250908.mbx

250908.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, September 8, 2025, Vol. 26, No. 179 Headlines A R G E N T I N A ARGENTINA: Milei Intervenes in FX Market as Election Roil Markets CELULOSA ARGENTINA: Files for Bankruptcy; Blames Milei B R A Z I L BRAZIL: Economy Slows Sharply in 2Q But Still Beats Forecasts PETROLEO BRASILEIRO: Moody's Rates New Senior Unsecured Notes 'Ba1' WALKER EDISON: Case Summary & 30 Largest Unsecured Creditors C H I L E INVERSIONES CMPC: Fitch Assigns 'BB+' Rating to Subordinated Bond INVERSIONES CMPC: Moody's Rates New $1BB Hybrid Notes 'Ba1' D O M I N I C A N R E P U B L I C [] DOMINICAN REPUBLIC: Signs Contract with Global Min P A N A M A BANISTMO SA: Moody's Affirms 'Ba1' Deposit, Sr. Unsec. Debt Ratings V E N E Z U E L A VENEZUELA: Currency Exchanges Turn to Crypto as Dollars Turn Scarce - - - - - ================= A R G E N T I N A ================= ARGENTINA: Milei Intervenes in FX Market as Election Roil Markets ----------------------------------------------------------------- Nicole Shapiro & Ignacio Oliviera Doll at Bloomberg News report that Argentina's Treasury said it would intervene in the currency market as the nation's assets sink amid a series of political and economic setbacks for President Javier Milei ahead of a key vote. The decision -- a reversal from a government that repeatedly celebrated the peso floating freely within established bands -- follows weeks of efforts to stabilise the battered exchange rate, according to Bloomberg News. Authorities jacked up interest rates to roll over more public debt, repeatedly raised reserve requirements and increased FX restrictions on banks, Bloomberg News notes. Finance Secretary Pablo Quirno said on his X account that the Treasury will participate in the FX market to contribute to its "liquidity and normal functioning," Bloomberg News relays. Sovereign notes tumbled across the curve, with securities maturing in 2035 down by 1.6 cents on the dollar to trade at the lowest since April, according to indicative pricing data compiled by Bloomberg. Bloomberg News discloses the government has struggled to ease pressure on the currency as it fights off corruption allegations ahead a regional election in Buenos Aires Province on September 7. A bribery scandal involving Milei's sister, Karina Milei, is raising concerns about the president's image, with a judge blocking journalists from releasing damaging audio recordings following a complaint by the administration, Bloomberg News relays. The recent blow up "is an example of the fragility of investor confidence even after just over 18-months of the Milei Presidency," Walter Stoeppelwerth, chief investment officer at local brokerage Grit Capital Group, wrote in a report, Bloomberg News discloses. "Most investors are viewing this election cycle as a referendum on President Milei's performance in the first two years of his term." Another setback Milei's administration came from the local election in Corrientes Province, in which the government-backed candidate finished in fourth place, Bloomberg News says. The underperformance confirmed fears that Milei's strategy of competing in local elections without forming alliances has the potential to backfire, notes the report. Now, attention is turning to a vote in Buenos Aires Province, which makes up nearly 40 percent of the country's population and has consistently voted for the opposition Peronist movement, Bloomberg News relays. It's being seen by investors as a key signal of what's to come in October, when all of Argentina heads to the polls to renew a large chunk of Congress, Bloomberg News notes. Strategists at Morgan Stanley consider elections "a near-term hurdle for the economy, reforms and market" but still see attractive valuations as continued reform momentum doesn't seem priced in, adds the report. 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. CELULOSA ARGENTINA: Files for Bankruptcy; Blames Milei ------------------------------------------------------ Buenos Aires Times reports that pulp and paper manufacturer Celulosa Argentina SA filed for bankruptcy protection on Monday, Sept. 1, blaming the government of President Javier Milei for creating a bad business environment for local industry. After missing bond payments, Celulosa, based in agricultural export hub Rosario, is now seeking protection from creditors in Argentina's equivalent of a Chapter 11 process, according to an investor filing, the report notes. Its locally traded shares slumped by as much as 17 percent on Monday and are down nearly 80% so far this year, the report relays. Celulosa's board explicitly pointed at Milei's government for its troubles, says the report. "The deep changes that the national government has implemented in fiscal, monetary and currency policy create challenges that are still too difficult for us to overcome," according to the company filing citing meeting minutes, which earlier described an "extremely adverse economic context," notes Buenos Aires Times. As reported in the Troubled Company Reporter-Latin America on June 14, 2017, Fitch Ratings has affirmed and simultaneously withdrawn Celulosa Argentina S.A.'s Long-term and Local Currency Issuer Default Ratings (IDRs) at 'B'. =========== B R A Z I L =========== BRAZIL: Economy Slows Sharply in 2Q But Still Beats Forecasts ------------------------------------------------------------- Reuters reports that Brazil's economy lost momentum in the second quarter but still outperformed market expectations, driven by resilient services activity and gains in the extractive industry, official data showed. Gross domestic product in Latin America's largest economy grew 0.4% in the April-to-June period from the previous quarter, statistics agency IBGE said, according to the report. That reading marked a steep slowdown from the revised 1.3% growth reported for the first quarter, when seasonal farm output boosted performance in the agricultural powerhouse, the report notes. 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. PETROLEO BRASILEIRO: Moody's Rates New Senior Unsecured Notes 'Ba1' ------------------------------------------------------------------- Moody's Ratings has assigned a Ba1 rating to the proposed backed senior unsecured notes due 2030 and 2036 to be issued by Petrobras Global Finance B.V. and fully and unconditionally guaranteed by Petroleo Brasileiro S.A. - PETROBRAS (Petrobras, Ba1 stable). Petrobras' existing ratings including its Ba1 Corporate Family Rating remains unchanged. The outlook is stable. The proposed issuance will be used for general corporate purposes, thus not affecting the company's debt protection metrics. The rating of the proposed notes assumes that the final transaction documents will not be materially different from draft legal documentation reviewed by us to date and assume that these agreements are legally valid, binding and enforceable. RATINGS RATIONALE Petrobras' Ba1 Corporate Family Rating (CFR) and ba1 Baseline Credit Assessment (BCA), the measure of a company's standalone credit risk without government support, reflect the company's strong credit metrics for its rating category, and its track record of operational and financial improvement. Despite being a government-related entity, there is a low likelihood that Petrobras will default as a result of sovereign credit distress because of its solid financial metrics and capital structure; its low reliance on domestic funding sources; its limited exposure to foreign-currency risk as a result of the low share of the refining business; and the fact that around 30% of its sales are related to exports. In addition, Moody's expects the company's operating and financial discipline to continue to support its cash generation, which will help sustain its current capital structure. Conversely, the company's rating is constrained by its exposure to potential policy shifts and the risk of government interference in its business decisions. Leverage reduction has been a priority for Petrobras for several years: Petrobras' gross debt target (including leases but not pension liabilities) was $60 billion to be reached by the end of 2022, but it was achieved in 3Q20. In 2024, with the aim of providing greater flexibility in cash management, the company revised its debt ceiling to $75 billion. As of June 2025, the company's debt reached $68.1 billion, and Petrobras plans to stabilize it at $65 billion. Petrobras reached its target ahead of schedule by increasing operational efficiencies through cost-reduction initiatives, and by lowering and postponing capital investment plans during the coronavirus pandemic in 2020, aided by higher crude oil prices in 2021 and asset sales. Leverage declined to 1.8x as of the 12 months that ended June 2025 from 3.3x in 2020, supported by solid refining margins, cost control and asset sales. Moody's expects leverage to remain relatively stable in 2025 even with the proposed issuance. Moody's assumes average Brent price of $67.5/bbl for 2025 and $65/bbl for 2026. Moody's expects the company's cash generation of around $32 billion in 2025 to be more than enough to cover its annual debt maturities of around $1.8 billion-$2.2 billion and annual capital spending of about $23 billion through the period, allowing it to maintain reported debt below $65 billion. In June 2025, Petrobras had $9.5 billion in cash and short-term investments. Additionally, its liquidity is supported by its sizable committed revolving credit facilities totaling $8.5 billion, fully available and maturing in 2026. The proposed transaction is part of Petrobras' liability management strategy and proceeds will be used for general corporate purposes. Moody's continues to assume moderate default dependence between Petrobras and the government. RATING OUTLOOK The stable outlook on Petrobras' ratings mirrors the stable outlook on the Government of Brazil's sovereign rating and reflects Moody's views that its credit profile will remain mostly unchanged over the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade Petrobras' ratings if its credit metrics are at least stable and there is evidence of significant reduced exposure to adverse government influence; or if the Government of Brazil's sovereign rating is upgraded. Petrobras' ratings could be downgraded if its operating performance deteriorates, or there are external factors that increase its liquidity risk or debt leverage above current levels on a sustained basis; if the quality of its corporate governance declines, increasing its vulnerability to adverse government interference; or if the Government of Brazil's sovereign rating is downgraded. The methodologies used in these ratings were Integrated Oil and Gas published in September 2022. COMPANY PROFILE Petroleo Brasileiro S.A. - PETROBRAS (Petrobras) is an integrated energy company, with total assets of $215 billion and annual revenue of $86.3 billion as of the 12 months that ended June 2025. Petrobras dominates Brazil's oil and natural gas production, and refining and fuel marketing sectors. The company also holds stakes in the petrochemicals and power plant business segments. The Brazilian government directly and indirectly owns about 36.6% of Petrobras' outstanding capital stock and 50.3% of its voting shares. WALKER EDISON: Case Summary & 30 Largest Unsecured Creditors ------------------------------------------------------------ Lead Debtor: Walker Edison Holdco LLC 1553 W 9000 S West Jordan UT 84088 Business Description: Walker Edison, a Delaware corporation headquartered in West Jordan, Utah, designs and distributes affordable, ready-to- assemble home furnishings for living rooms, bedrooms, home offices, and outdoor settings, operating primarily through e- commerce channels rather than traditional retail stores. Its business is managed by Walker Edison Intermediate LLC and Walker Edison Holdco LLC, and it owns EW Furniture LLC, a Utah-based subsidiary. The Company sources most products from suppliers in Asia and Brazil, distributing them through its Ohio and California centers or directly via major e-commerce platforms including Wayfair, Amazon, Walmart, Target, and Home Depot, with gross sales of roughly $124.6 million in 2024. Chapter 11 Petition Date: August 28, 2025 Court: United States Bankruptcy Court District of Delaware Related entities that sought relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- Walker Edison Holdco LLC (Lead Debtor) 25-11602 Walker Edison Intermediate, LLC 25-11603 Walker Edison Furniture Company LLC 25-11604 EW Furniture, LLC 25-11605 Judge: Hon. Thomas M Horan Debtors' Counsel: Robert J. Dehney, Sr., Esq. Donna L. Culver, Esq. Daniel B. Butz, Esq. Scott D. Jones, Esq. Echo Yi Qian, Esq. MORRIS, NICHOLS, ARSHT & TUNNELL LLP 1201 N. Market Street, 16th Floor Wilmington, Delaware 19801 Tel: (302) 658-9200 Fax: (302) 658-3989 Email: rdehney@morrisnichols.com dculver@morrisnichols.com dbutz@morrisnichols.com sjones@morrisnichols.com eqian@morrisnichols.com Debtors' Investment Banker: LINCOLN INTERNATIONAL LLC Debtors' Transformation Advisor: MACCO RESTRUCTURING GROUP, LLC Debtors' Notice, Claims & Administrative Agent: EPIQ CORPORATE RESTRUCTURING, LLC Lead Debtor's Estimated Assets: $0 to $50,000 Lead Debtor's Estimated Liabilities: $100 million to $500 million The petitions were signed by Jeffrey P. Werner as chief executive officer. A full-text copy of the Lead Debtor's petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/CQ57L4Y/Walker_Edison_Holdco_LLC__debke-25-11602__0001.0.pdf?mcid=tGE4TAMA Consolidated List of Debtors' 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Kenco Logistic Trade Payable $3,337,555 Services, LLC. P.O. Box 742563 Atlanta, GA 30374-2563 Email: Lisa.Calvert@kencogroup.com Dan Morrison Email: daniel.morrison@gxo.com Phone: 614-394-6266 2. Fortune Bonus Trade Payable $2,239,174 Wooden Limited Land Lot No. 414, Map No.39, Quarter 7, Uyen Hung Ward Tan Uyen Town Binh Duong Province, Vietnam Email: shunfawood@yeah.net 3. Gibson Dunn & Trade Payable $1,952,694 Crutcher LLP 333 South Grand Avenue Los Angeles, CA 90071 Michael M. Farhang Email: MFarhang@gibsondunn.com Phone: (213) 229-7005 4. Truong Vinh Co. Trade Payable $1,304,472 National Road 1., Hamlet 1, Xuan Hung Commune, Xuan Loc District Dong Nai Province, Vietnam Chung Diet Kiet Email: kiettruongvinh@gmail.com Phone: 0251 3756425 5. Hsien Yang Trade Payable $1,303,367 Industries (Vietnam) Co., Ltd Lot 1, Tam Phuoc Industries Park, Bien Hoa City Dong Nai 76000 Vietnam Nancy Su/Jerry Lin/Alice Nguyen Email: Sales002@hsienyangfurniture.com Phone: 84 965051806 6. Artemobili Moveis Ltda Trade Payable $1,186,845 Avenida Imperatriz Leopoldina, 727, Distrito Industrial, Nova Prata RS 95320-000 Brazil Robson Stella Email: robson.stella@artemobili.com.br Phone: +55 54996562656 Gabriel Cherubini Phone: +5511999849412 Email: gjcherubini51@gmail.com 7. XPO Logistics Trade Payable $904,690 Supply Chain 29560 Network Place Chicago, IL 60673-1560 Email: xposc-receivables@xpo.com Jason Esser Email: Jason.Esser@kencogroup.com Phone: (909) 229-6458 8. FedEx Corporation Trade Payable $681,312 Attn: Executive Vice President, General 942 South Shady Grove Road Memphis, TN 38120 Robin Johnson Email: robin.johnson2@fedex.com Phone: (801) 580-0322 9. Zhejiang Anji Huiye Trade Payable $501,058 Furniture Co., Ltd. Xiaoyuan Village Jishan Town Ship Anji County Huzhou Zhejiang Province, China Carrie Email: Sales06@hychair.com Phone: 0752-5018852-828 10. Wei Qiang Trade Payable $474,727 The Second Industrial Zone Continents of Qiaotou Town, Dongguan City Guangdong Province, China Andy Cao Email: dgwq@vip.163.com Phone: 0769-81039689 11. Bonham Davis Warehouse Trade Payable $441,801 4350 W 2100 S Salt Lake City, UT 84120 Brad Bonham Email: brad@bonco.com Phone: (801) 635-5746 Matt Davis Email: outdoormatt@gmail.com 12. Consilio Trade Payable $440,440 1828 L Street NW Suite 1070 Washington, DC 20036 Todd Adelstein Phone: (646) 581-1906 Email: Todd.Adelstein@Consilio.com 13. Google LLC Trade Payable $331,148 1600 Amphitheatre Pkwy Mountain View, CA 94043 Email: collections@google.com Jarod Farchione Email: farchionej@google.com Phone: (415) 993-0397 14. MSC Mediterranean Trade Payable $302,239 Shipping Company (USA) 700 Watermark Blvd. Mt. Pleasant, SC 29464 Email: USA-finance.creditcollection@msc.com 15. E-Shine Enterprise Trade Payable $285,343 Co., Limited Fudu Industrial District, Shaogangtou VI Qiaotou Town, Dongguan City Guangdong Province, China 523038 Linda Cole Tang Email: coletang@eshinefurniture.cn Phone: 0769-83336558 16. CastleGate Fulfillment Trade Payable $259,390 4 Copley Place 7th Floor Boston, MA 02116 Email: SupplierPayments@Wayfair.com Michael Pomerville Email: mpomerville@wayfair.com 17. Moveis Katzer Ltda Trade Payable $224,127 Rua Estevao Buschle, 262, Bairro; 25 de Sao Bento Do Sul SC 89290-207 Brazil Leonardo Katzer Email: leonardo@katzer.com.br Phone: 55-47-3634-1378 18. Idimex do Brasil Trade Payable $206,729 Industria e Comercio de Moveis Ltda Rodovia BR 280 s/n Mafra SC 89307-345 Brazil Helington Souza Email: helington@idimex.com.br Phone: 55-47-3641-6000 19. Acosta Inc. (OeP LLC) Trade Payable $200,398 6600 Corporate Center Parkway Jacksonville, FL 32216-0973 Sylvia Acosta Email: sacosta@acosta.com Phone: 347-570-3986 20. Crowe LLP Trade Payable $198,254 320 E Jefferson Blvd South Bend, IN 46601 Matt Redente, CPA | Partner Crowe LLP Phone: 973-422-4570 21. Scan Global Logistics Trade Payable $193,403 (Shanghai) Co., Lt Shenzhen Branchnit 2101-2102 21/FShenzhen Kerry Centre 2008 Renminnan Shenzhen Shanghai 518000 China Jackson Yang Email: jyang@scangl.com Phone: 86 135 3018 5823 22. Moveis Serraltense Trade Payable $187,691 Ltda. Rua Benjamin Constant, 438 Centro Cx. Postal 64, Sao Bento do Sul SC 89280-484 Brazil Daniel Lutz Email: daniel@serraltense.com.br Phone: 55 47999868425 23. Workman Nydegger Trade Payable $171,893 1000 Eagle Gate Tower, 60 East South Temple, Salt Lake City, UT 84111 David P. Johnson Email: djohnson@wnlaw.com Phone: 801-321-8905 24. Kenshoo Inc. (Skai) Trade Payable $170,600 22 4th Street San Francisco, CA 94103 Email: Skai_collection_us@skai.io Maureen Cronin Email: Maureen.Cronin@skai.io Phone: 847-274-3971 25. Maersk Logistics & Trade Payable $156,622 Services USA Inc. 180 Park Ave Bldg 105, Florham Park, NJ 07932 Jessica Eovino Email: Jessica.eovino@ins.maersk.com Phone: 704-737-6429 26. P&P Moveis E Trade Payable $152,050 Confeccoes LTDA, Av. Dr. Jo o Pedro Arruda 2500 â€" rea Industrial, Lages, SC 88514-605 Brazil Fabiana Seminotti Castagna Email: comercial@pepmoveis.com Phone: 5549991267073 27. Hong Wood Trade Payable $143,275 Products, 20, 21 Jun Hua Road, DongJiang Village, Qiaotou Town Dongguan City, Guangdong Province, Vietnam Li Yao Email: dghx118@163.com Phone: 0769-81020329 28. Ding Zhi Furniture Trade Payable $139,645 Co., Ltd. Street Number 6, Uyen Hung Industrial Zo, UY Lot A22 Tan Uyen City, Binh Duong Prov 72000, Vietname Allen Xie/Annie Zeng/Aaron Xie Email: allen_dsa@dingzhi.vn Phone: 84-2743639492 29. Dongguan Her Sheng Pan Trade Payable $133,271 Hardware Products Yin Hu Industrial Zone, Qing Xi Town, Dongguan, Guandong 523648 China Tel: 86-0769-89137218 30. Rutan & Tucker LLP Trade Payable $131,635 18575 Jamboree Road, 9th Floor Irvine, CA 92612 Paula Hall-Jackson ========= C H I L E ========= INVERSIONES CMPC: Fitch Assigns 'BB+' Rating to Subordinated Bond ----------------------------------------------------------------- Fitch Ratings assigned a 'BB+' rating to the 35-year subordinated bond to be issued by Inversiones CMPC S.A. (rated BBB; Negative Outlook), guaranteed by Empresas CMPC S.A. (BBB; Negative Outlook). The bonds are eligible for 50% equity credit. Proceeds from the issuance will be used for general corporate purposes, including debt repayment. The proposed bonds meet Fitch's criteria for subordination, cross-defaults, absence of relevant restrictive covenants, effective maturity of at least five years, ability to defer coupons for at least five years, and absence of look-back clauses. As a result, the securities are eligible for 50% equity credit. The proposed issuance is rated two notches below CMPC's Long-Term Issuer Default Rating (IDR) to reflect higher loss severity and increased default risk compared to senior obligations. This approach is aligned with Fitch's "Corporate Hybrids Treatment and Notching Criteria," published on April 8, 2025. Key Rating Drivers Equity Treatment: Fitch expects the hybrid bond will be subordinated, with priority only over CMPC's equity capital. The issuer may defer coupon payments at its discretion, with deferred coupon payments being cumulative. The bonds have a formal maturity date in 2057, and CMPC has a call option to redeem them after seven years from the issue date. Call dates are not considered effective maturity dates under Fitch's criteria, until interest rate step-ups reach 100 basis points. Use of Proceeds: Fitch expects the funds from the issuance to be used for debt repayment and strengthening liquidity, as well as investments in one or more Eligible Green Projects and/or Eligible Social Projects, and other general corporate purposes. Fitch projects that this transaction will strengthen CMPC's capital structure, but its ratios will remain outside the downgrade sensitivity thresholds based on FY 2025 figures. For more information, please see "Fitch Affirms CMPC's IDRs at 'BBB'; Outlook Revised to Negative," published July 23, 2025. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Average net debt/EBITDA above 3.0x throughout the pulp price cycle; - Deterioration in macroeconomic conditions that weakens demand for the tissue businesses and prices. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Average net debt/EBITDA below 2.0x throughout the pulp price cycle. 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 CMPC and Inversiones CMPC have an ESG Relevance Score of '4' for Exposure to Environmental Impacts as Chilean forestry companies are exposed to forest fire risk, which has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. CMPC and Inversiones CMPC have an ESG Relevance Score of '4' [+] for Environment - Energy Management as the company sells excess energy to the grid from cogeneration based upon a renewable resource, which has a positive impact on the credit profile and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating ----------- ------ Inversiones CMPC S.A. Subordinated LT BB+ New Rating INVERSIONES CMPC: Moody's Rates New $1BB Hybrid Notes 'Ba1' ----------------------------------------------------------- Moody's Ratings assigned a Ba1 rating to Inversiones CMPC S.A. (CMPC or the company)'s proposed up to $1 billion backed subordinated capital notes (hybrid notes or Hybrids) due 2057, which are fully and unconditionally guaranteed on a subordinated basis by Empresas CMPC S.A. (Empresas CMPC). Moody's have also affirmed the Baa3 rating of CMPC's existing backed senior unsecured notes. The outlook remains stable. Net proceeds from the proposed issuance will be used to finance or refinance, in whole or in part, existing or new expenditures and investments in one or more Eligible Green Projects and/or Eligible Social Projects. Pending such allocation, CMPC will use net proceeds from this offering to repay, in whole or in part, its outstanding debt, including its $500 million Green Bond due 2027, the $500 million syndicated term loan due 2026 and PAE Export Loans; and the remainder, if any, for general corporate purposes The rating of the proposed notes assumes that the final transaction documents will not be materially different from draft legal documentation reviewed by us to date and assume that these agreements are legally valid, binding and enforceable. RATINGS RATIONALE The Ba1 rating assigned to the hybrid notes is one notch below CMPC's senior unsecured notes' rating of Baa3, reflecting the deeply subordinated position of the proposed hybrid securities in relation to the existing senior unsecured obligations of CMPC. The proposed hybrid notes will be direct, unsecured, and subordinated obligations of CMPC, fully and unconditionally guaranteed by Empresas CMPC on a subordinated basis. Both the notes and the guarantee will rank below all senior and secured debt, as well as below all liabilities of subsidiaries, and senior only to junior subordinated capital. The proposed hybrids have indefinite coupon deferral and have a stated maturity in 2057, which is 32 years from the expected issue date (2025). The first call date is in September 2032, about 7 years after issuance, and there are step-ups in the coupon margin at years 12 (25 basis points) and 27 (75 basis points). The proposed Hybrids have equity-like features qualifying them for Basket 'M' treatment (see Moody's Hybrid Equity Credit methodology, published in February 2024), meaning Moody's will treat them as 50% equity and 50% debt when calculating credit ratios. Key features include: (1) optional coupon deferral with mandatory interest arrears settlement; (2) initial maturity over 30 years; and (3) no significant coupon step-up before year 12, with any increase capped at 100 basis points thereafter. CMPC's Baa3 ratings are supported by its standing as one of the world's biggest and most cost-effective pulp producers with integrated paper operations across Latin America, a well-distributed revenue source divided into Pulp, Softys and Biopackaging. The company's diverse product mix has traditionally provided a degree of margin stability, helping to buffer the impacts of pulp price fluctuations. This has been enhanced by the growing significance of the Softys business following acquisitions in 2022-2023. As a result, adjusted EBITDA margins have averaged around 20.5% (including Moody's adjustments) from 2020 through June 2025, despite experiencing additional volatility during the peaks and troughs of the pulp cycle. The company's prudent financial policy, historically low debt levels and strong management history also reinforce its credit profile. The company's ratings also consider its reliance on cash flow and susceptibility to fluctuating market pulp prices, largely influenced by China and demand in developed markets, especially Europe. Despite the diverse product range in the company's primary operating segments, pulp is the main contributor to cash flow, constituting 67% of the consolidated reported EBITDA in Q2 2025 (an increase from 62% in Q2 2024, partially due to increased pulp volumes), followed by Softys at 27% (down from 32% in Q2 2024) and Biopackaging at 6%. RATIONALE FOR STABLE OUTLOOK The stable outlook incorporates Moody's expectations that CMPC will maintain adequate liquidity and manage capital spending and dividend distribution prudently, without compromising its leverage and cash flow in the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade rating movement would require CMPC to maintain a strong liquidity position and sound credits metrics even in a lower pulp price environment. Quantitatively, the rating could be upgraded if debt to EBITDA is sustained at around 2.5x or below and retained cash flow to debt remains consistently over 30%. The ratings may be downgraded if CMPC adopts a more flexible approach towards leverage or liquidity risk, such that its debt-to-EBITDA ratio consistently exceeds 3.0x—even allowing for temporary spikes during cyclical downturns in the pulp market—without any plan to reduce leverage to more appropriate levels. Additionally, a sustained decline in the retained cash flow to debt ratio below 20% could also prompt a downgrade. As the Hybrids' rating is positioned relative to other ratings of CMPC, a change in either (1) Moody's relative notching practice; or (2) the Baa3 senior unsecured rating of CMPC, could affect the Hybrids' rating. The principal methodology used in these ratings was Paper and Forest Products 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. COMPANY PROFILE Headquartered in Santiago, Chile, Empresas CMPC S.A. is vertically integrated and diversified producer of pulp, tissue, paper, forest and packaging products. Its wholly owned subsidiary, Inversiones CMPC S.A. (CMPC), is an intermediate holding company and the issuer of rated debt securities. CMPC produces and sells a wide range of products, including sawn timber, millwork products, plywood, bleached softwood and hardwood kraft pulp, sackraft paper, containerboard, boxboard, corrugated boxes, multiwall bags, molded trays, consumer tissue products, diapers and feminine care products. As of June 29, 2025, the company´s forestry base consisted of 617,000 hectares of forest plantations (this does not include 77,000 hectares to be planted), mainly pine and eucalyptus, of which 422,000 hectares are located in Chile (68%), 139,000 hectares in Brazil (23%) and 56,000 hectares in Argentina (9%). The Company also has usufruct, sharecropping and lease contracts with third parties covering 139,000 hectares of forest plantations distributed in Chile and Brazil, which brings the company's total forestry base to 833,000 hectares. As of the last twelve months ended in June 2025, CMPC generated total revenue of $7.6 billion. =================================== D O M I N I C A N R E P U B L I C =================================== [] DOMINICAN REPUBLIC: Signs Contract with Global Min ----------------------------------------------------- Dominican Today reports that The Dominican Government, through the Ministry of Energy and Mines (MEM), signed a production-sharing contract with the Global Min consortium for the exploration and eventual production of hydrocarbons in the Cibao Basin, a strategic step toward the country's energy diversification and security. The contract was awarded through the First Oil Round, in a competitive process in accordance with the law, pending approval by the National Congress, according to Dominican Today. It grants rights to operate in Blocks CB1 and CB2, located in the provinces of Montecristi, Dajabón, Valverde, Puerto Plata, and Santiago de los Caballeros, which are considered to have high potential for liquid and gaseous hydrocarbons, the report notes. The contract was signed by the Minister of Energy and Mines, Joel Santos, and Felix Manuel Santana Reyes, the consortium's representative, and establishes an eleven-year concession for the exploration and exploitation phases of both blocks, the report discloses. Furthermore, the contractor will assume all risks, costs, and investments inherent in the operations, providing the necessary technology, equipment, and capital for the exploration and production phases, the report relays. This ensures that the Dominican State allocates fiscal resources while guaranteeing the implementation of modern and efficient practices in the development of the awarded blocks, the report notes. With this signing, the Ministry of Energy and Mines strengthens its strategy to continue consolidating a national oil and gas exploration and production industry, while preparing to launch the Second Oil Round in 2026, with new available areas that will expand investment opportunities and strengthen the Dominican Republic's energy security, the report says. Minister Santos expressed optimism about this new project, as it represents a historic opportunity to confirm the country's energy potential and lay the foundations for greater energy independence and security, the report relates. The official explained that, in terms of benefits, the State will receive a minimum share of 43% of total oil revenue, along with the creation of direct and indirect jobs, technical training programs for youth, and community development initiatives, the report notes. He also specified that the contract includes strict provisions for environmental protection and industrial safety, ensuring that activities are carried out in compliance with international sustainability standards, the report discloses. "Respect for the environment and sustainable development are fundamental pillars of our policy. The Global Min consortium will embrace this commitment at every stage of the project," Santos added. In this regard, Santana Reyes, representative of the consortium, highlighted the trust placed in the business group, the report relays. "Onshore exploration is a costly process that requires years of diligent work to map potential resources and identify economically recoverable hydrocarbons. We are pleased to partner with the Dominican Republic and appreciate the trust placed in us to help the country manage the development of its energy potential," he stated, the report adds. About the Ministry of Energy and Mines The Ministry of Energy and Mines is the governing body responsible for the energy and extractive sectors in the Dominican Republic, established in 2013 by Law No. 100-13. Its mission is to formulate and administer the country's energy and mining policies based on transparency and environmental, economic, and social sustainability. The institution effectively leads the country's energy transition process and promotes a sustainable extractive industry with social participation. About Global Min Consortium Global Min is an international consortium formed by the Dominican company Global. Min and the American company Lumina Geophysical, with a presence in Latin America and the Caribbean. The company is dedicated to the exploration and production of hydrocarbons, operating under strict standards of sustainability, industrial safety, and social responsibility, and integrating cutting-edge technology to maximize the efficiency of its operations. 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. =========== P A N A M A =========== BANISTMO SA: Moody's Affirms 'Ba1' Deposit, Sr. Unsec. Debt Ratings ------------------------------------------------------------------- Moody's Ratings has affirmed all ratings and assessments assigned to Banistmo, S.A. (Banistmo), including the Ba1 long-term foreign currency deposit rating, the Ba1 long-term foreign currency senior unsecured debt rating, as well as the Baa3(cr) and Baa3 long-term counterparty risk assessment and counterparty risk rating, respectively. In addition, Moody's also affirmed Banistmo's ba1 baseline credit assessment (BCA) and ba1 adjusted BCA, the P-3 short-term counterparty risk rating, Not-Prime short-term deposit rating, and the P-3(cr) short-term counterparty risk assessment. The outlook on the long-term deposit and senior unsecured debt ratings remains stable. RATINGS RATIONALE The affirmation of Banistmo's Ba1 deposit rating and ba1 BCA reflects the bank's adequate capitalization maintained over the past five years and the recent improvement in profitability that is expected to stabilize in 2025. However, the bank's asset quality remains pressured by the contraction in loan origination in the first six months of 2025 and the high portfolio concentration that adds volatility to asset risks metrics. With a 5.7% portfolio contraction in the past 12 months ended in June 2025, particularly at its consumer and mortgage book, Banistmo reported stage 3 loans under IFRS 9 to gross loans of 9.4%, just slightly below the 10% peak reported at year-end 2021. Despite the bank's diversified loan book, Banistmo maintains high exposure to construction and real estate that accounted for 11.8% of its gross loans as of June 2025. However, Moody's also takes into account its level of loan loss reserves that were equivalent to 5.1% of gross loans in June 2025, and the collateralization of its loan book that helps to mitigate concentration risk. While Moody's do not expect a material improvement in profitability in the near term due to the deceleration of the loan book, as of June 2025, Banistmo's annualized profitability improved compared to its average of 0.7% in 2019, with net income increasing 34% compared to the same period in 2024, supported by a sharp reduction in loan loss provisions. In June 2025, net income to tangible banking assets stood at 0.9%, above 0.4% for the full 2024. Capitalization remains a positive credit driver of Banistmo's ba1 BCA, along with its large base of core deposits that accounted for 9% of the industry's deposit base. The bank's tangible common equity (TCE) to risk-weighted assets (RWA) stood at 13.3% in June 2025, steady compared to historical averages and providing a cushion against asset risk pressures. As the second-largest commercial bank in Panama, Banistmo has a sound funding profile with core deposits representing 80% of total liabilities in June 2025, that helps to offset its moderate liquidity buffers. The affirmation of Banistmo's ratings and assessments takes into account the recent corporate restructuring, and the new holding company GRUPO CIBEST S.A. (Grupo Cibest, Ba2 stable), its direct shareholders. In Moody's views, Grupo Cibest would have the willingness and financial capacity to support Banistmo, if needed, given the strategic importance of the bank within the group's structure. However, this assumption of affiliate support from Grupo Cibest does not result in any rating uplift for Banistmo. Lastly, the stable outlook on Banistmo's ratings reflects Moody's expectations that the bank will maintain a stable financial profile over the next 12-18 months, supported by the expectation that the bank will maintain steady capitalization and solid funding structure, as it gradually resumes its loan growth strategy. The stable outlook also acknowledges continued challenges related to elevated asset risks and subdued profitability. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade Banistmo's ba1 BCA if there is a sustainable improvement in its earnings generation as it restores loan growth in the next 12-18 months, while maintaining its robust capital levels. A sustainable and material improvement in the level of problem loans, combined with an increase in loan loss reserve coverage that would support the loss absorption capacity would also pressure the rating upward. Conversely, the bank's ratings and assessment could be downgraded without meaningful improvements or further deterioration in the bank's asset quality metrics, resulting in higher credit losses, which would impair loan loss reserve coverage levels, profitability and capital buffers. The principal methodology used in these ratings was Banks published in November 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. ================= V E N E Z U E L A ================= VENEZUELA: Currency Exchanges Turn to Crypto as Dollars Turn Scarce ------------------------------------------------------------------- Reuters reports that Venezuela's government is slowly allowing the use of dollar-tied cryptocurrencies in currency exchanges for the private sector, a dozen sources said, as U.S. restrictions on oil exports reduce available foreign currency. Sanctions by the United States, which the Venezuelan government has characterized as "economic war," prevent many business transactions, forcing companies seeking to buy raw materials from abroad to exchange local bolivars for dollars that are generated by the oil trade and foreign card transactions and are injected into exchanges by the central bank, according to Reuters. But oil revenue has taken a hit in recent months, notes the report. Though the United States Treasury Department last month issued a new, restricted license to Chevron allowing it to export oil after a three-month pause, the license blocks any payments to the government, reducing the quantity of dollars available for exchange, Reuters relates. In response, the Venezuelan government has since June allowed the use of more USDT, a digital currency also known as Tether, whose value is pegged to the U.S. dollar and designed to maintain a stable value, according to the private and financial sector sources, who asked to remain anonymous for fear of repercussions, relays the report. State-run oil company PDVSA has since last year been slowly increasing its digital currency usage and moving sales to USDT, sources told Reuters last year. About Venezuela Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South America, consisting of a continental landmass and a large number of small islands and islets in the Caribbean sea. The capital is the city of Caracas. Hugo Chavez was president to Venezuela from 1999 to 2013. The Chavez presidency was plagued with challenges, which included a 2002 coup d'etat, a 2002 national strike and a 2004 recall referendum. Nicolas Maduro was elected president in 2013 after the death of Chavez. Maduro won a second term at the May 2018 Venezuela elections, but this result has been challenged by countries including Argentina, Chile, Colombia, Brazil, Canada, Germany, France and the United States who deemed it fraudulent and moved to recognize Juan Guaido as president. The presidencies of Chavez and Maduro have challenged Venezuela with a socioeconomic and political crisis. It is marked by hyperinflation, climbing hunger, poverty, disease, crime and death rates, social unrest, corruption and emigration from the country. Moody's has withdrawn 'C' local currency and foreign currency ceilings for Venezuela in September 2022. Standard & Poors has also withdrawn its 'SD/D' foreign currency sovereign credit ratings and 'CCC-/C' local currency ratings on Venezuela in September 2021 due to lack of sufficient information. Fitch withdrew its own 'RD/C' Issuer Default Ratings on Venezuela in June 2019 due to the imposition of U.S. sanctions on the country's government. ********* 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 * * *