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251007.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, October 7, 2025, Vol. 26, No. 200 Headlines A R G E N T I N A ARGENTINA: IDB Group Ready to Significantly Increase Operations ARGENTINA: US Treasury Chief Issues 2nd Support Message for Milei B E R M U D A VIKING CRUISES: Moody's Rates New Senior Unsecured Notes 'Ba3' B R A Z I L BANCO DE BRASILIA: Moody's Confirms 'B1' Deposit Ratings BRAZIL: Ministry Seeks Federal Cash Injection for Eletronuclear GENERAL SHOPPING: Moody's Cuts CFR to 'Ca', Outlook Remains Stable REFINARIA DE MATARIPE: Moody's Alters Outlook on 'B1' CFR to Stable D O M I N I C A N R E P U B L I C [] DOMINICAN REPUBLIC: BPD Launches Major Security Push J A M A I C A JAMAICA: BOJ Accepts 114 Bids for $14BB Certificate of Deposit M E X I C O LEISURE INVESTMENTS: Terra to Assume Miami Seaquarium Lease PETROLEOS MEXICANOS: Fitch Hikes IDRs to 'BB+', Outlook Stable P A N A M A NG PACKAGING: Moody's Affirms Ba2 CFR & Alters Outlook to Negative P U E R T O R I C O S & D TALLER: Seeks to Hire Juan C Bigas Law Office as Counsel X X X X X X X X LATAM: Caribbean Fully Recovered From COVID-19 Fallout - - - - - ================= A R G E N T I N A ================= ARGENTINA: IDB Group Ready to Significantly Increase Operations --------------------------------------------------------------- The Inter-American Development Bank Group (IDB Group) is working to significantly expand its operations in Argentina over the next 15 months to increase its support for the country. This support combines sovereign financing with private sector investments and mobilization, strengthening the role of IDB Invest, the Group's private sector arm, and IDB Lab, its innovation and venture capital laboratory. This comprehensive approach aligns with the Country Strategy approved by the Executive Board in mid-July of this year. The financing package outlined in the Strategy focuses on key development priorities for Argentina, including fiscal consolidation, boosting competitiveness, infrastructure modernization and promoting private investment. The IDB Group expects to close this year with five new public sector operations approved, totaling $2.9 billion, aimed at supporting structural reforms. These programs are complemented by an additional $1 billion channeled through IDB Invest, targeting strategic sectors such as energy, critical minerals, connectivity, healthcare services, and Small and Medium-sized Enterprise (SME) financing through financial institutions. Currently, IDB Invest's portfolio in Argentina is the largest in the entire region. Within the framework of the IMF program and in line with its Country Strategy, the IDB Group is supporting Argentina with a financing package of up to $10 billion for the next three years. 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: US Treasury Chief Issues 2nd Support Message for Milei ----------------------------------------------------------------- AFP News reports that US Treasury Secretary Scott Bessent says Washington is "fully prepared to do what is necessary" in support of Argentina, a week after revealing both sides were in talks over an economic aid program. Bessent said in a new social media post that he had a "very positive call" with Argentina's Economy Minister Luis Caputo, adding that further talks were planned in Washington, according to AFP News. "In the coming days, I look forward to Minister Caputo's team coming to [Washington] D.C. to meaningfully advance our discussions in-person regarding options for delivering financial support," Bessent wrote on X, the report notes. Argentina is facing a period of currency turbulence ahead of midterm elections next month, with the peso slumping against the dollar, the report relays. Bessent did not give a precise date for the meeting with Caputo, but Argentina's economy minister is expected to travel to Washington for the upcoming annual meetings of the International Monetary Fund and World Bank, which begin October 13, the report discloses. President Javier Milei is scheduled to visit the White House on October 14, the report relays. "During the discussions with my fellow G7 finance ministers, I emphasised the importance of the success of President Milei's economic policies for the people of Argentina, for the region and for the G7," added Bessent, the report relays. The Treasury chief's post was made just prior to the opening of markets in Argentina, the report discloses. In morning trading, the peso improved against the dollar after losing almost five percent of its value the previous day, the report notes. 'Swap Line' The report discloses that Bessent said the Treasury Department was negotiating with Argentine officials on "a US$20-billion swap line," buoying the nation's markets and President Javier Milei's government. Milei, a close ally of US President Donald Trump, is struggling to ease market jitters ahead of midterm elections that could determine the future of his austerity agenda, the report relays. In an interview, Bessent confirmed a currency swap was on the cards, the report discloses. "Let me be clear about this: we are giving them a swap line, we are not putting money into Argentina," Bessent said, the report says. Bessent acknowledged that the aid should provide decisive support ahead of Argentina's October 26 election, the report notes. "We are confident that Milei will do well," he said. The Treasury chief had said that Washington was prepared to deliver "stand-by credit" from the Treasury's Exchange Stabilization Fund and could buy Argentina's dollar-denominated bonds, among other measures, the report discloses. Bessent told CNBC that Washington was "maintaining a US strategic interest in the Western Hemisphere" when it came to helping Argentina, the report says. "Many of the governments down there moved from far-left to centre-right. We did not support them and then they took a hard lurch to the left," Bessent added. "And now, Argentina is a beacon down there, and there's a chance now for many other countries to come along – Bolivia, Ecuador, I think, Colombia – after the elections," he said. "So, what you don't want are these failed economic models," the report relays. "America First does not mean America alone," he added, recalling the slogan of the Donald Trump administration, the report notes. 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 1,000 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 E R M U D A ============= VIKING CRUISES: Moody's Rates New Senior Unsecured Notes 'Ba3' -------------------------------------------------------------- Moody's Ratings assigned a Ba3 rating to the new backed senior unsecured notes that Viking Cruises Ltd (Viking) announced earlier. The company will use the net proceeds plus some cash on hand to retire its $825 million 5.875% senior unsecured notes due September 15, 2027 and retire lease financings for three of its ocean vessels and one of its expedition ships. These four financings have scheduled maturity dates between 2030 and 2034. The existing ratings, including the Ba2 long-term corporate family rating are unaffected by the notes issuance. The stable rating outlook is also unaffected. RATINGS RATIONALE The Ba2 CFR reflects Viking's strong position in the premium river cruise market and the benefits of its brand strength that facilitated its entry into premium ocean cruising in 2015. The company's river fleet of 85 vessels on June 30, 2025 is more than three times larger than the second largest player, AmaWaterways. Viking's current orderbook for river vessels is approximately 30% of the existing fleet. Moody's expects earnings growth in upcoming years as these vessels enter service. Moody's also expects Viking to fund a majority of its 2025 new river vessels with cash, which will allay pressure on funded debt and financial leverage, all else equal. Viking will also add three ocean ships through 2027. Moody's anticipates that each of these will likely be funded with export credit agency financings. Debt/EBITDA was 3.9x at June 30, 2025, materially improved compared to the end of 2024. Moody's projects debt/EBITDA to fall to around 3.1x at the end of fiscal 2026, which solidly supports the Ba2 CFR. Viking tailors its offerings to the above 55 year-old market, a segment of the population with typically more disposable income and net worth than the broader population. It also does not allow passengers younger than 18 years of age and there are no casinos on any of the company's vessels. Viking offers itineraries that emphasize the arts, history and exploration rather than resort-like rest and relaxation. Unlike its larger ocean cruise peers, less than five percent of the company's schedule serves the Caribbean and Mexico markets. Potential headwinds include cost inflation, constraints on access to ports and/or sensitive areas because of environmental concerns and demand's exposure to economic cycles notwithstanding the relative financial strength of the target customer base. The SGL-1 speculative grade liquidity rating reflects Moody's expectations that Viking will continue to hold significant amounts of cash. At June 30, 2025, cash stood at $2.5 billion. Moody's expects this level to be a floor for at least the next 24 months. Annual free cash flow will be about $700 million in 2025 and about $400 million in 2026; the decline driven by higher capital investment. Moody's expects the $375 million revolver due in May 2029 to remain undrawn. The stable outlook reflects Moody's expectations for effective execution of the fleet growth strategy, which will support further strengthening of credit metrics. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING The rating could be upgraded if Viking sustains debt/EBITDA below 3.0x and FFO plus Interest to Interest approaches 6.0x. An upgrade would also require the company to maintain its very good liquidity. The rating could be downgraded if liquidity weakens, particularly if Viking were to hold materially less cash or if Moody's expects that debt/EBITDA will be sustained above 4.0x or FFO plus Interest to Interest below 4.0x. PRINCIPAL METHODOLOGY The principal methodology used in this rating was Business and Consumer Services published in November 2021. COMPANY PROFILE Incorporated in Bermuda, Viking had a fleet of 85 river vessels, 12 ocean ships and two expedition ships on June 30, 2025. In 2024, around 90% of its river and ocean customers were from North America. Chairman and Chief Executive Officer, Torstein Hagen, beneficially owns shares representing approximately 87% of the voting power of the Company's issued and outstanding share capital. Gross and net revenue were $5.8 billion and $3.8 billion for the last twelve months ended June 30, 2025. =========== B R A Z I L =========== BANCO DE BRASILIA: Moody's Confirms 'B1' Deposit Ratings -------------------------------------------------------- Moody's Ratings confirmed the long-term ratings and assessments assigned to BRB-Banco de Brasilia S.A. (BRB), including the B1 local and foreign currency long-term bank deposit ratings, the Ba3 local and foreign currency long-term counterparty risk ratings, the Ba3(cr) long-term counterparty risk assessment (CRs), as well as the bank's b1 baseline credit assessment (BCA) and adjusted BCA. The Not Prime short-term deposit and counterparty risk ratings as well as the Not Prime(cr) short-term counterparty risk assessment were affirmed. The long-term deposit ratings have a stable outlook, previously ratings under review. This concludes the review for downgrade initiated on April 7, 2025, when BRB announced its intention to acquire Banco Master S.A. (Master). The merger will no longer occur following the regulatory authority's rejection of the proposed plans, announced on September 3, 2025. RATINGS RATIONALE The confirmation of BRB's b1 BCA considers the bank's high growth strategy pursued since 2019, which aims to expand its operations beyond its traditional regional footprint. BRB's balance sheet grew at a compounded annual growth rate of 35.7% between 2019 and March 2025, leading to accelerated core capital consumption, which diminishes the bank's capacity to absorb future risks in times of strong business expansion amid weakened economic dynamics and a high rate environment. While BRB's stage 3 loans to gross loans ratio improved to 2.2% in March 2025, down from 3.3% one year earlier, it was helped by a 55.2% credit portfolio increase and substantial non-performing loan sales in the period. BRB's granular loan book and the large share of secured loans, with payroll comprising 52.5% of total loans as of March 2025 and mortgage loans around 18%, partially mitigates risks associated with the strong pace of loan growth. Profitability level remains below other local government banks in Brazil, with net income to tangible assets at 0.5% in 2024, significantly lower than the 2% average during the 2018-2021 period, owing to squeezed margins and elevated operational costs. Although BRB reported improved operational results in the first six months of 2025 at the same time it has the potential to leverage its expanded customer base to enhance product penetration, Moody's expects profitability to remain below historical levels over the next 12 to 18 months, constrained by high funding costs and intense competition in loan origination across both existing and prospective target markets. Despite fresh capital injections from shareholders in 2024, BRB's regulatory CET1 ratio remained narrow at 8.1%, while Moody's Ratings adjusted tangible common equity to risk weighted-asset ratio was 6% in March 2025. Capitalization will likely remain below that of other midsize banks in Brazil, reflecting the bank's modest capital replenishment capacity and its accelerated growth strategy. The stable outlook acknowledges that BRB has a regional franchise with entrenched operations in the Federal District, bolstered by ample access to a low-cost and stable deposit base from public sector employees, government-related entities, and judicial proceedings, factors that positively support the bank's financial profile at b1. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS BRB's standalone BCA could experience upward pressure if the bank's business expansion strategy successfully generates sustainable earnings, ultimately restoring its internal capital generation and improving its loss-absorption capacity to support the expansion of the franchise beyond its local regional market. Conversely, BRB's ratings could be downgraded if continued credit growth into new business segments leads to a fundamental alteration of its traditionally low-risk loan book profile, which is largely supported by low-risk loans to public servants. A sustained decline in profitability potentially resulting in capital erosion would also negatively impact BRB's financial profile. The principal methodology used in these ratings was Banks published in November 2024. BRB-Banco de Brasilia S.A.'s "Assigned BCA" score of b1 is set two notches below the "Financial Profile" initial score of ba2 to reflect for the issuer's high risk appetite for asset growth and expected near-term pressures on profitability and capitalization. BRAZIL: Ministry Seeks Federal Cash Injection for Eletronuclear --------------------------------------------------------------- globalinsolvency.com, citing Reuters, reports that Brazil's Mines and Energy Ministry has asked the federal government for a capital injection into Eletronuclear to prevent the company's imminent insolvency, adding to the long-running financial strain of the unfinished Angra 3 nuclear plant in Rio de Janeiro. In a letter and seen by Reuters, Minister Alexandre Silveira told the Finance, Planning and Management ministries that planned investments to maintain Angra 3 equipment and facilities were entirely cut from the 2026 budget, according to globalinsolvency.com. 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. GENERAL SHOPPING: Moody's Cuts CFR to 'Ca', Outlook Remains Stable ------------------------------------------------------------------ Moody's Ratings has downgraded General Shopping e Outlets do Brasil S.A. (GSB or General Shopping) corporate family rating to Ca from Caa3. Concurrently, Moody's also downgraded General Shopping Finance Limited's senior unsecured debt rating to Ca from Caa3, as well as General Shopping Investments Limited subordinated debt rating to C from Ca, reflecting the company's persistently high leverage, weak cash flow generation, and upcoming debt maturities that pressure liquidity. The outlook remains stable. General Shopping manages a portfolio of 15 shopping malls and outlets, with an average ownership interest of 34%, and continues to focus on operational recovery and risk diversification. Nevertheless, Moody's expects liquidity to remain tight absent additional funding sources or material improvements in operating performance. RATINGS RATIONALE The downgrade reflects GSB's ongoing credit constraints resulting from its asset-light business migration, which led to a significantly smaller owned-mall portfolio and a heavily debt-burdened balance sheet with high and weak leverage metrics. These factors are reflected in the company's financial policy and are exacerbated by negative cash flows and limited financial flexibility. As of June 30, 2025, General Shopping e Outlets do Brasil manages a portfolio of 15 shopping malls and outlet centers, totaling approximately 293,000 square meters of gross leasable area, with ownership interests in 10 of these properties. The company's asset-light strategy has resulted in a leaner owned portfolio, while maintaining a strong presence in the São Paulo region and focusing on Class B and C consumers. Despite operational improvements and revenue growth, the company's financial profile remains constrained by high leverage and significant debt maturities in the near term. Liquidity is sufficient to meet upcoming obligations, but will be pressured by the 2026 maturity and ongoing negative free cash flow generation. Moody's will continue to monitor the company's ability to access additional funding sources and improve its capital structure. As of the second quarter of 2025, GSB demonstrates operational recovery, with revenues growing by 6.1% year-over-year and reporting EBITA margins close to 25%, largely attributed to a combination of: the inauguration of one outlet called "Outlet Premium Imigrantes" and some adjustments made into their service contracts, partially offset by the participation sold on Parque Shopping Barueri. However, the operating performance is counterbalanced by the company's heavy debt load. On a Moody's adjusted basis for the trailing 12-month period ended in June 2025, GSB's debt to EBITDA and EBITA to Interest Expense ratios were still elevated and weak at approximately 32.8x and 0.6x. Debt structure, largely composed of perpetual bonds, presents relevant maturities in 2025 and 2026 that can be covered with current cash, although this would result in a significant reduction in liquidity. As of the second quarter of 2025, General Shopping Malls e Outlets do Brasil reported cash and cash equivalents of approximately USD16.3 million (BRL86.7 million), sufficient to cover its financial obligations through the remainder of 2025. However, in 2026, the company faces a material maturity of USD9.2 million (BRL48.7 million), which, if repaid with cash, could result in a significant reduction in liquidity. This scenario diverges from Moody's previous expectation that the company would maintain adequate cash levels to meet its debt obligations and could pressure Moody's liquidity assessment absent additional funding sources. Moody's considers General Shopping's liquidity will face negative pressure stemming from the upcoming 2026 maturity and the company's negative free cash flow generation. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Upward rating movement is unlikely in the near term and would require General Shopping to improve its capital structure and scale, such that the following criteria are met on a recurring basis: 1) total revenues exceeded $600 million; 2) Debt to EBITDA declines to below 12.0x; and 3) EBITA to Interest coverage ratio rises above 1.25x. The ratings would be downgraded if the company were to: 1) miss a debt service payment on its senior perpetual bond; 2) any additional debt restructuring that would entail significant losses to bondholders and 3) a deterioration in liquidity. Headquartered in Sao Paulo, Brazil, General Shopping e Outlets do Brasil S.A. (GSB) primarily a property management company, managing 15 malls and outlet centers, totaling approximately 293,000 sqm of GLA, and with an ownership interests in 10 of those properties with approximately 93,493 sqm of GLA. The company is a pioneer in the retail outlet format in Brazil. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Business and Consumer Services published in November 2021. 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. REFINARIA DE MATARIPE: Moody's Alters Outlook on 'B1' CFR to Stable ------------------------------------------------------------------- Moody's Ratings has affirmed the corporate family rating of Refinaria de Mataripe S.A. (Acelen) at B1. At the same time, Moody's affirmed the rating of MC Brazil Downstream Trading S.A.R.L.'s (MC Brazil) Backed Senior Secured Global Notes, fully guaranteed by Acelen, at B1. The outlook for the issuers was changed to stable from negative. RATINGS RATIONALE The affirmation of Acelen's B1 rating and change in outlook to stable from negative reflect the improvement in the company's operating performance and credit metrics during 2025 and Moody's expectations that the company will be able to sustain the current level of operations based on structural changes to its cost per barrel. Acelen's EBIT/bbl improved to $4.4 (including tax credits) in the LTM ending June 2025, from $1.04 (including tax credits) in 2024, as a result of cost reduction and better crack margins. Acelen was able to reduce utility costs by 24% (compared to Q2 2024) as a result of utilities optimization combined with steam sourcing. The company also reduced fixed costs by 19% with reduction in payroll and reduction in the refinery's expenses. Additionally, a better product mix helped the company to achieve a better crack margin. Accordingly, the company's Moody's-adjusted gross leverage improved to 2.6x (including tax credits) from 6.3x (including tax credits) in the same period, and Acelen has built cushion under credit metrics to withstand the volatility of crack margins. Acelen's B1 rating reflects the Mataripe refinery (RefMat)'s strong asset features, its competitive position and strategic location in Northeast of Brazil that have been key for the company to successfully practice international parity prices (IPP). It also considers the sponsor profile, with a long track record investing in the refining and petrochemical business, and Acelen's management team with solid industry expertise to execute on the company's growth strategy. Finally, Acelen's good liquidity position and improved credit metrics are additional credit strengths, which provides cushion for the company to withstand the volatility of crack margins. The rating remains constrained by Acelen's significant exposure to merchant risk, volatility in crack spreads and low visibility into the future offtake profile and fuel prices, leading to reduced predictability of future cash flows. It is also limited by the execution risk related to the maintenance of efficiency savings, and by its concentration in a single asset. LIQUIDITY As of June 2025, the company had $256 million in cash, including $79 million in the debt service reserve account (DSRA). The high cash position reflects the ongoing monetization of tax credits and stronger operating cash generation, which Moody's expects to continue through 2026. Acelen has also pursued a deliberate reduction in the tenor of oil purchases, which has contributed to higher interest expense in the past. The company also has around $1.1 billion in contracted credit lines to support crude oil purchases, with $725 million committed with foreign banks and $326 million with local banks. As of June 2025, around $263 million were available under those lines. Acelen's strong liquidity enables the company to fully implement its strategy and strengthen its cash generation profile by reaping the benefits of its cost-saving initiatives. Debt services for 2025 and 2026, considering the legal amortization schedule, range between $146 million and $219 million. STRUCTURAL CONSIDERATIONS Acelen raised $1.8 billion through the subsidiary MC Brazil Downstream Trading S.A.R.L. in the form of bonds with maturity up to June 2031. These resources were pledged as guarantee to the bridge loan raised by Acelen and due in November 2022, with the initial amount of $1.7 billion for the acquisition of the refinery cluster. The bond was structured to be senior secured with a 10-year semiannual partially amortizing schedule and a $500 million target balloon payment. The amortization schedule was structured to achieve a pre-cash sweep DSCR of 3.0x (net of total capital spending and cash income tax). To mitigate the refinancing risk, there are semiannual sweeps for 75% of the excess cash flow after the closing, triggered when net debt/EBITDA is above 3.0x with stepdowns to a minimum 25% as the leverage decreases below 2.5x. Security includes a full collateral package customary for project finance transactions, comprising all material assets, contracts and accounts of the issuer, the project company and its relevant subsidiaries, as well as the shares of the project company and the issuer. In addition, there are restrictions on acquisition and asset disposals, limitations on indebtedness and covenant tests ahead of cash distributions subject to a clearly defined cash waterfall. The debt structure also considers a pre-funded six-month reserve account for debt service at acquisition closing. In addition, there are no provisions for O&M or major maintenance reserves, which compare unfavorably with the liquidity arrangements typically observed in project finance transactions. Alternatively, the project company has a minimum cash balance of $250 million for unrestricted purposes, as approved by the board of directors, and around $1.1 billion in credit lines already contracted to support the crude oil purchase. RATING OUTLOOK The stable outlook reflects Moody's expectations that Acelen's credit metrics will remain stable in the next 12-18 months and that the company will maintain an adequate liquidity. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The rating could be upgraded if the company reduces it concentration risk as a single-asset company, consistently improves its cash flow generation, maintains its EBIT/total throughput barrel above $2 ($4.6 in the 12 months that ended June 2025) on a sustained basis, and its interest coverage ratio, calculated as EBIT/interest expense, remains above 2.5x (up from 1.65x in the 12 months that ended June 2025). The rating could be downgraded if the existing credit risks worsen, hindering cash flow generation, with EBIT/total throughput barrel and the interest coverage ratio staying below $1.5 and 2.0x, respectively, on a sustained basis. Maintaining the debt service coverage ratio (DSCR) below 2.0x (3.5x for the 12 months that ended June 2025) could also lead to a downgrade of the rating. COMPANY PROFILE RefMat, a refinery cluster located in the state of Bahia, Brazil, was established in 1950. It has a current operating processing capacity of 302,000 barrels per day (bpd) of crude, accounting for around 14% of the total refining capacity in Brazil in 2023, and storage capacity of 3.7 million for crude and 6.2 million for refined products at the refinery. It predominantly caters to the northeast region of Brazil, along with select areas in the North region and the State of Minas Gerais (B1 positive). The cluster also consists of logistics infrastructure, including 26 pipelines covering a distance of 679 kilometers, the Temadre marine terminal (a waterway terminal) and three inland stations. With total assets of $3.5 billion and annual revenue of $8.7 billion as of June 2025, Acelen is the primary supplier of gasoline, diesel, very-low-sulfur fuel oil (VLSFO), bunker, jet fuel, naphtha, liquefied petroleum gas (LPG), asphalt, petrochemical naphtha, paraffin and other oil refined products in the northeast and north regions of Brazil. Acelen's daily production in the 12 months that ended June 2025 averaged 254 thousand barrels per day (kbpd), being 21% gasoline; 31% diesel; 31% VLSFO and marine gas oil; and 17% others. The company serves around 50 customers, including international trading and oil majors (32% of the total volume); fuel distributors (54%); gas distributors (4%); and others. In the first half of 2025, 50% of the production was allocated to the State of Bahia, 23% to other Brazilian states and 37% was exported. MC Brazil Downstream Trading S.a.r.l. (MC Brazil) is a private limited liability company established under the laws of Luxembourg and fully owned by Acelen. The principal methodology used in these ratings was Refining and Marketing published in August 2021. 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. =================================== D O M I N I C A N R E P U B L I C =================================== [] DOMINICAN REPUBLIC: BPD Launches Major Security Push ------------------------------------------------------- Dominican Today reports that Banco Popular Dominicano (BPD) is taking an aggressive, public-facing approach to digital defense this October, dedicating its Cybersecurity Awareness Month to a broad education campaign that includes journalists, students, and small businesses. The initiative is a sharp move to foster a culture of prevention across key sectors of the Dominican economy. The BPD kicked off its campaign with a specialized webinar for media professionals titled "Cybersecurity for journalists: how to protect your work and avoid spreading fake news." The session, led by Diego Laverde, vice president of information security at BPD, focused on the immediate digital threats faced by reporters, according to Dominican Today. These risks include identity theft, social engineering attacks (like malware, smishing, and phishing), and the growing challenge of AI-supported disinformation and hoaxes, the report relays. The bank noted that the training is critical for all media professionals, contributing to a vital culture of verification in the entire ecosystem, the report discloses. From Newsrooms to Universities: a Month of Action The bank's October schedule reveals a comprehensive strategy that goes beyond standard client outreach, the report relays. BPD is sponsoring the country's first-ever interuniversity "Capture The Flag" (CTF) cybersecurity competition, organized by Pentraze Cybersecurity and the Technological Institute of the Americas (ITLA), the report notes. The competition will test the technical skills of students from a dozen universities, aiming to identify and cultivate future security talent, the report discloses. Furthermore, the bank will hold specialized webinars and conferences for its technology developers and general suppliers, recognizing that the security chain extends beyond the institution itself, the report says. For public education, the campaign will feature articles on the BPD's official blog, targeted client campaigns, and the release of "Red alert: we've been hacked!", a fictional podcast audioseries that simulates common cyberattacks against small businesses to illustrate digital risks, the report discloses. By promoting content focused on practical risks and launching a university-level competition, Banco Popular is effectively repositioning itself as a key partner in the Dominican Republic's ongoing effort to raise the collective digital defense against evolving global cyber threats, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCR-LA reported in April 2019 that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Standard & Poor's credit rating for Dominican Republic was raised to 'BB' in December 2022 with stable outlook. Moody's credit rating for Dominican Republic was last set at Ba3 in August 2023 with the outlook changed to positive. Fitch, in December 2023, affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' and revised the outlook to positive. ============= J A M A I C A ============= JAMAICA: BOJ Accepts 114 Bids for $14BB Certificate of Deposit -------------------------------------------------------------- RJR News reports that the Bank of Jamaica (BOJ) says it has now mopped up or taken $127.7 billion out of circulation in order to help stabilise the dollar following the Oct. 1 certificate of deposit auction, which was massively oversubscribed. Some 218 bids were submitted for approximately $30 billion, while the bank wanted to lock away only $14 billion, according to RJR News. It however accepted only 114 bids, valued at $14 billion, at an average interest rate of 5.9% per annum, the report notes. The lowest bid was 5.4% per annum for $15 million, while the highest was 8% per annum for $525 million, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. =========== M E X I C O =========== LEISURE INVESTMENTS: Terra to Assume Miami Seaquarium Lease ----------------------------------------------------------- Leisure Investments Holdings LLC, and its debtor affiliates, known as The Dolphin Company, have reached an agreement with Miami-based development firm Terra to assume the Company's lease of the Miami Seaquarium. The agreement follows a months-long process in which the Miami Seaquarium was publicly marketed, attracting offers from multiple parties. 123456789012345678901234567890123456789012345678901234567890123456 -- Agreement subject to approval by the U.S. Bankruptcy Court for the District of Delaware, with hearing expected in October 2025. -- Miami Seaquarium will temporarily cease operations in 2025 as part of the transition, which will include closure of the park to the public and relocation of all animals. -- Leisure Investments Holdings LLC and its affiliates remain committed to meeting employee obligations through the closure and executing a responsible plan for the transition and rehoming of all animals by end of 2025. Terra plans a substantial investment in renovating and modernizing the Seaquarium property in a manner that respects the history of the site and the Miami-Dade County Home Rule Charter. Planned updates include: -- A new accredited aquarium with no marine mammals -- Immersive marine and aquatic-based experiences emphasizing the unique environment of Biscayne Bay -- An education, conservation, and research center -- A wet-slip marina and dry dock facility -- Wellness spaces and experiences tied to the natural waterfront habitat -- Fisherman's village with marine-oriented retail and food and beverage establishments -- Preservation of the historic Buckminster Fuller Seaquarium dome for use as event space for public and private gatherings -- Lushly landscaped green space; and a publicly accessible baywalk Under the terms of the agreement, Terra will assume the Company's lease with Miami-Dade County. A hearing to approve of the agreement for Terra to assume the lease of the Seaquarium is currently set before the United States Bankruptcy Court for the District of Delaware on October 17, 2025. Subject to the Bankruptcy Court's approval, closing of the transaction will be subject to ultimate approvals of various lease amendments and other transactions by the Board of County Commissioners of Miami-Dade County. As part of the transition, Miami Seaquarium will temporarily cease operations in late 2025. Miami Seaquarium will be closed to the public on a date to be announced, and all the animals will be transitioned to a new home. Through this process, the Company and its management team are firmly committed to protecting its employees' interests, including wages and benefits, and ensuring all animals continue to receive safe, attentive care. "Our employees and animals have remained at the forefront of our efforts to address the Miami Seaquarium as a part of the Company's bankruptcy restructuring," said Steven Strom, Independent Director of the Company overseeing the bankruptcy case. "As we move forward with our transaction with Terra, we are working tirelessly to ensure that our employees continue to receive the pay, benefits, and support they deserve. In addition, in compliance with all federal and state regulations, we will ensure that every animal is safely and appropriately transitioned to a new home." "The Miami Seaquarium has been an iconic property for decades, and we intend to honor that legacy as we enhance the site and elevate its appeal among Miami residents and tourists," said Terra CEO David Martin. "The result will be a publicly accessible, family-friendly destination that brings together residents and visitors for generations to come." As the assignment process advances over the coming months, the Company has pledged to maintain open communication with employees, partners, and Miami-Dade County. "The Miami Seaquarium has been a special part of Miami's story," added Strom. "We are committed to honoring that legacy by ensuring this transition is handled with care, compassion, and transparency. Further, we owe a great debt of gratitude to Commissioner Raquel Regalado and Miami-Dade County, for their support and assistance with this challenging process so far and look forward to the ongoing support of Mayor Levine Cava and the Board of County Commissioners as we move forward with this transaction, which we truly believe is the best possible result for all parties." Further information regarding the transaction and transition process will be posted on the Miami Seaquarium's website. Additional information about the Company's Chapter 11 bankruptcy case, including court documents and claims information, can be found at (https://www.veritaglobal.net/dolphinco); or by calling 888-733-1434 (U.S./Canada) or 310-751-2633 (International). Advisors: During its bankruptcy restructuring process, the Company is being advised by Young Conaway Stargatt & Taylor, LLP as legal advisor; Odinbrook Global Advisors, as Independent Director; Riveron Management Services to provide a Chief Restructuring Officer; and Riveron Consulting as Financial Advisor; Greenhill & Co. as investment banker; and Keen-Summit Capital Partners as real estate advisor and broker. 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 and noticing agent is Kurtzman Carson Consultants, LLC dba Verita Global. PETROLEOS MEXICANOS: Fitch Hikes IDRs to 'BB+', Outlook Stable -------------------------------------------------------------- Fitch Ratings has removed Petroleos Mexicanos' (PEMEX) Long-Term Local and Foreign Currency Issuer Default Ratings (IDRs) from Rating Watch Positive (RWP) and upgraded them to 'BB+' from 'BB'. The Rating Outlook is Stable. Fitch has also removed PEMEX's outstanding senior unsecured notes from RWP and upgraded the rating to 'BB+' from 'BB'. The upgrade follows Pemex's successful execution of a USD9.9 billion tender offer across eight security series funded with cash proceeds from the Mexican government. The transaction indicates increased linkage between PEMEX and the sovereign, resulting in an increase in the company's Oversight, Linkage and Support (OLS) assessment. Fitch now rates PEMEX only one level below Mexico's sovereign rating instead of two levels below it, resulting in the upgrade. Key Rating Drivers Improved GRE Linkage Score: Mexico has taken legislative actions that allow PEMEX to share a debt ceiling with the Secretariat of Finance. These changes are intended to materially address the company's leverage and funding cost. The USD9.9 billion tender for eight series of PEMEX securities was executed as planned and financed with United Mexican States cash. This operationalizes the legislative intent and provides tangible evidence of stronger government direction, support and control over PEMEX's financial policy. Based on this development, Fitch revised the Oversight and Decision-Making subfactor to 'Very Strong' from 'Strong' per its Government-Related Entity (GRE) criteria. This caused a five-point increase in PEMEX's OLS to 35 from 30. This score led to a change in Fitch's approach to notching PEMEX's IDR just one level below the sovereign rather than two and resulted in an upgrade of the IDR to 'BB+'. Financial Profile Persistently Weak: PEMEX's Standalone Credit Profile (SCP) is 'ccc', reflecting persistent negative FFO, EBITDA compression due to lower crude prices and production, tight liquidity, and unrelenting losses in the downstream business. On June 30, 2025, PEMEX had USD98.8 billion in debt and interest expenses of USD2.0 billion, over half of the quarter's EBITDA. Expected leverage in 2025 decreased by one turn after the tender, and leverage through the rating horizon remains unchanged, exceeding 15x. Deteriorating Operational Performance: Fitch believes the multiyear underinvestment in both the upstream and downstream assets will continue eroding operational and financial performance. Multiple incidents at critical assets signal a lack of maintenance capex. The new administration has been vocal regarding a cap to upstream production and has intensified efforts in the downstream, which will continue to pressure liquidity unless ongoing government support is provided to address capex and debt service. The production and development of new fields has declined in the last few years, making exploration and production (E&P) capex a top risk. ESG - GHG Emissions & Air Quality: PEMEX's history with GHG emissions poses an ESG risk. Multiple fires at critical assets will likely affect local communities and the environment. Fitch believes operational management and the lack of maintenance capex for core assets and infrastructure will further challenge PEMEX's financial profile. This was a key consideration in the 'B+' rating, as PEMEX's ESG track record can further impair its ability to raise capital. ESG - Hazardous Materials Management: The last 10 years of underinvestment has contributed to the deterioration of transportation infrastructure. Certain pipelines have had leaks, releasing contaminating products near nature and population. This issue poses an ESG risk as environmental remediation costs and related litigation could further pressure the company's liquidity position. ESG - Employee Wellbeing: Employee Wellbeing is also an ESG risk in assessing PEMEX's credit profile. Several incidents stemming from underinvestment in critical assets have caused injuries and fatalities of employees and contractors. Many of these have also had damaging environmental impacts, likely affecting the company financially and reputationally. ESG - Management Strategy: PEMEX's management track record and its financial distress could complicate its ability to execute on its strategy. Peer Analysis PEMEX's link to the sovereign is weaker compared to Petroleo Brasileiro S.A. (Petrobras) (BB/Stable), Ecopetrol S.A. (BB+/Negative), and Empresa Nacional del Petroleo (ENAP) (A-/Stable), which benefit from stronger government support and increased oversight. However, PEMEX compares favorably to Petroleos del Peru - Petroperu S.A. (CCC+) as Peru's government only meets Petroperu's immediate needs without improving its capital structure. Petroperu's market share drop to 25% from 45% caused minimal disruptions due to alternative fuel imports. Fitch believes regional governments, except for Mexico and Peru, have taken steps to ensure their national oil and gas companies' SCPs remain viable long term. Fitch views PEMEX's SCP as commensurate with the 'ccc' level, which is 10 notches below Petrobras's 'bbb' SCP and nine notches below Ecopetrol's 'bbb-' SCP. The differences are primarily due to PEMEX's weaker capital structure and persisting cash burn. PEMEX's SCP reflects the company's historically large transfers to Mexico's federal government, weakening operations, and a large and increasing financial debt balance when compared with 1P reserves and elevated EBITDA-adjusted leverage. Comparatively, Ecopetrol and Petrobras significantly strengthened their capital structures and maintained stable operating profiles. Key Assumptions - Average West Texas Intermediate crude prices of USD65bbl in 2025, USD60bbl in 2026, and USD57bbl for the midcycle; - Henry Hub prices of USD3.6/mcf in 2025, USD3.5/mcf in 2026 and USD3.0/mcf thereafter; - Oil production stays flat at 1.75mmboed; - Annual capex average of USD12 billion; - Government take to average 60% of EBITDA per annum; - Short-term debt and debt maturities are refinanced at 8%; - PEMEX will receive necessary support from the government to ensure adequate liquidity and debt service payments; - Refined product volumes growth moves aligned with Fitch's real GDP growth forecasts of 0.05% in 2025 and 0.7% in 2026 and thereafter; - P-Cap transaction addresses USD5 billion of 2025 bank debt and USD6 billion of 2026 bank debt; - Government support of USD6.7 billion in 2025 and USD13.5 billion in 2026. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade of Mexico's sovereign rating; - Weakened ability and/or willingness of the government to meaningfully support PEMEX; - An inability to successfully manage supplier liability. Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Materialization of further support from the government; - An upgrade of Mexico's sovereign rating; - An irrevocable guarantee from Mexico's government to sustainably cover more than 75% of PEMEX's debt. Liquidity and Debt Structure PEMEX's liquidity position remains weak because of negative FCF, which resulted in a relatively low cash position and reduced availability of its lines of credit. The company reported total cash and equivalents of MXN96.4 billion as of June 2025 and reported MXN1.9 trillion of total debt with MXN529 billion in short-term debt. After the P-cap transaction, as of the end of August PEMEX has repaid USD7.8 billion of its bank debt, including USD4.6 billion of its revolving credit lines. Issuer Profile PEMEX, Mexico's state-owned oil and gas company, is the country's largest enterprise and one of the world's largest vertically integrated petroleum companies. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor 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 Mexicanos (PEMEX) has an ESG Relevance Score of '5' for Waste & Hazardous Materials Management; Ecological Impacts due to at least 10 years of underinvestment that has contributed to the deterioration of transportation infrastructure. Certain pipelines have had leaks, releasing contaminating products near nature and population. This issue poses an ESG concern as environmental remediation costs and related litigation could further pressure the company's liquidity position, which has a negative impact on the credit profile, and is highly relevant to the rating, resulting in an implicitly lower rating. Petroleos Mexicanos (PEMEX) has an ESG Relevance Score of '5' for Management Strategy due to PEMEX's management track record and its financial distress which could complicate its ability to execute on its strategy, and has a negative impact on the credit profile, and is highly relevant to the rating, resulting in an implicitly lower rating. Petroleos Mexicanos (PEMEX) has an ESG Relevance Score of '5' for GHG Emissions & Air Quality due to PEMEX's history with GHG emissions and multiple fires at critical assets that affect local communities and the environment. Fitch believes operational management and the lack of maintenance capex for core assets and infrastructure will further challenge PEMEX's financial profile., which has a negative impact on the credit profile, and is highly relevant to the rating, resulting in an implicitly lower rating. Petroleos Mexicanos (PEMEX) has an ESG Relevance Score of '5' for Employee Wellbeing due to several incidents stemming from underinvestment in critical assets have caused injuries and fatalities of employees and contractors. Many of these have also had damaging environmental impacts, likely affecting the company financially and reputationally, which has a negative impact on the credit profile, and is highly relevant to the rating, resulting in an implicitly lower rating. Petroleos Mexicanos (PEMEX) has an ESG Relevance Score of '4' for Governance Structure due to 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 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 ----------- ------ ----- Petroleos Mexicanos (PEMEX) LT IDR BB+ Upgrade BB LC LT IDR BB+ Upgrade BB senior unsecured LT BB+ Upgrade BB =========== P A N A M A =========== NG PACKAGING: Moody's Affirms Ba2 CFR & Alters Outlook to Negative ------------------------------------------------------------------ Moody's Ratings has affirmed NG Packaging & Recycling Corporation Holdings' ("SMI Group" or "SMI") Ba2 corporate family rating and the Ba2 rating on its subsidiary's NG PET R&P Latin America, S.A. ("NG Latin America") $380 million backed senior unsecured notes. The outlook was changed to negative from stable. The change in outlook to negative reflects deterioration in SMI's liquidity profile, weaker-than-expected operating performance, and a more challenging industry outlook. These factors collectively heighten the risk profile and underscore governance concerns under Moody's ESG framework. RATINGS RATIONALE SMI's liquidity pressures stem from elevated working capital needs—funded with short-term debt—due to a costly build-up of resin inventories following recent capacity expansions. Despite efforts to defend EBITDA through export sales, recycling initiatives, and cost efficiencies, the company maintains low cash balances and now relies on uncommitted funding sources after the non-renewal of a previously committed $135 million revolving credit facility. Operating performance has also weakened. Sales volumes declined as customers implemented price increases to hedge rising raw material costs. While pass-through mechanisms in contracts have helped preserve EBITDA margins, volume softness and delays in expansion projects have led us to moderate revenue growth expectations for 2025. The industry outlook remains subdued. Virgin resin prices are historically low, and demand from key end markets -particularly beverage - has softened. These trends are expected to persist through 2025, limiting upside potential. Moody's expects EBITDA to reach approximately $170 million in 2025, with gross debt to EBITDA leverage at around 3.6x, slightly above Moody's previous expectation of 3.2x. Starting in 2026, cash generation should accelerate as capacity ramps up and working capital and capex normalize. SMI remains committed to deleveraging and aims to strengthen its cash position to at least $50 million. RATING OUTLOOK The negative outlook reflects the potential for further deterioration in liquidity and operating performance, particularly if management fails to execute planned refinancing or deliver targeted improvements. SMI's reliance on short-term, uncommitted funding and persistently low cash balances remain key concerns. Going forward, any improvement in liquidity would need to demonstrate sustained durability before the outlook could be stabilized. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Rating Upgrade Triggers A rating upgrade would require sustained improvement in scale, liquidity, and credit metrics, including debt/EBITDA below 3.0x, EBITDA margin above 20%, and FCF/debt above 10%, alongside very good liquidity. Rating Downgrade Triggers A downgrade could occur if credit metrics deteriorate due to liquidity pressure, operating difficulties, or loss of market position. Specifically, debt/EBITDA near 4.0x, EBITDA margin below 17%, and sustained negative FCF would be downgrade triggers. The principal methodology used in these ratings was Packaging Manufacturers: Metal, Glass and Plastic Containers published in April 2025. 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 U E R T O R I C O ===================== S & D TALLER: Seeks to Hire Juan C Bigas Law Office as Counsel -------------------------------------------------------------- S & D Taller Del Maestro LLC seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire Juan C Bigas Law Office to handle its Chapter 11 case. Juan C Bigas Law Office received a retainer in the amount of $10,000, against which the firm will bill on the basis of $350 per hour. In addition, the firm will seek reimbursement for work-related expenses. As disclosed in court filings, Juan C Bigas Law Office is a "disinterested person" pursuant to Section 101(14) of the Bankruptcy Code. The firm can be reached through: Juan Carlos Bigas Valedon, Esq. Juan C Bigas Law Office 515 Ferrocarril Urb. Santa Maria Ponce, PR 00717 Phone: (787) 259-1000 Email: cortequiebra@yahoo.com citas@preguntalegalpr.com About S & D Taller Del Maestro LLC S & D Taller Del Maestro LLC sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 25-04152) On September 16, 2025, listing $100,001 to $500,000 in both assets and liabilities. Judge Mildred Caban Flores presides over the case. Juan Carlos Bigas Valedon, Esq., at Juan C Bigas Law Office represents the Debtor as counsel. =============== X X X X X X X X =============== LATAM: Caribbean Fully Recovered From COVID-19 Fallout ------------------------------------------------------ RJR News reports that the Caribbean Tourism Organization (CTO) said the Caribbean has now fully recovered from the fallout caused by the deadly COVID-19 pandemic. CTO database administrator Paul Garnes says visitor arrivals, which climbed by 2% last year, are now up by 6% when compared with the year before the pandemic, according to RJR News. He also stressed that this demonstrated the resilience of the region, despite the softening demand from North America, which accounts for almost 80% of the region's visitors, as well as despite the current geopolitical tensions, the report notes. ********* 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 * * *