $483 million of exchange notes, and $58 million of senior unsecured notes. Changes in consumer behavior, difficult operating conditions, and a highly leveraged capital structure have challenged At Home's ability to generate positive free operating cash flow for the last four years. The company's turnaround initiatives, which included management changes, lowering its product prices, and implementing cost cuts, were insufficient to materially improve its performance. In 2025, the company's looming ABL maturity, along with the implementation of multiple tariff increases on imports to the U.S., intensified its liquidity issues, given that it sources about 90% of its products from overseas (including a significant exposure to China). Therefore, on May 23, 2025, At Home entered in a forbearance agreement after missing interest payments on its notes. S&P expects to withdraw all its ratings on the company and its subsidiaries in the next 30 days. ============= J A M A I C A ============= JAMAICA: BoJ Reports 2.1% Increase in Net Remittances for February ------------------------------------------------------------------ RJR News reports that the Bank of Jamaica has reported that net remittances - the difference between inflows and outflows - climbed by 2.1% to US$238 million in February of this year, when compared with the same month last year. This was primarily due to an increase of US$5.8 million in inflows and US$1 million or 4.9% increase in outflows, according to RJR News. The central bank also says there was a US$9.3 million uptick in net remittance flows to US$2.9 billion during the fiscal year to date, March of 2024 to February of 2025, the report notes. This was due to a US$6.7 million increase in inflows and a 1.3% or $2.8 million dip in outflows, 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 =========== ASCEND PERFORMANCE: Panel Taps AlixPartners as Financial Advisor ---------------------------------------------------------------- The official committee of unsecured creditors of Ascend Performance Materials Holdings Inc. and its affiliates seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ AlixPartners, LLP as financial advisor. The firm will render these services: (a) review and evaluate the Debtors' current financial condition, cash and financial forecasts, and periodically report to the Committee regarding the same; (b) conduct ongoing monitoring of payments proposed by the Debtors; (c) review and analyze the Debtors' proposed business plan; (d) provide expert testimony on topics within AlixPartners' expertise; (e) review the Debtors' cash management, tax sharing and intercompany accounting systems, practices and procedures; (f) review and investigate: (i) related party transactions, including those between the Debtors and their non-debtor subsidiaries and affiliates (including, but not limited to, shared services expenses and tax allocations) and (ii) selected other prepetition transactions; (g) review and evaluate proposed incentive compensation plans, including Key Employee Incentive Plans and Key Employee Retention Plans; (h) identify and/or review potential preference payments, fraudulent conveyances and other causes of action that the various Debtors' estates may hold against third parties, including each other; (h) analyze the Debtors' assets and claims and assess potential recoveries to the various creditor constituencies under different scenarios, in coordination with the Committee's investment banker; (i) advise the Committee and consult with the Debtors' advisors (as appropriate) regarding the ongoing treatment of critical vendors and utilization of relief provided under the Critical Vendor Order, including analyses of critical vendor trade agreements; (k) review proposed operational relief requested by the Debtors, including the rejection, assumption, and renegotiation of executory contracts and unexpired leases; (l) assist in the development and/or review of the Debtors' plan of reorganization and disclosure statement; (m) review and evaluate court motions filed or to be filed by the Committee, the Debtors, or any other parties-in-interest, as appropriate; (n) render litigation support services, including e-Discovery services, as requested from time to time by the Committee and its counsel, regarding any of the matters to which AlixPartners is providing services; (o) attend Committee meetings and Court hearings as may be required in the role of advisors to the Committee; (p) conduct eDiscovery, document review and forensic data services required in conjunction with any document requests or other discovery; and (q) assist with such other matters as may be requested that fall within AlixPartners' expertise and are mutually agreeable but are not duplicative of any services provided by other Committee professionals. AlixPartners' current standard hourly rates are: Partner/ Partner & Managing Director $1,225 to $1,540 Senior Vice President/ Director $850 to $1,150 Vice President $650 to $835 Analyst/ Consultant $250 to $640 In addition, the firm will be reimbursed for reasonable out-of-pocket expenses incurred. David MacGreevey, a partner and managing director at AlixPartners, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: David MacGreevey AlixPartners, LLP 909 Third Avenue, Floor 30 New York, NY 10022 Telephone: (212) 490-2500 Facsimile: (212) 490-1344 Email: dmacgreevey@alixpartners.com About Ascend Performance Materials Holdings The Debtors, 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. BRASKEM IDESA: S&P Lowers ICR to 'B-' on Higher Leverage -------------------------------------------------------- S&P Global Ratings, on June 24, 2025, lowered its issuer credit and issue ratings to 'B-' from 'B' on Mexican polyethylene producer Braskem Idesa S.A.P.I. The stable outlook reflects S&P's view that the company will gradually improve leverage and interest coverage through higher production and slightly increasing price trends, while maintaining adequate liquidity. The rating action follows Braskem Idesa's weaker-than-expected credit metrics. Since the company's sharp declines in revenue (-33%) and EBITDA (-41%) in 2023, it has not been able to compensate for the debt increase related to investments in a new terminal. S&P said, "As of March 31, 2025, leverage remained constrained at about 9.3x. In our base case, we now expect adjusted debt to EBITDA around 9.3x and EBITDA interest coverage of 1.5x for 2025. We then expect debt to EBITDA will fall closer to 5.0x and EBITDA interest coverage will rise above 2.0x by 2027-2028, whereas we previously expected these targets in 2025. In our opinion, the company's interest payments will continue to consume most of the expected EBITDA generation in the next 12 months, thereby maintaining EBITDA interest coverage close to 1.5x, which does not provide much headroom to withstand stress scenarios." Leverage metrics will remain dependent on EBITDA generation, given S&P does not expect additional debt for the next two years. After the $580 million total investment in the development of Terminal Quimica Puerto Mexico (TQPM), S&P expects Braskem Idesa's consolidated gross debt to remain at about Mexican peso (MXN) 50 billion. Therefore, the recovery in leverage metrics will stem from stronger EBITDA, which largely depends on ethane prices--the company's main cost and driver of operating cash generation. The next 12-18 months will be key for Braskem Idesa because S&P expects to profitability to improve, based on: -- Compensations for the terminal investment as utilization rates gradually increase toward 95%; -- Cash dynamics with own operations at TQPM; and -- Resumed operations after the company's 45-day, first-ever major plant maintenance, which will improve efficiencies on-site. TQPM will expand sources of ethane and allow higher utilization rates due to feedstock increases. Ethane is the main feedstock for Braskem Idesa, and state-owned oil company Pemex contributes about 60% of total requirements. Braskem Idesa invested in the terminal so it could facilitate access to imported ethane sources, given Pemex has sometimes come short on expected supplies. TQPM is set to start operations in the coming weeks, and it is expected to receive 72% of total ethane needs from imported sources by 2026 (the remaining 28% will still come locally, from Pemex). S&P therefore believes this investment will make feedstock sources more reliable and reduce operating risks in the event Pemex is not able to deliver. Moreover, it will boost utilization to about 95% (from 79% today). After the refinancing of its debt, Braskem Idesa is no longer limited by financial covenants on its debt and no longer maintains restricted cash. In April 2025, the company refinanced its MXN2.2 billion short-term debt maturities through a new $95 million facility maturing 2029 with Banco Inbursa. This new facility removed all financial covenants on leverage and interest coverage metrics, as well as released about MXN2 billion in restricted cash while improving the company's average maturity to about six years. The stable outlook reflects S&P Global Ratings' view that Braskem Idesa will continue to navigate pressured industry conditions, somewhat counterbalanced by increases in production rates and cost efficiencies after the major maintenance over the next 12 months. S&P said, "We expect EBITDA generation will gradually increase, allowing leverage and interest coverage metrics to improve. Meanwhile, we expect the company will maintain an adequate cash balance to withstand any liquidity shortages." S&P could lower the ratings on Braskem Idesa within the next 12 months if: -- EBITDA interest coverage ratios fall below 1.0x, suggesting the company is not able to meet annual debt service through operations; -- The company burns cash beyond our expectations while operating cash generation remains constrained, resulting in a weaker liquidity position; or -- S&P comes to view the company's business as weakened because of constrained EBITDA margins or operating dynamic changes. S&P could raise the ratings in the next 12 months if: -- Operating performance stabilizes and finances improve substantially, with higher revenue through increasing sales and polyethylene prices; -- EBITDA increases while margins significantly recover; or -- Weighted net debt to EBITDA improves towards 5.0x and weighted EBITDA interest coverage exceeds 2.0x consistently. ======= P E R U ======= PERU: Mining Boom Masks Crisis of Illegal Gold & Violence --------------------------------------------------------- Juan Martinez at Rio Times Online reports that Peru's National Society of Mining, Petroleum and Energy reported that mining exports reached $17.211 billion in the first four months of 2025, a 23 percent jump over the same period last year. Copper accounted for $8.113 billion, up 15.5 percent, while gold exports surged 44.7 percent to $6.272 billion, according to Rio Times Online. Mining made up 65 percent of all Peruvian exports in this period, confirming the sector's dominant role in the nation's economy, the report notes. Peru stands as the world's second-largest copper producer and one of the top gold exporters, the report discloses. The country's mining sector relies on major projects like Cerro Verde and Las Bambas to meet strong global demand for metals, the report relays. Copper exports rose due to a 16.8 percent increase in volume and a 9.3 percent price hike. Gold's export value soared, driven by a 30.2 percent price surge and a 10.9 percent increase in volume. These metals feed into global supply chains, supporting industries from electronics to green technologies, the report says. Yet, the mining boom hides a growing crisis, the report discloses. A surge in illegal mining, especially gold, has brought violence and environmental destruction, the report relays. In May, a criminal gang kidnapped and killed 13 miners working for Poderosa in Pataz province. The attack, part of a wave of violence since 2020, forced the government to impose a 30-day mining ban in the region, the report notes. This ban is expected to cost $200 million in lost gold output, the report relays. Illegal mining now accounts for about 40 percent of Peru's gold production, the report notes. This parallel economy, worth billions, operates outside government oversight and environmental standards, the report relays. Organized crime groups fight for control of gold-rich territories, often targeting formal mining operations. Since 2022, nearly 40 workers linked to legal mines have died in violent attacks, the report notes. These groups also sabotage infrastructure, such as power lines, and invade mine sites, overwhelming local authorities, the report relays. The environmental toll is severe. Illegal mining has destroyed over 100,000 hectares of forest and contaminated rivers with mercury, the report notes. In Madre de Dios, illegal gold mining has fueled a public health crisis, with rising cases of mercury poisoning, tuberculosis, and other diseases, the report discloses. The influx of workers into remote camps strains local communities and spreads infectious diseases, the report relays. Efforts to regulate small-scale mining through the Reinfo program have largely failed. Weak enforcement and repeated extensions have allowed many illegal operations to continue under the guise of legality, the report relays. The resulting loss in mining tax revenue has hurt public finances, with a 54 percent drop in tax collections in the first half of 2023, the report notes. Peru's mining sector remains vital for the country's economy, but the unchecked rise of illegal mining threatens its stability, the report discloses. Investors now face greater risks, and the government struggles to maintain order and protect legal operations, the report says. The situation in Peru highlights the challenges of balancing economic growth from mining with the need to control crime and protect the environment, the report relays. ============= U R U G U A Y ============= NAVIOS SOUTH: S&P Assigns 'B' Issuer Credit Rating, Outlook Pos. ---------------------------------------------------------------- S&P Global Ratings, on June 23, 2025, assigned a 'B' issuer credit rating to shipping and logistics company Navios South American Logistics Inc. (NSAL) and assigned a 'B' issue rating to the proposed $400 million senior secured notes. The positive outlook reflects the increased flexibility in the capital structure and the possibility of an upgrade if NSAL maintains adequate liquidity and adjusted debt to EBITDA consistently below 5.0x. NSAL's proposed liability management extends its debt maturity schedule and provides financial flexibility. On June 23, 2025, the company announced that it plans to issue $400 million in the Norwegian market to refinance existing indebtedness--around $318 million in secured loans and a $50 million subordinated shareholder loan. The surplus (if any) will go toward general corporate purposes. The new notes will fully amortize at maturity in 2030 and will be secured by shares pledged by three Uruguayan subsidiaries holding the company's Uruguayan ports, plus related earnings accounts. This refinancing should extend the maturity schedule as well as loosen financial covenants. S&P said, "We expect the slow operating performance in the first quarter of 2025 to improve throughout the year. NSAL reported EBITDA generation of $25 million and EBITDA margin of 35% in the first quarter. Seasonality affected this operating performance, but we expect good crop campaigns to improve volumes and results in the coming quarters. Given that river levels have normalized after last year's lows and that J&F Group is performing dredging work (completion expected for September 2025), which should ensure somewhat better conditions, we project EBITDA around $130 million and margins close to 40% in 2025 and 2026. "We also forecast positive free operating cash flow to debt of 5%-10%, which should allow NSAL to meet minimum cash covenant requirements and cover debt amortization. We expect leverage to fall to around 4.5x in 2025 and 2026 from 5.5x in 2024." Time charter contracts provide stability and protection against low river levels. For dry cargo, 80% of the available days for the barge fleet are fixed. In cabotage (for NSAL, the transportation of refined oil and oil-related products on Argentina's coast), there is a contracted time charter equivalent per day for each vessel for 2025, ensuring stable results, especially considering that 80% of available days are also fixed. Around 70% of NSAL's revenue corresponds to take-or-pay contracts, which can also help counterbalance the potential negative impact of low river levels. The positive outlook indicates the possibility of an upgrade over the next 12 months if NSAL can maintain adequate liquidity, with cushion above its minimum cash covenant, while also maintaining adjusted debt to EBITDA consistently below 5.0x. This scenario incorporates our expectation of moderate cash outflows in the next 12 months, given manageable debt maturities, low working capital requirements, free tax zone benefits, and zero dividend payments. An upgrade would also require headroom on the company's financial covenants. S&P said, "We could revise the outlook to stable if liquidity tightened. This could happen if water levels in the Hidrovia network decreased again for a prolonged period, reducing transported volumes, hurting cash flows, and pressuring liquidity. "We could also revise the outlook to stable if debt to EBITDA were consistently very close to or above 5.0x and free operating cash flow to debt were below 5%, amid weaker operating performance or higher-than-expected investments." An upgrade of NSAL in the next 12 months would require adequate liquidity, with some cushion above its minimum cash covenant and adjusted debt to EBITDA consistently below 5.0x. An upgrade would also require headroom on the company's financial covenants. ********* 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 * * *