251104.mbx

251104.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, November 4, 2025, Vol. 26, No. 220 Headlines A R G E N T I N A ARGENTINA: Looks to Ease Bank Reserve Rules to Boost Liquidity TECPETROL SA: Fitch Assigns 'BB-' Rating on Senior Unsecured Bonds TECPETROL SA: Moody's Rates New $700MM Unsecured Notes 'B1' B R A Z I L BRAZIL: Credit Blowups are Scuttling Corporate Borrowing Plans G U A T E M A L A FOMENTO DE HIPOTECAS: Fitch Ups Insurer Fin. Strength Rating to BB+ MOBILIARE LATAM: Fitch Gives 'BB+' LongTerm IDR, Outlook Stable J A M A I C A AC 2000 LIMITED: Debt Burden and Covenant Breach Cloud Path P A N A M A MOBILIARE LATAM: Moody's Assigns First Time Ba1 Corp Family Rating P E R U AUNA SA: Fitch Rates New 2032 Secured Notes 'B+' P U E R T O R I C O PALMAS ATHLETIC: Hires Aquino de Cordova LLC as Consultant - - - - - ================= A R G E N T I N A ================= ARGENTINA: Looks to Ease Bank Reserve Rules to Boost Liquidity -------------------------------------------------------------- Buenos Aires Times reports that Argentina is planning to marginally loosen the share of reserve requirements that commercial banks must report daily, in a bid to gradually provide more liquidity and revive lending, according to a person familiar with the matter. The Central Bank's committee is looking to ease the rule requiring full daily compliance with reserve maintenance, the person said, asking not to be named because the information isn't public, according to Buenos Aires Times. Banks will be allowed to meet 95 percent of the daily requirement, down from a current 100 percent. The underlying reserve ratios vary by deposit and instrument, the report notes. A Central Bank spokesman declined to comment. The adjustment would aim to give banks more flexibility in managing their liquidity, since calculating exact daily balances is difficult and the current rule prompts them to hold excess reserves to avoid steep penalties, the report relays. The change follows months of lobbying by banks through industry groups, seeking relief to cut funding costs and protect profitabilities, the report discloses. Central Bank officials had told bank executives they would ease the rules once the legislative elections were overs, the report says. Investors already anticipated some policy shift on the horizons, the report notes. "Over the medium term, policymakers are expected to gradually unwind the emergency reserve requirement hikes on sight deposits," Walter Stoeppelwerth, chief investment officer at Grit Capital Group, an Argentine brokerage, said in a note to clientss, the report relays. "The evidence is stark: the liquidity is dangerously tight," he added. Still, unwinding the liquidity controls looks to be going at a slower pace than how policy makers quickly ratcheted up requirements in recent monthss, the report notes. It's a noticeably smaller concession than banks had requested, the report says. Lenders, which faced a liquidity squeeze as the government sought to curb a run on the peso as markets convulsed ahead of midterm elections, had been asking officials to shift from daily back to monthly reserve compliances, the report relays. Interest rates on peso assets briefly reached triple-digit levels in both money and capital markets before the election. Profits tightened, and shares of major lenders slumpeds, the report notes. Core banking activity also softened as the economy slowed and delinquency rose to the highest since the pandemics, the report says. Virtually all banks suspended mortgage lendings, the report discloses. The Central Bank seems to be taking a more cautious approach, given the easing of requirements injects more pesos into the economy and could destabilise the currencys, the report relays. Argentina's Treasury said it rolled over less than 60 percent of local debt coming due in an auction, meaning a fresh batch of pesos is about to hit the markets, the report adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. 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. TECPETROL SA: Fitch Assigns 'BB-' Rating on Senior Unsecured Bonds ------------------------------------------------------------------ Fitch Ratings has assigned a 'BB-' rating to Tecpetrol S.A.'s proposed benchmark-size unsecured bonds. Net proceeds will be used for repayment or refinancing of existing debt, capex, working capital, M&A, and to further develop its oil and gas (O&G) business in Argentina and for other general corporate purposes. Fitch currently rates Tecpetrol S.A.'s Long-Term Foreign and Local Currency Issuer Default Rating (IDR) 'BB-'. The Rating Outlook is Stable. Tecpetrol S.A.'s ratings are not constrained by the country ceiling of Argentina given the implicit support and linkage with the parent, Tecpetrol Internacional S.L., a strong O&G operator across Latin America. The development of shale oil in Vaca Muerta enhances the subsidiary's significance for the parent. The ratings are a result of Fitch's view on the Parent and Subsidiary Linkage Rating Criteria. Key Rating Drivers Parent-Subsidiary Relationship: Tecpetrol S.A.'s ratings reflect its strategic importance to the Tecpetrol Internacional S.L., as it generates nearly 70% of the group's EBITDA. Fitch expects this percentage to grow with the shale oil fields development in the Vaca Muerta operation, enhancing the subsidiary's significance for parent support. The operational alignment, with complete management overlap and similar branding, further reinforces the support. As of June 30, 2025, around 10% of Tecpetrol S.A.'s debt is currently guaranteed by its parent, with a history of full guarantees on international bonds, showcasing consistent support. This history demonstrates Tecpetrol Internacional S.L.'s willingness to provide credit enhancements for its subsidiary. The combination of strategic and operational incentives for support, along with this legal track record results in a 'BB-' rating for Tecpetrol S.A. This allows the company to be rated three notches above the country ceiling of Argentina. Strong Production and Reserves: Tecpetrol S.A.'s ratings reflect the company's production size and proven reserves (1P), both of which are consistent with the 'BB' rating category. Fitch expects production to average around 190,000 barrel of oil equivalent per day (boed; 70% gas and 30% liquids) in 2025-2028. Tecpetrol S.A.'s fiscal 2024 1P reserves were 633 million barrels of oil equivalent (boe), consistent with the midpoint of the BB category. Fitch incorporated in its rating case, a deployment of USD5 billion in capex through the rating horizon for development of unconventional fields, with USD1.2 million taking place in 2025. Fitch assumes most of the new oil production will be exported, enhancing hard-currency access. Export Potential: The majority of Tecpetrol S.A.'s gas sales are contracted, mostly under Plan Gas in Argentina. Fitch assumes about 13.1 million (MM) cubic meters (m3)/d to be contracted in 2024-2028, with winter peaks 6MMm3/d in 2025-2028. Tecpetrol S.A. also receives payments from the Argentine federal government, namely CAMMESA and ENARSA, which make payments on time at 42 days and 60 days, respectively. As of 1H25, Tecpetrol S.A.'s exports made up about 24% of revenue, mostly from the oil business. Fitch expects this share to remain stable and then increase with potential developments in 2027. Strong Financial Profile: Tecpetrol S.A.'s contracted volumes, coupled with its low-cost production profile support its predictable cash flow. Fitch expects EBITDA of around USD700 million in 2025 and around USD1.4 billion in 2027, as per Fitch's assumption of addition of production fields. EBITDA margins are expected to average 55% over the rating horizon. FCF is expected to be negative over the rating horizon as a result of heavy capex in Vaca Muerta to increase shale oil production. Fitch expects leverage metrics to peak in 2026 at 4.5x, then gradually reduce towards 2.0x in 2028. Peer Analysis Tecpetrol S.A.'s production is expected to average around 190,000 boed over the rating horizon and maintain a strong 1P reserve life of 14 years, which compares favorably with other 'BB' rated oil and gas producers. These peers include Pan American Energy (BB- /Stable) with 222,000 boed and 19 years of reserve life, and Vista Energy Argentina S.A.U (Vista Argentina) (BB-/Stable) with 125,000 boed and 14 years reserve life. Tecpetrol S.A.'s Argentine peers Vista Energy and Pan American Energy are capped by Argentina's 'B-' Country Ceiling, but receive multiple-notch uplifts, due to cash flows excluding Argentine EBITDA and cash abroad, which cover Hard-Currency debt service by over 1.5x for the next three years. Fitch expects Tecpetrol S.A.'s EBITDA leverage to peak at 4.5x in 2026, then reduce to 2.0x in 2028. Compared with its peers, Fitch expects the average leverage of these exploration and production companies to be below 2.0x over the next three years. On a boe basis, Tecpetrol S.A.'s 2024 debt to 1P reserves are expected to be $1.0, stronger than Pan American Energy's$2 boe and Vista Energy's $2.8 boe. Key Assumptions - Fortin de Piedra gas production average of 17.5 MMm3/d from 2025 through 2027; - Weighted realized gas prices of USD3.6 MMBTU over the rating horizon; - Fitch's Brent oil price assumptions USD70 per barrel (bbl) for 2025 and USD65/bbl for 2025 and 2026, USD60/bbl for the long term; - Average gross production of 190kboe/d in 2025-2028; - EBITDA margins expected to remain at an average of 55% from 2025 through 2028; - Total capex of USD5 billion through the rating horizon; - No dividends paid over the rating horizon; - EBITDA leverage peaks at 4.5x in 2026; reducing towards 2.0x in 2028. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Perceived deterioration of implicit parent support; - Deterioration of its liquidity profile due to the Argentine Capital controls or material payment delays from Plan Gas; - Cancellation or material amendment of Plan Gas.Ar could negatively impact the rating. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Perceived improvement in implicit parent support. Liquidity and Debt Structure Tecpetrol S.A. reported a cash position of USD3 million in 2Q25. The company is expected to issue a benchmark size bond in 4Q25, which the company plans to use, among others, to repay or refinancing existing debt. In July 2025, the company obtained two U.S. dollar-denominated loans of USD30 million and USD15 million from local banks, set to mature in 2025 and 2029, respectively. Meanwhile, in August, five loans were signed (four local totaling USD480 million and one international syndicated loan of USD270 million) for a total of USD 750 million, of which USD 220 million was disbursed. Issuer Profile Tecpetrol S.A. is a midsized O&G producer with 145,000 boe/d average production as of 2Q25. Its main assets are in the Neuquen basin in Argentina. Given the company's strategic importance, implicit support is expected from its parent, Tecpetrol Internacional S.L. Date of Relevant Committee 16-Dec-2024 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 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 ----------- ------ Tecpetrol S.A. senior unsecured LT BB- New Rating TECPETROL SA: Moody's Rates New $700MM Unsecured Notes 'B1' ----------------------------------------------------------- Moody's Ratings has affirmed Tecpetrol S.A. (Tecpetrol) B1 corporate family rating and senior unsecured notes' rating. At the same time, Moody's have assigned a B1 rating to the proposed up to $700 million senior unsecured notes. The outlook remains stable for all ratings. Net proceeds from the proposed issuance will be used for investments in fixed assets, liability management, working capital, and other general corporate purposes. The rating of the proposed notes assumes that the final transaction documents will not be materially different from draft legal documentation reviewed by us to date and assume that these agreements are legally valid, binding and enforceable. RATINGS RATIONALE Tecpetrol's credit profile benefits from robust competitive position in the natural gas production in Argentina, bolstered by high-quality assets and significant growth potential in both production and reserve development. The rating is also supported by its solid capital structure characterized by low leverage and strong cash flow generation. The company's experienced management team has a notable track record in developing unconventional resources, contributing to its overall strength. Tecpetrol's ratings also reflect its diversified sales revenue through exports, strong sponsorship from the Techin Group, and the solid liquidity position of its parent company, Tecpetrol Internacional S.L.U. The parent company's robust cash flow from international operations further enhances its ability to provide support to Tecpetrol if required. Given Tecpetrol's high exposure to Argentina's business environment, its B1 ratings reflect Moody's views that the company's creditworthiness cannot be completely de-linked from the credit quality of the Government of Argentina (Caa1 stable) and, thus, the ratings need to closely reflect the risk that the company shares with the sovereign. Tecpetrol´s ratings are mainly constrained by the concentration of assets and oil and gas production in Argentina, although this is partially mitigated by sales diversification through export markets (around 21% of revenue). The company is also exposed to regulatory risks within Argentina's local hydrocarbon market. The company is also exposed to the volatility of energy commodity prices, with approximately 70% of its revenues generated from natural gas sales and around 30% from crude oil sales. Tecpetrol's strong competitive position is supported by growth in production and reserves. The company aims to maintain its shale gas leadership while rapidly expanding shale oil output. The company aims to increase shale oil production from 20 Mboe/d to 80-100 Mboe/d over 3-4 years, mainly at Los Toldos II Este, supplemented by Puesto Parada and Los Toldos I Norte. This will boost total production from 128.5 Mboe/d (as of LTM June 2025) to 200-210 Mboe/d by 2028. The expansion in shale oil operations will help the company diversify away from natural gas and into the export markets. Crude oil produced in Vaca Muerta currently exceeds domestic needs, so future production growth will primarily be directed towards the export market. The project will benefit from the company's experience in unconventional resource development. Additionally, it could benefit from the new Argentine regulations encouraging large investments. In this regard, in mid-2024, Argentina's Incentive Regime for Large Investments (RIGI) was created to support energy and oil projects with tax, customs, and foreign exchange benefits. Also, recent regulatory changes in the oil and gas sector, such as eliminating price controls to align with export and import parities and liberalizing the oil and gas export market, support the business environment. Tecpetrol has primarily funded its growth through internal cash flow and limited debt, maintaining low leverage, with gross debt to EBITDA below 1.0x since 2021. Leverage is expected to temporarily rise in 2025-2026, however, due to increased debt for a $3 billion investment in its Vaca Muerta shale oil project, which will nearly double production. Total debt will reach about $2.8-3.2 billion by 2026-2027, up from $939 million in June 2025, then decline as production ramps up. By 2027, EBITDA should grow to about $1.6 billion (assuming average international brent price of $65/boe), from $796 million in 2024, with margins around 65%. Leverage will in turn peak above 3x in 2026 before declining to around 2x in 2027, similar to Moody's expectations for year-end 2025. Tecpetrol's strong cash generation and long proven access to various financial markets support its liquidity profile. The company maintains high financial flexibility provided by its sound capital structure. The parent company, Tecpetrol Internacional, holds significant cash reserves in foreign currency abroad to support Tecpetrol if necessary. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Given Tecpetrol's strong dependence on the Argentinean market, an upward rating movement would be subject to the ratings' relative position to the Government of Argentina's ratings. Also, an upgrade could also be supported by growth and diversification of operations outside Argentina, while maintaining a good liquidity. The ratings could be downgraded if the government of Argentina's rating is downgraded. Also, a downgrade could be triggered by reduced liquidity at Tecpetrol and/or its parent, Tecpetrol Internacional, coupled with a significant deterioration in credit metrics. The principal methodology used in these ratings was Independent Exploration and Production published in December 2022. For Tecpetrol S.A., the difference between the scorecard-indicated outcome, both historical and projected, and the actual B1 rating assigned to the company exceeds two notches. This difference results from applying the cross-sector rating methodology due to the company's asset base concentration in Argentina. =========== B R A Z I L =========== BRAZIL: Credit Blowups are Scuttling Corporate Borrowing Plans -------------------------------------------------------------- globalinsolvency.com, citing Bloomberg Law, reports that Brazil's credit flareups are driving up borrowing costs and spooking investors, forcing companies in Latin America's largest economy to scrap or scale down their plans to tap the debt market. Companies' issuance of hard-currency bonds fell by more than half in October compared to the same period last year, according to Bloomberg-compiled data, according to globalinsolvency.com. Those that have seen borrowing plans upended include CSN, which shelved a deal to refinance its 2028 dollar bonds in September, the report notes. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian general election. He was sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. In October 2024, Moody's Ratings upgraded the Government of Brazil's long-term issuer and senior unsecured bond ratings to Ba1 from Ba2, the senior unsecured shelf rating to (P)Ba1 from (P)Ba2; and maintained the positive outlook. S&P Global Ratings raised on Dec. 19, 2023, its long-term global scale ratings on Brazil to 'BB' from 'BB-'. Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable Outlook. DBRS' credit rating for Brazil was last reported at BB with stable outlook at July 2023. ================= G U A T E M A L A ================= FOMENTO DE HIPOTECAS: Fitch Ups Insurer Fin. Strength Rating to BB+ ------------------------------------------------------------------- Fitch Ratings has upgraded the Instituto de Fomento de Hipotecas Aseguradas' (FHA) Insurer Financial Strength (IFS) rating to 'BB+' from 'BB'. The Rating Outlook is Stable. FHA's rating is based on Guatemala's (BB+/Stable) ability and willingness, as its sole owner, to provide support if necessary. The rating action follows the the recent upgrade of Guatemala's sovereign rating to 'BB+' from 'BB'. Fitch considers the strategic importance of FHA as very important for the Guatemalan government, given its focus on promoting social inclusion through mortgage insurance and statutory support under its founding law. Key Rating Drivers Rating Based on Support: FHA's rating reflects its support from the Guatemalan government, its sole owner, reflecting both the goverment's capacity and willingness to assist, given FHA's strategic importance. FHA's role in social inclusion of promoting housing construction and enabling broad access to homeownership through mortgage guarantees, complemented by credit life insurance underpins its strong strategic importance to the government. Moreover, the founding law establishes a bond-issuance mechanism with an unlimited state guarantee to meet mortgage insurance obligations. Government Mortgage Guarantor: Fitch assesses FHA's profile as 'Favorable' under Guatemala's Industry Profile and Operating Environment (IPOE). FHA is the sole, government-mandated primary issuer of mortgage insurance. This role supports a strong franchise, niche relevance, and efficient scale. Complementary credit life insurance strengthens its offering. The business risk profile is underpinned by rigorous underwriting and high granularity, limiting single-obligor sensitivity despite an 81% concentration in mortgage guarantees and modest average exposures. Ongoing Capitalization Strengthening: FHA's capitalization is adequate and supported by legally mandated profit reinvestment. Equity grew an average 16% over five years, and retained earnings around 85% of capital. Mortgage guarantee balances rose 10% in 2024. The net par-to-capital ratio declined to 8.04x from the 2021-2023 average of 9.07x, reflecting earnings retention, but was higher than most global guarantors (1.5x or below). FHA's mortgage guarantee focus supports lower loss given default due to property collateral. Robust Profitability: Fitch views FHA's profitability as strong and resilient, underpinned by a sizable insured-loan base, diversified operating income and solid investment returns. Technical performance improved as claims and related expenses normalized following pandemic-driven judicial backlogs. The combined ratio was 22.2% at YE 2024 and 24.7% in 1H25, versus 31.6% in 2022. Return on equity (ROE) remained strong at 16.6% at YE 2024 and 16.5% in 1H25. Fitch expects agility in property sales to remain a key driver, while noting that financial performance typically has limited influence on Financial Guarantor ratings given its social development priorities. Highly Liquid Investment Portfolio: FHA's liquidity position is supported by the significant proportion of highly liquid assets on its balance sheet, including bank deposits, which accounted for 90% of total assets at the end of 1H25. The investment strategy is mainly focused on short-term deposits in local financial institutions, which allow them to meet claims settlements. High Investment Risk: Despite the conservative investment policy with a concentration in highly liquid fixed-income securities focused on capital preservation, the investment portfolio is largely made up of bank deposits from local institutions in Guatemala. The exposure to non-investment grade securities puts pressure on the Risky Asset Ratio. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - FHA's rating benefits from the support of the Guatemalan government, and it is therefore sensitive to a downgrade of the sovereign rating; - FHA's rating could also be downgraded if there is a change in Fitch's view regarding the strategic importance of the issuer to the Guatemalan government. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - FHA's rating benefits from the support of the Guatemalan government, and it is therefore sensitive to an upgrade of the sovereign rating. Public Ratings with Credit Linkage to other ratings Sovereign of Guatemala ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Instituto de Fomento de Hipotecas Aseguradas LT IFS BB+ Upgrade BB MOBILIARE LATAM: Fitch Gives 'BB+' LongTerm IDR, Outlook Stable --------------------------------------------------------------- Fitch Ratings has published Mobiliare Latam, S.A. (Mobiliare) Long-Term Foreign and Local Currency IDRs of 'BB+'. The Rating Outlook is Stable. Fitch has also assigned a 'BB+' rating to the proposed 2032 USD530 million senior unsecured notes to be co-issued by Mobiliare, Mobiliare Latam Mexico, S.A. de C.V. and Mobiliare Real Estate Solutions Peru S.A.C.'s. The notes will be jointly and severally guaranteed by certain of Mobiliare's subsidiaries. Proceeds will be used for debt refinancing and general corporate purposes. The ratings reflect the company's solid business profile, with a high-quality portfolio and tenant base, long-term leases and low vacancy. They also incorporate a growth strategy anchored by binding tenant commitments, mitigating execution and leasing risk. Fitch expects this transaction, together with capital injections, should strengthen financial flexibility. Net leverage expected at above 7x limits the ratings. Operating environment conditions across jurisdictions where Mobiliare operates weigh on the ratings but does not limit them. Key Rating Drivers Low Risk Rental Income: Fitch considers Mobiliare's rental cash flows to be low-risk, supported by high occupancy (around 99%) and a long weighted average lease term (WALT) of about 15 years. The portfolio is predominantly build-to-suit (BTS) and leased under triple net contracts, limiting the company's exposure to operating costs and capex volatility. A significant proportion of U.S. dollar-denominated leases further enhances predictability. Fitch believes these characteristics prioritize revenue stability over rent-driven revenue growth, given that extended contractual terms are likely to slow rent repricing during periods of elevated inflation or rapid market rent growth. Tenant Quality Mitigates Concentration and OE Exposure: Fitch believes Mobiliare's elevated tenant concentration and exposure to countries with low Operating Environments (OE) are mitigated by strong tenant credit quality. Approximately half of the portfolio is supported by corporate guarantees, and about 47% of its 39 tenants are rated investment grade. As of June 30, 2025, the top 10 clients accounted for around 95% of rental income. Leverage Constrains Rating: Fitch expects net leverage to remain between 7.0x and 7.5x, and net loan-to-value (LTV; net debt/investment properties) to exceed 45% through the rating horizon, including investment periods. In Fitch's base case, capex is split between development and sale-and-leaseback (SLB), resulting in leverage metrics consistent with the 'BB' category. Financial Flexibility to Improve: Fitch expects financial flexibility to strengthen, contingent on the successful completion of a USD530 million unsecured bond issuance. Proceeds would be used to refinance about USD467 million of debt, release collateral, and raise the unencumbered asset ratio (investment properties) above 80% from 14%. In addition, partners have committed USD115 million of equity to support the company's expansion strategy. Fitch expects interest coverage to remain around 2x in the next years. Low Risk Growth Strategy: Fitch views Mobiliare's growth strategy, anchored by binding tenant commitments, as carrying low execution and leasing risk. Projects start with signed leases and are not speculative, which removes lease-up risk. The company's one-stop approach offers customized facilities and contract structures across geographies in line with client needs. Peer Analysis Mobiliare is smaller in scale in terms of revenues and gross leasable area (GLA) compared to its main peers. As of 2Q25, the company had 1.5 million square meters (sqm) of GLA, which is less than peers like Fideicomiso Irrevocable 1721 Banco Actinver, S.A., Institucion de Banca Multiple, Grupo Financiero Actinver, Division Fiduciaria (Fibra Prologis; BBB/Stable) with 8.1 million sqm, Corporacion Inmobiliaria Vesta S.A.B. de C.V. (Vesta; BBB-/Positive) with 4.0 million sqm, Banco Invex, S.A. Fideicomiso F/2157 (Fibra MTY) (Fibra MTY;BBB-/Stable) with around 2.0 million sqm, and Fideicomiso Fibra Uno (FUNO; BBB-/Stable) with 11.1 million sqm. However, Mobiliare had occupancy and EBITDA margins above peers. Mobiliare has a higher revenue exposure to its top 10 clients (95%) compared to peers with an average of 28%. Asset encumbrance is elevated versus peers but is expected to improve after the bond issuance. Fitch projects net leverage for Mobiliare to be above 7x, exceeding levels expected for its main sector peers. Key Assumptions - Bond issuance of USD530 million to replace a significant portion of encumbered debt; - Capital injections from shareholders of USD138 million during 2025 and 2026; - Average EBITDA margin of 84% from 2025 to 2028; - Average annual capex for development or acquisitions of USD200 million; - Average annual dividends of USD12.5 million; - Net leverage between 7x-7.5x, including investment periods. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Deterioration in the operating environment of jurisdictions where Mobiliare operates could negatively affect the ratings; - Fitch's expectation of net leverage sustained above 7.5x in the long term; - Recurring EBITDA interest coverage (EBITDA/ interest paid) sustained below 1.7x; - A ratio of unencumbered assets to unsecured debt equal to or less than 2.0x; - Weakening liquidity profile. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Improvement in the operating environment of jurisdictions where Mobiliare operates could positively impact the ratings; - Fitch's expectation of net leverage sustained at or below 6.0x in the long term; - Recurring EBITDA interest coverage (EBITDA/ interest paid) sustained at or above 2.3x; - Net LTV metric around 40%. Liquidity and Debt Structure Mobiliare has an adequate liquidity base supported by a manageable debt amortization profile, cash on hand, ongoing cash flow generation, and revolving and committed credit facilities (USD125 million in total, with USD16 million available). As of June 30, 2025, the company held USD42.7 million in cash against USD131 million of short-term debt. Its liquidity profile is expected to be further supported by shareholder capital injections and a bond issuance that will refinance a significant portion of its debt. Mobiliare's unencumbered asset-to-net unsecured debt coverage is expected to be around 3.0x, with more than 80% of asset value unencumbered following the bond issuance, which is intended to refinance currently encumbered debt. Issuer Profile Mobiliare Latam, S.A. is a private real estate company with 82 assets across nine Latin American countries, focused on nearshore service centers, logistics, and industrial properties. 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 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 ----------- ------ Mobiliare Latam, S.A. LT IDR BB+ Publish LC LT IDR BB+ Publish senior unsecured LT BB+ New Rating Mobiliare Real Estate Solutions Peru S.A.C. senior unsecured LT BB+ New Rating Mobiliare Latam Mexico, S.A. de C.V. senior unsecured LT BB+ New Rating ============= J A M A I C A ============= AC 2000 LIMITED: Debt Burden and Covenant Breach Cloud Path ----------------------------------------------------------- Jamaica Observer reports that AC 2000 Limited (CAC) reported a widening net loss of $73.9 million for the nine months to July 31 as finance costs from heavy borrowings eclipsed its operational performance, according to its latest interim report. The Kingston-based air-conditioning company's stabilisation efforts face headwinds after a breach of covenants on a $132-million term loan with Bank of Nova Scotia Jamaica Limited, a note in the financial statements revealed, according to Jamaica Observer. The breach technically made the full balance immediately repayable, though the bank later granted a waiver, the report notes. Chief Executive Officer Gia Abraham cited a $51.9-million improvement in operating cash flow as evidence of "operational strength," the report relays. However, this improvement was largely driven by an increase in trade payables. Concurrently, the company holds $869.6 million in trade receivables, highlighting a key challenge in converting sales into cash, the report discloses. A detailed analysis of the financial statements shows that this cash flow improvement stems mainly from short-term factors, the report says. It occurs alongside more structural challenges, including the loan covenant breach, finance costs that outpace operating profits, and a sharp rise in outstanding customer receivables, the report discloses. The scale of the company's debt burden is a primary concern. Finance costs reached $48.4 million, a figure that consumed one-fifth of the entire gross profit generated in the nine months period alone, the report relays. This drain is largely driven by the cost of a $250-million preference share issue and other term loans, creating a fixed financial overhead that the company's current earnings cannot support, the report says. This pressure came to a head with the breach of covenants on its main term loan, the report notes. While the company secured a vital waiver from its bank, the event highlights the thin margin for error in its financial structure and its continued reliance on the forbearance of its lenders to maintain solvency, the report discloses. The quality of the company's improved cash flow is also under scrutiny, the report says. The positive movement was not primarily from earnings but from a strategic lengthening of payment times to suppliers and a reduction in inventory, the report relays. This provided essential short-term liquidity but is not a sustainable long-term strategy for cash generation, especially while the company holds a massive $869.6 million in receivables that it has been unable to collect, the report notes. The cumulative effect of persistent losses is steadily eroding the company's equity base, the report says. Each quarterly loss reduces retained earnings, weakening the foundation from which the company can recover and potentially limiting its options for raising new capital or financing on favorable terms, the report discloses. Looking ahead, the company faces a narrowing path to recovery, the report says. Its ability to survive hinges on the success of its intensified receivables collection, a potential restructuring of its costly debt, and a return to revenue growth, all while managing the aftermath of a covenant breach that revealed the fragility of its current financial position, the report adds. =========== P A N A M A =========== MOBILIARE LATAM: Moody's Assigns First Time Ba1 Corp Family Rating ------------------------------------------------------------------ Moody's Ratings assigned a Ba1 first-time corporate family rating to Mobiliare Latam, S.A. (Mobiliare) and a Ba1 rating to its $500 million senior unsecured global notes due 2032. The outlook is stable. RATINGS RATIONALE Mobiliare's Ba1 corporate family rating reflects its resilient, non-speculative business model and diversified portfolio spanning nine Latin American countries. The rating is supported by a disciplined growth strategy, a high-quality asset base, and a robust contractual framework anchored in USD-denominated leases with an average 15 years weighted average lease term with multinational tenants. As of June 30, 2025, Mobiliare manages 82 properties totaling 1.5 million square meters of gross leasable area (GLA), with plans to expand to 127 properties by 2027. Mobiliare has demonstrated positive revenue growth, high profitability, and prudent leverage management. Revenues increased from $53.3 million in 2023 to $70.5 million in 2024, with projections of $163.5 million by 2027, supported by the stabilization of new assets and a robust pipeline of binding contracts. Gross margins have remained above 90%. EBITDA margins are expected to rise from 83.3% in 2024 to nearly 87% by 2027. Net income is projected to reach $141.4 million by 2027 as new assets stabilize and scale efficiencies are realized. Leverage increased in 2024 due to organic growth and acquisitions, with total debt rising to $452 million. Net debt to EBITDA was 7.2x in 2024 and is projected to decline to 5.7x by 2027 as EBITDA grows and new assets stabilize. The company's loan-to-value (LTV) ratio was 41.4% in 2024, remaining well within the 55% shareholder agreement limit and below the 50% comfort level. Mobiliare maintains a solid liquidity profile, with $42.7 million in cash and equivalents and $100 million in committed revolving credit facilities as of June 30, 2025. The company's maturity profile is well-distributed, with no major maturities until 2030, minimizing refinancing risk. Mobiliare's financial policy is conservative, focusing on maintaining flexibility and supporting future growth. Equity increased sharply in 2024 to $551.3 million, reflecting both retained earnings and new capital contributions. Over the last two years, shareholders have consistently supported the company with approximately $65 million in equity injections, and an additional $110 million was committed in Q2 2025. RATING OUTLOOK The stable outlook reflects Moody's expectations that Mobiliare's credit metrics will improve as the development pipeline is completed and new assets stabilize over the next 12 to 18 months. Following the planned bond issuance, leverage is expected to remain moderate. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if Mobiliare sustains positive financial performance, successfully executes its development pipeline, and maintains strong liquidity. An upgrade would also require an increase in gross assets to more than $2 billion, adjusted net debt to EBITDA below 5.5x, adjusted EBITDA to interest expense above 2.5x, and debt to gross assets below 40%. All on a sustained basis. The ratings could be downgraded if the company's faces deterioration in liquidity, significant delays in project execution, or material weakening of the tenant base or contractual framework. This includes adjusted net debt to EBITDA levels above 7.5x, adjusted EBITDA to interest expense below 2.0x, and debt to gross assets levels above 50%. Headquartered in Panama, Mobiliare Latam, S.A. is a regional real estate operating company with presence in 9 Latin American countries. The company exclusively develops and operates assets under build-to-suit (BTS) and sale & leaseback (SLB) contracts, with binding agreements signed prior to construction. Its portfolio at the 1Q'25 comprised 82 properties totaling $1.1 billion in assets equaling to 1.7 million square meters of gross leasable area with growth projections to reach over $1.8 billion by 2027 and 2.2 million square meters of GLA. Company assets are primarily distributed across different industries like industrial, office and retail segments. The principal methodology used in these ratings was REITs and Other Commercial Real Estate Firms published in May 2025. The Ba1 rating assigned to Mobiliare, is one notch above the scorecard-indicated outcome, reflecting the company's strong contractual framework, high-quality tenant base, and its low exposure to FX risks. The rating also incorporates Mobiliare's revenue growth, robust profitability, and prudent leverage management, which compare favorably to regional peers. Moody's recognizes the company's conservative financial policy, recurring shareholder support, and proactive liquidity management as additional credit strengths. The high proportion of long-term, USD-denominated leases with investment-grade tenants provides superior cash flow visibility and mitigates currency and rollover risks. ======= P E R U ======= AUNA SA: Fitch Rates New 2032 Secured Notes 'B+' ------------------------------------------------ Fitch Ratings has assigned a 'B+' rating with a Recovery Rating of 'RR4' to the proposed benchmark-sized 2032 senior secured notes to be co-issued by Auna S.A. (Auna) and its fully owned subsidiary Oncosalud S.A.C. (Oncosalud). The notes will be fully and unconditionally guaranteed by certain subsidiaries. Fitch currently rates Auna's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B+' with a Stable Outlook, and its 2029 senior secured notes at 'B+'/'RR4'. Proceeds from the new issuance will be used to finance a tender offer for the outstanding 2029 notes, to prepay existing bank loans, and to cover related fees and expenses. Auna's ratings reflect its solid brand and market position in Latin America, adequate margins, and geographical diversification. The ratings also consider the challenges of growing in Mexico amid a soft operating environment and local competition, while maintaining profitability in Peru and Colombia. Key Rating Drivers Ongoing Liability Management: Auna is undertaking a material debt refinancing exercise that includes issuing new senior secured notes (benchmark size) and approximately USD375 million in borrowings under a new term loan. The proceeds will be used to repurchase all of Auna's obligations under the existing term loans (nearly USD440 million as of June 2025) and to fund a tender offer for its outstanding 2029 senior secured notes (USD380 million as of end-June 2025). Fitch views the successful implementation of this liability management program as credit positive, as it will materially reduce Auna's refinancing risk and improve its debt amortization profile. Strong Business Profile: Auna maintains a leading 25% market share through Oncosalud, the largest private healthcare provider in Peru. Fitch estimates that Auna holds a 35% market share by number of beds in Monterrey, Mexico. Auna's past acquisitions in Colombia and Mexico have improved its geographic diversification, scale, and profitability, while maintaining a strong business position in the Peruvian market. In 1H25, 44% of revenues came from Peru, 32% from Colombia, and 24% from Mexico, compared with 65% from Peru and 35% from Colombia in 2021. As of June 2025, Auna's network comprised 15 hospitals with 2,333 beds and 16 outpatient units. Mexican Operations Key for Deleveraging: The slower-than-anticipated ramp-up of Mexican operations, combined with flat performance in Colombia has been limiting the pace of deleveraging for Auna. Fitch expects Auna's net leverage to reach 3.9x in 2025 and 3.7x in 2026. These represent an improvement from the 2021-2023 average of 6.6x but remains slightly above/closer to 2024 ratio of 3.7x. Auna faces the challenge of successfully execute its growth strategy in Mexico, while managing a difficult operating environment in Colombia, to resume leverage reduction in subsequent periods. Relatively Stable Operating Margins: Fitch forecasts consolidated EBITDA margins of around 20% in 2025-2026, up from pre-pandemic levels of 14%. In Mexico, EBITDA margins are expected to range from 30% to 32% over the next few years, supported by initiatives to attract and retain local medical staff and to replicate Auna's protocols in the region. Fitch estimates solid operating performance in Peru, with EBITDA margins of around 21%-22%. In Colombia, the strategy of prioritizing cash generation over top-line growth should help maintain EBITDA margins broadly flat at around 14%-15%. Auna has reduced its exposure to government-intervened payors in Colombia to 19% of revenues, from 26%. Positive FCF From 2026 On: Fitch expects Auna to generate adjusted EBITDA (pre-IFRS) of around PEN900 million in 2025, impacted by FX currencies devaluation in the region, and PEN953 million in 2026. Those compares to PEN944 million in 2024. CFFO should reach PEN134 million in 2025 and PEN279 million in 2026, benefited by lower interest expenses after debt refinancing, while working capital needs should remain under control. FCF is expected to be negative around PEN40 million in 2025 and positive around PEN27 million in 2026, after average annual capex of PEN213 million and no dividend distributions in 2025-2026. Withstanding a Challenging Operating Environment: Regulatory frameworks driven by social security regimes in Latin America increase cash flow volatility for healthcare providers. Consolidation and vertical integration across the region have also heightened competition. Auna's large scale, vertically integrated model, and brand recognition are key competitive advantages that help mitigate these risks and position the company to navigate evolving industry dynamics. Long-term demand fundamentals remain solid, supported by an aging population, increasing prevalence of chronic diseases, and growing access to healthcare systems. Peer Analysis Auna shares a similar business model that combines healthcare facilities with insurance operations with its Latin American peers such as Rede D'Or São Luiz S.A. (Foreign-Currency IDR 'BB+'/Stable Outlook) and Hapvida Participações e Investimentos S.A. (National Long-Term Rating 'AAA(bra)'/Stable Outlook). Despite greater geographical diversification, Auna's business scale is smaller than that of Rede D'Or and Hapvida, which also hold leadership positions in their respective key markets. In addition, Auna's higher leverage and more limited financial flexibility relative to peers constrain its ratings. Key Assumptions - Revenue growth reflects organic growth and integration of acquired assets, reaching around PEN4.3 billion in 2025 and PEN4.6 billion in 2026; - EBITDA margins of around 20% for 2025-2026; - Average capex of PEN213 million in 2025-2026; - No dividend payments during the rating horizon. Recovery Analysis Key Recovery Rating Assumptions The recovery analysis assumes that Auna would be considered a going concern in bankruptcy and that the company would be reorganized rather than liquidated. Fitch has assumed a 10% administrative claim. Going Concern Approach Auna's going concern EBITDA is based on pro forma results reflecting its recent acquisitions. The going concern EBITDA estimate reflects Fitch's expectation of a sustainable, post-reorganization EBITDA level, upon which Fitch bases the valuation of the company. The enterprise value/EBITDA multiple applied is 6.0x, reflecting Auna's strong brand and market position in the regions it operates. Fitch applies a waterfall analysis to the post-default enterprise value based on the relative claims of the debt in the capital structure. Its debt waterfall assumptions reflect the company's total debt at June 30, 2025. These assumptions result in a recovery rate for the secured bonds within the 'RR1' range, but due to the soft cap for Peru at 'RR4', Auna's secured notes are rated 'B+'/'RR4'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA margins below 18% on recurring basis; - Fitch's net adjusted leverage ratio consistently above 4.5x; - Maintenance of aggressive growth strategy or shareholder-friendly policies limiting expected improvements in its capital structure; - Reduced financial flexibility; - Major legal contingency issues that disrupt operations or significantly impact the company's credit profile. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Successful execution of the Mexican business strategy; - Fitch's adjusted EBITDA margins consistently above 20%; - Fitch's net adjusted leverage ratios consistently below 3.5x; - EBITDA interest coverage above 2.5x. - Cash to short-term debt ratio around to 1.0x, on recurring basis. Liquidity and Debt Structure Auna's current liability management program, together with projected positive FCF from 2026 onward, should help reduce the company's refinancing risk. As of June 30, 2025, Auna reported cash of PEN175 million against short-term debt maturities of PEN598 million. Total debt amounted to PEN3.7 billion, comprising bank loans (62%) and the 2029 senior secured notes (38%). As of June 2025, Auna had undrawn revolving credit facilities of PEN156 million, which are expected to be used to roll over upcoming debt maturities. Issuer Profile Auna offers prepaid oncological and general healthcare plans in Peru and operates 31 healthcare facilities across Peru, Colombia, and Mexico. It is controlled by the private equity group Enfoca, which owns 73% of the company's shares. Summary of Financial Adjustments - Fitch uses an EBITDA pre-IFRS-16 metric and adjusts its EBITDA with non-recurring or non-cash items. - Total debt includes factoring adjustments and excludes leases obligations. 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 Auna S.A. has an ESG Relevance Score of '4' for Management Strategy due to management's appetite for debt-financed growth, though it diversifies the business, which underscores higher-than-expected event risk and potentially higher comfort with elevated/longer periods of leverage than anticipated. This 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 ----------- ------ -------- Oncosalud S.A.C. senior secured LT B+ New Rating RR4 Auna S.A. senior secured LT B+ New Rating RR4 ===================== P U E R T O R I C O ===================== PALMAS ATHLETIC: Hires Aquino de Cordova LLC as Consultant ---------------------------------------------------------- Palmas Athletic Club, Corp. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Aquino, de Cordova, LLC, as consultant. The firm will provide consultation for the evaluation of internal controls and development of operational manuals related to the policies and procedures for the administration of funds. The firm will be paid at these discounted hourly rates: Partner $200 Manager $165 Senior Associate $100 Assistant $75 Eduardo Gonzalez Green, a certified public accountant employed with Aquino, disclosed in a court filing that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Eduardo Gonzalez Green, CPA Aquino, De Cordova, LLP Cecilia's Place Suite C-1 #7 Rosa Street Carolina, PR Phone: (787) 253-9595 About Palmas Athletic Club Corp. Palmas Athletic Club Corp. owns and operates a 420-acre recreational property within Palmas Del Mar Resort in Humacao, Puerto Rico. The site includes two 18-hole golf courses, a 22,200-square-foot clubhouse, a 5,600-square-foot beach clubhouse, and related facilities. Palmas Athletic Club Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-03489) on August 4, 2025. In its petition, the Debtor reports total assets of $16,793,944 and total liabilities of $36,514,983. The Debtor tapped Charles A. Cuprill Hernandez, Esq., at Charles A. Cuprill, PSC, Law Offices and CPA Luis R. Carrasquillo & Co., PSC as financial consultant. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. 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