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250825.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, August 25, 2025, Vol. 26, No. 169 Headlines A R G E N T I N A ARGENTINA: Full Shopping Trolley Cost up to 11% More Expensive B R A Z I L MINERVA S.A: Fitch Affirms 'BB' Long-Term IDR, Outlook Stable NEW FORTRESS: Asks for 10-Q Filing Extension Amid Credit Talks D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Rainieri Pushes Plan to Raise Tourist Spending J A M A I C A JAMAICA: BOJ Pumps US$30 Million into Forex Market JAMAICA: Economy Expected to Grow 2-3% for July to September P U E R T O R I C O PALMAS ATHLETIC: Seeks to Tap Charles A. Cuprill as Legal Counsel - - - - - ================= A R G E N T I N A ================= ARGENTINA: Full Shopping Trolley Cost up to 11% More Expensive -------------------------------------------------------------- Buenos Aires Times reports that filling a shopping trolley with basic products can be as much as 11 percent more expensive depending on the province, according to a private study. A provincial breakdown of consumer prices undertaken by the Analytica consultancy firm showed that food is at its most expensive in Patagonia, with a basic trolley of goods costing 11 percent more in southern Santa Cruz Province than Misiones in the north, according to Buenos Aires Times. According to the Analytica survey, a "monthly shop" style trolley of popular goods chosen for the study in the Patagonian region cost 769,319 pesos, the most expensive in the country, whereas in the border province it was 691,579 pesos - the cheapest in the poll, the report notes. The shopping cart contains a typical monthly shop of food and beverages at the supermarket for a middle-class family, comprising two adults and two minors. In order to ensure the comparability between provinces, the products included were of the same brand and size (the basis for the survey can be found online on the firm's website), the report discloses. The provinces with the most expensive carts were all southern: Santa Cruz, Chubut (759,467 pesos), Tierra del Fuego (751,937 pesos) and Río Negro (742,188 pesos), the report says. At the other end of the scale were the northern regions of Formosa (693,746 pesos), Chaco (693,219 pesos) and Misiones (691,579 pesos), the report relays. The regions registering the highest monthly increase of supermarket costs were Jujuy (+3.9 percent), Catamarca (+2.5 percent) and Corrientes (+2.5 percent), the report relates. Minor increases took place in Misiones (+1.0 percent) and Santa Cruz (+0.7 percent), the report notes. Comparing absolute values as of June 27, 2025, the highest rises occurred in Catamarca (+34,000 pesos), Corrientes (+29,927 pesos), Jujuy (+28,213 pesos) and La Rioja (+23,139 pesos), the report says. The provinces with the lowest jumps were all in Patagonia: Tierra del Fuego (+8,631 pesos), Neuquen (+6,422 pesos), Río Negro (+5,404 pesos) and Santa Cruz (+4,997 pesos), the report relays. Normal sliced bread recorded greater increases in nearly all provinces, above 5 percent, the report discloses. Its rise was more moderate in Catamarca (+2.5 percent), La Rioja (+2.5 percent) and Jujuy (+2.9 percent), the report relays. The price of sugar climbed between 3 and 5 percent in nearly all provinces, the report discloses. Exceptions include Córdoba (+1.3 percent), San Luis (+1.6 percent), Santiago del Estero (+1.9 percent), Tucumán (+2.3 percent), San Juan (+7.6 percent) and Misiones (+7.6 percent), the report notes. Instant coffee increased between two and three percent in most provinces, the report relays. There was a lower hike in some Patagonian provinces like Chubut (+0.6 percent), Santa Cruz (+0.3 percent) and Tierra del Fuego (+0.3 percent), the report notes. Packaged chicken breasts rose between 3 and 5 percent in almost all provinces. Exceptions include Chubut (+1.5 percent), Neuquen (+1.0 percent), Río Negro (+1.3 percent), Santa Cruz (+0.8 percent) and Tierra del Fuego (+1.6 percent), the report says. Tinned sweetcorn dropped in price in most provinces. Extreme cases were Chaco (-5.5 percent), San Juan (-4.3 percent) and Formosa (-3.4 percent), the report 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. Moody's Ratings on July 17, 2025, upgraded Argentina's long-term foreign currency and local currency issuer ratings to Caa1 from Caa3 and changed the outlook to stable from positive. The upgrade reflects Moody's views that the extensive liberalization of exchange and (to a lesser extent) capital controls, alongside a new International Monetary Fund (IMF) program, support the availability of hard currency liquidity and ease pressure on external finances. This reduces the likelihood of a credit event. In January 2025, Moody's raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. 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+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. =========== B R A Z I L =========== MINERVA S.A: Fitch Affirms 'BB' Long-Term IDR, Outlook Stable ------------------------------------------------------------- Fitch Ratings has affirmed Minerva S.A.'s (Minerva) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB' and Minerva Luxembourg S.A's senior unsecured notes rating at 'BB'. The Rating Outlook is Stable. The Long-Term National Scale rating has been upgraded to 'AAA(bra)' from 'AA+(bra)', with a Stable Outlook. Minerva's ratings reflect its strong business profile as Latin America's largest beef exporter after the acquisition of beef assets at YE 2024, increasing its production capacity by 42%. Fitch upgraded the National Scale Rating because the company's scale and geographic diversification provide significant competitive advantages. These factors help the company mitigate risks from concentration in one protein type and manage higher U.S. tariffs on Brazil. Fitch projects Minerva will report strong EBITDA margins and positive FCF, reaching a net leverage around 3.0x at YE 2025. The Stable Outlook reflects Fitch's view that Minerva will maintain its solid financial and operational performance within the competitive global protein industry. Key Rating Drivers Strong Beef Exporter: Minerva's business profile reflects its strong beef exporter position, with 43 industrial plants in Brazil, Argentina, Uruguay, Paraguay, Colombia, Chile, and Australia. Fitch believes its scale and diversification give Minerva a competitive edge that allows it to reduce industry risks. Fitch expects Minerva to increase volumes to 1.9 billion metric tons in 2025, up from 1.5 billion metric tons in 2024 and 1.3 billion metric tons in 2023. Net Leverage Below 3.0x in 2025: Minerva's net leverage is projected to strengthen to 3.0x by YE 2025, reflecting quarterly improvements in performance and utilization rates of the new assets acquired from Marfrig, and the capital injection of BRL2 billion in June 2025, the proceeds of which was used to reduce debt. The base case scenario considers gross leverage and net leverage ratios at 5.2x and 2.9x, respectively, in 2025. Beef Market Trends: U.S. beef market fundamentals remain challenging. High live cattle prices and multidecade low beef inventories from herd liquidation have compressed processing spreads. In contrast, Brazil beef processors benefit from a favorable cattle cycle due to expanding production, rising consumption, and increasing exports. Fitch expects Brazil's exports to grow in 2025, while domestic beef consumption should remain stable. Navigating U.S. Tariffs Challenges: Fitch believes the recently announced 50% tariff increase on U.S. imports from Brazil is credit neutral for Minerva. Only 5% of the company revenues come from Brazilian exports to the U.S. The company also operates in Paraguay, Argentina, and Uruguay, which should benefit from the new tariffs on Brazil. Minerva also anticipated the tariff and increased its beef's inventory position in U.S. earlier. This inventory gives Minerva time to shift U.S. exports from Brazil to its operations in other countries. EBITDA Margins Above Industry Average: Minerva maintains EBITDA margins above the industry average, supported by its diversified operations in Latin America and strong export platform. Margins are expected to remain around 9.2% over the next three years, even with rising cattle prices, as higher protein prices and synergies from the acquired Marfrig assets should offset cost increases. Recent EBITDA margins have been in the 8.5%-9.5% range. Positive FCF: Fitch projects Minerva to report positive FCF for the next three years. EBITDA and cash flow from operations (CFFO) should reach BRL4.9 billion and BRL1.2 billion, respectively, in 2025. In 2026, EBITDA and CFFO should reach BRL5.0 billion and BRL2.7 billion, respectively. FCF should be positive, assuming capex of around 1.8% of the net revenues and dividend pay-outs at the minimum level of 25% of net income, which will allow Minerva to reduce net leverage during the rating horizon. Peer Analysis Minerva's ratings reflect its solid business profile as a pure-play beef company with a large presence in South America and small presence in Australia. The ratings consider Minerva's limited diversification across other proteins, making it less diversified than JBS S.A. (JBS; BBB-/Stable) or Tyson Foods, Inc. (Tyson; BBB/Stable). Minerva has developed a more export-oriented business model, whereas Marfrig Global Foods S.A. (Marfrig; BB+/Stable) has a strong presence in the U.S. domestic market through its subsidiary National Beef and in the poultry and prepared foods with BRF S.A. (BRF; BB+/Positive). Minerva is smaller than its peers, such as Marfrig, JBS or Tyson. From a financial standpoint, Minerva's projected net leverage profile would be in line with those of Marfrig and JBS over the next few years. Key Assumptions - Revenue growth of 55% in 2025 and 4% in 2026; - EBITDA margins around 9.2% in 2025 and 2026; - Capex of around 1.8% of revenues per year; - Dividends payout of 25% of net income. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Net leverage above 3.5x and gross leverage above 4.5x on a sustained basis; - Sharp contraction in Minerva's EBITDA margins combined with sustained negative FCF generation. National Scale Rating - Net leverage above 3.0x on a sustained basis. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Continued increase in geographic or protein type diversification; - Net leverage below 2.5x and gross leverage below 3.5x on a sustained basis; - EBITDA/interest expense above 2.0x; - Sustained positive FCF generation. National Scale Rating - Not applicable, as the company is in the highest level of the rating scale. Liquidity and Debt Structure Fitch considers Minerva's liquidity profile strong, based on high cash position and ample access to diverse funding resources. As of June 2025, cash and cash equivalents were high, at BRL12.6 billion. The company's debt total BRL27.2 billion (net of derivatives and including factoring) comprised of BRL10.7 billion in senior notes, BRL13.2 billion in debentures, and BRL8.3 billion in Pre-Export credit lines. Issuer Profile Minerva is South America's top beef exporter, with 43 plants in Brazil, Paraguay, Uruguay, Argentina, Colombia, Chile, and Australia. Its main shareholders are the Vilela Family (29.07%) and SALIC (24.49%), and the free float is 44.94%. 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 Minerva S.A. has an ESG Relevance Score of '4' for Waste & Hazardous Materials Management; Ecological Impacts due to {DESCRIPTION OF ISSUE/RATIONALE}, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. Minerva S.A. has an ESG Relevance Score of '4' for Governance Structure due to {DESCRIPTION OF ISSUE/RATIONALE}, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Minerva Luxembourg S.A. senior unsecured LT BB Affirmed BB Minerva S.A. LT IDR BB Affirmed BB LC LT IDR BB Affirmed BB Natl LT AAA(bra) Upgrade AA+(bra) NEW FORTRESS: Asks for 10-Q Filing Extension Amid Credit Talks -------------------------------------------------------------- Ilya Banares of Bloomberg News reports that New Fortress Energy has postponed submitting its 10-Q and is seeking additional time, citing "ongoing negotiations for supplemental credit support" required under one of its debt agreements. The company is still finalizing its quarterly financial close, notes the report. Second-quarter revenue from terminal operations fell significantly from the prior year, primarily due to the termination of a Puerto Rico power project, lower revenues in Jamaica, and reduced cargo sales. Operating expenses rose sharply, driven by goodwill and asset impairments, according to Bloomberg News. About New Fortress Energy Inc. New Fortress Energy Inc., a Delaware corporation, is a global energy infrastructure company founded to help address energy poverty and accelerate the world's transition to reliable, affordable and clean energy. The Company owns and operates natural gas and liquefied natural gas infrastructure, ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. The Company has liquefaction, regasification and power generation operations in the United States, Jamaica, Brazil and Mexico. The Company has marine operations with vessels operating under time charters and in the spot market globally. * * * In July 2025, S&P Global Ratings lowered its issuer credit rating on New Fortress Energy Inc. (NFE) to 'CCC' from 'B-' . . . The negative outlook reflects heightened refinancing risk on the company's notes due September 2026 and an increased possibility that a payment default or distressed exchange may occur within the next 12 months. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Rainieri Pushes Plan to Raise Tourist Spending ------------------------------------------------------------------ Dominican Today reports that Frank Rainieri, chairman of the Puntacana Group, has launched an initiative to boost tourist spending in the Dominican Republic from an average of US$172 to US$300 per night within five years. He argues that such an increase would not only benefit hotels but also have a ripple effect on the broader economy, generating more income for restaurants, artisans, and local businesses, according to Dominican Today. With over 10 million tourists annually, the impact could be trans formative for multiple sectors, the report relays. To achieve this, both the government and private sector are implementing measures such as attracting North American hotel chains, improving road safety to encourage car rentals, and promoting gastronomic, sports, and cultural tourism, the report disclsoes. Efforts also include motivating visitors to purchase Dominican handicrafts and souvenirs, directly supporting local entrepreneurs, the report says. Tourism Minister David Collado emphasized that this initiative results from collaboration with more than 30 industry leaders, including Asonahores, the report relays. By aligning investment and innovation, the Dominican Republic aims to position itself as a high-value destination, strengthen local businesses, and create more jobs while ensuring sustainable economic growth, 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: BOJ Pumps US$30 Million into Forex Market -------------------------------------------------- RJR News reports that the Bank of Jamaica intervened in the foreign exchange market with US$30 million in order to help contain the slide in the value of the dollar and its negative impact on prices, inflation and total spending. The bank says it received 43 bids for US$69.9 million, but it accepted only 18 of these bids for the US$30 million it pumped into the market, resulting in unsatisfied demand of US$39.1 million, according to RJR News. The lowest bids were between J$160.38 and J$160.39 for US$1, the report relays. 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. JAMAICA: Economy Expected to Grow 2-3% for July to September ------------------------------------------------------------ RJR News reports that Director General of the Planning Institute of Jamaica (PIOJ), Dr. Wayne Henry, has said that the Jamaican economy is expected to grow within a 2-3% range during the period of July to September this year. He said the main downside risks to the projection are the possibility of adverse weather conditions, disrupting productive activities in key industries and weakened external demand due to trade disruptions caused by the implementation of increased tariffs by the United States, according to RJR News. Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. ===================== P U E R T O R I C O ===================== PALMAS ATHLETIC: Seeks to Tap Charles A. Cuprill as Legal Counsel ----------------------------------------------------------------- Palmas Athletic Club Corp. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Charles A. Cuprill, PSC, Law Offices to handle its Chapter 11 case. The firm will be paid at these hourly rates: Charles Cuprill-Hernandez, Attorney $400 Paralegals $85 In addition, the firm will seek reimbursement for expenses incurred. The firm received a $61,800 retainer from the Debtor. Mr. Cuprill-Hernandez 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: Charles A. Cuprill, Esq. Charles A. Cuprill, PSC, Law Offices 356 Fortaleza Street, Second Floor San Juan, PR 00901 Telephone: (787) 977-0515 Facsimile: (787) 977-0518 Email: ccuprill@cuprill.com About Palmas Athletic Club Corp. Palmas Athletic Club Corp. owns and operates a 420-acre recreational property within Palmas Del Mar Resort in Humacao, Puerto Rico. The site includes two 18-hole golf courses, a 22,200-square-foot clubhouse, a 5,600-square-foot beach clubhouse, and related facilities. Palmas Athletic Club Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-03489) on August 4, 2025. In its petition, the Debtor reports total assets of $16,793,944 and total liabilities of $36,514,983. The Debtor tapped Charles A. Cuprill Hernandez, Esq. at Charles A. Cuprill, PSC, Law Offices and CPA Luis R. Carrasquillo & CO, PSC as financial consultant. ********* 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 * * *