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250918.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, September 18, 2025, Vol. 26, No. 187 Headlines A R G E N T I N A ARGENTINA: IMF Offers Milei Backing, Hails Inflation Progress ARGENTINA: Inflation Undershot Forecast Before Buenos Aires Vote B A H A M A S SPIRIT AIRLINES: Gets Court OK to Tap Over $275MM to Fund Ch. 11 B R A Z I L BANCO DE BRASILIA: Fitch Alters Outlook on 'B-' IDR to Negative M E X I C O BRASKEM IDESA: Fitch Lowers Local & Foreign Currency IDRs to 'CCC+' T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: Plans Mass Retrenchment in Public Sector - - - - - ================= A R G E N T I N A ================= ARGENTINA: IMF Offers Milei Backing, Hails Inflation Progress ------------------------------------------------------------- AFP News reports that the International Monetary Fund (IMF) offered timely backing to President Javier Milei, highlighting Argentina's economic "progress" and urging the government to stay the course. "We recognise the significant progress made in reducing inflation, which has resulted in monthly price increases of under two percent for the fourth consecutive month," said IMF Spokesperson Julie Kozack at a press conference in Washington DC, according to AFP News. Speaking days after the ruling party suffered a stinging defeat in key regional elections in Buenos Aires Province, Kozack hailed the Milei administration's progress on inflation and fiscal surplus figures, the report relays. However, she warned of "interest rate volatility" and the "negative effects" it could have on economic activity, the report notes. Inflation remained at 1.9 percent in August, the report discloses. Over the first eight months of the year, the government's consumer price index reached 19.5 percent – a sharp decline from the 94.8 percent recorded in the same period of 2024, the report relays. AFP Notes that Argentina has recorded a primary fiscal surplus (before interest payments on debt), an effort the IMF "welcomes," noted Kozack, adding that it "aligns with the objectives of the ongoing program." In April, the Milei administration reached an agreement with the IMF over a new four-year loan worth US$20 billion, of which it has already received US$14 billion, the report relays. Argentina also has a US$44-billion program with the Fund dating back to 2018, agreed by the former president Mauricio Macri's government, the report discloses. Kozack said the IMF has no specific concerns regarding the Milei government's intervention in the foreign exchange market, a move aimed at halting the depreciation of the peso against the US dollar, the report says. "Our team was informed of these interventions by the Argentine Treasury. The authorities clarified that it was a temporary measure in response to high market volatility," she explained, the report relays. "In our conversations with the authorities, we have continued to stress the importance of a transparent, consistent and predictable monetary and exchange rate framework to help manage market volatility," added Kozack, the report discloses. The peso has been under pressure for several weeks amid pre-election jitters in the financial markets, the report says. Tensions intensified following an alleged corruption scandal involving the president's sister, Karina Milei, who also serves as the head of state's chief-of-staff, the report relates Milei's party, La Libertad Avanza, suffered a clear setback in legislative elections in the Buenos Aires Province, a key battleground ahead of the October midterm elections, which will see parts of Congress renewed, the report notes. Following the vote, the President reaffirmed his commitment to implementing his economic plan, reiterating as priorities a "balanced budget," a "tight monetary market" and the peso's managed float against the US dollar as agreed with the IMF, the report relates. AFP discloses that Kozack said that the Fund "encourages the authorities to continue their efforts, to keep rebuilding foreign exchange reserves and to strengthen confidence in the peso." The spokesperson confirmed that Economy Minister Luis Caputo spoke by phone with IMF Managing Director Kristalina Georgieva, the report notes. Nonetheless, the multilateral lender is not expecting Caputo to visit Washington until next month for the IMF's annual meeting, the report discloses. "The IMF staff remains closely engaged with the Argentine authorities in implementing their programme," which "aims to durably entrench stability and strengthen Argentina's growth prospects," Kozack said during the briefing, the report relays. "We look forward to the 2026 budget to continue this progress and also to lay the groundwork for necessary fiscal reforms and to consolidate the achievements needed to make this happen," she added. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. The upgrade reflects the launch of a new IMF program, among other things. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. Moody's Ratings, in January 2025, raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. ARGENTINA: Inflation Undershot Forecast Before Buenos Aires Vote ---------------------------------------------------------------- Manuela Tobias at Bloomberg News reports that Argentina's monthly inflation climbed less than expected as a crucial vote in Buenos Aires Province had stirred up currency volatility. Consumer prices rose 1.9 percent in August from July, just below the two percent median estimate of economists surveyed by Bloomberg, matching July's print, according to Bloomberg News. Annual inflation slowed to 33.6 percent, according to government data published, Bloomberg News relays. Volatility last month before the vote, which the libertarian's party lost to his leftist Peronist rivals by nearly 14 percentage points, led the government to eventually intervene in Argentina's currency market, Bloomberg News notes. Congress also overturned some of Milei's vetoes on spending bills in August, reflecting his dwindling support in the legislature, Bloomberg News discloses. Bloomberg News discloses that after the voting, the currency weakened further, nearing the upper limit of a range where the peso freely floats as part of a US$20-billion agreement with the International Monetary Fund. Milei still has six weeks before much bigger midterm elections on October 26, when Argentines will renew nearly half the seats in Congress. To prevent currency volatility in August, Argentina's monetary authority tightened policy restrictions for banks, including the percentage of deposits they need to park at the Central Bank and validated record-high interest rates in multiple Treasury auctions, Bloomberg News relays. Argentina is expected to finish the year with 28 percent annual inflation this year, according to an August Central Bank survey of economists. Growth is expected at 4.4 percent, Bloomberg News adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. The upgrade reflects the launch of a new IMF program, among other things. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. Moody's Ratings, in January 2025, raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. ============= B A H A M A S ============= SPIRIT AIRLINES: Gets Court OK to Tap Over $275MM to Fund Ch. 11 ---------------------------------------------------------------- Alex Wittenberg of Bloomberg Law reports that Spirit Airlines won approval from a New York bankruptcy judge on September 8, 2025, to borrow up to $275 million and tap additional funds to sustain operations as it prepares to reject aircraft leases in its Chapter 11 case. About Spirit Airlines Spirit Airlines, Inc. (SAVE) is a low-fare carrier committed to delivering the best value in the sky by offering an enhanced travel experience with flexible, affordable options. Spirit serves destinations throughout the United States, Latin America and the Caribbean with its Fit Fleet, one of the youngest and most fuel-efficient fleets in the U.S. On the Web: http://wwww.spirit.com/ Spirit Airlines and its affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 24-11988) on Nov. 18, 2024, after reaching terms of a pre-arranged plan with bondholders. At the time of the filing, Spirit Airlines reported $1 billion to $10 billion in both assets and liabilities. Judge Sean H. Lane oversees the case. The Debtors tapped Davis Polk & Wardwell, LLP as legal counsel; Alvarez & Marsal North America, LLC, as financial advisor; and Perella Weinberg Partners LP as investment banker. Epiq Corporate Restructuring, LLC, is the claims agent. Paul Hastings, LLP and Ducera Partners, LLC serve as legal counsel for the Ad Hoc Group of Convertible Noteholders. Akin Gump Strauss Hauer & Feld, LLP and Evercore Group LLC represent the Ad Hoc Group of Senior Secured Noteholders. The official committee of unsecured creditors retained Willkie Farr & Gallagher LLP as counsel. Citigroup Global Markets, Inc., is serving as financial advisor and Latham & Watkins LLP is serving as legal counsel to Frontier. 2nd Attempt Spirit Airlines and its affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 25-11896) on August 29, 2025. In its petition, the Debtors reports estimated assets and liabilities between $1 billion and $10 billion each. Honorable Bankruptcy Judge Sean H. Lane handles the case. The Debtor is represented by Marshall Scott Huebner, Esq. and Darren S. Klein, Esq. at Davis Polk & Wardwell LLP. =========== B R A Z I L =========== BANCO DE BRASILIA: Fitch Alters Outlook on 'B-' IDR to Negative --------------------------------------------------------------- Fitch Ratings has revised the Rating Watch on BRB - Banco de Brasília S.A.'s (BRB) and Banco Master S.A.'s (Master) ratings to Negative (RWN) from Evolving (RWE). This action follows the Brazilian Central Bank's (BCB) denial of authorization for a proposed transaction between the institutions. Fitch has downgraded Master's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'B-' from 'B+', its Viability Rating (VR) to 'b-' from 'b+', and its National Long-Term Rating (Brazil) to 'BB-(bra)' from 'A-(bra)'. In addition, Fitch has affirmed the Government Support Rating (GSR) at 'no support' (ns) and removed it from RWE. These rating actions are consistent with Fitch's negative rating sensitivity considerations published in April 2025, which envisaged regulatory non-approval of the transaction and the potential for additional pressure on liquidity, as well as funding access to Master and capital to BRB. Announced in March 2025, a proposed acquisition envisaged BRB acquiring 49% of Master's common shares and 100% of its preferred shares, representing 58% of total capital. The proposed combination included corporate and operational integration that, if approved, could have enhanced scale and scope, diversified revenues and funding, generated operating synergies and potentially strengthened the combined entity's capital and liquidity. Following BCB's rejection of the acquisition, these prospective benefits are no longer incorporated, and the ratings revert to each entity's standalone fundamentals. Fitch will reassess the analysis of the transaction if the authorities reconsider the decision under materially revised terms. Key Rating Drivers BRB's Ratings Driven by Shareholder Support: BRB's IDRs and National Ratings remain support-driven, reflecting Fitch's assessment of the capacity and propensity of its controlling shareholder, the Federal District Government (GDF), to provide timely support if required. The VR is maintained at 'b-', mirroring the bank's intrinsic credit profile. With the transaction rejected, integration-related uncertainties have receded; however, structural capitalization challenges persist over the planning horizon, alongside indications of delayed equity reinforcement, which keep core regulatory capital buffers modest relative to the bank's growth ambitions. The RWN reflects the possibility of further action if tangible and timely capital reinforcement does not materialize, or if pressures emerge on asset quality and profitability. As a support-driven case, the ratings also remain sensitive to changes in the GDF's capacity and propensity to provide support, including developments in the GDF's own credit profile and any institutional or budgetary constraints that could affect the timeliness of such support. The revision of the Business Profile Outlook to Negative reflects uncertainties about achieving scale gains without the consummation of the transaction with Master. Master's Ratings Driven by VR: The downgrades reflect the removal of the expected benefits of the proposed combination with BRB. Without the transaction, Master's ratings fully reflect its standalone earnings capacity and access to funding in a tougher environment, with greater uncertainty over funding stability and cost, potential tenor shortening and tighter rollover conditions. Lacking scale and synergy gains reduces flexibility to sustain the previously envisaged pace of growth, heightening vulnerability to liquidity shocks. The RWN captures the risk of additional near-term pressures, as Fitch monitors the trajectory of liquidity metrics, market access and execution against the business plan, consistent with negative sensitivity considerations related to regulatory non-approval and potential deterioration in funding conditions. Changes to the Business Profile and Financial Profile scores reflect heightened uncertainty captured under Future Developments and Metrics following the non-completion of the proposed transaction with BRB. In addition, the revisions to the Funding & Liquidity and Risk Profile scores are driven by the liability structure — namely, a higher share of interest rate-sensitive deposits, recent changes to leverage rules for the Fundo Garantidor de Crédito (Deposit Guarantee Fund) guaranteed instruments, greater reliance on broker-distributed funding and time deposits, and ongoing challenges in matching asset and liability tenors given current funding options. Together, these forward-looking considerations justify the recalibration of the scores to reflect the standalone risk profile without the combination of the banks. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade BRB: Negative actions could occur if capitalization remains weak relative to growth appetite, if asset quality or liquidity deteriorate, or if the support assessment weakens due to reduced capacity and/or propensity of the GDF to provide timely support, including signs of further delays in equity reinforcement. Banco Master: Further negative actions could occur if liquidity weakens, evidenced by a greater reliance on confidence-sensitive funding, shorter tenors or higher funding costs, if capital, asset quality or profitability metrics deteriorate materially, or if business plan execution proves inconsistent with prevailing market conditions. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade BRB: The RWN could be resolved if there is evidence of capital strengthening — via organic generation and/or external capital measures — together with maintenance of asset quality and profitability consistent with adequate regulatory buffers, and reaffirmation of the GDF's capacity and timeliness of support. Banco Master: The RWN could be resolved, with ratings stabilized, if there is a sustainable strengthening of liquidity and funding access aligned with the duration of assets, potential shareholder support that bolsters capital and liquidity, and consistent execution of the business plan, resulting in a more robust and stable financial profile. VR ADJUSTMENTS BRB: The Viability Rating has been assigned below the implied Viability Rating due to the following adjustment reason(s): Weakest Link - Capitalization & Leverage (negative). The Business Profile score has been assigned below the implied score due to the following adjustment reason(s): Management and Governance (negative). The Earnings & Profitability score has been assigned below the implied score due to the following adjustment reason(s): Historical and Future Metrics (negative). Banco Master: The Viability Rating has been assigned below the implied Viability Rating due to the following adjustment reason(s): Weakest Link - Funding & Liquidity (negative). The Business Profile score has been assigned below the implied score due to the following adjustment reason(s): Historical and Future Developments (negative). The Asset Quality score has been assigned below the implied score due to the following adjustment reason(s): Historical and Future Metrics (negative). The Earnings & Profitability score has been assigned below the implied score due to the following adjustment reason(s): Historical and Future Metrics (negative). The Funding & Liquidity score has been assigned below the implied score due to the following adjustment reason(s): Deposit Structure (negative), Historical and Future Metrics (negative). Public Ratings with Credit Linkage to other ratings BRB's SSR and National Ratings are driven by a credit assessment of the federal district government ESG Considerations BRB - Banco de Brasilia SA has an ESG Relevance Score of '4' for Financial Transparency due to delays in the presentation of audited financial statements, raising concerns about governance, which has a negative 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 Prior ----------- ------ ----- BRB - Banco de Brasilia S.A. LT IDR B- Rating Watch Revision B- ST IDR B Rating Watch Revision B LC LT IDR B- Rating Watch Revision B- LC ST IDR B Rating Watch Revision B Natl LT BBB+(bra)Rating Watch Revision BBB+(bra) Natl ST F2(bra) Rating Watch Revision F2(bra) Viability b- Rating Watch Revision b- Shareholder Support b- Rating Watch Revision b- Banco Master S.A. LT IDR B- Downgrade B+ ST IDR B Rating Watch Revision B LC LT IDR B- Downgrade B+ LC ST IDR B Rating Watch Revision B Natl LT BB-(bra) Downgrade A-(bra) Natl ST B(bra) Downgrade F2(bra) Viability b- Downgrade b+ Government Support ns Affirmed ns =========== M E X I C O =========== BRASKEM IDESA: Fitch Lowers Local & Foreign Currency IDRs to 'CCC+' ------------------------------------------------------------------- Fitch Ratings has downgraded the Local Currency and Foreign Currency Issuer Default Ratings (IDRs) of Braskem Idesa SAPI to 'CCC+' from 'B+'. Fitch also downgraded Braskem Idesa's senior secured bonds to 'CCC+' with a Recovery Rating of 'RR4' from 'B+'/'RR4'. The downgrades reflect substantial credit risk for Braskem Idesa in making timely payment of interest on its obligations following the announcement that it had hired Lazard Inc., Cleary Gottlieb Steen & Hamilton, and Sainz Abogados to evaluate financial alternatives for its strained liquidity and capital structure. This action underscores the company's stressed financial situation and underlines the possibilities default or debt restructuring in the near-to-medium term. Key Rating Drivers Heightened Debt Restructuring Risk: Braskem Idesa must retain access to bank or capital markets funding to avoid a restructuring due to downward pressure on petrochemical spreads that is unlikely to ease in the near term. Fitch believes the company's engagement of Lazard and other financial and legal advisors, firms frequently involved in past restructurings, may signal an imminent restructuring or other debt actions that could be detrimental to bondholders. High Leverage: Fitch expects polyethylene (PE) prices to remain lower than Fitch previously expected throughout 2025 and into 2026. This will cause Braskem Idesa's net leverage to remain elevated and commensurate with the 'CCC' rating category, exceeding 15x in 2025. Cost efficiencies and favorable ethane prices have been insufficient to offset compressed spreads in 2025. Fitch expects a delayed and muted recovery. Acute Liquidity Strain: The combination of price pressures and hindered production due to major maintenance and feedstock constraints has had a material effect on liquidity. As of June 30, 2025, Braskem Idesa had USD 100 million cash on hand, but Fitch estimates that its cash balance was significantly lower by the end of August. Despite proactive measures like debt refinancing in 2029, immediate cash needs are at risk of being unmet without further access to debt or capital injections. Spreads Remain Under Pressure: PE prices remained weak in the first half of 2025, and spreads have been low. Fitch expected a U-shaped recovery in 2025 rather than the V-shape expected for 2024, but even that has been slow to materialize. Prolonged price pressure through the first half of 2025 indicated that these lower prices might now be the new mid-cycle prices, although some curtailments in capacity sector-wide could support a modest price recovery. Standalone Rating Approach: Fitch assesses Braskem Idesa's ratings and those of its majority shareholder Braskem S.A., with a 75% equity interest, independently. Braskem S.A. lacks a strong legal incentive to support Braskem Idesa, as there are no parent guarantees or cross-default provisions on Braskem Idesa's debt. In addition, Braskem Idesa's financial contribution in the form of dividends to the parent has been low, and operational synergies between the companies are weak. Peer Analysis Fitch's calculation of Braskem Idesa's expected net leverage for year-end (YE) 2025 was above that of its peers at 22.4x, compared with Braskem S.A. (BB-/Rating Watch Negative) at 12.0x, Orbia Advance Corporation, S.A.B. de C.V. (BBB/Stable) at 3.0x, Cydsa, S.A.B. de C.V. (BB+/Stable) at 2.3x, and Alpek, S.A.B. de C.V. (BBB-/Negative) at 3.1x. Historically, Braskem Idesa benefited from access to a competitive cost feedstock, with its EBITDA margin well positioned relative to other PE producers, such as Braskem S.A., and more diversified participants, such as Dow, in terms of operating margins. Braskem Idesa has higher exposure to supply and contract risks than its peers. The company also has a weaker position in terms of exposure to a single asset and product. Key Assumptions - Pemex provides 20kbpd in 2025, 20kbpd in 2025 and 2026 and 15kbpd thereafter; - Operating rates of 72% in 2025, 81% in 2025 and 95% in 2026 onwards; - Braskem Idesa PE prices of USD1,116/ton in 2025 and USD1,126/ton in 2026; - Average ethane purchase costs of USD325/ton in 2025 and USD314/ton in 2026; - Braskem Idesa PE-ethane spreads of USD781/ton in 2025 and USD812/ton in 2026; - Braskem Idesa earns an 10% service margin over the industry reference PE price; - The ethane import terminal begins operations in 3Q 2025 and operates at a rate of 45kbpd, lowering cost to USD190/ton; - MXN/USD exchange rates of 19.95 in 2025 and 20.27 in 2026. Recovery Analysis The recovery analysis for Braskem Idesa assumes a liquidation approach to valuation. Liquidation Approach Inputs: - MXN1,700 million of inventory valued at 50%; - MXN29,400 million of PP&E valued at 50%; - Total liquidation value USD31,240 million; - A 10% administrative claim. With these assumptions, Fitch's waterfall generated recovery computation (WGRC) for the senior secured notes is in the 'RR3' band. However, according to Fitch's Country-Specific Treatment of Recovery Ratings Criteria, the Recovery Rating for corporate issuers in Mexico is capped at 'RR4'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - A Fitch-defined default process has commenced; - Announcement of a Distress Debt Exchange (DDE) or any type of debt restructuring; - Further deterioration of operational and financial indicators. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: Fitch does not anticipate an upgrade in the near term due to the company's elevated leverage; - Medium-term, positive actions are possible if net debt/EBITDA are sustained below 4.5x; - EBITDA/ Interest coverage above 3.0x; - Positive (CFO-Capex)/Debt ratio; - Securing funding to stabilize liquidity. Liquidity and Debt Structure Braskem Idesa reported cash of USD100 million and total debt of USD2.2 billion as of June 30, 2025. Fitch estimates the company had USD60 million of cash available as of end of August 2025. The majority of the company's debt consists of a USD900 million bond due 2029 and a USD 1.2 billion bond due 2032, evidencing a favorable debt maturity schedule. In April 2025, Braskem Idesa refinanced its US$95 million term loan, extending the bullet amortization to 2029. Issuer Profile Braskem Idesa, S.A.P.I. is a polyethylene producer with operations in the city of Coatzacoalcos, Mexico. Its annual production is 1.05 million tons of high- and low-density polyethylene. It began operations in early 2016. 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 Braskem Idesa SAPI has an ESG Relevance Score of '4' for Governance Structure due shareholder concentration, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Braskem Idesa SAPI has an ESG Relevance Score of '4' for Financial Transparency due to lack of footnotes and adequate disclosures, which has a negative 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 Recovery Prior ----------- ------ -------- ----- Braskem Idesa SAPI LT IDR CCC+ Downgrade B+ LC LT IDR CCC+ Downgrade B+ senior secured LT CCC+ Downgrade RR4 B+ ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: Plans Mass Retrenchment in Public Sector ----------------------------------------------------------- Ria Taitt at Trinidad Express reports that Trinidad & Tobago government plans to give public sector workers the promised 10% salary increase but will retrench half of them. So claimed former finance minister Colm Imbert as he addressed a People's National Movement (PNM) meeting at the Diego Martin North Community Centre, according to Trinidad Express. Imbert said it was obvious the Government was struggling, the report relays. "Every day we get a new story about somebody who didn't get their salary, or who didn't get their benefits," he said. "Every day we have a new story about salaries being paid late, salaries not being paid at all, deductions not being made, standing orders not being processed, people not getting their allowances, and of course, thousands of people being retrenched, bills are not being paid, suppliers are not being paid, because the Government is struggling," he added. He said one of the reasons the Government was struggling was because they made too many foolish promises they could never keep, the report says. The United National Congress (UNC) promised the Public Services Association a 10% increase in salary for public servants for the period 2014 to 2019, a six-year period, the report notes. He said while a number of public sector unions settled for the 4% offer from the last PNM government, once this UNC Government gives the PSA 10% for the same period, they will have to give all of those other workers—"police, prisons, fire, Defence Force, teachers—(the same) 10% increase, the report discloses. Otherwise they'll take them to court and they will win." He said if the Government gives the PSA 10% for the period and has to give everybody else the same benefit, "the backpay would be, when you add the 5% for the next period, 2020 to 2022, $28 billion. You hear the number? $28 billion," Imbert said, the report relays. "And the Government's wage bill will increase by three and a half billion dollars a year. Now, they just don't have the money to do that. Oil production is going down, gas production is going down, they kill the Dragon deal, petrochemical prices are low . . . They are already struggling to meet existing commitments. How are they going to fund $28 billion in backpay and $3.5 billion in additional recurrent expenditure every year? They can't. And that is why you saw that story in the papers recently about devaluation. It's called floating a balloon," he said, the report relays. "But they didn't expect the backlash (over any proposed devaluation) they would get. Everybody started to cuss them, including their own people," he added. He said this forced Finance Minister Davendranath Tancoo to state there would be no devaluation, the report discloses. The report notes that Imbert said with devaluation off the table, the Government's "next plan is to send home a setta public servants". Noting there would be "bacchanal" if the Government did not give the expected 10% wage increase, the Government, he said, would do what was done in another Caribbean country: "You give your public servants a big increase—and then you retrench half of them. So that is the next thing that is going to happen in this country," he said, the report relays. Imbert said another problem the Government faces is that "novice ministers" are making demands on the Minister of Finance, the report says. "They want the sun, the moon and the stars. They want everything. And when you add up what they're asking for, the expenditure for next year will be $15 billion more than the money the country expects to earn, the report discloses. "And that is without that $28 billion (in backpay) and without that $3 billion extra in public service salaries," he said, adding that the only way to get that extra $15 billion would be to borrow, the report says. Emerging Corruption Imbert also said there was "emerging corruption" in this four-month-old Government, the report notes. He said a document from within the North Central Regional Health Authority (NCRHA) came into his mailbox, the report says. Reading from the document, he said at a meeting held on August 25, 2025, an instruction was given by the chairman of the board to the manager of public procurement that any procurement activity over the value of $75,000 - "that means all (procurement activity)" - must first pass through him for his approval of small-scale, simplified procurement, the report relays. The report discloses said Imbert: "I am unable to follow this instruction, as this is a direct violation of the proclaimed Procurement Act. And this person and other people go on to make the point that this is deduced by the Office of the Procurement Regulator as collusion, and make the point that in 2017, the Ministry of Finance stated the responsibility for procurement lies with the chief executive officer or other designated official of the organisation." Imbert said the official (2017) letter from the Ministry of Finance to all State enterprises and statutory authorities states that there should be no involvement of the board of directors in approving contracts, except for approving the policy on procurement, the report notes. But, Imbert said, the chairman of the NCRHA was saying in writing that all contracts of this type were to pass through him for his approval, the report discloses. We Made Stupid Mistakes Imbert said the PNM lost elections because of a lack of communication with its base and with the general public, the report relays. He said the party made the mistake of calling three snap elections and lost every time; he said he hoped the "next prime minister" (Pennelope Beckles who was seated in the audience) was listening, the report discloses. Referencing former US vice-president Kamala Harris's recent book, Imbert drew parallels between what happened in the last US election and the T&T election, the report relays. The report notes that he said Harris made the point that the choice of whether Biden stayed on as the nominee or not was left to "individual ego and individual ambition" and that it should have been "more than a personal decision". "Kamala Harris came in at the last minute; she couldn't break away from Joe Biden. Joe Biden was already very unpopular . . .(The media) asked her, what would you do differently to what Joe Biden did? And she foolishly said: ‘I can't think of anything'. Well, she'll lose . . . And we have parallels like that in the PNM. And the parallel I am drawing is the absence of democratic decision making. . . If you properly analyse why we lost that election, we made stupid mistakes¬—in 1995, in 2010, and in 2025. Stupid mistakes. We did not connect with the people and make decisions based on consensus coming from our base and from the general population. That's our weakness as a party . . .We don't listen. Stick break in our ears. I ain't ashamed to say that." He said once Beckles listened to the people, the PNM "was bound to win" the next election, the report adds. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. 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