251105.mbx

251105.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 Wednesday, November 5, 2025, Vol. 26, No. 221 Headlines A R G E N T I N A MSU ENERGY: Fitch Hikes Foreign & Local-Currency IDRs to 'CCC+' B E R M U D A FLEMING INTERNATIONAL: Seeks Chapter 15 Bankruptcy in New York B R A Z I L BRAZIL: Quiet Warning in October Business Confidence Dip C H I L E FALABELLA SA: S&P Affirms 'BB+' ICR & Alters Outlook to Positive C O L O M B I A AVIANCA GROUP: Fitch Hikes LongTerm IDRs to 'B+', Outlook Stable D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Bisono Promotes Free Trade Zones to Investors E L S A L V A D O R GRUPO UNICOMER: Fitch Alters Outlook on 'BB-' IDRs to Negative M E X I C O ASCEND PERFORMANCE: Ad Hoc Term Lenders Amend Rule 2019 Statement S U R I N A M E SURINAME: IDB Discloses $1 Billion Financing for Development T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: Alcohol Tax Hikes Could Hurt Tourism TRINIDAD CEMENT: Slow T&T Sales Drive 24.2% Drop in Net Income U R U G U A Y URUGUAY: Macroeconomic Risks Are Broadly Balanced, IMF Says - - - - - ================= A R G E N T I N A ================= MSU ENERGY: Fitch Hikes Foreign & Local-Currency IDRs to 'CCC+' --------------------------------------------------------------- Fitch Ratings has upgraded MSU Energy S.A.'s (MSU Energy) Long Term Foreign Currency and Local Currency Issuer Default Ratings (IDRs) to 'CCC+' from 'CCC' and upgraded the USD 400 million senior secured notes due in December 2030 to 'B-' with a Recovery Rating of 'RR3' from 'CCC+'/'RR3'. MSU Energy´s upgrade reflects Fitch´s view on the company´s improved liquidity, expected to accumulate USD 35 million on cash by year end, combined with a gradual deleverage trajectory, with EBITDA leverage reaching 3.9x during 2025, and 3.2x by the end of 2026. In addition, MSU Energy's ratings also reflect exposure to CAMMESA, Argentina's wholesale market administrator, whose reliance on government subsidies adds payment risk for MSU given its material revenue dependence on CAMMESA. Key Rating Drivers Improved Liquidity: Fitch forecasts MSU Energy's end-of-year cash balance at around USD 35 million. As of 2Q25 the company had USD 16 million in cash; as of 3Q the company has paid off all remaining 2025 debt. Going forward, the company has limited capex needs after overhauling 10 out of 12 turbines and no projected dividend payments over the rating horizon. To manage working capital needs, the company has up to USD 50 million in uncommitted working capital lines. Fitch believes MSU Energy's improved liquidity will help to facilitate its debt-service payments in coming years, assuming CAMMESA keeps paying on time. Counterparty Exposure: MSU Energy relies on payments from CAMMESA, which represents electricity generators, transmission, distribution and large consumers or wholesale market participants known as Mercado Mayorista Electrico. In the last 12 months (LTM) as of 2Q2025, CAMMESA has paid invoices in about 47 days, close to the 42-day contracted payment period. Fitch expects timely payments to continue. Prolonged payment delays would be financially challenging for the company. Stable Cash Flow Profile: Fitch anticipates an EBITDA generation of around USD 160 million during 2025 and 2026, with EBITDA margins above 80%. With a total installed capacity of 750MW, MSU Energy consistently derives over 90% of its revenue from fixed-capacity payments and the remaining portion from variable payments for dispatch of natural gas or diesel. During 2025, MSU Energy derives all revenue from U.S.-dollar-denominated long-term PPAs with CAMMESA for the open cycles, reaching 450MW of installed capacity expiring in 2027-2028, and from a 15-year PPA for another combined cycle reaching 300MW, due in 2035. Gradual Deleveraging Trajectory: Fitch anticipates MSU Energy's total debt/EBITDA for 2025 will decline to 3.9x from 4.3x in 2024. Leverage is forecast to decline thereafter to 3.2x by 2026. With the expiration of one of MSU's simple-cycle PPAs in June 2027, leverage is expected to remain consistent from 2027 with EBITDA around USD 135 million. Fitch expects 2024 EBITDA interest coverage to average around 2.9x from 2025-2027, compared to 1.6x in YE 2024. Peer Analysis MSU Energy's ratings reflect exposure to CAMMESA as an offtaker reliant on subsidies from the Argentine government. The situation is the same for Argentine utility and energy peers Pampa Energia S.A. (Pampa; B-/Stable), Capex S.A. (B-/Stable), AES Argentina Generacion S.A. (AAG; CCC+) and Generacion Mediterranea S.A (GEMSA; RD). MSU and GEMSA have only thermal operations, while AAG's portfolio is balanced between thermal, wind and hydro assets. Pampa has a more diversified business profile as a leading company in electricity generation, distribution, transmission, gas production and transportation, while Capex has an advantageous vertical integration in the thermoelectric generation segment, with the flexibility to use its own natural gas reserves to supply plants. Comparing credit metrics, MSU Energy's gross leverage is forecasted at 3.2x as of YE 2026, compared with Pampa at 2.3x, AAG at 2.6x and Capex at 3.4x. On a net basis, MSU Energy's net leverage was 4.0x in 2Q25, reflecting USD 16 million of cash and equivalents. Fitch estimates MSU's projected gross leverage will average 3.4x in the medium term. Key Assumptions - 750MW of total installed capacity with 250MW each at the General Rojo, Barker and Villa Maria power plants; - Simple-cycle PPAs granted under Resolution No. 21 with a fixed payment rate (USD/MW-month) of USD 20,900 for General Rojo, and USD 19,900 for the Barker, and Villa Maria plants, and a variable payment rate (USD/MWh) of USD 8.50 for natural gas and USD 12.50 for diesel oil; - Combined-cycle PPAs granted under Resolution 287/2018 with a fixed payment rate (USD/MW-month) of USD 18,900 for General Rojo, and USD 19,900 for the Barker and Villa Maria plants, and variable payment rates (USD/MWh) of USD 10.40, USD 8.80, and USD 12.70 for electricity dispatched at the General Rojo, Barker, and Villa Maria plants, respectively; - Spot rate of USD 6,800 MW/month replacing General Rojo simple-cycle PPA following expiration in June 2027. - Average projected dispatch rate of 31% in 2025-2027; - Capex of USD 16 million in 2025, USD 8 million in 2026 and USD 4 million in 2027; - No taxes paid throughout the rating horizon. - CAMMESA paying on time Recovery Analysis Assumptions: - Using the going-concern methodology: - 30% EBITDA decline during bankruptcy; - 5.0x EV to EBITDA multiple; - 10% administrative claims. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - A downgrade of the Argentine sovereign rating; - Sustained delayed payments by CAMMESA; - Regulatory developments that would negatively affect the company's cash flow generation. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: - An upgrade of the Argentine sovereign rating; - Given the issuer's high dependence on CAMMESA subsidies from the national treasury, any further regulatory developments leading to a market less reliant on support from the Argentine government or a sovereign upgrade could positively affect the company's collections/cash flow. Liquidity and Debt Structure As of June 2025, MSU Energy cash and equivalents reached USD 16 million. The company fulfills its daily working capital needs through operating cash flow, supplemented by uncommitted short-term facilities of up to USD 50 million, which are currently undrawn. MSU Energy's debt structure is predominantly comprised of a USD 220 syndicated loan with quarterly amortizations starting in 1Q26 due October 2027. Also, the company has a USD 400 million senior secured bond with final maturity due November 2030. Issuer Profile MSU Energy is an Argentine electric power company that currently has 750MW of electric generating capacity, evenly distributed among its three power plants: General Rojo, Barker and Villa Maria. Criteria Variation Argentina is assigned to Group D, where the assigned Recovery Ratings (RR) are capped at 'RR4'. Fitch believes the recovery prospects for MSU Energy are higher than the expected recovery of 31%-50% for the 'RR4' band. This is based on Fitch's bespoke recovery analysis for each individual issuer as well as precedents of debt exchange offerings driven by capital control restriction put into place by the Argentine Central Bank. The calculated recovery was higher than the expected recovery of 51%-70% for the 'RR3' band, but Fitch capped the RRs at 'RR3' to reflect a less predictable range of outcomes. Under the Country-Specific Treatment of recovery criteria. Fitch can assign a recovery rating that is above the cap when Fitch has reason to believe that recoveries in that individual case will be consistent with a higher RR. Therefore, the 'RR3' supports a one-notch uplift for the instrument rating from the issuer's Foreign Currency IDR, given the CCC+ IDR of the company. 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 Recovery Prior ----------- ------ -------- ----- MSU Energy S.A. LT IDR CCC+ Upgrade CCC LC LT IDR CCC+ Upgrade CCC senior secured LT B- Upgrade RR3 CCC+ ============= B E R M U D A ============= FLEMING INTERNATIONAL: Seeks Chapter 15 Bankruptcy in New York -------------------------------------------------------------- Janine Panzer of Bloomberg News reports that Fleming International Reinsurance Ltd., a Bermuda-incorporated reinsurer with a Cayman-based parent company, filed a Chapter 15 petition in the Southern District of New York on October 26, 2025. The company, previously known as JRG Reinsurance Company Ltd., is seeking recognition of its Bermuda insolvency and provisional liquidation proceedings. The petition -- filed by foreign representatives from AlixPartners UK and Kroll Bermuda -- aims to extend the Bermuda court's jurisdictional protections to the United States. It also seeks to stay domestic litigation, including an ongoing dispute with James River Group, while the restructuring process continues abroad. About Fleming International Reinsurance Ltd. Fleming International Reinsurance Ltd. is a Bermuda-incorporated reinsurer with a Cayman-based parent company. Fleming International Reinsurance Ltd. sought relief under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-12353) on October 26, 2025. Honorable Bankruptcy Judge John P. Mastando III handles the case. The Debtor is represented by Robert Drain, Esq. of Skadden, Arps, Slate, Meagher & Flom LLP. =========== B R A Z I L =========== BRAZIL: Quiet Warning in October Business Confidence Dip -------------------------------------------------------- Iolanda Fonseca at Rio Times Online reports that Brazil's business leaders are sending a quiet but clear signal: the economy is losing steam. The country's closely watched Business Confidence Index dipped slightly in October, landing at 89.5 points - a small drop, but enough to confirm what many already feel, according to Rio Times Online. After months of high interest rates, stubborn inflation, and political uncertainty, optimism is harder to come by, the report notes. The numbers reveal a split personality. On one side, expectations for the future inched up after four months of decline, thanks mostly to retailers betting on a strong holiday season, the report relays. But the present tells a different story. Satisfaction with current business conditions is falling, demand is softening, and some sectors - especially construction - are in rough shape, with only a handful of companies feeling more confident than last month, the report says. The contrast is stark: while shopkeepers cross their fingers for year-end sales, builders and manufacturers are bracing for tougher times ahead, the report discloses. Behind these figures lies a deeper struggle, the report says. Brazil's central bank has kept interest rates at a sky-high 15 percent for months, trying to rein in inflation that remains above target, the report relays. The strategy has worked - prices aren't spiraling out of control - but the side effects are painful, the report discloses. Businesses face steep borrowing costs, consumers are cautious with spending, and investment is sluggish, the report notes. Meanwhile, the government's fiscal situation is tight, leaving little room for stimulus or relief, the report says. What makes this moment particularly telling is the uneven recovery, the report discloses. Commerce is holding up, fueled by hopes of festive-season spending, but industry and construction are lagging, the report relates. The latter, a key driver of jobs and infrastructure, is especially worrisome, with only a fraction of firms reporting improved outlooks, the report notes. This isn't just about one bad month; it's a sign of an economy that's neither crashing nor taking off, but stuck in a holding pattern, the report discloses. For outsiders, Brazil's economic story often gets reduced to stereotypes—vibrant but volatile, rich in resources but plagued by instability, the report says. The latest data adds nuance. The country isn't in crisis, but it's not living up to its potential either, the report relays. Businesses aren't panicking, but they're not thriving, the report notes. They're waiting—for lower rates, for clearer rules, for a sense that the playing field isn't tilted against them, the report relays. The bigger question is what comes next, the report says. With inflation still a concern and public debt rising, the easy fixes are off the table, the report notes. Some argue for more state intervention to jumpstart growth, but the risks are obvious: higher spending could reignite inflation or spook investors, the report discloses. Others push for structural changes—simpler taxes, less red tape, a more predictable environment—to unlock private-sector energy. So far, progress on that front has been slow, the report adds. 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. ========= C H I L E ========= FALABELLA SA: S&P Affirms 'BB+' ICR & Alters Outlook to Positive ---------------------------------------------------------------- S&P Global Ratings revised the outlook on Falabella S.A. to positive from stable and affirmed its 'BB+' issuer credit and issue-level ratings. The positive outlook reflects its view that S&P could raise ratings in the next 12 months if Falabella continues to demonstrate good business fundamentals and a disciplined financial policy, with leverage consistently below 3x and stable profitability metrics. Falabella S.A.'s operating performance during the first half of 2025 was better than expected. S&P now forecasts its S&P Global Ratings-adjusted EBITDA margin to rebound to about 13.5% in 2025 from 11.7% in 2024, and we expect it to stay in that area in for the forecast period. S&P believes that the recovery in profitability and gross debt reduction, will lower leverage to about 2.5x for the forecast period. The outlook revision reflects Falabella's stronger-than-expected operating performance, given healthy business momentum and improvements in its value proposition. Top-line revenue increased 10.5% year on year in the first half of 2025, driven by the robust performance of the company's department stores and supermarkets, in domestic currency. Growth was supported by improvements in the company's value propositions and a rebound in retail consumption, which partially benefited from increased purchases by foreign tourists in Chile. In addition, the company's home improvement stores sales have started to rebound, mainly because of its stronger e-commerce operations and ongoing overhaul of its physical stores. S&P forecasts Falabella's top-line revenue will grow roughly 8.5% in 2025, supported by growth across all operating segments and geographies. For 2026, S&P expects that top-line revenue growth will modestly outpace inflation, driven by Falabella's optimized value proposition and integrated omnichannel capabilities, coupled with the potential recovery in the construction segment in Chile and Peru. Stronger operating performance should generate margins of around 13% for the next three years. During the first half of 2025, rolling-12-month (RTM) EBITDA margin rose to 13.2% from 9.7% in the same period a year ago. This stemmed from strategic initiatives, including comprehensive efficiency measures implemented in the past two years and enhanced inventory management--characterized by reduced buying cycles and optimized inventory days--as well as low promotional activity. S&P expects the company's focus on restraining expense growth below inflation and on maintaining disciplined inventory management, along with the continued rise of the online channel's profitability, will maintain EBITDA margin at around 13% during the forecast period. S&P expects management to demonstrate conservative financial discipline and leverage to remain below 3x for the next three years. Falabella's S&P Global Ratings-adjusted RTM debt to EBITDA improved to 2.4x as of June 2025 from 4.8x a year ago, given debt reduction--including $200 million in bank debt prepayments and $380 million in bond repurchases --and earnings and operating cash flow growth. According to our revised estimates, capital expenditure (capex) will drop to around $360 million in 2025 and increase to $580 million in 2026, reflecting the acceleration of previously delayed investments in physical stores, store openings and a new Shopping Mall (Brownnfield). S&P said, "However, we forecast Falabella to continue generating free operating cash flow. Furthermore, we consider that management is committed to a conservative balance sheet, and we do not expect excessive shareholder returns in the next two years. Therefore, we expect Falabella to maintain leverage within the 2.0x-2.5x range in subsequent years." S&P said, "We still believe that industry headwinds could challenge Falabella's department stores business model in the future. Our long-term view is that changing consumer buying habits will continue to present challenges to traditional brick-and-mortar stores, including declining physical store traffic, shifting category preferences, and online price transparency. Nevertheless, we believe Falabella has adjusted its strategy to adapt and to reposition itself through its omnichannel capabilities over the past few years, and it continues to benefit from its strong omnichannel capabilities. Its physical footprint serves as a lever and a differentiator from pure e-commerce players, as seen in the high share of click-and-collect in its deliveries. "The banking unit's operations have improved over the past few quarters, and we expect this trend to continue. Falabella benefits from its leading position in the credit card segments in Chile and Peru, and this unit representing an additional revenue source in Colombia. During the first half of 2025, its banking operations have improved, especially in Chile, given loan portfolio growth and lower funding costs. In addition, this segment was able to resume growth in Peru and Colombia after several quarters of declines. Additionally, the company continued lowering risk levels and improving nonperforming loans (NPLs) in the three countries. We expect that Falabella will continue to grow its portfolio while maintaining healthy levels of risk costs and NPLs and strong capitalization, particularly in its Chilean operations, in 2025 and 2026. "The positive outlook reflects our view that we could raise the ratings in the next 12 months if we believe Falabella can maintain leverage below 3x. This would support our view of Falabella maintaining good business fundamentals, which underpin its competitive position, sustainable business growth in the medium term, stable profitability, and conservative financial discipline. "We could revise the outlook to stable in the next 12 months if we expect its profitability or cash flow to deteriorate because of inventory markdowns, severe and adverse macroeconomic trends, or greater competition. In this scenario, the turnaround in the company's performance could slow or reverse. This would likely coincide with weaker long-term business growth prospects, while EBITDA margin is persistently below 10% and leverage remains close to or above 3x." S&P could raise its ratings if Falabella's performance and credit metrics continue to improve. An upgrade could occur in the next 12 months if the company demonstrates: -- Healthy long-term business growth prospects and EBITDA margin comfortably above 10%; -- A commitment to keep leverage below 3x; and -- Healthy credit quality and earnings generation within Falabella's financial arm, supported by good level of capitalization. =============== C O L O M B I A =============== AVIANCA GROUP: Fitch Hikes LongTerm IDRs to 'B+', Outlook Stable ---------------------------------------------------------------- Fitch Ratings has upgraded Avianca Group International Limited's (Avianca) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'B+' from 'B'. Fitch has also upgraded Avianca MidCo2 Limited's senior secured debt to 'B+' with a Recovery Rating of 'RR4' from 'B/RR4'. The Rating Outlook is Stable. The upgrade reflects Avianca's improving credit risk profile following solid operating performance, deleveraging trend and lower refinancing risk exposure. The ratings reflect the industry's high cyclicality risks, solid market position in Latin America, lean cost structure, and strong liquidity position, though limited financial flexibility in terms of an unencumbered asset base. Avianca's medium-term challenges include managing growth and robust operating margins in a more competitive environment and, potentially, under a less supportive fuel price environment. In addition, Fitch has upgraded LifeMiles Ltd.'s Long-Term Foreign and Local Currency IDRs to 'B+' from 'B' and then withdrawn the ratings. The withdrawal is due to commercial reasons and the earlier repayment of the company's Term Loan B. Key Rating Drivers Solidifying Business Strategy: Avianca has been optimizing its network to boost profitability amid more balance market dynamics. The company has rationalized domestic capacity in Colombia, with continued network optimization. It launched 10 new international routes during 1H25 (additional three to be launched during 2H'25), expanding its footprint to 172 routes across 83 destinations. Avianca is focused on maintain a leadership position in the strategic markets of Colombia, Central America and Ecuador while enhancing its international footprint and expanding business class offerings on selected routes to capture premium revenues. Diversified Regional Market Position: Avianca's business model combines a solid brand and with large operations in Colombia and Central and South America. The company's sound international routes, cargo operations and loyalty program support adequate business diversification. Avianca's flexible business model has allowed it to rotate capacity within the region and maintain solid load factors of 80%-82% over the past few years. During the LTM period ending on June 30, 2025, Fitch estimates around 34% of Avianca's revenue distribution (points of sale) was from Colombia, 19% from North America, 23% from Central America and 11% from Europe and the remainder from various jurisdictions. Increasing Operations, Good Cost Structure: Fitch expects Avianca's operating cash flow to continue to improve in 2025 due to solid domestic traffic levels and better dynamics in the international segment, relatively lower fuel prices, cost efficiencies and capacity expansion. Fitch forecasts adjusted EBITDAR around USD1.5 billion in 2025 and USD1.6 billion in 2026. The efficient cost base, business premium revenue and lower fuel prices are driving record EBITDAR margins, with its base case of 25%-26% in 2025-2026. Positive FCF: Avianca's stronger operating cash flow generation is resulting in better-than-expected FCF. In its base case, Fitch now expects FCF to be positive. The differs from the previous rating case, in which operating cash flow generation was likely to be consumed by fleet modernization and ongoing business growth. Fitch now forecasts Avianca's FCF generation to be around USD66 million in 2026 after increasing capex. Fitch assumed capex of USD440 million in 2025 and USD560 million in 2026. As per the company's bond indenture limitations, Fitch does not foresee shareholder returns in the short to medium term. Manageable Credit Metrics: Fitch's base-case scenario forecasts Total and Net EBITDAR Leverage at around 3.6x and 2.8x, respectively, during 2025. That is an improvement from 4.4x and 3.5x, respectively in 2024, but significant progress from its Chapter 11 exit year in 2022 (6.2x and 5.0x, respectively). For 2026 and 2027, total and net leverage should remain near 3.5x and 2.7x, respectively. Fitch expects Avianca to remain cautious regarding its inorganic growth strategy, as any M&A opportunities should be led by its parent company, ABRA Group Limited (ABRA). Improved Refinancing Exposure: Earlier this year Avianca exchanged its tranche A-1 senior secured notes due 2028 and issued new secured notes due in 2030. Avianca's goal was to simplify its capital structure and to eliminate restrictive covenants from the time of the Chapter 11 process, release guarantees and discharge collaterals. Some proceeds were used to prepay LifeMiles's USD365 million Term Loan B due 2026. Fitch expects the company will maintain solid cash balances, with cash/LTM revenue between 15%-20%. Avianca's liquidity position is enhanced by an undrawn RCF of USD200 million due 2027. As of June 30, 2025, its cash + RCF/LTM revenue was 24%. Above-Average Industry Risks: The high-risk airline sector is cyclical and capital-intensive due to structural challenges, as well as being prone to exogenous shocks. High fixed costs combined with swings in demand and fuel prices typically translate into volatile profitability and cash flows. Exposure to foreign exchange fluctuations for Latin America competitors constitutes an additional risk, as costs are mostly in U.S. dollars and a large part of its cash flows are in local currency. For Avianca, this risk is somewhat mitigated by its international operations (85% of capacity). Consolidated Approach: Fitch applies its "Parent and Subsidiary Rating Linkage Criteria" to Avianca and its 100%-owned subsidiary LifeMiles, following the stronger parent path. The legal incentive for support is high, and the operational and strategic incentives are medium to high, resulting in equalized ratings. LifeMiles is a core asset, generating stable free cash flows and solid EBITDA margins. During 2024, LifeMiles contributes around 15% to EBITDA and represents around 7% of Avianca's debt. Peer Analysis Avianca's rating is below LATAM Airlines Group S.A.'s (BB/Positive Outlook) due to relatively higher leverage and weaker market diversification and financial flexibility. Avianca's business and credit profile is stronger than GOL Linhas Aereas Inteligentes S.A.'s (CCC+/Positive), a sister company also owned by Abra. Avianca is more diversified, with a stronger capital structure and manageable medium-term refinancing risks. Its ratings are constrained by limited financial flexibility in terms of an unencumbered asset base and the industry's high risks. Fitch expects Avianca's leverage to remain moderate at 2.8x and 2.7x in 2025 and 2026, while GOL's leverage is expected to remain high during 2025 at 5.4x and to decline to 4.1x in 2026 and 3.5x by 2027. In terms of liquidity GOL's cash/LTM revenue should be about 14% in 2025 and range from 10%-12% over the next two years, while Avianca's is around 15%-20% and including available RCF this goes up to 24%. Fitch forecasts LATAM's total and net adjusted leverage/EBITDAR ratios at around 2.1x and 1.4x during 2025 and 2026, with robust cash balances (cash plus RCF to LTM revenues on average above 25%). Relative to North American peers, Avianca's rating is lower due to structural and financial factors. American Airlines, Inc. (B+/Stable), United Airlines, Inc. (BB/Positive), and Air Canada (BB/Stable) all benefit from significant scale, global route networks, relatively lower leverage, stronger liquidity, and greater access to capital markets. Key Assumptions - Fitch's base case during 2025 and 2026 includes an increase in ASK to 71k and 74k; - Load factors around 80.5% during 2025-2026; - Steady cargo operations; - Jet fuel ranging around USD2.65-2.75 in 2025- 2026; - Capex of USD440 million in 2025 and USD560 million in 2026; - No dividend distributions. Recovery Analysis Key Recovery Rating Assumptions The recovery analysis assumes Avianca would be considered a going concern in bankruptcy and the company would be reorganized rather than liquidated. Fitch has assumed a 10% administrative claim. Avianca's going concern EBITDA is USD500 million which incorporates EBITDA post-pandemic, adjusted by lease expenses, plus a discount of 20%. This correlates to an average of USD561 million during 2016-2019, reflecting intense volatility in the airline industry in Latin America. The going-concern EBITDA estimate reflects its view of a sustainable, post-reorganization EBITDA level, upon which Fitch bases the valuation of the company. The enterprise value (EV)/EBITDA multiple applied is 5.5x, reflecting Avianca's strong market position in Colombia, Central America and Ecuador. Fitch applies a waterfall analysis to the post-default enterprise valuation based on the relative claims of the debt in the capital structure. The debt waterfall assumptions consider the company's total debt. These assumptions result in a Recovery Rate for the secured debt within the 'RR1' range, but due to the soft cap of Colombia at 'RR4', Avianca's senior secured debt is rated 'B'/'RR4'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Dividends distributions deteriorating the company's credit metrics; - Liquidity deterioration to below Cash LTM Revenues below 15%; - Gross and net leverage ratios consistently above 4.0x and 3.5x; - EBITDA fixed-charge coverage sustained at or below 1.8x; - Competitive pressures leading to severe loss in market-share or yield deterioration; - Aggressive growth strategy leading to a consolidation movement financed with debt. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Total and net leverage below 3.5x and 3.0x, on a sustainable basis. - Sound business strategy within Avianca's main markets' air traffic, supported by healthy yields and load factors; - Ability to maintain strong cost structure, with adjusted EBITDAR margin above 25% on a sustainable basis including different fuel prices environment; - Maintenance of a strong liquidity position (cash/LTM revenue consistently above 20%), and a well-spread debt amortization profile with no major refinancing risks in the medium term; - EBITDAR fixed-charge coverage sustained at or above 2.5x; - ABRA's ability to improve its capital structure and refinancing exposure reducing pressures on Avianca per dividends upstream. Liquidity and Debt Structure Avianca has maintained a solid liquidity position that is strong for the rating category. As of June 30, 2025, Avianca had around USD1.1 billion in cash and cash equivalents, compared with USD476 million of short-term debt. During the same period, Avianca's total debt was USD5.3 billion, and was mainly composed of USD2.8 billion of leasing obligations, USD1.1 billion of exchange notes due 2028, and USD1 billion of new secured notes due 2030. Avianca's cash position of USD1.1 million was sufficient to cover maturities until mid-2027. Avianca's liquidity position is further strengthen by an undrawn revolving credit facility due 2027 in the amount of USD200 million. Issuer Profile Avianca is the leading airline in Colombia, Ecuador and Central America, with one of the largest operations in Latin America. Avianca operates passenger and cargo transportation, with international routes representing 83% of total capacity. 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 Avianca has an ESG Relevance Score of '4' for Group Structure due to its relatively new and larger airline operational group (ABRA), which has a negative impact on the credit profile, and is relevant to the rating in conjunction with other factors. Avianca has an ESG Relevance Score of '4' for Governance Structure due to its relatively new operational group (ABRA) that has lately demonstrated aggressive financial policies, which has a negative impact on the credit profile, and is relevant to the rating in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Avianca Midco 2 PLC senior secured LT B+ Upgrade RR4 B Avianca Group International Limited LT IDR B+ Upgrade B LC LT IDR B+ Upgrade B LifeMiles Ltd. LT IDR B+ Upgrade B LT IDR WD Withdrawn LC LT IDR B+ Upgrade B LC LT IDR WD Withdrawn senior secured LT WD Withdrawn RR4 B =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Bisono Promotes Free Trade Zones to Investors ----------------------------------------------------------------- Dominican Today reports that the Minister of Industry, Commerce, and MSMEs, Victor Bisono, highlighted the Dominican Republic's free trade zone model as one of the strongest and most dynamic in the region, with exports reaching US$8.6 billion and creating more than 198,000 direct and 450,000 indirect jobs by the end of 2024. He noted that the sector contributed 3.1% to the national GDP last year and has already surpassed US$5.7 billion in exports in the first eight months of 2025, according to Dominican Today. During his presentation, "Advanced Manufacturing Ecosystem in the Dominican Republic," held at the Mapfre Foundation as part of Dominican Week in Spain, Bisono emphasized the country's evolution into a regional hub for innovation, logistics, and skilled talent, the report notes. He reported that 49 new companies were approved this year, expanding the network of 97 industrial parks across sectors such as electronics, pharmaceuticals, premium tobacco, textiles, jewelry, and especially medical devices, where the country hosts world-class firms like Baxter, Jabil, B. Braun, and Cardinal Health, the report relays. Bisono also highlighted the National Semiconductor Strategy (Decree 324-24), which aims to integrate the Dominican Republic into global microelectronics value chains, the report discloses. Citing the Information Technology and Innovation Foundation (ITIF), he affirmed that the country has the potential to produce printed circuit boards and test components, strengthening its position as a trusted partner for the United States in advanced manufacturing, the report says. Inviting Spanish investors to collaborate, Bisono described the Dominican Republic as a nation that "produces, innovates with purpose, and exports with identity," supported by legal stability, strong logistics, and highly qualified talent, 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. ===================== E L S A L V A D O R ===================== GRUPO UNICOMER: Fitch Alters Outlook on 'BB-' IDRs to Negative -------------------------------------------------------------- Fitch Ratings has affirmed Grupo Unicomer Corp.'s Long-Term Local and Foreign Currency Issuer Default Ratings (IDRs) at 'BB-'. The Rating Outlook has been revised to Negative from Stable. The Outlook revision reflects Fitch's expectations of persistently high indebtedness and a longer than anticipated recovery in profitability margins, resulting in pressured leverage metrics in fiscal years 2026 and 2027 amid challenging market conditions. A downgrade could occur if deleveraging is slower than expected, due to execution risk in ongoing operational efficiency initiatives or events that materially affect key operations. The affirmations of the IDRs incorporates Unicomer's leading business position across most operations and the solid financial position of its shareholders. The ratings also reflect Unicomer's diversification and ability to quickly adapt to varying consumer environments through its retail and financial businesses. Key Rating Drivers Prolonged Higher Leverage: EBITDAR net leverage is projected to remain above 4.0x in fiscal 2026 and 2027, following three years of softer performance and a peak of 4.9x in fiscal 2025. This will exhaust rating headroom and limit the company's capacity to absorb additional market risks. Fitch expects Unicomer to deleverage toward 4.0x by fiscal 2028, supported by EBITDAR recovery and the execution of initiatives to improve its cost and expense structure, while maintaining financial discipline. Strategic Initiatives Under Execution: The company is executing several initiatives to improve margins, which include focusing on profitable product categories and credit services, as well as redesigning the organization's structure, among others. Fitch believes this plan should drive margin recovery during the next two years. Nonetheless, there are risks associated with the implementation and execution of these initiatives and Fitch will consider negative rating actions should margin improvement trends fail to materialize. Cash Generation to Gradually Recover: Fitch expects the company's cash flow from operations (CFO) and FCF to turn positive by fiscal 2026, supported by tighter credit origination and controlled inventory levels. Fitch expects CFO to gradually recover to about USD90 million by 2027, driven by a more efficient cost structure. Capex levels should be around USD46.5 million per year in fiscal 2026 and 2027, excluding potential acquisitions, and FCF is projected to be above USD30 million per year. Important Business Position: Unicomer operates in 21 countries across Central America, South America and the Caribbean, with over 25 years in consumer durables sales. This has enabled it to develop long-term relationships with suppliers. These relationships provide competitive advantages in terms of store locations within small countries, where prime retailing points of sale are very limited. The company maintains a leading business position in the retailing of consumer durable goods, supported by proprietary financing services and economies of scale in terms of purchasing power and logistics. Geographic and Format Diversification: Geographic diversification allows Unicomer to have a broad revenue base and mitigates country risk from any individual market. Costa Rica, Jamaica, Trinidad, Bermuda and Ecuador are among the most important cash flow contributors, which gives Unicomer some strength and stability to its operating cash flows. Despite this, most of the sovereign ratings of countries where Unicomer operates are in the 'B' or 'BB' rating categories. The company has several store formats and brands across operations that cover different socioeconomic segments of the population. Strong Shareholders: Grupo Unicomer's ratings are viewed on a standalone basis; however, the ratings consider the sound financial position of Unicomer shareholders Milady Group and El Puerto de Liverpool, S.A.B. de C.V. (BBB+/Stable), each of which owns 50% of the company. Liverpool has a proven track record in retail since 1847 in Mexico. In Fitch's view, the shareholders' solid credit profiles give flexibility to Grupo Unicomer, as the shareholders' financial positions do not rely on Unicomer's dividend payments. Peer Analysis Unicomer has about the same scale in number of stores as the European consumer electronics retailer Ceconomy AG (BB/Watch Positive) and more than El Puerto de Liverpool, S.A.B. de C.V. (BBB+/Stable). Unicomer's credit portfolio of USD1.2 billion is smaller in size than Liverpool's, with a credit portfolio of around USD3.6 billion. Unicomer is more geographically diversified than Ceconomy and Liverpool, with Ceconomy's operations being in spread in 11 countries and Liverpool's concentrated mainly in one market. Unicomer's broad geographic diversification mitigates the operating risk of any individual market. From a financial profile prospective, the company has profitability margins of close to 13% on average, above the 4.5% of Ceconomy, and lower than Liverpool's average of 17%. Fitch expects Unicomer's EBITDAR net leverage to trend below 4.0x, while Ceconomy's should be below 2.0x. Per Fitch's criteria, Unicomer's applicable Country Ceiling is 'BBB-'. At the current rating level, the operating environments (OE) of the countries where the company has operations do not constrain the ratings. Key Assumptions - Consolidated annual revenue growth of 3.6% on average for FY 2026 to FY 2028; - Credit portfolio growth of 4.5% on average per year for FY 2026 to FY 2028; - EBITDAR margin of close to 13% for FY 2026 and 13.7% on average for FY 2027 to FY 2028; - Annual capex close to USD46.5 million on average for FY 2026 to FY 2028; - Dividend payment of USD2 million for FY 2026 and close to USD9 million on average for FY 2027 and FY 2028; - Shareholder's capital return resumes in FY 2027. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Weakening collections and sustained deterioration in overdue accounts from the consumer finance business; - A significant reduction in cash flow generation that results in sustained negative FCF margin; - A consolidated net adjusted debt/EBITDAR consistently above 4.0x; - Retail-only net adjusted leverage above 3.5x on a sustained basis; - Deterioration of liquidity compared with short-term debt; - Sustained deterioration in the OE of countries where the company operates. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The Outlook could be revised to Stable if Unicomer demonstrates a clear path to capital structure recovery within the next 12-18 months. An upgrade is unlikely in the short term but factors that could improve the company's credit profile include: - Diversification of operating subsidiaries in countries with lower sovereign risk; - Consolidated adjusted net leverage close to 3.0x on a sustained basis; - Retail-only adjusted net leverage close to 2.5x on a sustained basis; - Improved portfolio credit quality and a significant reduction in its current maturities, resulting in a consistent ratio of cash plus CFFO/short-term debt of 1.0x. Liquidity and Debt Structure Unicomer reported total financial debt (excluding leases) of USD964 million as of June 30, 2025, of which USD348 million was short-term. This level of short-term debt compares with USD97 million of cash and marketable securities and a short-term credit receivables portfolio of USD650 million. Fitch believes Unicomer's liquidity cushion of cash on hand and operating cash flow coupled with its portfolio of receivables is sufficient to cover short-term debt. The liquidity ratio, measured as cash and marketable securities over short-term debt, was 0.3x as of June 30, 2025. When including short-term account receivables in the calculation, the ratio increases to 2.1x. Issuer Profile Grupo Unicomer Corp. is a leading retailer of durable consumer goods with operations in 21 countries across Central America, South America and the Caribbean. It operates 1,249 points of sale and 395,882 m2 of retail space under various brands. 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 Prior ----------- ------ ----- Grupo Unicomer Corp. LT IDR BB- Affirmed BB- LC LT IDR BB- Affirmed BB- =========== M E X I C O =========== ASCEND PERFORMANCE: Ad Hoc Term Lenders Amend Rule 2019 Statement ----------------------------------------------------------------- An ad hoc group of term loan lenders to Ascend Performance Materials Holdings Inc. and its debtor-affiliates, represented by Gibson, Dunn & Crutcher LLP, as lead counsel, and Howley Law PLLC, as Texas co-counsel, filed a Second Amended Verified Statement pursuant to Federal Rule of Bankruptcy Procedure 2019 to inform the Court of the Group's current members and the claims they held in the Debtors' cases. The Second Amended Verified Statement discloses that: 1. The Ad Hoc Group was formed in September 2024 and retained attorneys affiliated with Gibson, Dunn & Crutcher LLP to represent the group as counsel in connection with a potential restructuring of the Debtors' outstanding debt obligations. Gibson Dunn contacted Howley Law PLLC to serve as Texas co-counsel to the Ad Hoc Group in March 2025. 2. The Group comprised of beneficial holders or the investment advisors or managers for certain beneficial holders, in their capacities as lenders under the (i) Term Loan Credit Agreement, dated as of August 27, 2019, by and among Ascend Performance Materials Holdings Inc., as Holdings, Ascend Performance Materials Operations LLC, as Borrower, Wilmington Savings Fund Society, FSB, as successor Administrative Agent and Collateral Agent, the Guarantors party thereto and the Lenders party thereto; (ii) Super Priority Term Loan Credit Agreement dated as of March 7, 2025, by and among Holdings, Borrower, WSFS, as Administrative Agent and Collateral Agent, the Guarantors party thereto and the Lenders party thereto; and (iii) Superpriority Senior Secured Debtor-in-Possession Credit Agreement dated as of April 23, 2025, by and among Holdings, Borrower, WSFS, as Administrative Agent and Collateral Agent, the Guarantors party thereto and the Lenders party thereto. 3. Gibson Dunn and Howley do not represent or purport to represent any other entities, do not represent the Ad Hoc Group as a "committee," and do not undertake to represent the interests of, and are not fiduciaries for, any creditor, party in interest, or other entity that has not signed a retention agreement with Gibson Dunn. In addition, the Ad Hoc Group does not represent or purport to represent any other entities, does not represent the interests of, nor act as a fiduciary for, any person or entity other than itself. 4. Gibson Dunn and Howley do not hold any disclosable economic interests in relation to the Debtors. The names and addresses of each of the members of the Ad Hoc Group, together with the nature and amount of the disclosable economic interests held by each of them in relation to the Debtors, are: 1. Apex Credit Partners, LLC 520 Madison Ave, 12th Floor New York, NY 10022 DIP Term Loan: $1,367,266.25 First Lien Term Loan: $10,089,233.31 Other Disclosable Economic Interests: N/A 2. ArrowMark Colorado Holdings LLC, on behalf of certain funds and accounts it manages or advises 100 Fillmore Street, Suite 325 Denver, CO 80206 DIP Term Loan; $124,141.45 First Lien Term Loan: $2,748,167.10 Other Disclosable Economic Interests: N/A 3. Bank of America N.A., solely with respect to its US Distressed & Special Situations Group NC1-028-19-06, 150 N College St Charlotte, NC 28255 DIP Term Loan: $183,678.09 First Lien Term Loan: $384,882.85 Other Disclosable Economic Interests: N/A 4. Blue Owl Liquid Credit Advisors LLC 1 Greenwich Plaza, Suite C, 2nd Floor Greenwich, CT 06830 DIP Term Loan: $424,187.69 First Lien Term Loan: $1,234,135.39 Other Other Disclosable Economic Interests: N/A 5. Elmwood Asset Management LLC 575 5th Avenue, 34th Floor New York, NY 10017 DIP Term Loan: $13,943,668.52 First Lien Term Loan: $32,365,028.87 Other Disclosable Economic Interests: N/A 6. Invesco Senior Secured Management, Inc., on behalf of certain funds and accounts it manages or advises 225 Liberty Street New York, NY 10281 DIP Term Loan: $39,335,450.73 First Lien Term Loan: $83,343,579.13 Other Disclosable Economic Interests: N/A 7. MJX Asset Management LLC 12 East 49th Street, 38th Floor New York, NY DIP Term Loan: N/A First Lien Term Loan: $61,668,548.66 Other Disclosable Economic Interests: N/A 8. Nuveen Asset Management, LLC 8625 Andrew Carnegie Blvd. Charlotte, NC 28262 DIP Term Loan: $38,593,459.43 First Lien Term Loan: $87,418,993.05 Other Disclosable Economic Interests: N/A 9. ORIX Advisers, LLC (d/b/a Signal Peak Capital Management) 2001 Ross Avenue, Suite 1900 Dallas, TX 75201 DIP Term Loan: $352,614.55 First Lien Term Loan: $7,805,963.87 Other Disclosable Economic Interests: N/A 10. Saranac CLO VIII Limited 1540 Broadway, Suite 1630 New York, NY 10036 DIP Term Loan: N/A First Lien Term Loan: $1,994,805.19 Other Disclosable Economic Interests: N/A 11. Silver Point Capital, L.P., as Investment Manager on behalf of certain affiliated Funds 2 Greenwich Plaza, Suite 1 Greenwich CT, 06830 DIP Term Loan: $263,377,878.13 First Lien Term Loan: $557,246,211.00 Other Disclosable Economic Interests: N/A 12. Strategic Value Capital Solutions II MF LP 100 West Putnam Avenue Greenwich, CT 06830 DIP Term Loan: N/A First Lien Term Loan: $1,094,512.00 Other Disclosable Economic Interests: N/A 13. Strategic Value Excelsior Fund, L.P. (Series VI) Greenwich, CT 06830 DIP Term Loan: N/A First Lien Term Loan: $42,266.00 Other Disclosable Economic Interests: N/A 14. Strategic Value Special Situations Master Fund V, LP Greenwich, CT 06830 DIP Term Loan: N/A First Lien Term Loan: $5,366,626.00 Other Disclosable Economic Interests: N/A 15. Strategic Value Special Situations VI MF, L.P. Greenwich, CT 06830 DIP Term Loan: N/A First Lien Term Loan: $914,920.00 Other Disclosable Economic Interests: N/A 16. Sycamore Tree Capital Partners, LP (Certain funds and/or accounts, or subsidiaries of such funds and/or accounts, managed, advised, controlled, or represented by Sycamore) 2101 Cedar Springs Road, Suite 1250 Dallas, TX 75201 DIP Term Loan: $101,374.02 First Lien Term Loan: $748,051.95 Other Disclosable Economic Interests: N/A 17. UBS Asset Management 11 Madison Avenue New York, NY 10010 DIP Term Loan: $60,947,238.07 First Lien Term Loan: $141,361,574.24 Other Disclosable Economic Interests: N/A * Includes certain funds, accounts, or other investment vehicles managed, advised, or otherwise by UBS Asset Management (Americas) LLC 18. Voya Investment Management LLC 7337 E. Doubletree Ranch Road Scottsdale, Arizona 85258 DIP Term Loan: $5,309,121.27 First Lien Term Loan: $14,080,004.56 Other Disclosable Economic Interests: N/A 19. Western Alliance Bank 1 East Washington St. Phoenix, AZ 85004 DIP Term Loan: $436,329.84 First Lien Term Loan: $9,659,201.63 Other Disclosable Economic Interests: N/A Both firms may be reached at: Tom Howley, Esq. Eric Terry, Esq. HOWLEY LAW PLLC 700 Louisiana Street, Suite 4220 Houston, TX 77002 Tel: 713-333-9125 Email: tom@howley-law.com eric@howley-law.com - and - Scott J. Greenberg, Esq. Jason Zachary Goldstein, Esq. GIBSON, DUNN & CRUTCHER LLP 200 Park Avenue New York, NY 10166 Tel: 212-351-4000 Email: sgreenberg@gibsondunn.com jgoldstein@gibsondunn.com - and - AnnElyse Scarlett Gains, Esq. GIBSON, DUNN & CRUTCHER 1700 M Street N.W. Washington, D.C. 20036-3504 Tel: 202-955-8500 Email: agains@gibsondunn.com About Ascend Performance Materials Holdings Inc. Ascend Performance Materials Holdings Inc. is one of the largest, fully-integrated producers of nylon, a plastic that is used in everyday essentials, like apparel, carpets, and tires, as well as new technologies, like electric vehicles and solar energy systems. Ascend's business primarily revolves around the production and sale of nylon 6,6 (PA66), along with the chemical intermediates and downstream products derived from it. Common applications of PA66 includes heating and cooling systems, air bags, batteries, and athletic apparel. Headquartered in Houston, Texas, Ascend has a global workforce of approximately 2,200 employees, and operates eleven manufacturing facilities that span the United States, Mexico, Europe, and Asia. Ascend Performance Materials Holdings Inc. and its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 25-90127) on April 21, 2025. In the petitions signed by Robert Del Genio, the chief restructuring officer, the Debtors disclosed $1 billion to $10 billion in both estimated assets and liabilities. Judge Christopher M. Lopez oversees the cases. The Debtors tapped Kirkland & Ellis LLP and Bracewell LLP as counsel; PJT Partners, Inc. as investment banker; FTI Consulting, Inc. as restructuring advisor; and Deloitte LLP as tax advisor. Epiq Corporate Restructuring LLC is the Debtors' claims, noticing, and solicitation agent. GA Group Advisory & Valuation Services, LLC serves as a valuation advisor. The official committee of unsecured creditors retained Brown Rudnick LLP as co-counsel; Parkins & Rubio LLP as Texas co-counsel; AlixPartners, LLP as financial advisor; and Ducera Partners LLC and Ducera Securities LLC as investment banker. Gibson, Dunn & Crutcher LLP represents an Ad Hoc Group of Term Loan Lenders. Howley Law PLLC, serves as the group's Texas co-counsel. =============== S U R I N A M E =============== SURINAME: IDB Discloses $1 Billion Financing for Development ------------------------------------------------------------ The Islamic Development Bank (IsDB) and the Inter-American Development Bank Group (IDB Group) renewed their strategic partnership, pledging $1 billion over the next five years to support development in Suriname and Guyana and signing a memorandum of understanding (MoU). The renewed collaboration will focus on advancing inclusive and sustainable development in both countries, with investments focused on key sectors, such as transportation, energy, urban development, education, rural development, health, and resilience. "At the Islamic Development Bank, we are committed to empowering our member countries and fostering partnerships that advance sustainable development. This renewed engagement with the IDB Group allows us to jointly deliver transformative projects that will enhance livelihoods, strengthen resilience, and promote shared prosperity in Suriname and Guyana," said IsDB President H.E. Dr. Muhammad Al Jasser. "We are joining forces with the Islamic Development Bank to unlock new co-financing opportunities in Guyana and Suriname, as well as cooperation with other member countries, to build resilience, foster inclusive growth, and improve lives," said IDB Group President Ilan Goldfajn. Beyond Suriname and Guyana, the partnership supports broader collaboration in common member countries and IDB member countries with significant Muslim populations. The MoU also aims to deepen cooperation between the two institutions in areas that promote inclusive growth, including trade and investment, as well as sustainable transportation solutions that enhance regional connectivity and climate resilience. The institutions reaffirmed their shared commitment to knowledge sharing and delivering impactful development solutions, as well as strengthening cooperation among Latin America and the Caribbean, Gulf States, and other stakeholders. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: Alcohol Tax Hikes Could Hurt Tourism ------------------------------------------------------- Ria Taitt at Trinidad Express reports that Trinidad and Tobago could become one of the most expensive destinations in the region for alcohol consumption, discouraging visitors and diminishing the value of event tourism, including Carnival, festivals, and conferences, Independent Senator Anthony Vieira has warned. Vieira made the statement as he contributed to the Senate debate on five Excise Orders aimed at increasing taxes on alcohol and tobacco by 100%, according to Trinidad Express. "Decision-makers have to balance public health objectives with cultural, social and economic considerations, in particular, having regard to the fact that in this country's alcohol consumption is deeply embedded in social life, in festivals, Carnival, celebrations, informal gatherings, where people have drinks," Vieira said, the report notes. "This cultural integration means that abrupt or excessive increases in duties can be viewed not merely as fiscal adjustments, but as intrusions on social practices. Imposing these increases with immediate effect just before the highest retail season, Christmas going into Carnival, has been described by some stakeholders as beyond reckless," he said, the report discloses. Vieira said the process by which these measures were introduced raises serious concerns, the report says. "These orders were published suddenly. As one stakeholder put it, 'Like a thief in the night.' To the best of my knowledge, information, and belief, there was no consultation with the hospitality sector, with importers, with distributors, or the tourism sector," Vieira said, the report relays. "Businesses had already placed Christmas and Carnival orders with containers en route to Trinidad when these new rates were gazetted . . . . The absence of prior notice or transitional period undermines business confidence and creates a perception of fiscal unpredictability," he added. Vieira said he was concerned about the potential economic and sectoral impacts that these orders may have on the tourism, Carnival, and hospitality sectors, the report relays. "The Caribbean tourism economy thrives on competitive pricing of experiences, including food, beverages, and entertainment . . . . What's the impact on consumers and small retailers? The small man is particularly affected. The neighbourhood bars, parlours, and roadside shops are integral to our social fabric. Sharp increases in excise duties will erode their margins, force price hikes, and reduce patronage," he said, the report. "For many low-income earners, I know, my gardener complained to me because he says, you know, that's the one thing he has to enjoy, the report discloses. But now the cost of a beer is $13. So for many low-income earners, this translates into an immediate loss of purchasing power and social recreation," Vieira added. He said while the stated aim may be to encourage local production, the sudden increases create cost pressures even for local brewers, the report relays. Vieira also raised legal issues with the EU Caribbean Forum Economic Partnership Agreement (EPA), under which Trinidad and Tobago committed to gradually eliminate import duties on certain EU-origin goods, including wine in containers exceeding two litres intended for blending, manufacturing, or re-bottling, the report discloses. Under that EPA, there was a mutual agreement that Trinidad and Tobago would receive certain concessions once it gradually reduced its duties and tariffs over a 25-year period, the report says. "So if these orders inadvertently impose or reimpose duties contrary to those commitments, Trinidad and Tobago risks being in breach of its international obligations under the EPA, and that in turn could expose us to diplomatic or trade repercussions," he said. Vieira said that while he agrees alcohol abuse is a serious problem in Trinidad, taxation, though a useful deterrent, must be balanced against the country's socioeconomic realities, the report relays. He said excessive increases may not reduce consumption but could simply shift demand to cheaper or illegal alternatives, such as babash, bay rum, or similar products, the report discloses. Vieira said the measure should be accompanied by public education, treatment programs, and road safety enforcement, not merely fiscal policies, the report relays. He urged the government to provide a transitional grace period, especially for goods already shipped before the gazetted date of the order, the report discloses. "The principle of legitimate expectation applies here, that government actions should be predictable, transparent, and allow reasonable time for compliance. A phased implementation, for instance, effective January 12026, would have allowed businesses to adjust their prices, to restock appropriately, and to honour pre existing contracts," he added. He added that relief or some kind of rebate mechanism should be considered. He recommended stakeholder engagement. "Taxation is a very powerful policy tool, but only when it is exercised with clarity, consultation and fairness. The excise duties now before us may well raise short-term revenue, but I think, I fear, they may risk long-term damage to business confidence, tourism competitiveness and compliance," he said, the report relays. TRINIDAD CEMENT: Slow T&T Sales Drive 24.2% Drop in Net Income -------------------------------------------------------------- Trinidad and Tobago Guardian reports that Claxton Bay-based Trinidad Cement Limited (TCL) reported net income of $159.6 million for the nine months ended September 30, 2025, a 24.2 per cent decline compared to the $210.6 million the cement manufacturer earned for the same period in 2024. In explaining the decline in TCL's net income, the company's chairman David Inglefield and managing director, Francisco Aguilera Mendoza, said the performance was "mainly due to lower sales in Trinidad and Tobago and increased expenses from fixed assets impairment; restructuring costs in Barbados following changes to the business model in Q2 2025, and severance payments in Q3 2025," according to Trinidad and Tobago Guardian. The company said its operating earnings before other expenses and other income and credits increased by 8 per cent year-over year to $374 million, the report notes, "Approximately 79% of year-to-date operative profits was attributable to our operation in Jamaica that continues to deliver a strong performance. Guyana's recorded operative profit increased by over 200 per cent compared to last year mainly due to higher volumes," TCL said, the report relays. TCL, which operates throughout the region, recorded revenue of $1.85 billion for the period January 1 to September 30, 2025, which was an increase of 8.7 per cent compared to the previous, the report says. The company posted $608 million in consolidated revenue in its third quarter, a 16 per cent year-on-year increase powered by strong sales in Jamaica and Guyana, the report discloses. While domestic sales in Trinidad & Tobago softened, favorable pricing across the region helped offset the dip, underscoring the group's strategic agility, the report relays. Inglefield and Mendoza credited the surge to effective cost optimization and a restructuring program rolled out earlier this year, the report relays. They said operating earnings before other expenses and credits soared 169 per cent to $171 million, with Jamaica contributing 88 per cent of the uplift, the report discloses. T&T, Guyana, and Barbados each added four per cent, reflecting broader regional momentum, the report says. Last year's results were dampened by Hurricane Beryl and severe weather in Jamaica, making this year's rebound even more notable, they noted, the report notes. Net income for the quarter more than doubled to $86 million, up from $35 million in Q3 2024, the report recalls. Operating cash flow reached $101 million, with $42 million invested in capital projects, including maintenance and strategic upgrades in Jamaica and Trinidad, the report notes. TCL also reported a $39 million reduction in loan facilities, signalling improved financial discipline, the report says. Dividends totalling $64 million were declared and distributed to shareholders, the report relays. On the sustainability front, CO2 emissions fell 7 per cent in Jamaica following the commissioning of a kiln debottlenecking project in July, the report notes. Trinidad also saw a modest 0.4 per cent reduction, reinforcing TCL's commitment to its Zero4Life decarbonisation strategy, the report discloses. Looking ahead, the TCL directors said the company is advancing its regional expansion plans, the report says. CCCL resumed exports in September and is preparing for bulk cement exports starting in March 2026, the report relays. Barbados, now operating as a distribution centre, is showing positive EBITDA and improved free cash flow, the report notes. "With projections pointing to record full-year EBITDA, TCL remains the only integrated cement manufacturer in Caricom and is doubling down on strategic growth, operational excellence, and shareholder value," the chairman added, the report adds. ============= U R U G U A Y ============= URUGUAY: Macroeconomic Risks Are Broadly Balanced, IMF Says ----------------------------------------------------------- The Executive Board of the International Monetary Fund (IMF) completed the Article IV Consultation for Uruguay. The authorities have consented to the publication of the Staff Report prepared for this consultation. The Staff Report relates that Uruguay's economy grew strongly in 2024, at 3.1 percent. Agricultural production, which had been affected by a severe drought the previous year, and growing inbound tourism, also contributed to improving the external position. The output gap nearly closed and the unemployment rate ticked down while inflation fell to 4.2 percent in August 2025, below the central bank target. With inflation expectations also declining, the central bank started easing monetary policy in July. In 2024, the fiscal deficit of the central government, including social security, increased to 3.2 percent of GDP, necessitating the activation of the fiscal rule's escape clause. A new administration took over in March 2025, with an agenda that seeks to balance inclusive growth with macroeconomic stability. Fueled by the post-pandemic recovery of real wages, a reduction in domestic uncertainty, and strong tourism flows earlier in the year, domestic demand and exports are expected to support real GDP growth in 2025, to 2.5 percent. Inflation is projected to converge around the central bank target of 4.5 percent, accompanied by a gradual easing of monetary policy. The current account deficit is expected to widen slightly to 1.7 percent of GDP in the medium term, in line with fundamentals. Macroeconomic risks are broadly balanced. Uruguay's economy remains sensitive to commodity price movements, global financial conditions, and regional developments. Ample liquidity buffers, long debt maturities, favorable borrowing conditions, and an increasing share of domestic debt issuances limit near-term fiscal risks, and systemic risks remain contained. Upside risks include strong agricultural harvests, favorable commodity prices, or opportunities to access new markets, among others. Executive Board Assessment Executive Directors highlighted the resilience of Uruguay's economy to external shocks, which has been supported by sound macroeconomic policies. They welcomed the authorities' progress in upgrading the fiscal and monetary policy frameworks, which will further buttress economic stability, and underscored the importance of sustaining the reform momentum to boost sustainable and inclusive growth. Directors welcomed the authorities' commitment to prudent fiscal policy and their five year budget plan to reduce the deficit and stabilize debt in the medium term. Noting that the fiscal deficit is expected to increase in 2025 due to fiscal inertia, they emphasized the importance of steadfast implementation of the fiscal rule. Directors underscored the need to deliver sustained fiscal consolidation to place debt-to-GDP on a steady downward path, including by considering additional fiscal efforts. They welcomed the proposed enhancements to the fiscal rule and the fiscal council, which are in line with previous IMF recommendations. Directors concurred that the monetary policy stance has been appropriately tight. They encouraged the authorities to maintain this stance until inflation expectations and inflationary pressures have firmly converged to target. Directors welcomed the improvement in the central bank's monetary policy framework and communication strategy, and encouraged strengthening de jure central bank independence to further bolster credibility. They agreed that the exchange rate should continue to act as a shock absorber with FX interventions limited to respond to disorderly market conditions, and they welcomed the renewed de‑dollarization efforts. Directors noted that the banking sector remains sound, well capitalized, and profitable. They welcomed the authorities' commitment to strengthening regulatory and supervisory frameworks, including through the implementation of the 2022 FSAP recommendations. Further strengthening AML/CFT effectiveness in line with FATF standards would also be important. Directors also encouraged developing the peso capital markets. Directors recommended structural reforms to revitalize growth and boost productivity. They encouraged enhancing educational outcomes, bolstering human capital, and leveraging Uruguay's AI readiness. Directors also stressed the need to improve competitiveness, including by streamlining business regulations, facilitating trade, and removing regulatory bottlenecks. They welcomed the government's proposal for wage negotiations, which aims to boost low incomes while contributing to deindexation efforts. Directors also welcomed reforms to encourage labor force participation and facilitate the integration of migrants. Continued efforts to improve climate resilience were also encouraged. ********* 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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