250826.mbx

250826.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, August 26, 2025, Vol. 26, No. 170 Headlines A R G E N T I N A ARGENTINA: Milei Clashes With Top Banks Amid Liquidity Squeeze B A H A M A S FTX GROUP: Chancery Says Claim Buy Outside Its Jurisdiction B R A Z I L BRASKEM SA: S&P Downgrades ICR to 'BB-', On CreditWatch Negative BRAZIL: Farm Loan Defaults Surge in Country BRAZIL: Still Assessing if 15% Interest Rate is Appropriate INTERCEMENT BRASIL: Reschedules Creditors' Assembly to September 9 D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Tourism's Future Hinges on Robust Power Grid J A M A I C A CARIBBEAN ASSURANCE: Hit More Hurdles Even as Profit Rebounds M E X I C O ALSEA S.A.B: Fitch Hikes Long-Term IDR to 'BB+', Outlook Stable LEISURE INVESTMENTS: Plan Exclusivity Period Extended to Oct. 27 P A R A G U A Y FRIGORIFICO CONCEPCION: Moody's Rates New $300MM Secured Notes 'B2' P E R U PERU: Hopes to Attract Investment with Tax Cuts, Minister Says PETROLEOS DEL PERU: Fitch Affirms CCC+ Long-Term IDR T R I N I D A D A N D T O B A G O CARIBBEAN AIRLINES: Be Wary of PM's Attack, Says Economist V E N E Z U E L A PETROLEOS DE VENEZUELA: U.S. Court Reopens Auction for Bids - - - - - ================= A R G E N T I N A ================= ARGENTINA: Milei Clashes With Top Banks Amid Liquidity Squeeze -------------------------------------------------------------- Ignacio Olivera Doll at Bloomberg News reports that newly imposed liquidity measures aimed at containing a nascent peso sell-off have stoked tensions between President Javier Milei and the country's banks, a sector that was largely aligned with his policy goals but now sees its profitability under threat. Bankers argue that the new provisions, which require institutions to hit reserve requirements on a daily basis instead of monthly, are inefficient and costly, according to Bloomberg News. Major financial institutions are preparing a document with recommendations for operational changes to present to the Central Bank, according to two people with direct knowledge of the matter, Bloomberg News relates. The discontent became evident during a virtual meeting, when Darío Stefanelli -- the Central Bank's head of issuance and regulation -- addressed more than 100 investors from institutions including Banco Galicia, Banco Santander, Banco Macro and BBVA Argentina, said the people, speaking on the condition of anonymity to discuss private conversations, Bloomberg News relays. Stefanelli, who is known for patiently explaining regulations using audio clips, responded to a barrage of complaints, stating "I only explain the rules," according to one of the people, Bloomberg News discloses. Galicia, Santander, Macro and BBVA declined to comment. Neither leadership from the monetary authority nor C-suite executives of private banks participated in the call, according to a Central Bank official who asked not to be named, Bloomberg News notes. Argentine policymakers routinely organise monthly calls at a technical level to clarify new norms, the person added. Tensions started building in late July, when the government decided to drain pesos from the market to curb demand for dollars by selling local-currency debt, Bloomberg News relays. The peso lost more than 12 percent last month, its worst performance since Milei devalued the currency upon taking office in December 2023, Bloomberg News recalls. The government's moves triggered a liquidity crunch that pushed real interest rates to double digits, Bloomberg News notes. The standoff escalated August 13, when the government managed to refinance only 61 percent of maturing peso debt, covering a portion of the remainder with holdings at the Central Bank, Bloomberg News notes. That effectively injected about six trillion pesos (US$4.6 billion) into the economy, the report says. As a result, the monetary authority ordered banks to meet reserve targets daily, raised certain types of reserve requirements and toughened penalties for non-compliance, Bloomberg News notes. The hike in reserve requirements forced banks to dash for pesos to meet their targets, which in a liquidity-starved market drove up funding costs, Bloomberg News relays. The one-day repo rate quickly jumped to 80 percent annualised after the debt auction, while the government's one-month LECAP notes in the secondary market reached 71 percent, according to data compiled by Bloomberg. Top-rated corporates in search of ultra-short-term financing ended up paying more than 100 percent annualised, according to two people with direct knowledge, the report relates. Economy Minister Luis Caputo said this would be the government's response whenever excess pesos remain in circulation, Bloomberg News notes. "If incomplete rollovers are interpreted as monetary expansion, those pesos will be absorbed – whether through remunerated reserves, non-remunerated reserves, or other tools," he said in a post on X, referring to requirements that can be met by holding securities instead of cash. The measures helped reverse some of the recent peso depreciation, which had threatened to derail Milei's push to quell inflation and, as a result, the administration's prospects in the upcoming midterm elections, according to Bloomberg News. "What did they expect? That I'd free up cash so they could attack the exchange rate? No way," the President said in a July 28 livestream. Higher rates and stricter reserve requirements cut directly into banks' margins, Bloomberg News notes. After a year of rapid credit growth, many institutions extended long-term loans funded with short-term liabilities, the costs of which have risen sharply, the report discloses. Profitability, already under strain, has shrivelled further, Bloomberg News says. The expected drop in profitability will only become evident in upcoming earnings reports, but the market is already pricing it in. Argentine bank stocks have already fallen as much as 8.2 percent in New York over the past five days, Bloomberg News notes. "Large-cap lenders such as Macro, Galicia, BBVA and Santander may be able to withstand the shock," the report quotes Walter Stoeppelwerth, chief investment officer at local brokerage Grit Capital Group, as saying in a report to investors. "But smaller institutions risk being squeezed to the point of failure," he added. With funding costs above 44 percent -- compared with expected inflation of 21 percent over the next 12 months -- bank margins are collapsing, Bloomberg News adds. "Systemic casualties cannot be ruled out," Stoeppelwerth said. 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 A H A M A S ============= FTX GROUP: Chancery Says Claim Buy Outside Its Jurisdiction ----------------------------------------------------------- Rick Archer at law360.com reports that a Delaware Chancery Court judge ruled that a lawsuit over a failed deal to buy a claim in the Chapter 11 case of cryptocurrency platform FTX does not belong in his court, saying the fact the bankruptcy is being heard in Delaware does not constitute a sufficient connection to the state. 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 =========== BRASKEM SA: S&P Downgrades ICR to 'BB-', On CreditWatch Negative ---------------------------------------------------------------- On Aug. 22, 2025, S&P Global Ratings lowered its global scale issuer credit rating on Braskem S.A. to 'BB-' from 'BB' and placed the rating on CreditWatch with negative implications. S&P also lowered its issue-level ratings on the company's senior unsecured notes to 'BB-' from 'BB' and on its subordinated notes to 'B-' from 'B'. The CreditWatch negative placement indicates the chance of another downgrade in the next 90 days if the company's operating and cash flow performance in the third quarter does not improve substantially from the first half of the year, which could lead us to again revise down our forecasts. Braskem's second-quarter results were much weaker than expected, leading us to forecast high cash burn until at least next year. The global trade tensions and uncertainty about tariffs have increased pressure on petrochemical demand and spreads during second-quarter 2025. The EBITDA generation was also lower due to the inventory impact in costs, as feedstock was purchased at higher prices in previous quarters. S&P said, "Braskem's paltry quarterly results led us to revise down our base-case forecast for the company. We now assume volumes in 2025 to be very similar to those in 2024. We previously forecasted a 4%-5% volume expansion for 2025-2026 that would come from market share gains in Brazil amid higher import tariffs, as well as the company's higher volumes in the U.S. and Europe." S&P said, "Our forecast now incorporates small revenue growth in 2025 and some improvement in EBITDA, but much weaker than our previous expectations. We now forecast EBITDA of R$5.0 billion - R$5.4 billion for 2025, which will depend on significant improvement in the second half from R$1.3 billion in the first half." This could result from the company's continued efforts to optimize its cost structure and with the likely benefit of polyethylene (PE) antidumping duties that could start as early as next month. Nevertheless, the material cash consumption would lead to debt to EBITDA around 9x by year-end and trending to around 7x next year. Mitigating the impact of very high leverage and still supporting the new 'BB-' rating are Braskem's large scale and sound market position in Brazil. S&P said, "Given higher cash burn until June 2025 and our updated forecasts, the company's liquidity cushion will be weaker than its historically strong levels. With a reduction in available cash position from R$11.2 billion as of March to R$9.3 billion in June 2025, and continued cash flow pressures, we no longer view Braskem's liquidity as a strength. While the company still has an extended debt maturity profile and relatively low cost of debt of close to 6%, it will start to face substantial debt maturities in the next 2.5 years. Given the company's high leverage and difficult industry conditions, we believe Braskem now has lower financial flexibility, absent favorable developments that allow for a faster leverage reduction." The company could benefit from some positive developments in the Brazilian petrochemical industry in the short term, but the timing and impact on Braskem's cash flow are still uncertain. Braskem requested last year an investigation regarding dumping practices from U.S. and Canadian exports of PE to Brazil. This might have a provisory vote in the Secretariat of Foreign Trade (SECEX) next week after a preliminary determination was published yesterday. If this is approved next week, it would support higher prices and volumes for Braskem's PE. S&P's current forecast already incorporates an estimate increase in revenue and EBITDA of $200 million-$250 million annually from these antidumping duties starting in September this year, but the actual impact could be subject to some volatility. Also, Brazil's Congress is currently discussing the REIQ and PRESIQ, a special tax regime for the chemical industry to foster its competitiveness, which might increase the tax relief on raw material purchases from 0.73% currently, reducing the company's costs. The CreditWatch negative placement indicates the chance of another downgrade in the next 90 days if the company's operating and cash flow performance in the third quarter does not improve substantially from the first half of the year, which could lead us to again revise down our forecasts and estimate higher cash burn for the next few quarters. S&P said, "We expect to resolve the CreditWatch listing in the next 90 days as we monitor the company's performance, and have further clarity on the final impact of the antidumping duties on Braskem's revenue and cash flow." BRAZIL: Farm Loan Defaults Surge in Country ------------------------------------------- Alvaro Campos and Lais Godinho, writing for Valor International, report that Brazil's banking sector has been grappling with a sharp rise in defaults in agribusiness in recent months. Despite expectations for record corn production and a strong soybean harvest in 2025, a mix of pressures has worsened financial stress across the sector. The downturn began with falling commodity prices, which squeezed margins of highly leveraged farmers who had borrowed when Brazil's Selic rate was at historic lows in 2020 and 2021, notes the report. Compounding the situation, agribusinesses are facing a surge in bankruptcy filings and the effects of Brazil's Central Bank Resolution 4,966, which changed provisioning rules and introduced the "expected loss" model. Now, the tariff hike imposed on Brazil by U.S. President Donald Trump could further cloud the outlook, adds the report. Holding nearly 50% of the farm credit market, Banco do Brasil (BB) has been the most exposed, Valor International relates. Its delinquency rate jumped to a record 3.94%, up from 2.45% a year ago and 0.96% at the end of 2023. The bank's BRL404.9 billion portfolio includes around 20,000 delinquent clients, 74% of whom had never defaulted with the bank before 2023. According to BB, 52% of overdue loans are concentrated in Brazil's Central-West and South regions, and half are tied to soybeans, corn, and cattle, relays the report. In addition, 808 clients with debts totaling BRL5.4 billion are under bankruptcy protection, the report discloses. A 2020 ruling by Brazil's Federal Supreme Court (STF) allowed large farmers to file for bankruptcy as individuals. Since 2023, BB has seen a spike in such cases, which it describes as "predatory litigation." BB CEO Tarciana Medeiros accused law firms of running campaigns to attract clients for bankruptcy filings, often targeting the bank. "Judicial recovery is for those who really need it. We will fight litigation abuses," she said, according to the report. Central Bank data show that as of June, rural credit for individuals reached BRL539.8 billion, up 7.5% year-on-year, while lending to companies totaled BRL99.3 billion, up 9.4%. For individuals, defaults soared from 1.5% to 3.5% in one year, the report says. According to Serasa Experian, bankruptcy filings in agribusiness reached 389 in the first quarter, up 21.5% from the previous quarter and 44.6% from early 2024, states the report. "Many producers face high costs, long payment terms, stricter collateral requirements, and difficulties rolling over debts -- all of which strain cash flow and squeeze margins," said Marcelo Pimenta, agribusiness director at Serasa. 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. BRAZIL: Still Assessing if 15% Interest Rate is Appropriate ----------------------------------------------------------- Reuters reports that Brazil's central bank is still assessing whether the benchmark interest rate at 15% is appropriate to bring inflation down to its 3% target, economic policy director Diogo Guillen said. Policymakers kept rates unchanged in late July at a near 20-year high after 450 basis points in hikes since last September, according to the report. They signaled borrowing costs would remain steady for a "very prolonged" period. Guillen stressed that the guidance signaled more rate holds. "We are still evaluating whether this is the appropriate rate to bring inflation to target," he said, the report relays. 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. INTERCEMENT BRASIL: Reschedules Creditors' Assembly to September 9 ------------------------------------------------------------------ Augusto Decker of Bloomberg Law reports that InterCement said it postponed to September 9 the assembly to continue discussions on a previously announced preliminary agreement for Mover Group's consensual restructuring. Ongoing negotiations are centered on finalizing documentation, obtaining corporate approvals, and resolving other outstanding issues, the report states. About Intercement Brasil Intercement Brasil is a producer of cement and concrete based in Brazil. Overall, the Company has 34 production units, with an active capacity of more than 33 million tons of cement per year, employing more than 6,000 professionals. Intercement Brasil and affiliates sought relief under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 24-11226) on July 15, 2024. The firm's foreign representative is Antonio Reinaldo Rabelo Filho. The Foreign Representative's counsel is John K. Cunningham, Esq. At WHITE & CASE LLP. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Tourism's Future Hinges on Robust Power Grid ---------------------------------------------------------------- Dominican Today reports that Rolando Gonzalez Bunster, president and CEO of InterEnergy Group, has highlighted the Dominican Republic's vast tourism potential while warning that the sector's stability is directly tied to a strong electrical system. "Without a robust electrical energy system, the tourism industry, which generates thousands of jobs and contributes to the country's growth, cannot exist," Gonzalez Bunster said, notes the report. His comments were made during an interview with Moises Gonzalez of the digital newspaper and television program Despertar Nacional, according to Dominican Today. Dividing the Electricity Business is a 'Huge Mistake' Gonzalez Bunster believes that dividing the electricity business into generation, transmission, and distribution has been "a huge folly," as it prevents the efficient allocation of available resources, the report notes. "That is happening in this country at a rapid pace," he stated months ago in comments to Hablemos de Turismo, Dominican Today relates. He warned that unless the commercialization problem is solved, the power sector will be "a bottomless pit," with negative effects on the competitiveness and sustainability of the tourism industry. Focus on Renewable Energy The InterEnergy Group CEO noted that his company has invested more than $1.5 billion in infrastructure and renewable energy projects, with a total of 42 solar parks in operation and under construction, which together generate 270 Mwp, the report discloses. He detailed that of this total, 24 are directly connected to hotels, solidifying the company's position as a strategic ally of the tourism sector by offering sustainable and reliable energy solutions, the report says. Gonzalez Bunster also highlighted the company's investments on Saona Island to benefit its residents, stating that they are not viewed as an "economic investment." "Saona is emblematic for us because it demonstrates that it is possible to take isolated communities, islands, and make them 100% renewable," he added. 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 ============= CARIBBEAN ASSURANCE: Hit More Hurdles Even as Profit Rebounds ------------------------------------------------------------- Jamaica Observer reports that Caribbean Assurance Brokers Limited (CAB) continues to face challenges as it works to rebound from a difficult financial year. The company's board, now dealing with another setback, has been prompted to begin the search for a new leader to fill a key executive role. The recent and sudden departure of Sheraley Bridgeman -- who had served as CEO for just over a year -- is expected to further impact growth plans that were previously identified as central to the company's strategic direction, according to Jamaica Observer. Among the initiatives slated for roll-out are educational campaigns and bespoke digital solutions such as chatbot services, e-commerce platforms, and enhanced online experiences - all designed to drive customer interaction, accessibility, and innovation, the report notes. Bridgeman, whose resignation took effect on July 31, 2025, is said to have, during her tenure, provided committed leadership as the company navigated key phases of transformation and growth, the report relays. "We thank her for her contributions and the positive impact made during her time with CAB," said founder and Chairman Raymond Walker, who has temporarily resumed CEO duties until a new successor is appointed, the report notes. For the second quarter ended June 30, 2025, CAB reported revenues of $150.6 million -- a 13.6 per cent or $18-million increase over the same period last year, the report discloses. Net profit on the other hand also rebounded to total $4.8 million, marking a significant turnaround from the loss of $15.4 million reported for the comparative quarter of 2024, the report says. "This relatively strong performance was primarily driven by Individual Life, which increased by 72 per cent, and gains in General Insurance, which surged by 202 per cent. These positive results were partially offset by a 22 per cent decline in Employee Benefits and a 67 per cent decrease in International Life and Health compared to the same period last year," the directors said in a recently published shareholder's report, Jamaica Observer relates. The company's performance for the six-month period also reflected a strong recovery, with revenue reaching $264.8 million and profit rising to $6.5 million, the report notes. Total assets as at June 30, 2025, stood at $1.227 billion -- an increase of $105 million or 9.4 per cent year-on-year, the report discloses. "Overall, the company's performance reflected the result of our strategy of investment in sales capacity, infrastructure, and digital transformation. Profitability is showing signs of recovery and our financial position is relatively strong given our strong equity base," the directors also said, the report notes. Incorporated two decades ago, CAB is a multi-line insurance brokerage offering a comprehensive range of services across life, health, and personal accident insurance, general insurance, international life and travel, employee benefits, and credit union-related products, the report adds. =========== M E X I C O =========== ALSEA S.A.B: Fitch Hikes Long-Term IDR to 'BB+', Outlook Stable --------------------------------------------------------------- Fitch Ratings has upgraded Alsea, S.A.B. de C.V.'s (Alsea) Foreign and Local Currency Long-Term Issuer Default Ratings (IDRs) and senior unsecured notes to 'BB+' from 'BB'. Fitch has also upgraded the senior unsecured notes of Alsea subsidiary Food Service Project, S.A. to 'BB+' from 'BB'. Fitch has upgraded Alsea's National Long-Term rating to 'AA-(mex)' from 'A+(mex)' and its National Short-Term rating to 'F1+(mex)' from 'F1(mex)'. The Rating Outlook is Stable. The upgrade reflects Alsea's strengthened business and financial profiles. Its solid business position, scale and diversified brands and formats and geographic footprint support robust cash flow from operations. The company's access to financial markets and proactive approach to liability management enhance its liquidity profile and financial flexibility. Fitch expects Alsea to successfully refinance its 2026 and 2027 debt maturities in the coming months and to maintain EBITDAR leverage at or below 3.5x over the medium term. Key Rating Drivers Strong Operating Performance: Alsea has sustained resilient revenue growth, driven primarily by its Mexican division, which contributed around 68% of total EBITDAR for the LTM ended June 30,2025. Fitch projects average revenue growth of 7% and EBITDAR margin of 21% during 2025-2027. For the year to date (YTD) period ending June 2025, Alsea reported a 10.8% increase in sales, resulting in a 9% rise in EBITDAR to MXN8.4 billion. The EBITDAR margin remained around 20.5% during this period. Resilient Growth Prospects: Fitch expects Alsea's sales to continue growing, though at a more moderate pace. The company will continue pursuing several commercial and digital strategies to support sales. Also, it will focus on increase customer traffic alongside ongoing productivity initiatives and cost reduction efforts to drive performance. Alsea's key brands continue to gain market share, supported by their broad product offerings and strong customer experience. Solid Business Position: Alsea's ratings reflect its solid business position, supported by a portfolio of leading international franchise brands and recognized own brands across key segments. This diverse brand mix provides a significant competitive advantage by covering a wide range of demographics and consumer preferences. Notable brands include Starbucks, Domino's Pizza, Burger King, Vips, Foster's Hollywood, Chili's, Italianni's, and P.F. Chang's. The company operates 4,795 restaurants and 13 brands in 12 countries, with 77% operated directly and 23% franchised, as of June 2025. Geographic Diversification: Alsea's creditworthiness is supported by its international operations, which help reduce business risks and cash flow volatility. During the LTM ended June 30, 2025, activities outside Mexico accounted for approximately 46% of total revenue and 31% of EBITDAR. Fitch views Alsea's geographic diversification as a positive factor, since it balances its exposure to both mature and developing markets and provides access to hard-currency revenue. Stable Leverage Trend: Fitch estimates Alsea's EBITDAR leverage, as per Fitch's calculations, will remain at or below 3.5x for 2025-2027. Fitch's base case assumes that small bolt-on acquisitions will continue but will not materially impact Alsea's credit profile. Total debt is projected to average MXN 39.5 billion for 2025-2027, following the 2024 increase to acquire full control of Food Service Project (Alsea Europe) from minority shareholders. Negative to Neutral FCF: Fitch estimates Alsea will generate approximately MXN7.4 billion in operating cash flow in 2025, covering around MXN6 billion in capex and MXN1 billion in dividends, resulting in neutral FCF for the year. Fitch expects strong pre-dividend FCF averaging MXN8 billion annually going forward, sufficient to cover average capex of MXN6.5 billion and dividend payments of around MXN1 billion per year. Peer Analysis Alsea's long-term ratings are based on its business profile, which benefits from its portfolio of recognized restaurant brands and formats, positive operating performance, and the scale and geographic diversification of its operations. Alsea's business position and diversification is similar to other Fitch-rated issuers in the 'BBB' category, such as Arcos Dorados Holdings Inc. (BBB-/Stable); however, Alsea's financial profile is weaker than that of Arcos due to higher leverage and lower fixed-charge coverage. The company's ratings are lower than its international peer Darden Restaurants, Inc. (BBB/Stable) given its weaker business profile in terms of size and scale. The company has similar profitability and higher leverage compared with Darden Restaurants. Key Assumptions - Average revenue growth of 7% in 2025-2027; - EBITDAR margin of around 21% in 2025-2027; - Average annual capex of MXN6.5 billion for 2025-2027; - Dividends of around MXN1 billion in average for 2025-2026; - Bolt-on acquisition in 2027; - Potential adverse contingencies funded mainly with debt. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A sustained deterioration in the operational performance of its main markets; - Negative FCF generation on a sustained basis; - A weakening of its liquidity profile; - EBITDAR leverage above 3.5x on a sustained basis. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Consistent improvement in operational performance above Fitch's expectations; - Robust FCF generation on a sustained basis that strengthens Alsea's financial profile; - EBITDAR leverage below 3.0x on a sustained basis; - EBITDAR fixed-charge coverage (defined as EBITDAR to interest paid plus rents) above 2.5x on a sustained basis, combined with a strong liquidity profile. Liquidity and Debt Structure As of June 30, 2025, Alsea had available cash of MXN 4.8 billion, with debt amortizations of MXN 5.6 billion due in 2025. The company is currently negotiating a refinancing facility to cover the 2025 maturities. Alsea also faces MXN16.6 billion in debt maturities in 2026, which are expected to be addressed through liability management initiatives over the next upcoming months. As of Dec. 31, 2024, Alsea had available credit lines of MXN 2.35 billion and EUR 44 million in Europe, providing access to additional financing alternatives. Issuer Profile Alsea is a leading LATAM and Europe restaurant operator of major global brands, including Domino's Pizza and Starbucks, with over 4,795 units as of June 2025, supported by centralized supply chain, real estate and shared administrative services. Summary of Financial Adjustments Fitch calculates Alsea's lease liability by multiplying Fitch-defined lease expense by a 4x multiple, based on the median of implied lease multiples from similar restaurant peers in Latin America. 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 ----------- ------ ----- Alsea, S.A.B. de C.V. LT IDR BB+ Upgrade BB LC LT IDR BB+ Upgrade BB Natl LT AA-(mex) Upgrade A+(mex) Natl ST F1+(mex) Upgrade F1(mex) senior unsecured LT BB+ Upgrade BB senior unsecured Natl LT AA-(mex) Upgrade A+(mex) Food Service Project, SA senior unsecured LT BB+ Upgrade BB LEISURE INVESTMENTS: Plan Exclusivity Period Extended to Oct. 27 ---------------------------------------------------------------- Judge Laurie Selber Silverstein of the U.S. Bankruptcy Court for the District of Delaware extended Leisure Investments Holdings LLC, and certain of its affiliates' exclusive periods to file a plan of reorganization and obtain acceptance thereof to October 27 and December 29, 2025, respectively. As previously reported, the Debtors request entry of the Proposed Order extending the Plan Periods and Solicitation Periods by approximately ninety 90 days, as follows: (i) for the Initial Debtors, through and including October 27 and December 29, 2025, respectively; (ii) for Controladora, through and including November 12, 2025 and January 12, 2026, respectively; and (iii) for Embassy, through and including December 1, 2025 and January 29, 2026, respectively, without prejudice to the Debtors' right to seek additional extensions of the Exclusive Periods. The Debtors explain that they faced significant challenges in obtaining access to and control over their books and records. The Debtors and their professionals expended substantial time and effort in attempt to obtain such access, which has limited the Debtors' opportunity to formulate and negotiate a chapter 11 plan. Accordingly, the Debtors submit that this factor weighs in favor of extending the Exclusive Periods. The Debtors assert that they have endeavored to establish and maintain cooperative working relationships with their primary creditor constituencies. Importantly, the Debtors are not seeking the extension of the Exclusive Periods to delay administration of the Chapter 11 Cases or to exert pressure on their creditors, but rather to continue the orderly, efficient, and cost-effective chapter 11 process. Thus, this factor also weighs in favor of the requested extension of the Exclusive Periods. The Debtors further assert that termination of the Exclusive Periods would adversely impact the Debtors' efforts to preserve and maximize the value of the estates and the progress of the Chapter 11 Cases. If the Court were to deny the Debtors' request for an extension of the Exclusive Periods, any party in interest would be permitted to propose an alternative chapter 11 plan for the Debtors, which would only foster a chaotic environment and cause opportunistic parties to engage in counterproductive behavior in pursuit of alternatives that are neither value maximizing nor feasible under the circumstances of the Chapter 11 Cases. Counsel to the Debtors: Robert Brady, Esq. Sean T. Greecher, Esq. Allison S. Mielke, Esq. Jared W. Kochenash, Esq. Young Conaway Stargatt & Taylor LLP Rodney Square 100 North King Street Wilmington, DE 19801 Telephone: (302) 571-6600 Facsimile: (302) 571-1253 Email: rbrady@ycst.com sgreecher@ycst.com amielke@ycst.com jkochenash@ycst.com About Leisure Investments Holdings Leisure Investments Holdings LLC and affiliates are operating under the name "The Dolphin Company," manage over 30 attractions, including dolphin habitats, marinas, water parks, and adventure parks, located in eight countries across three continents. Their primary operations are based in Mexico, the United States, and the Caribbean, with locations in Jamaica, the Cayman Islands, the Dominican Republic, and St. Kitts. These attractions are home to approximately 2,400 animals from more than 80 species of marine life, including a variety of marine mammals such as dolphins, sea lions, manatees, and seals, as well as birds and reptiles. As of 2023, the marine mammal population at the Debtors' parks includes roughly 295 dolphins, 51 sea lions, 18 manatees, and 18 seals. Leisure Investments Holdings LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case 25-10606) on March 31, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100 million and $500 million each. Honorable Bankruptcy Judge Laurie Selber Silverstein handles the case. The Debtors tapped Robert S. Brady, Esq., Sean T. Greecher, Esq., Allison S. Mielke, Esq., and Jared W. Kochenash, Esq. as counsels. The Debtors' restructuring advisor is RIVERON MANAGEMENT SERVICES, LLC. The Debtors' Claims & Noticing Agent is KURTZMAN CARSON CONSULTANTS, LLC d/b/a VERITA GLOBAL. =============== P A R A G U A Y =============== FRIGORIFICO CONCEPCION: Moody's Rates New $300MM Secured Notes 'B2' ------------------------------------------------------------------- Moody's Ratings has assigned a B2 rating to Frigorifico Concepcion S.A. (FriCon)'s $300 million senior secured notes issued on July 21, 2021 and due in 2028. At the same time, Moody's have also affirmed FriCon's B2 corporate family rating. The outlook for the ratings is stable. RATINGS RATIONALE The B2 ratings of FriCon are supported by its leading position in the production and sale of fresh beef and pork, with regional diversification of production through facilities located in Paraguay, Bolivia and Brazil, which in turn supports the company's access to a diversified pool of export markets. The rating also incorporates the company's ability to significantly increase revenues through expansion of processing capacity and strategic acquisitions since 2020, while at the same time maintaining strong profitability. The company reduced cash outflow through strong operating performance over the past twelve months ending June 2025, a trend Moody's expects to continue through year-end. Recent and upcoming liability management will also extend short-term debt maturities. FriCon's good operating margins through the last twelve months that ended in March 2025 have contributed to a reduction in cash outflows and leverage. The company's robust profitability, maintaining an EBITDA margin (Moody's adjusted) at approximately 11%, coupled with continuous revenue growth and a slight decrease in debt levels, will enable the company to lower gross leverage to around 3.5x-4.0x in 2025, from 5.0x at the end of 2024. Net leverage will also decrease as the company plans to boost its cash balance for better liquidity by year-end 2025. The company's cash flow from operations turned positive as of the last twelve months ended in March 2025 due to an increase in funds from operations, lower working capital requirements and exchange rate effects. Moody's expects FriCon to achieve positive cash flow from operations in 2025, as the company continues to optimize its operations and supported by further top-line growth resulting from the ramp-up of new beef and pork slaughtering capacity during 2025. Additionally, FriCon's short-term debt liability management and debt repayment in 2025 will help reduce liquidity pressures by mitigating refinancing risks and managing working capital, especially as rising production demands more resources to optimize cattle and pork processing. In the first half of 2025, FriCon converted a portion of its short-term debt in Bolivia, Paraguay, and USA into longer-term financings. Also, the company's good track record in collecting accounts receivable and maintaining inventory value, as demonstrated by very low bad debt ratio and minimal inventory write-downs, ensures that working capital financing remains readily available when needed. Currently, the company does not engage in factoring or reverse factoring. FriCon's senior secured notes have a rating equal to its corporate family rating. The bonds are backed by first-priority security interests in the following collateral: capital stock in Frigorífico BFC S.A. (the guarantor) owned by FriCon, which represents 51% of the guarantor's outstanding common shares; and certain real estate property and equipment located in Paraguay. FriCon's ratings are mainly constrained by its small scale relative to Latin American based peers with global operations. This risk is partially offset by the diversification provided by the company's export revenue. In this regard, FriCon's credit profile would benefit from a longer track-record as it continues to ramp up new beef and pork operations in 2025-2026. Also constraining the rating is the company's exposure to the cyclical nature of the protein industry and overall volatility of protein prices, particularly because of the concentration in beef, which is the company's main protein in terms of revenue August 20, 2025, because EBITDA and working capital requirements may suffer significantly in response to a sudden rise in cattle costs. The stable outlook reflects Moody's expectations that FriCon's strong profitability and liability management efforts will continue to strengthen the company's liquidity over the next 12-18 months. At the same time, the stable outlook reflects Moody's views that FriCon will continue to execute its growth strategy while maintaining its leverage metrics in check. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade of the rating would require the company to demonstrate more resilience regardless of the operating environment in the countries where it operates, with an improvement in its liquidity profile based on liability management that combines an extension of its debt maturity profile and positive free cash flow generation. Quantitively, a rating upgrade would require the company to maintain a gross debt to EBITDA (Moody's adjusted) ratio below 4.0x, EBITDA/interest expense around 4.0x, and retained cash flow to net debt around 15%, on a sustained basis. The ratings may be downgraded if the company's liquidity worsens due to refinancing challenges, inability to extend debt maturities, or a significant increase in fund outflows. Quantitively, Moody's would downgrade the rating if the company's gross debt to EBITDA ratio were to rise above 5.0x, EBITDA/interest expense below 3.0x, and retained cash flow to net debt below 10%, on a sustained basis. The ratings may also be lowered if there is structural subordination under future debt to be issued. COMPANY PROFILE Founded in 1997 and headquartered in Asuncion, Paraguay, FriCon has a leading position in the production and sale of fresh beef and pork in Paraguay, Bolivia and Brazil, with a diversified portfolio of clients around the world. Since 2017, FriCon has also incorporated industrialized product lines such as burgers, premium burgers, meatballs and sausages. As of the last twelve months that ended in June 2025, around 46% of revenues were derived from exports to 37 countries, and the remaining balance were sales to the local markets. The principal methodology used in these ratings was Protein and Agriculture published in August 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. ======= P E R U ======= PERU: Hopes to Attract Investment with Tax Cuts, Minister Says -------------------------------------------------------------- Peru hopes to increase agricultural investment with a significant reduction in income tax for large export companies, Reuters reports, citing the sector's minister. According to the report, the Peruvian Congress last week passed a law that reduces income tax to 15% from the current 29.5% for large agricultural exporters over the next 10 years. Medium-sized businesses would pay 1.5% income tax, while small businesses would be exempt from the tax. Peru expects agricultural sales to surpass mining, considered the country's economic engine, by 2050, notes the report. "This will allow us to attract investment," the report quotes Agriculture Minister Ángel Manero as saying of the new law in a telephone interview. Minister Manero also highlighted the sharp increase in sales of table grapes, avocados, cocoa, and mangos. The country recorded $12.8 billion in agricultural exports last year, and Manero expects increased fruit shipments to drive sales to about $15 billion by 2025, says the report. The star product of Peruvian agricultural exports is blueberries, which are exported primarily to the United States and Europe. Peru has a portfolio of approximately $24 billion in largely public-private irrigation projects to expand its agricultural area, primarily on the country's coast, to more than 1 million hectares (2.5 million acres), the report relates. Manero said that eight projects worth $11 billion have been launched from that portfolio. Peru is the world's third-largest copper producer. PETROLEOS DEL PERU: Fitch Affirms CCC+ Long-Term IDR ---------------------------------------------------- Fitch Ratings has affirmed Petroleos del Peru - Petroperu S.A.'s (Petroperu) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'CCC+'. Fitch has also affirmed the rating of Petroperu's senior unsecured notes at 'CCC+' and an Recovery Rating of 'RR4' has been assigned. Fitch assessed Petroperu's Standalone Credit Profile (SCP) at 'cc'. The 'CCC+' rating reflects the result from the application of Fitch's government-related entity (GRE) criteria, which resulted in an Overall Linkage Score (OLS) of 15 points. In combination with the 'cc' SCP, an OLS of 15 prescribes a Bottom-Up plus three approach to notching to Petroperu's rating. Fitch's evaluation of the SCP indicates that, when assessed absent government support, default of some kind appears probable due to liquidity constraints, which supports its placement in the 'cc' rating category. Key Rating Drivers GRE Criteria Application: Petroperu's ratings are linked with the sovereign's through Fitch's GRE criteria. The company is rated on a bottom-up +3 basis due to a GRE assessment score of 15, which coupled with a 11-notch differential between the SCP and the sovereign rating, resulted in a 'CCC+' rating. The GRE criteria incorporates four factors for the calculation of the OLS, as detailed below. 1) 'Decision Making and Oversight', which was rated 'Strong.' Petroperu is 100% owned by the Peruvian government; 2) 'Precedents of Support' is assessed as Not Applicable, which reflects how the government's record of assistance has only addressed immediate needs for the continuation of the company's operations, but not for the long-term improvement of capital structure; 3) 'Preservation of Provision of Public Service or Sovereignty or Strategic Assets, deemed as Not Applicable' reflecting sharp loss of marker share; and 'Contagion Risk', rated as 'Strong' as Petroperu's default is likely to disrupt access to (or cost of) financing for the government or its other GREs. Constrained Liquidity: Petroperu faces a severe liquidity crunch as the cash forecasted to be generated within the year will not suffice to cover its debt repayments. Consequently, the company is compelled to depend extensively on external funding sources to prevent an event of default. Fitch has projected an EBITDA of $56 million for 2025 against debt repayments amounting to $175 million. According to Fitch's analysis, the company is experiencing a monthly cash burn rate of about $200 million reflecting difficulty to evacuate production. This leads to an anticipated cash shortfall of $490 million, evidencing a liquidity strain that could result in a default-like event reflective of a 'cc' rating. Limited Visibility on Additional Government Support: Fitch does not anticipate substantial support from the national government for Petroperu's capital structure in the short term. While the government has provided liquidity between 2022 and 2025 to meet immediate requirements, these measures did not address the fundamental problem of high indebtedness. Operational challenges related to the operations of the Talara Refinery and the cash demands of its ramp-up and stoppages have led to further financial needs that the company will need to get fulfilled from external sources through the rating horizon. Unsustainable Capital Structure: Without significant governmental support, Fitch forecasts Petroperu's average gross debt/EBITDA ratios to approach 40x, with the ration surpassing 100x in 2025, with EBITDA estimated at $56 million and total debt predicted to surpass $5.6 billion. The structural debt is expected to average around $5.7 billion over the next two years, excluding supplier debt. The ramp-up phase of the Talara refinery was costly, and recent operational and environmental issues aggravated the liquidity situation at a time cash generation was anticipated and needed. Acute Operational Disruptions: Petroperu's Talara refinery has modern units aimed at highly efficient operation that allows feedstock flexibility and enhances the extraction of high value distillates. However, persisting logistical issues regarding port closures, inefficient alternatives for land transportation, and the subsequent need for short-term high-cost purchases of fuels to meet commercial commitments in the Lima and Mollendo regions cause the severe EBITDA erosion and cash pressure that afflict the company today. Peer Analysis Petroperu's rating linkage to the Peruvian sovereign rating is weaker than that of most national oil and gas companies in the region, including Empresa Nacional del Petroleo (ENAP; A-/Stable), YPF S.A. (CCC+), Ecopetrol S.A. (BB+/Negative) and Petroleo Brasileiro S.A. (BB/Stable). In Latin America, most national oil companies are of significant strategic importance for energy supply to their countries, and a default could have negative social and financial implications at a national level. Like its peers, Petroperu has legal ties to the government through its majority ownership and strong operational control. Key Assumptions - Fitch's Brent oil price at USD70/barrel (bbl) in 2025, USD65/bbl in 2026, USD65/bbl in 2027 and long-term prices at USD60/bbl; - Domestic sales of 78,000 bbl/day in 2025, 97,000 bbl/day in 2026 onward; - Crack spread of USD5/bbl in 2025, which factors in the lower production and costs associated with the closing of the Talara port and refinery, USD10/bbl in 2026 and USD15/bbl long term; - Rollover of short-term working capital facilities; - Average capex of USD210 million per year through the rating horizon. Recovery Analysis The recovery analysis assumes liquidation value for Petroperu rather than going concern. Liquidation Approach: - USD1.2 billion inventory valued at 50%; - PP&E of USD 7.0 billion valued at 50%; - Total liquidation value USD 4.3 billion; - 10% administrative claims. With these assumptions, Fitch's waterfall generated recovery computation (WGRC) for the senior unsecured notes are in the 'RR2' band, with a 71% recovery. However, according to Fitch's Country-Specific Treatment of Recovery Ratings Criteria, the Recovery Rating for corporate issuers in Peru is capped at 'RR4'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade can be considered if the government makes a capital injection that improves the company credit profile, capitalizes its loans, and/or guarantees a greater portion of Petroperu's debt to materially improve leverage metrics. Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A Fitch-defined default process has commenced. Liquidity and Debt Structure As of June 2025, Petroperu reported USD12.5 million cash on hand, compared with USD130.8 million in December 2024. As of June 30, 2025, the company had revolving credit lines for up to USD2.9 billion, USD2.5 billion were utilized. This amount included the USD 1.8 provided by the Peruvian government in 2023, and extended in 2024 for one additional year. The company still has payments of $207 million in 2H25, and due to the limited ability for FCF generation expected by Fitch, the company will need to draw on the remaining available lines or tap new facilities to meet 2025 maturities. Petroperu is negotiating a $200 million line and a $500 million one with international banks on a secured basis to address immediate liquidity needs. Issuer Profile Petroleos del Peru - Petroperu S.A. (Petroperu) is a Peruvian state-owned petroleum company under private law and dedicated to oil production, transportation, refining, distribution and marketing of fuels and other petroleum-derived products. Refineries are located at Talara, Iquitos and Conchan. 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 Petroleos del Peru - Petroperu S.A. has an ESG Relevance Score of '4' for Management Strategy due to its nature as a majority government-owned entity and the inherent governance risk that arises with a dominant state shareholder, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. Petroleos del Peru - Petroperu S.A. has an ESG Relevance Score of '4' for Group Structure due to to its nature as a majority government-owned entity and the inherent governance risk that arises with a dominant state shareholder, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. Petroleos del Peru - Petroperu S.A. has an ESG Relevance Score of '4' for Financial Transparency due to a history of delayed delivery of audited financial statements, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. Petroleos del Peru - Petroperu S.A. has an ESG Relevance Score of '4' for Governance Structure due to its nature as a majority government-owned entity and the inherent governance risk that arises with a dominant state shareholder, 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 Recovery Prior ----------- ------ -------- ----- Petroleos del Peru – Petroperu S.A. LT IDR CCC+ Affirmed CCC+ LC LT IDR CCC+ Affirmed CCC+ senior unsecured LT CCC+ Affirmed RR4 CCC+ ===================================== T R I N I D A D A N D T O B A G O ===================================== CARIBBEAN AIRLINES: Be Wary of PM's Attack, Says Economist ---------------------------------------------------------- Raphael John-Lall at Trinidad and Tobago Guardian reports that after the narrative that the last Government created to close down the Petrotrin refinery, economist Dr Vanus James is warning the public to be wary of the United National Congress (UNC) Government's criticisms of the financial performance of state-owned Caribbean Airlines (CAL). CAL made its first flight in January 2007 and almost 20 years after it was born out of the closure of the now defunct British West Indies Airways Ltd (BWIA), financial troubles still dog the troubled airline, according to the Government, notes the Trinidad and Tobago Guardian. On August 11, Prime Minister Kamla Persad-Bissessar issued an ultimatum to the management of Caribbean Airlines (CAL) to "sort out the mess" in two years, the report notes. She spoke at the UNC's Report in Couva and accused management of failing to do its job, paying $60 million to EY and PricewaterhouseCoopers (PwC) for audits despite a large internal financial team, failing to submit audited financial statements, and operating unprofitable routes, the report relays. She claimed CAL had not produced an audited financial statement for the last nine years and not one route is profitable, the report discloses. "No longer will we accept taxes paid by ordinary citizens, paid by teachers, paid by policemen, small enterprises…to upkeep CAL," she added, the report relates. CAL is jointly owned by the people of T&T and Jamaica, headquartered in T&T, and with an operational base in Jamaica. Caribbean Airlines employs more than 1,600 people. T&T owns roughly 88 per cent of CAL, with the remaining 12 per cent ownership held by the Government of Jamaica. According to a Guardian Media report dated August 12, 2021, Caribbean Airlines itself released unaudited financial results showing an operating loss of US$48 million for the first half of the year, the report recalls. In a 2024 Customer Appreciation Event, then Finance Minister Colm Imbert, who was then CAL's line minister, said the airline had moved from an operating loss of US$36 million, excluding debt service, in 2022 to a 2023 operating profit of US$24 million, minus debt service, the report notes. However, one year later, Imbert revealed an operating profit of just US$12.1 million -- a drop of 51 per cent. He attributed the decline to an increase in maintenance costs, handling costs and security flight operations, the report relates. Several experts attempted to explain why CAL is in the position it is in and what is next for the airline, the report discloses. In an interview with the Business Guardian, James argued that the previous Government also created a negative image of Petrotrin before it was closed down, the report says. "Remember Petrotrin -- it turns out that the Government of T&T was much more culpable in shaping its condition before closure than met the eye. It might well be that Government policy on matters like the passenger business model on the airbridge and the regional flights have much to do with dragging down the profits made. Statements about CAL's profit margins must be based on facts, not conjecture or rank political innuendo," he said, the report relays. He added that the "authoritarian approach" of Cabinet to management of the public enterprises is perhaps more the issue than the fact that CAL is publicly owned, so that is the direction in which one might have to look rather than any knee-jerk declaration of the need for solutions and any move to privatization, the report notes. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: U.S. Court Reopens Auction for Bids ----------------------------------------------------------- Reuters reports that a U.S. judge authorized a court officer overseeing an auction of shares in the parent of Venezuela-owned refiner Citgo Petroleum to receive and negotiate better bids before confirming or changing the winner recommendation he made last month. A final winner recommendation in the complex court-organized auction is expected to be submitted by the end of this month, Judge Leonard Stark said in a hearing, according to the report. About PDVSA Founded in 1976, Petroleos de Venezuela, S.A. (PDVSA) is the Venezuelan state-owned oil and natural gas company, which engages in exploration, production, refining and exporting oil as well as exploration and production of natural gas. It employs around 70,000 people and reported $48 billion in revenues in 2016. In May 2019, Moody's Investors Service withdrew all the ratings of Petroleos de Venezuela, S.A. including the senior unsecured and senior secured ratings due to insufficient information. At the time of withdrawal, the ratings were C and the outlook was stable. Citgo Petroleum Corporation (CITGO) is Venezuela's main foreign asset. CITGO is majority-owned by PDVSA. CITGO is a United States-based refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. However, CITGO formally cut ties with PDVSA at about February 2019 after U.S. sanctions were imposed on PDVSA. The sanctions are designed to curb oil revenues to the administration of President Nicolas Maduro and support for the Juan Guaido-headed party. ********* 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 * * *