250708.mbx

250708.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 Tuesday, July 8, 2025, Vol. 26, No. 135 Headlines A R G E N T I N A YPF SA: Argentina Must Turn Over 51% Stake in YPF, US Judge Rules YPF SA: Milei to Appeal Court Order on Transfer of YPF Shares B A H A M A S FTX GROUP: Billion-Dollar Lawsuits Linger as Creditors Regain Cash B R A Z I L MATO GROSSO DO SUL: Fitch Assigns 'BB' LongTerm IDRs RIO OIL: Fitch Affirms BB Rating on 3 Tranches of Existing Notes TRANSPORTADORA ASSOCIADA: Fitch Affirms 'BB+' Foreign Currency IDR D O M I N I C A N R E P U B L I C [] DOMINICAN REPUBLIC: Tourism Will Contribute US$21.1BB to GDP J A M A I C A JAMAICA: Value of Outstanding Certs of Deposit Climb to $130BB M E X I C O J.B. POINDEXTER: Moody's Affirms 'B1' CFR, Outlook Remains Stable P U E R T O R I C O UNITED CONSTRUCTION: Hires Landrau Rivera & Assoc. as Counsel - - - - - ================= A R G E N T I N A ================= YPF SA: Argentina Must Turn Over 51% Stake in YPF, US Judge Rules ----------------------------------------------------------------- Bob Van Voris, Jonathan Gilbert & Kevin Simauchi at Bloomberg News report that Argentina must give up its controlling stake in signature energy company YPF SA within two weeks after a New York judge sided with litigators in a US$16-billion judgment, delivering a setback to President Javier Milei before crucial midterm elections. Judge Loretta Preska gave Milei's government 14 days to surrender 51 percent of the company's shares to a global custody account, from which they'll be transferred to plaintiffs – former shareholders suing Argentina over its 2012 nationalisation of YPF, according to Bloomberg News. The President confirmed in a post on X that Argentina would appeal, blaming his predecessors for mishandling the case, Bloomberg News notes. Argentina's sovereign bonds and YPF shares both dropped after ruling, while the country's parallel exchange rate weakened, Bloomberg News relays. Shares for Burford Capital, which is leading the litigation, saw its New York-traded shares soar more than 20 percent, Bloomberg News discloses. Preska's order is a major blow to Milei, who inherited the case when he took office about 18 months ago on a mission to turn around Argentina's flailing economy once and for all, Bloomberg News relays. The lawsuit has continued to hang over the country as it struggles to build up hard currency reserves – not leak even more dollars – even as it appealed the original judgment, Bloomberg News discloses. That's because Preska gave the litigators the right to try to get the money while the appeal takes its course, Bloomberg News relays. "The fact that the country has reached this point is the direct responsibility of the useless Soviet, Axel Kicillof," Milei said, referring to the current provincial governor of Buenos Aires who led the nationalisation of YPF in 2012, Bloomberg News says. "More than 10 years have passed and Argentines continue to suffer the consequences of the worst government in Argentine history," he added. Bloomberg News relays that Milei has largely tried to turn a blind eye to the case. While he has said that Argentina would be willing to pay if it had the money, lawyers for the country have continued to fight tooth and nail, Bloomberg News notes. Behind the scenes, as of March, Milei and his top advisers hadn't even gotten back to Burford's negotiators looking to reach an out-of-court deal, Bloomberg News relays. Preska's order may force Argentina to the table, especially if transferring the shares interferes with YPF's plans with partners to advance export of oil and gas from the burgeoning shale patch known as Vaca Muerta, according to Walter Stoeppelwerth, chief investment officer of Buenos Aires-based brokerage Grit Capital Group, Bloomberg News relays. "With the shares in limbo, these processes could be delayed in a meaningful manner," he said. "This should lead the economic team to accelerate the negotiation process to arrive at a financial settlement," he added. Argentina's federal government owns 26 percent of YPF and has custody over provincial governments' 25 percent stake, Bloomberg News notes. The overall stake the government has been ordered to hand over is worth about US$6 billion, Bloomberg News relays. Preska ruled in 2023 that the nationalisation violated YPF bylaws that required the company to make a tender offer to all shareholders and ordered the government to pay US$16 billion in compensation and interest, Bloomberg News relays. The judge rejected Argentina's argument that the principal of international comity – respect for another countries laws and official acts – required her to defer to Argentina on the requested turnover, Bloomberg News says. "While the Republic demands that this court extend comity, it simultaneously refuses to make any effort to honor the court's unstayed judgment," Preska said, Bloomberg News notes. The case is Petersen Energia Inversora SAU v. Argentine Republic, 15-cv-02739, US District Court, Southern District of New York (Manhattan), Bloomberg News adds. About YPF SA YPF SA, an energy company, engages in the oil and gas upstream and downstream activities in Argentina. Its upstream operations include the exploration, exploitation, and production of crude oil, and natural gas. The company's downstream operations include petrochemical production and crude oil refining; transportation and distribution of refined and petrochemical products; commercialization of crude oil, petrochemical products, and specialties. As reported in the Troubled Company Reporter-Latin America in January 2025, Fitch Ratings affirmed YPF S.A.'s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'CCC'. Additionally, Fitch has affirmed YPF's outstanding senior unsecured notes at 'CCC' with Recovery Rating of 'RR4'. The company's Standalone Credit Profile (SCP) remains 'b', and its ratings are aligned with Fitch's "Government Related Entities Criteria," reflecting government ownership and strategic importance. YPF SA: Milei to Appeal Court Order on Transfer of YPF Shares ------------------------------------------------------------- AFP News reports that President Javier Milei's government has vowed to appeal after a judge in the United States ordered Argentina to hand over more than half of the shares in state energy firm YPF. US District Judge Loretta Preska ordered Argentina to surrender its majority stake in the energy giant – the latest blow to Buenos Aires in a decade-long international legal saga, according to AFP News. The judge said the nation must hand over 51 percent of YPF's shares to partially settle a US$16.1-billion debt owed to two companies affected by the controversial nationalisation of the oil firm in 2012, the report notes. Milei promptly vowed to appeal, while blaming the main opposition Peronist movement for the court furore, the report relays. The case revolves around the 2012 renationalisation of YPF from the control of Spanish energy giant Repsol, a process carried out during former president Cristina Fernandez de Kirchner's second term in office (2007–2011; 2011-2015), the report discloses. Two minority shareholders, Petersen Energía and Eton Park Capital, filed suit in 2015 seeking damages for allegedly not receiving proper compensation in the takeover, the report says. Judge Preska ruled in favour of the plaintiffs and in September 2023, ordered Argentina to pay more than US$16 billion to the firms, the report notes. To partially satisfy the outstanding amount, the judge ordered Argentina to transfer "51 percent of YPF Class D shares" to an intermediary, the report relays. Argentina's government has 14 days to transfer the shareholding package to a global custody account at the Bank of New York Mellon (BNYM), said Preska, after which ownership will be transferred to the judgment's beneficiaries or their designees, the report discloses. YPF, a century-old and iconic national firm with more than 22,000 employees, was privatised in the 1990s and gradually came under the control of Repsol, the report relays. It was renationalised in 2012 under Fernández de Kirchner, raising concerns at the time about the security of investments in Argentina, the report notes. In 2014, after months of dispute, Repsol reached an agreement with Fernández de Kirchner's government for compensation of around US$5 billion, the report discloses. The Petersen Group and Eton Park Capital – which together held 25.4 percent of YPF's capital – filed suit in 2015, arguing that the government had failed to submit a Public Purchase Offer (OPA), or takeover bid, as required by law, the report says. Preska's ruling found that the government's takeover violated company bylaws, which obliged it to make a tender offer to all shareholders at a predetermined price, the report relays. Initial Ruling In September 2023, Preska ordered Argentina to pay US$7.5 billion in damages and US$6.85 billion in interest to Petersen Energia, the report relays. The judge also ordered the country to pay around US$1.7 billion (in damages and interest) to Eton Park Capital, with post-judgment interest accruing at an annual rate of 5.42 percent until the ruling is fulfilled, the report notes. Burford Capital, a firm that specialises in acquiring third-party litigation, paid just US$16.6 million to finance the lawsuits, the report says. It now stands to gain from 38 percent of the judgement, the report discloses. News of the court order sent YPF shares tumbling on Wall Street, with the stock falling more than five percent shortly after the ruling was made public, the report relays. Argentina has already appealed the YPF case twice, the report notes. Under the Milei administration, the country also failed to comply with a court order to post a guarantee while the appeal was being resolved. Under US law, this allowed the judgment's beneficiaries to seek seizure of YPF shares, the report disclsoes. Given Argentina's non-compliance, the judge has now ordered the shareholding package to be handed over to the beneficiaries of her ruling, the report relays. The expropriation case was brought before US courts because YPF is listed on the New York Stock Exchange, the report says. In March 2023, Judge Preska ruled that Argentina was liable for losses stemming from the oil company's nationalisation, the report relays. The US Supreme Court had previously rejected Argentina's request to move the case to its domestic courts, issuing a final decision in June 2019, the report recalls. The decision was issued without an oral hearing. Judge Preska also rejected the government's request for a postponement and warned that failure to comply could result in civil contempt sanctions or further asset seizures, the report says. Notably, the US government had urged the court in 2023 not to advance with the transfer of YPF shares, warning of potential diplomatic repercussions, the report relays. Preska's ruling nonetheless proceeded in favour of the plaintiffs, the report notes. In another ruling, the judge also ordered Argentina to hand over YPF shares to the Bainbridge hedge fund as payment for US$95 million plus interest in a separate case related to defaulted debt, the report adds. About YPF SA YPF SA, an energy company, engages in the oil and gas upstream and downstream activities in Argentina. Its upstream operations include the exploration, exploitation, and production of crude oil, and natural gas. The company's downstream operations include petrochemical production and crude oil refining; transportation and distribution of refined and petrochemical products; commercialization of crude oil, petrochemical products, and specialties. As reported in the Troubled Company Reporter-Latin America in January 2025, Fitch Ratings affirmed YPF S.A.'s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'CCC'. Additionally, Fitch has affirmed YPF's outstanding senior unsecured notes at 'CCC' with Recovery Rating of 'RR4'. The company's Standalone Credit Profile (SCP) remains 'b', and its ratings are aligned with Fitch's "Government Related Entities Criteria," reflecting government ownership and strategic importance. ============= B A H A M A S ============= FTX GROUP: Billion-Dollar Lawsuits Linger as Creditors Regain Cash ------------------------------------------------------------------ Alex Wittenberg at law360.com reports that almost nine months after winning approval of a bankruptcy plan worth some $16 billion, fallen cryptocurrency exchange FTX remains in the midst of litigation with former rivals and clients that could have a significant effect on the amount of money creditors ultimately recoup. About FTX 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 =========== MATO GROSSO DO SUL: Fitch Assigns 'BB' LongTerm IDRs ---------------------------------------------------- Fitch Ratings has assigned a 'BB' rating to the State of Mato Grosso do Sul's (EMS) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs). The Rating Outlook is Stable. Fitch has also assigned EMS's Short-Term Foreign and Local Currency IDRs of 'B', a National Long-Term Rating of 'AAA(bra)'/Stable, and a National short-term rating of 'F1+(bra)'. Fitch has assessed EMS's Standalone Credit Profile (SCP) at 'b+'. EMS has significant fiscal autonomy, with transfers from the federal government representing approximately one fourth of the state´s operating revenues. Tax collection relies on a diverse economy, but with some dependence on gas imports from its neighbor country Bolivia, which is facing a downward trend in terms of volume production. The establishment of new industries in the state, such as producers of cellulose, should add to the importance of agrobusiness to the state´s fiscal performance. Operating expenditures have behaved in line with operating revenues growth and the fiscal debt burden has averaged at 30% in the last five years. Key Rating Drivers Risk Profile: 'Weaker' The assessment reflects Fitch's view there is a high risk of the issuer's ability to cover debt service with the operating balance weakening unexpectedly over the scenario horizon (2025-2029) due to lower revenue, higher expenditure or an unexpected rise in liabilities or debt service requirements. Revenue Robustness: 'Midrange' Fitch evaluates this factor as 'Midrange' due to the state's fiscal autonomy and low dependence on federal transfers. The Brazilian tax collection framework transfers a large share of responsibility to collect taxes to states and municipalities. Constitutional transfers exist to compensate poorer entities. Fitch considers a high dependence on transfers a weak feature for Brazilian local and regional governments (LRGs). The primary metric for revenue robustness is the transfers ratio (transfers to operating revenues). Fitch classifies LRGs reporting a ratio above or equal to 40% as 'Weaker', while others with a ratio below 40% are 'Midrange'. EMS reports substantial fiscal autonomy, which drives this 'Midrange' factor. Transfers represented 27.8% of operating revenues for the average of the 2020-2024 period. Historically, revenue growth performed in line with GDP growth. For the 2019-2024 period, CAGR was 2.4% in real terms for operating revenues, compared to an average annual GDP growth of 1.9%. Revenue Adjustability: 'Weaker' Fitch evaluates this factor as 'Weaker' due to Brazilian states' reliance on a small number of taxpayers and the history of federal intervention in state tax policy. Fitch believes Brazilian states and municipalities have low capacity to increase revenue during a downturn. Tax tariffs are close to the constitutional national ceiling, and a small number of taxpayers contribute a large share of tax collection, making additional taxation unaffordable. Brazil also has a history of federal intervention in subnational taxation. In July 2022, the National Congress set a ceiling on the Imposto sobre Circulação de Mercadorias e Serviços (ICMS) tariff on fuels and electricity. This caused revenue losses for states and municipalities, which were only partially reversed later. The most significant tax, the ICMS, has a concentrated taxpayer base. The most important economic sectors for tax collection in EMS are oil & gas, utilities, and beverages. Together, the 10 largest tax-payers within these sectors represented 42.3% of total ICMS tax collection in 2024 (32.2% for the average of 2020-2024). Expenditure Sustainability: 'Midrange' Fitch evaluates this factor as 'Midrange' due to adequate operating margins during the last few years. Responsibilities for states are moderately countercyclical because they handle health care, education and law enforcement. Expenditures grow with revenues due to earmarked revenues. States and municipalities must allocate a share of revenues to health and education, causing procyclical behavior in good times; high revenue growth leads to increased spending. However, the significant weight of personal expenditures and salary rigidity means downturns do not cause similar drops in expenditures despite lower revenues. EMS reports moderate control over expenditure growth, with sound margins. Operating margins averaged 15.7% in the 2020-2024 period, and 9.8% by the end of 2024. The state is current on its payroll bill and has no significant delays for the payment of suppliers. Operating expenditure CAGR was 2.8% in real terms between 2019-2024, slightly above operating revenues CAGR of 2.4%. Expenditure Adjustability: 'Weaker' Brazilian local governments have a fairly rigid cost structure, driving this factor to 'Weaker'. As per the Brazilian Constitution, there is low affordability of expenditure reduction, especially for the payroll bill and pensions. As a result, whenever there is an unpredictable reduction in revenues, operating expenditure do not automatically decrease in parallel. EMS's personal expenditures were 58.6% of total expenditures in 2024. This item has very limited flexibility for adjustments given salary rigidity and limited ability to manage human resources or pensions. Other operating expenditures were 28.8% of total expenditures in 2024 and have some flexibility for adjustments but are still limited by constitutional mandates on health and education. Capex was 10.7% of total expenditures in 2024 and averaged 10.8% between 2020 and 2024. Brazilian LRGs often rely on investment cuts in challenging economic scenarios. Liabilities and Liquidity Robustness: 'Weaker' Access to new loans is restricted because Brazilian LRGs are not allowed to access the market through bond issuances and private banks rarely engage with subnationals. Lenders consist mainly of public commercial and development banks and multilateral organizations. Loans are often guaranteed by the federal government, especially for foreign currency loans. For that reason, the federal government has strict control over new lending to LRGs. There is a moderate national framework for debt and liquidity management since there are prudent borrowing limits and restrictions on loan types. Under the Fiscal Responsibility Law of 2000, Brazilian LRGs must comply with indebtedness limits. Consolidated net debt for states cannot exceed 2x, or 200%, of net current revenue. EMS's debt ratio was 24.75% as of YE 2024. The law also sets limits for guarantees at 22% of net current revenues. EMS had no guarantees as of YE 2024. As of December 2024, external debt was BRL1,683 million, or 17.8% of direct debt. External debt is largely owed to multilateral organizations and has a federal government guarantee. Debt directly owed to the federal government was 77.3% of EMS's direct debt in December 2024. Intergovernmental debt benefits from more favorable terms, such as debt service relief during periods of economic distress, as seen in 2020 and early 2021. There is moderate off-balance-sheet risk stemming from the pension system, which is a burden for most Brazilian LRGs, especially for states with a mandate over education and public security. Another contingent liability is the payment of judicial claims or 'precatorios'. EMS has fully amortized the stock of precatorios as of April 2024. The state is now servicing new judicial liabilities within the fiscal year or in the following fiscal year, depending on the registry date. Liabilities and Liquidity Flexibility: 'Midrange' A framework exists for the federal government to provide emergency liquidity support by extending the maturity date for the state's federal debt. Fitch assesses the entity's available liquidity, excluding sovereign support, to decide between 'Weaker' and 'Midrange' assessments for liabilities and liquidity flexibility. Fitch's liquidity rate for Brazilian LRGs is defined as the ratio of short-term financial obligations to net cash, as established by the previous version of the Payment Capacity (CAPAG ) system by the Brazilian National Treasury. The CAPAG assesses which entities qualify for federal government guarantees. Fitch has set a threshold of 100% for the average of the last three years (2022-2024 year-end) and for the last year-end results available (December 2024), which would result in a 'Midrange' assessment for this factor. EMS reported a three-year average liquidity ratio of 28%. As of December 2024, the metric reached 48.8%, supporting the 'Midrange' assessment. Financial Profile - 'a' category EMS's Financial Profile is assessed at 'a'. Fitch's rating case forward-looking scenario indicates that the payback ratio (net adjusted debt to operating balance), the primary metric for the financial profile assessment, will reach an average of 6.3x for the 2027-2029 period, which is aligned with a 'aa' assessment. The actual debt service coverage ratio (ADSCR), the secondary metric, is projected at an average of 1.3x for 2027-2029, aligned with a 'bbb' assessment. Fitch applies an override to the overall financial profile considering that the secondary metric is two categories below the primary metric. Fiscal debt burden is projected at 33.4% for the same period. EMS financial profile indicates a deterioration of operating margins in Fitch´s rating case scenario due to a deceleration in tax collection growth, which results from ongoing structural changes in the state´s economic matrix, with gas imports representing a lower share of tax collection. Projections also indicate substantial operating expenditure growth as per the state´s own forecast. As Fitch monitors EMS fiscal performance, improvements in tax collection prospects could lead to less severe assumptions for revenue growth. Improvements to tax collections could materialize from the beginning of operations of new industries in EMS. Derivation Summary Fitch assesses EMS's SCP at 'b+', reflecting a combination of a 'Weaker' risk profile and financial profile assessed in the 'a' category under Fitch's rating case scenario. The SCP also reflects the peer comparison. EMS's 'BB' IDR benefits from a two-notch uplift from its SCP because the federal government is its most significant creditor. Approximately 77.3% of the state´s debt is owed directly to the federal government, resulting in an enhanced payback ratio around 1.3x and an enhanced DSCR above 2x. This would suggest an enhanced Financial Profile score in the 'aaa' category. Per criteria, the uplift from the SCP to the IDR through intergovernmental finance support cannot lead beyond the lending government rating (the sovereign). Key Assumptions Risk Profile: 'Weaker' Revenue Robustness: 'Midrange' Revenue Adjustability: 'Weaker' Expenditure Sustainability: 'Midrange' Expenditure Adjustability: 'Weaker' Liabilities and Liquidity Robustness: 'Weaker' Liabilities and Liquidity Flexibility: 'Midrange' Financial Profile: 'a' Asymmetric Risk: 'N/A' Support (Budget Loans): '2' Support (Ad Hoc): 'N/A' Rating Cap (LT IDR): 'N/A' Rating Cap (LT LC IDR) 'N/A' Rating Floor: 'N/A' Quantitative assumptions - Issuer Specific Fitch's rating case is a "through-the-cycle" scenario, which incorporates a combination of revenue, cost and financial risk stresses. It is based on 2020-2024 figures and 2025-2029 projected ratios. The key assumptions for the scenario include: - YoY 6.2% increase in operating revenue on average in 2025-2029; - YoY 2.9% increase in tax revenue on average in 2025-2029; - YoY 7.2% increase in operating expenditure on average in 2025-2029; - Net capital balance of - BRL 2,380 million on average in 2025-2029; - Cost of debt: 5.4% on average in 2025-2029 Quantitative assumptions - Sovereign Related Figures as per Fitch's sovereign actual for [2024] and forecast for [2025-2026], respectively (no weights and changes since the last review are included as none of these assumptions was material to the rating action). RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A negative rating action on Brazil's Long-Term IDR could lead to a corresponding rating action on the EMS, given that its ratings are uplifted to the sovereign level through intergovernmental finance support; - EMS's IDRs would be downgraded if its enhanced payback ratio, after accounting for federal support, is projected above 5x and the coverage ratio is projected below 2x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A positive rating action on Brazil's Long-Term IDR could lead to a corresponding rating action on the EMS, given that its ratings are uplifted to the sovereign level through intergovernmental finance support. Liquidity and Debt Structure EMS's net adjusted debt includes BRL9.4 billion of direct debt and unrestricted cash of BRL1.6 billion as of YE 2024. Fitch estimates that close to 17.8% of debt is external debt with a federal guarantee. Debt owed to the federal government is 77.3% of the state's total debt. Issuer Profile Fitch classifies EMS as a Type B LRG, which are required to cover debt service from cash flow on an annual basis. EMS's economy is diverse but has traditionally been driven by the agriculture and livestock sectors. It has a population of 2.8 million people. Date of Relevant Committee 17 June 2025 Public Ratings with Credit Linkage to other ratings EMS ratings are uplifted to Brazil´s sovereign rating through intergovernmental finance support. 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 ----------- ------ Estado de Mato Grosso do Sul LT IDR BB New Rating ST IDR B New Rating LC LT IDR BB New Rating LC ST IDR B New Rating Natl LT AAA(bra) New Rating Natl ST F1+(bra) New Rating RIO OIL: Fitch Affirms BB Rating on 3 Tranches of Existing Notes ---------------------------------------------------------------- Fitch Ratings has affirmed the long-term series 2014-3 and 2018-1 notes issued by Rio Oil Finance Trust at 'BB'. The Rating Outlook is Stable. The ratings are not directly linked to the originator's credit quality. The ratings are based on potential production and generation risk and are ultimately linked to Petrobras' Issuer Default Rating (IDR), as it is the main source of cash flow generation. The ratings are capped at Petrobras' rating (BB/Stable) because it is the largest obligor of royalties and special participations payments. The ratings are also capped at Banco do Brasil S.A.'s rating (Bdb, BB/Stable), which serves as the collection account bank and cannot be replaced. The ratings address timely payment of interest and principal on a quarterly basis. Entity/Debt Rating Prior ----------- ------ ----- Rio Oil Finance Trust 2014-3 76716XAB8 LT BB Affirmed BB 2014-3 regs USU76673AB55 LT BB Affirmed BB 2018-1 76716XAC6 LT BB Affirmed BB Transaction Summary The notes are issued by Rio Oil Finance Trust, a Delaware-based special purpose vehicle (SPV) constituted for the sole purpose of this transaction. They are backed by the royalty flows owed by oil concessions, predominantly operated by Petrobras, to the government of the state of Rio de Janeiro (RJS), which has assigned 100% of the flows to RioPrevidencia (RP). For the purpose of this transaction, RP sold its rights to Rio Oil Finance Trust. KEY RATING DRIVERS Ratings Not Directly Linked to Originator: RP is an autonomous government agency that is part of the Secretary of State for Planning and Management of RJS (BB/Stable). Performance of the originator will not affect the collateral as the generation of the cash flow needed to meet timely debt service is not dependent on either RP or RJS. Largest Obligor Rating Cap: Petrobras' rating is the ultimate cap for the transaction, as it is the main source of cash flow generation. Petrobras's Local and Foreign Currency IDRs are 'BB'/Stable and 'AAA(bra)'/Stable, respectively. The company is majority controlled by the federal government of Brazil and has E&P rights for most of Brazil's oil fields. Future Production Risk: The transaction benefits from growing production levels that increase the total royalty flows. Depressed oil prices have led Petrobras to reduce production targets on multiple occasions. Nevertheless, Petrobras recently increased their 2025-2029 capital expenditure projections from 2024-2028 projections. Increased production levels would benefit the transaction in the near to medium term. Cash Flows Support Rating: The expected high levels of quarterly debt service coverage ratios (QDSCRs) and annualized average debt service coverage ratios (AADSCRs) partially mitigate the transaction's exposure to fluctuations in oil prices and production levels at the current rating level. Fitch expects QDSCRs and AADSCRs to be over 8.0x for the life of the transaction, assuming that Law 12,734 is implemented. Oil Revenues Dedicated Account Modification Mitigates Redirection Risk: Pursuant to the Oil Revenues Dedicated Account Modification Legislation, the RioPrevi Oil Revenues initially deposited to the RJS Oil Revenues Dedicated Account are no longer required by legislation to be deposited into a state-owned account. Oil revenues assigned to this transaction are instead deposited into an account under the name of the issuer. This change mitigates potential redirection of flows to RJS. BdB cannot be replaced as the collection bank, so the transaction rating is directly linked to the credit quality of BdB. Ample Liquidity for Timely Payment: The transaction benefits from liquidity, in the form of a debt service reserve account and a liquidity reserve account. Funds on deposit in these accounts must always be sufficient to cover three P&I payments, which is sufficient to keep debt service current on the notes under different stress scenarios. Potential Exposure Political Risk Partially Mitigated: The state's liquidity constraints, evidenced by various delays in commercial and other payments, have heightened the transactions political risk exposure. However, provisions included in the sixth rescission waiver and amendment, such as the rescission of the trapping of excess cash and of the early amortization period, will increase the cash flows returned to the state, and, in turn, decrease the transaction's exposure to political risk. Legal Changes May Affect Collateral Stability: Amendments affecting the distribution of royalties for the existing concession Regime have not been implemented, but provisions regarding the change in allocation percentages incorporated in Law 12,734 are currently under review. Fitch analyzed the transaction assuming the law will change and DSCRs will remain sufficiently robust and commensurate with the ratings. True Sale Valid under Brazilian Law: RJS transferred the collateral backing this transaction was transferred to RP through a state decree, making RP the legal owner of the royalties. This transfer gives RP the right to sell the collateral into the trust. Transfer and Convertibility Risk: The series 2014-3 and 2018-1 notes are exposed to transfer and convertibility risk as royalty flows are paid in an account in Brazilian reais. This exposure caps the rating of the transaction at the country ceiling of Brazil, which is currently 'BB+'. To mitigate operational risk that may arise from transferring and converting flows on a daily basis to an off-shore account, the transaction includes reserve funds that cover three P&I payments. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - The transaction is exposed to oil price and production volume risks. Sustained low prices or declines in prices or production levels significantly below expectations may trigger downgrades; - The ratings are capped by the credit quality of Petrobras, the main obligor generating cash flows to support the transaction, and to the sovereign rating and country ceiling assigned to Brazil. A downgrade of Petrobras or the sovereign would trigger a downgrade of the notes; - The ratings are sensitive to the rating of BdB given the excessive counterparty exposure to the transaction; therefore, a downgrade of BdB would trigger a downgrade of the notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The main constraints to the program rating are the ratings of Petrobras and BdB. An upgrade of both Petrobras and BdB, together with sustained high oil prices, which in turn supports growth in production levels, could trigger a positive rating action. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS The future flow ratings are ultimately capped by the credit risk of Banco do Brasil S.A. and Petroleo Brasileiro S.A. (Petrobras) as measured by their Long-Term IDR. 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. TRANSPORTADORA ASSOCIADA: Fitch Affirms 'BB+' Foreign Currency IDR ------------------------------------------------------------------ Fitch Ratings has affirmed Transportadora Associada de Gas S.A.'s (TAG) Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB+' and Local Currency IDR at 'BBB-'. Additionally, Fitch has affirmed TAG's Long-Term National Scale Rating and its unsecured debenture issuance at 'AAA(bra)'. The Rating Outlook for the corporate ratings is Stable. The ratings reflect TAG's solid business model, supported by natural gas transportation contracts with no volumetric risk, which protects the company's revenues and provides high operating margins. Fitch believes TAG will adequately manage the maturity of one of its contracts by YE 2025 to maintain low financial leverage and generate positive free cash flows (FCF), even considering significant dividend distribution and investments. Brazil's 'BB+' Country Ceiling limits TAG's Foreign Currency IDR because the company operates entirely within Brazil and lacks factors that would allow it to exceed the Country Ceiling. Key Rating Drivers Predictable Sector: TAG's revenue and operating cash generation are solid, stemming from four long-term gas transportation agreements (GTAs) with Petroleo Brasileiro S.A. (Foreign and Local Currency IDRs 'BB' and National Scale Rating 'AAA(bra)', all with Stable Outlook). These contracts do not carry volumetric risk and are annually adjusted based on Brazilian inflation or indexation to the U.S. dollar and Producer Price Index (PPI). The GTA Malha Nordeste, representing approximately 25% of revenue, has the earliest maturity is December 2025. Fitch projects a 30% price reduction for the new contract beginning in 2026, while the remaining GTAs mature after 2030. Strategic Asset for Brazil: TAG's strategic pipeline network primarily serves Northern and Northeastern Brazil, where regional distributors depend on its infrastructure for natural gas delivery. The network also connects to Southeast Brazil's transportation system, providing crucial operational flexibility for the country's gas sector especially after regulatory updates. TAG aims to diversify its customer base and expand transportation infrastructure to serve new shippers under the same existing contractual conditions. Conservative Leverage: Fitch expects TAG's net debt/EBITDA ratio to fall gradually below 2.0x in 2026, despite projected revenue reductions from the Malha Nordeste pipeline starting in 2026. Such leverage profile is conservative particularly considering the low business risk of TAG's operations and its reduced cash flow volatility. As of March 2025, TAG reported total debt/EBITDA of 2.5x and net debt/EBITDA of 2.3x . Solid CFFO: Fitch projects TAG's EBITDA robust at BRL8.1 billion in 2025 before declining slightly to BRL7.7 billion in 2026, maintaining strong margins averaging 83% over the coming years. TAG should generate annual cash flow from operations (CFFO) of BRL5.8 billion in 2025 and averaging BRL5.5 billion in the following two years. These amounts adequately cover the expected manageable capex of around BRL600 million annually through 2027, excluding any major expansion investments. Despite projected annual dividend distributions averaging BRL3.7 billion, TAG should generate annual FCF of BRL1.3 billion between 2025 and 2027. Revenue Concentration Risk Mitigated: TAG faces revenue concentration risk with Petrobras as the sole counterparty for its GTAs. A guarantee structure mitigates this risk by including receivables from Petrobras' clients—gas distributors and thermal power generators, which are Petrobras' clients. The receivables must equate to at least 120% of the monthly payment to TAG. The strong credit profiles of these gas distributors further reduce default and concentration risk. The possibility of Petrobras discontinuing the gas supply to its customers is reduced, since there are limited alternatives for the company to use this gas Peer Analysis TAG's sound business profile - characterized by high EBITDA margins as well as robust and predictable cash flows - is similar to that of Brazilian power transmission companies like Transmissora Aliança de Energia Elétrica S.A. (Taesa; BB+/BB+/AAA(bra)/Stable) and Alupar Investimento S.A. (Alupar; BB+/BBB-/AAA(bra)/Stable). Both sectors generate revenues based on network availability rather than transport volume and use long-term contracts with automatic inflation adjustments. TAG will likely maintain lower financial leverage than these companies, though Taesa and Alupar benefit from greater operating risk dilution through asset diversification. Colombia-based Transportadora de Gas Internacional S.A. ESP (TGI; BBB/Negative) and Peru-based Transportadora de Gas del Peru, S.A. (TGP; BBB+/Stable) represent similar regional gas transportation companies. Like TAG, both generate predictable revenues and robust cash flows with minimal demand risk exposure, as they earn revenue from available infrastructure capacity through long-term contracts. These companies also present strong credit metrics. The primary difference in IDRs between Brazilian companies and their regional peers stems from their operating countries assets locations. TGP and TGI operate are in countries with higher sovereign ratings, while Brazil's Country Ceiling of 'BB+' and operating environment constrain TAG's ratings. TAG's credit profile ranks below Southern Natural Gas Company, L.L.C. (SNG; BBB+/Stable), which operates in the U.S. without Country Ceiling constraints. SNG benefits from strong credit and financial operating metrics, with its credit profile supported by investment-grade counterparties. Key Assumptions - Revenues based on contracted amounts and adjusted annually for inflation, with part of the tariffs linked to exchange-rate variations, according to GTAs; - 3.3% reduction in total revenues in 2026, following the expiration of the GTA for Malha Nordeste; - Average annual investments of BRL600 million between 2025 and 2027; - Average annual dividend distributions of BRL3.7 billion between 2025 and 2027 and reduction of capital reserves of BRL1.3 billion in 2025. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - Lower Brazil's Country Ceiling; - A persistent weakening of Petrobras' receivables guarantee structure with clients that deposit into a collection account; -- Leverage above 3.5x, on a sustainable basis; - Inability to recontract the capacity of the GTA for the northeast network, which is expiring; - Regulatory or contractual changes that affect the fundamentals of the gas transportation sector or TAG's business model. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: - Positive rating actions are limited by Brazil's Country Ceiling of 'BB+' and sovereign rating of 'BB'; - An upgrade to the Long-Term National Scale Rating does not apply as it is at the top of the national scale. Liquidity and Debt Structure TAG maintains a moderate cash/short-term debt ratio, mitigated by expected positive FCF, proven strong capital market access, and dividend distribution flexibility. As of March 2025, TAG held BRL1.8 billion in liquidity against BRL3.9 billion in short-term debt. Its total debt of BRL20 billion consisted primarily of debentures (BRL7.0 billion) and a dollar-denominated syndicated loan (BRL11.6 billion) with banks. In 2Q25, TAG carried out the reduction of capital reserves of BRL1.3 billion and completed its 4th debenture issuance of BRL2.6 billion for refinancing debt and extending its maturity profile. Issuer Profile TAG operates Brazil's largest gas pipeline network, spanning approximately 4,500 kilometers primarily across Northern and Northeastern regions. The company is equally owned by Engie group and Caisse de Dépôt et Placement du Québec (CDPQ). 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 ----------- ------ ----- Transportadora Associada de Gas S.A. – TAG LT IDR BB+ Affirmed BB+ LC LT IDR BBB- Affirmed BBB- Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) =================================== D O M I N I C A N R E P U B L I C =================================== [] DOMINICAN REPUBLIC: Tourism Will Contribute US$21.1BB to GDP --------------------------------------------------------------- Dominican Today reports that by the end of this year, the Dominican Republic tourism sector is expected to contribute approximately US$21.1 billion to the country's gross domestic product (GDP), representing 15.8% of the economy, according to projections from the World Travel and Tourism Council (WTTC). According to the Economic Impact Research report, presented and prepared by the WTTC in collaboration with Oxford Economics, the travel and tourism sector in the Dominican Republic is expected to reach a new all-time high by 2025, the report notes. He says this projected growth, with a year-over-year increase of 3.3%, reflects the Dominican Republic's commitment to solid, sustainable, and resilient tourism development, according to Dominican Today. In addition to its contribution to GDP, the research indicates that the sector is expected to employ nearly 893,000 workers this year, equivalent to 17.9% of the national workforce, the report relays. "It is also expected that by the end of this year, international tourism spending will reach US$11.4 billion, while domestic tourism spending is projected to reach US$4.1 billion, consolidating the importance of the domestic market along with the destination's global positioning," he notes, the report relays. The research also projects that the sector could contribute more than US$29 billion to the GDP by 2035, with an annual growth rate of 3.3%, the report discloses. "It is estimated that the sector will employ around 980,000 people, which would mean the creation of more than 87,000 new jobs over the next ten years," he said, the report relays. Meanwhile, he notes that in 2024, the travel and tourism sector contributed $20.5 billion to the country's GDP, accounting for 16.1% of the national economy, the report notes. Last year, international tourism spending reached $11.2 billion, while domestic tourism spending reached $3.9 billion, representing increases of 17.6% and 12.3% compared to 2019, respectively, the report relays. In terms of job creation, there were more than 876,000 jobs, approximately 17.6% of total national employment, the report dicloses. Regional Data In 2024, the Caribbean travel and tourism sector is expected to contribute $81.4 billion to the regional economy's GDP, representing 17.6% of the total and exceeding 2019 levels by more than 28%, the report notes. According to the Economic Impact Survey for 2025, the contribution is expected to reach US$86 billion, representing 18.2% of the regional GDP. Furthermore, employment in the sector is expected to exceed 3 million jobs, representing 16.1% of the regional total, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCR-LA reported in April 2019 that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Standard & Poor's credit rating for Dominican Republic was raised to 'BB' in December 2022 with stable outlook. Moody's credit rating for Dominican Republic was last set at Ba3 in August 2023 with the outlook changed to positive. Fitch, in December 2023, affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' and revised the outlook to positive. ============= J A M A I C A ============= JAMAICA: Value of Outstanding Certs of Deposit Climb to $130BB -------------------------------------------------------------- RJR News reports that the Bank of Jamaica says the value of outstanding fixed-rate certificates of deposit climbed to $130 billion or to 3.7% of GDP. This, after 271 bids were submitted for the $42 billion it wanted to withdraw from circulation in order to stabilise the dollar, according to RJR News. The central bank, however, accepted only 267 of these bids, the report relays. The average interest rate requested was 5.9%, the report notes. The lowest bid was 5% for $4 million, while the highest bid was 7.5% for $500 million, the report discloses. 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 =========== J.B. POINDEXTER: Moody's Affirms 'B1' CFR, Outlook Remains Stable ----------------------------------------------------------------- Moody's Ratings affirmed the ratings of J.B. Poindexter & Co., Inc., including the B1 corporate family rating, the B1-PD probability of default rating and the B2 senior unsecured rating. The outlook is maintained at stable. The rating action follows the announcement by J.B. Poindexter that it completed the acquisition of Demers Braun Ambulance Manufacturer, Inc. (DBCM). The transaction was funded with available cash and incremental debt. The affirmation of the ratings reflects Moody's views that the acquisition adds a sizeable business with relatively stable demand prospects which will mitigate J.B. Poindexter's exposure to more cyclical end-markets in the company's existing businesses. In addition, Moody's expects the acquisition of DBCM to be margin-accretive. The use of a sizeable amount of available cash results in a still manageable increase in financial leverage. The stable outlook reflects Moody's expectations that leverage will fall below 4.0x by the end of 2026 as margins expand from higher order activity in late 2025 and into 2026. RATINGS RATIONALE J.B. Poindexter's ratings reflect the company's strong competitive position in its main business lines and long-standing relationships with key blue chip customers. The ratings also reflect the company's exposure to cyclical end markets, with significant customer concentrations and volatility around annual fleet truck orders in both its Morgan and Morgan Olson segments. Moody's expects the addition of DBCM to J.B. Poindexter's portfolio of businesses to temper the company's cyclical earnings fluctuations. The company was able to largely sustain a notable improvement in profitability and cash flow with prospects for further improvement in 2025. The EBIT margin in 2024 held at 6.2%, despite the suspension of orders by UPS in the Morgan Olson segment. Costs associated with a plant shutdown in Mexico for the LEER division further weighed on the company's operating performance. Moody's anticipates that the losses at Leer will abate, in part because most of the Mexican plant closure costs will not reoccur in 2025. But the resumption of orders from UPS at Morgan Olson remains uncertain following UPS' decision to lower delivery volumes for their largest customer, Amazon, by more than 50%. Also, the backlog at the Morgan division normalized in the course of 2024, making production volumes in this division more reliant on the continuation of new order flow in 2025. DBCM's multi-year backlog of orders for new ambulances augments J.B. Poindexter's revenue visibility, however. Debt/EBITDA pro forma for the DBCM acquisition will be 4.2 times at year-end 2025, compared to 3.5 times before the transaction as of March 31, 2025. Moody's anticipates that J.B. Poindexter will maintain good liquidity, supported by Moody's expectations that free cash flow will be sustained at around $60 million in 2025. The cash balance following the transaction is expected to be around $50 million, meaningfully below historical levels. However, the company will have a new $250 million asset-based revolving facility, with access to $150mm of availability following transaction close. Moody's anticipates that the company will not require further borrowing under the ABL through 2026 and that the company uses available cash to pay down the revolver. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if J.B. Poindexter maintains debt/EBITDA below 3.0x and EBITDA/interest above 4.0 times through cyclical periods in its end-markets. Good liquidity is also an important consideration for a ratings upgrade. The rating could also be upgraded if the company sustains the EBIT margin above 6.5%. The ratings could be downgraded if J.B. Poindexter is unable to maintain debt/EBITDA below 4.5 times, or if liquidity deteriorates, including in the event negative free cash flow erodes the remaining cash balance further. The ratings can also be downgraded if the EBIT margin is sustained below 4.5%. The adoption of more aggressive financial policies, such as sizeable owner distributions or additional sizeable debt funded acquisitions could also cause a ratings downgrade. The principal methodology used in these ratings was Automotive Suppliers published in December 2024. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. J.B. Poindexter & Co., Inc. manufactures commercial truck bodies for medium-duty trucks, pickup truck caps and tonneau covers, truck bodies for walk-in step vans, service utility trucks, commercial vehicle shelving and storage systems, funeral coaches and limousines. Headquartered in Houston, Texas, the company is privately held by Mr. J.B. Poindexter. ===================== P U E R T O R I C O ===================== UNITED CONSTRUCTION: Hires Landrau Rivera & Assoc. as Counsel ------------------------------------------------------------- United Construction LLC seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ the law offices of Landrau Rivera & Assoc. as its legal counsel. The firm will render these services: (a) advise the Debtor with respect to its duties, powers and responsibilities; (b) advise the Debtor in connection with a determination whether a reorganization is feasible and, if not, aid it in the orderly liquidation of its assets; (c) assist the Debtor with respect to negotiations with creditors for the purpose of proposing a viable plan of reorganization; (d) prepare on behalf of the Debtor necessary legal papers or documents; (e) appear before the Bankruptcy Court, or any court in which the Debtor asserts a claim interest or defense directly or indirectly related to this bankruptcy case; (f) perform such other legal services for the Debtor as may be required in these proceedings or in connection with the operation of/and involvement with its business; and (g) employ other professional services as necessary to complete the Debtor's financial reorganization with Chapter 11 of the Bankruptcy Code. The hourly rates of the firm's counsel and staff are: Noemi Landrau Rivera, Attorney $250 Josue Landrau Rivera, Attorney $175 Legal and Financial Assistants $75 In addition, the firm will seek reimbursement for expenses incurred. The firm also received a $10,000 retainer from the Debtor. Ms. Rivera 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: Noemi Landrau Rivera, Esq. Landrau Rivera & Assoc. P.O. Box 270219 San Juan, PR 00928 Telephone: (787) 774-0224 Facsimile: (787) 919-7713 Email: nlandrau@landraulaw.com About United Construction LLC United Construction LLC sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 25-02726) on June 17, 2025, listing $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. Noemi Landrau Rivera, Esq., at Landrau Rivera & Assoc. serves as the Debtor's counsel. ********* 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. 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