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251110.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, November 10, 2025, Vol. 26, No. 224 Headlines A R G E N T I N A ARGENTINA: Economists Believe US Treasury Has Sold Its Pesos ARGENTINA: May Not Need Bank Loan, JPMorgan CEO Says VICENTIN SAIC: Court to Rule on Winning Bidder, Clarin Says B E R M U D A NABORS INDUSTRIES: Moody's Affirms 'B1' CFR, Outlook Stable B R A Z I L AZUL SA: Advances in Chapter 11 Proceedings with Court Approval C O L O M B I A SIERRACOL ENERGY: Moody's Alters Outlook on 'B1' CFR to Negative M E X I C O CONTRATO DE FIDEICOMISO CIB4323: Moody's Cuts Secured Notes to Caa3 MEXICO REMITTANCES: Moody's Puts Ba3 Rating on Review for Downgrade P U E R T O R I C O DORADO PUTT PR: Case Summary & Five Unsecured Creditors T R I N I D A D A N D T O B A G O CONSOLIDATED ENERGY: S&P Cuts ICR to 'CCC+' on Liquidity Concerns U R U G U A Y MERCADOLIBRE INC: Moody's Puts 'Ba1' CFR Under Review for Upgrade - - - - - ================= A R G E N T I N A ================= ARGENTINA: Economists Believe US Treasury Has Sold Its Pesos ------------------------------------------------------------ Facundo Iglesia at Buenos Aires Times reports that Central Bank data released indicates that the United States Treasury has sold the pesos it bought ahead of the midterm elections for a significant profit, Argentine economists have said. If true, it would support the U.S. government's stance that it is not handing free money to Argentina. However, it has caused alarm in both countries over the political implications of interfering with the value of another country's currency, according to Buenos Aires Times. Ahead of Argentina's October 26 elections, the U.S. Treasury bought pesos to quell a run on the currency, Buenos Aires Times notes. Economists asked what the U.S. would do with the pesos, and, the Central Bank's balance sheet indicates that the Treasury already sold them, the report relays. Analysts calculate that the U.S. sunk well over US$2 billion to prop up the peso, although the figure has not been made public, the report discloses. Argentine and US authorities also confirmed a US$20 billion currency swap last month as part of a wider package of financial support, the report relays. When two governments agree on a currency swap, it does not become debt until one side or the other "activates" it, the report notes. Now, analysts have told the Herald that the U.S. appears to have either sold the pesos or converted them into part of the swap money, thereby activating it, the report discloses. Either option would result in a profit for the U.S, the report says. In such operations, it is understood that the U.S. Treasury is not buying cash pesos but rather short-term government debt, the report relays. The weekly balance sheet published showed that, by October 31, AR$2.75 trillion of peso-denominated securities had disappeared, the report discloses. Analysts believe those were the securities the Central Bank issued when it sold pesos to the U.S. during the currency run, the report says. Neither the U.S. Treasury nor Argentina's Central Bank has provided official information on the matter, the report notes. Pablo Moldovan, director of C-P consultancy, told the Herald that the balance sheet shows "a series of movements suggesting that the [US Treasury's] sale of dollars on the market was offset by the Central Bank taking on debt," the report relays. Moldovan said the movements are consistent with a two-stage debt operation in which the Argentine Central Bank issued a local-currency debt security to absorb the pesos the US Treasury bought (although no information on the rates or maturity dates of that new security has been published), the report notes. Then, the U.S. Treasury appears to have either bought another peso instrument from the Central Bank or switched back to dollars, the report says. The first option seems more likely, as the Central Bank's balance sheet showed that the "Other liabilities" category grew by almost 2.9 trillion pesos as the peso securities vanished, the report notes. Moldovan says this could indicate that the currency swap between the U.S. and Argentina was activated, the report says. Economist Christian Buteler told the Herald that the U.S. Treasury is likely to have "pocketed a profit" guaranteed by Argentina's Central Bank, the report discloses. If the U.S. Treasury bought back the dollars it sold in the currency market, he said, that would have strengthened the peso, and the U.S. Treasury would therefore have lost money, because it would have been able to buy fewer dollars with the pesos it had, the report says. He believes the new security issued by Argentina probably covered them from that loss, the report notes. Buteler also criticized the lack of transparency of the operation, the report relays. "These are all assumptions we make based on various documents presented by the Central Bank, because officially - and for me, that is perhaps the biggest mistake being made — there is no official information," he added. According to Moldovan, since it is new debt, the operation ahead of the elections made it possible to "conceal" a loss of net reserves, the report relays. It also allowed Argentina to get around the guidelines of its agreement with the International Monetary Fund, which prevents the sale of dollars below the ceiling of the currency band, the report says. He acknowledged that some of this financial data may not have been made public due to Argentina's "extreme" economic situation at the time but added that the government should publish the data now, since the "worst of the crisis is over," the report notes. "This is sensitive information for understanding the Central Bank's current financial situation," he told the Herald. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. The upgrade reflects the launch of a new IMF program, among other things. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. Moody's Ratings, in January 2025, raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. ARGENTINA: May Not Need Bank Loan, JPMorgan CEO Says ---------------------------------------------------- globalinsolvency.com reports that Argentina may not ultimately need a bank loan, JPMorgan Chase CEO Jamie Dimon said, adding Argentine President Javier Milei is doing a good job overhauling the country's troubled economy. "There is around $100 billion of foreign capital that may well come back to Argentina," Dimon said in a wide-ranging interview with Reuters in Detroit, according to globalinsolvency.com. 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. VICENTIN SAIC: Court to Rule on Winning Bidder, Clarin Says ----------------------------------------------------------- Jose Orozco at Bloomberg News reports that in Argentine court will decide on the winning bid for control of Vicentin SAIC after two bidders made competing claims of securing enough support from creditors of the bankrupt Argentine soy export giant, Clarín reported. Grains brokerage Grassi first disclosed its restructuring offer met the minimum threshold of acceptance from a majority of creditors representing at least two-thirds of the US$1.3 billion worth of unsecured debt in Vicentin, according to the newspaper, according to Bloomberg News. But the rival Molinos Agro and Louis Dreyfus Co consortium later said they submitted the winning offer and argued that support from Avir South SARL, Commodities SA and Vicentin Paraguay SA for Grassi's offer are invalid, Clarin reported, Bloomberg News relays. Judge Fabian Lorenzini, who is overseeing the process, will decide the winning bid, Bloomberg News notes. Vicentin, which entered bankruptcy protection five years ago after a US$1.5-billion default, owns a 33 percent stake in the world's biggest soy-processing plant in Rosario, Argentina, Bloomberg News says. ============= B E R M U D A ============= NABORS INDUSTRIES: Moody's Affirms 'B1' CFR, Outlook Stable ----------------------------------------------------------- Moody's Ratings affirmed Nabors Industries Ltd.'s (Nabors) B1 Corporate Family Rating, B1-PD Probability of Default Rating, and the B3 rating on its backed senior unsecured notes due 2028. The Ba3 ratings on Nabors Industries, Inc.'s (NII) two issues of backed senior unsecured global notes due 2027 and 2030 and the B3 rating on NII backed senior unsecured notes due 2031 were affirmed. A Ba3 rating was assigned to NII's proposed backed senior priority unsecured notes due 2032. The proceeds from NII's proposed notes offering, together with cash on hand, will be used to repay NII's notes due May 2027. The rating outlooks for Nabors and NII remain stable. "Nabors Industries' liquidity will benefit from the extended maturity profile with little debt maturing before 2029 following the proposed refinancing of the notes due 2027," stated James Wilkins, Moody's Ratings Vice President – Senior Analyst. "The company reduced leverage and improved liquidity following the repayment of debt using cash from the recent Quail Tools divestiture." RATINGS RATIONALE The Ba3 rating on the proposed NII notes due 2032 is the same as the NII notes due 2027 and notes due 2030 (SPGNs), because the proposed NII notes benefit from the same subsidiary guarantees as the existing super priority guaranteed notes (SPGNs) and therefore rank pari passu in the capital structure. Nabors' B1 CFR reflects moderate leverage, Moody's expectations that global drilling industry fundamentals and still healthy profit margins will support modest free cash flow generation, despite an uncertain macroeconomic and oil price outlook. The repayment of debt following the Quail Tools divestiture and the debt refinancing transactions will provide Nabors additional financial flexibility. Leverage (debt to EBITDA) will decline to ~2.2x, pro forma for the debt reduction. The international operations, which tend to be longer-term and less susceptible to volatile macroeconomic conditions, will continue to grow in 2026. The offshore business, while only accounting for a small portion of the company's revenue, is generating healthy profit margins. The US land rig business has maintained healthy gross margins, despite softness in the market leading to a decline in rig count. The rating also reflects the cyclical and competitive nature of the drilling industry with pricing and rig utilization rates not supporting free cash flow generation throughout industry cycles, and the company's significant level of debt and very complex capital structure. The credit profile is supported by Nabors' large scale, high quality rig fleet, long-standing contractual relationship with some of the world's largest oil companies and a strong and diversified international footprint. The SGL-2 rating reflects Moody's expectations that Nabors will have good liquidity through 2026 supported by cash and short-term investments, positive free cash flow and availability under its credit facilities. As of September 30, 2025, Nabors had $428 million of unrestricted cash and short-term investments, including $217 million that was held at a joint-venture and was not readily accessible. Moody's expects the company to generate positive free cash flow in 2026 and to modestly reduce debt. Nabors has an undrawn credit agreement which provides for up to $350 million in revolving loans (all borrowings were repaid in the third quarter 2025 with proceeds from the Quail Tools divestiture) and a separate tranche of up to $125 million in letters of credit ($75.2 million of letters of credit outstanding as of September 30, 2025). Availability is subject to a minimum collateral coverage threshold requirement. The revolver financial covenants include a minimum interest coverage ratio (EBITDA / interest expense) of 2.75x, and a minimum guarantor value, requiring guarantors and their subsidiaries to own at least 90% of the consolidated PP&E of the company. Moody's expects Nabors to comply with its credit agreement financial covenants through 2026. The credit agreement matures in June 2029, but is subject to a springing maturity date: (a) 90 days prior to the maturity of the 7.375% notes due May 2027 and 7.500% notes due January 2028, if more than 10% of the principal amount of the notes are outstanding 90 days prior to their maturity date or (b) 90 days prior to the maturity of the 1.750% notes due June 2029 if 50% or more of the principal amount of the notes remain outstanding. Nabors' next debt maturity is the 7.375% notes (SPGNs) maturing in May 2027, which the company is refinancing with the proposed notes, followed by the notes due 2028. The company also has an accounts receivable facility that allows it to sell up to $250 million of receivables, subject to the amount of eligible receivables. As of September 30, 2025, $137 million of receivables had been sold. The facility matures April 01, 2027, but is subject to a springing maturity date of 90 days prior to the maturity of the credit agreement. Nabors' debt capital structure includes a secured revolving credit facility and unsecured notes issued by Nabors and NII that have different subsidiary guarantees. Nabors Industries, Inc. (NII) has a senior secured revolving credit facility (unrated) that has a priority claim over Nabors' assets relative to the SPGNs issued by NII given the lower tier notes guarantors will be contractually subordinated in right of payment with respect to the lower tier notes guarantor's guarantee of the revolving credit facility. In addition to having a downstream guarantee from the parent (Nabors), the SPGNs have upstream guarantees from certain lower tier subsidiaries that are closer to Nabors' assets relative to the guarantors of the priority guaranteed senior unsecured notes (PGNs). The new senior unsecured notes being issued by NII are guaranteed by Nabors and are guaranteed by the same subsidiaries as the SPGNs issued by NII, and therefore are pari passu in the debt capital structure with the SPGNs. The SPGNs issued by NII are rated Ba3, one notch above the CFR. Moody's views the Ba3 rating on the SPGNs as more appropriate than the rating suggested by the Moody's Loss Given Default for Speculative-Grade Companies methodology model because of the tangible high quality nature of the rig fleet. The Nabors 2028 guaranteed unsecured notes (PGNs) are rated B3, two notches below the CFR, given their structurally subordinated position to the revolver and the SPGNs. NII has $250 million of senior unsecured exchangeable notes outstanding (unrated), that is the most junior debt in the capital structure owing to the lack of subsidiary guarantees. The stable outlook reflects Moody's expectations that Nabors will grow its international rig business and experience relatively stable demand for its rigs in the US lower 48 states through 2026. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade could be considered if Nabors generates meaningful free cash flow consistently and continues to reduce debt. The company being able to sustain leverage (debt/EBITDA) below 3x in a down cycle would be supportive of an upgrade. The ratings could be downgraded if debt/EBITDA rises above 4x or the company generates material negative free cash flow, does not proactively address debt maturities or its liquidity cushion erodes. The principal methodology used in these ratings was Oilfield Services published in October 2025. Nabors' B1 CFR is two notches below the scorecard indicated outcome of Ba2 due to more importance placed on the high absolute debt levels and earnings volatility that will weaken credit metrics in cyclical downturns, and lack of meaningful positive free cash flow. Nabors Industries Ltd., a Bermuda-incorporated entity, is one of the largest global land drilling contractors with operations in nearly two dozen countries and several offshore markets. Nabors Industries, Inc. is a wholly owned subsidiary of Nabors Industries Ltd. =========== B R A Z I L =========== AZUL SA: Advances in Chapter 11 Proceedings with Court Approval --------------------------------------------------------------- globalinsolvency.com, citing TipRanks.com, reports that Azul S.A. announced that the U.S. Bankruptcy Court for the Southern District of New York approved its disclosure statement, allowing the company to solicit votes on its chapter 11 reorganization plan. Additionally, the court approved Azul's backstop commitment agreement, which secures $650 million to support the company's planned capitalization, according to globalinsolvency.com. As reported in the Troubled Company Reporter-Latin America, Rick Archer of Law360 Bankruptcy Authority recently related that a New York bankruptcy court granted approval for a settlement between Brazil's airline Azul S.A. and its unsecured creditor committee, and moved forward its approximately $2.5 billion equity-swap Chapter 11 plan for creditor voting. The next step in Azul's restructuring will be the creditor solicitation and voting process, which will determine whether the company proceeds to emerge under the agreed terms or must return to negotiating alternative paths, the report states. About Azul S.A. Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of flight departures and cities served, offers 900 daily flights to over 150 destinations. With an operating fleet of over 200 aircrafts and more than 15,000 Crewmembers, the Company has a network of 300 non-stop routes. Azul was named by Cirium (leading aviation data analysis company) as the most on-time airline in the world in 2023. In 2020, Azul was awarded best airline in the world by TripAdvisor, the first time a Brazilian flag carrier earned the number one ranking in the Traveler's Choice Awards. On the Web: http://www.voeazul.com.br/imprensa On May 28, 2025, Azul S.A. and 19 affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 25-11176). The cases are pending before Judge Sean H. Lane. The Company is supported by Davis Polk & Wardwell LLP, White & Case LLP, and Pinheiro Neto Advogados as legal counsel; FTI Consulting as financial advisor; Guggenheim Securities, LLC as investment banker; SkyWorks Capital LLC as fleet advisor; and FTI Consulting, C Street Advisory Group, and MassMedia as strategic communications advisors. Stretto is the claims agent. The Participating Lenders are supported by Cleary Gottlieb Steen & Hamilton LLP and Mattos Filho as legal counsel and PJT Partners as investment banker. United Airlines is supported by Hughes Hubbard & Reed LLP and Sidley Austin LLP as legal counsel and Barclays Investment Bank as investment banker. American Airlines is supported by Latham & Watkins LLP as legal counsel. AerCap is supported by Pillsbury Winthrop Shaw Pittman LLP as legal counsel. The U.S. Trustee for Region 2 appointed an official committee to represent unsecured creditors in the Chapter 11 cases. The Committee retained Willkie Farr & Gallagher LLP as its counsel, Alvarez & Marsal North America, LLC, as its financial advisor, Houlihan Lokey Capital, Inc., as its investment banker. =============== C O L O M B I A =============== SIERRACOL ENERGY: Moody's Alters Outlook on 'B1' CFR to Negative ---------------------------------------------------------------- Moody's Ratings has affirmed SierraCol Energy Limited's (SierraCol) B1 Corporate Family Rating and SierraCol Energy Andina, LLC's (SierraCol Andina, SierraCol's wholly owned subsidiary) B1 backed senior unsecured rating. Moody's also assigned a B1 rating to the $600 million proposed guaranteed senior unsecured notes, co-issued by SierraCol Energy Andina, LLC; SierraCol Energy Arauca, LLC; and Colombia Energy Development Co. Moody's also changed the ratings outlook to negative from stable. Proceeds from the proposed issuance are expected to fund a tender offer of up to $300 million for the 2028 Notes and to distribute a special dividend to shareholders. The rating of the proposed notes assumes that the final transaction documents will not be materially different from draft legal documentation reviewed by Moody's to date and assume that these agreements are legally valid, binding, and enforceable. RATINGS RATIONALE The outlook change to negative reflects the additional debt, which does not increase SierraCol's scale and will weaken its credit profile. Ratings remain contingent on improvement in key metrics over the next two years. The new debt is expected to increase leverage, interest expenses, and dividend distributions in 2025. However, stronger production in 2026 and prudent financial policies should support a gradual recovery in credit metrics. SierraCol's B1 ratings are based on its relatively small asset base and crude oil production, as well as high operating risks due to geographic concentration and mature Colombian oil and gas assets. Offsetting these risks are strong operating margins (at least 45% adjusted EBITDA), low leverage, and high interest coverage for the B1 category. SierraCol also benefits from a strong management team and support from The Carlyle Group through Carlyle International Energy Partners (CIEP). Despite the planned $600 million issuance (adding about $300 million in new debt), SierraCol's capital structure and credit profile are expected to remain consistent with the B1 rating. The remaining $300 million will partially refinance the existing $600 million 2028 Notes. Moody's projects SierraCol's debt-to-EBITDA ratio will rise to 1.8x in 2025 (from 1.3x in June 2025), then moderate to 1.5x in 2026. Interest coverage (EBITDA/interest expense) is forecast to decline to 9.9x in 2025 (from 10.8x in June 2025), and to 7.5x in 2026. Higher dividends are expected in 2025, resulting in negative retained cash flow to debt (-5.6%), but this ratio should recover to a positive 30.7% in 2026 if dividend payouts decrease. SierraCol maintains good liquidity, with $148.6 million in cash and equivalents as of September 2025. Additionally, the company has access to $120 million through its Revolving Credit Facility, which is expected to increase following an extension of its maturity, according to preliminary Notes documentation. Expected cash flow from operations averages $450 million annually for 2025-26, sufficient to cover capital expenditures, operating expenses, planned dividends, and other obligations. The negative outlook reflects pressure on SierraCol's credit profile due to rising debt and the expectation that, if production and reserve replacement targets are met, credit metrics could improve modestly over the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The outlook on SierraCol's ratings could be revised to stable if the company demonstrates effective management of the anticipated deterioration in credit metrics over the next 12 to 18 months. An upgrade of the ratings is considered unlikely within the next 12 months, given the current negative outlook. However, upward rating pressure could emerge if SierraCol achieves a sustained increase in production to between 80,000 and 100,000 barrels of oil equivalent per day (boepd), with minimal deterioration in financial metrics; maintains a leveraged full-cycle ratio—measuring the company's ability to generate cash after operating, financial, and reserve replacement costs—consistently above 2.5x; keeps exploration and production (E&P) debt/proved developed reserves below $10.0 per barrel of oil equivalent; and avoids any material deterioration in its liquidity position. Conversely, a downgrade of SierraCol's ratings could occur if retained cash flow (RCF, defined as cash flow from operations before working capital requirements less dividends) to total debt remains below 25%, reflecting a more aggressive financial policy with respect to future dividend distributions; if interest coverage, measured as EBITDA to interest expense, remains below 4.0x; if E&P debt/proved developed reserves remains above $11.0 per barrel of oil equivalent; or if the company experiences any material deterioration in its liquidity position. The principal methodology used in these ratings was Independent Exploration and Production published in December 2022. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. PROFILE SierraCol is an exploration and production (E&P) company with conventional onshore oil assets located in the Llanos, Middle Magdalena, and Putumayo basins of Colombia. As of December 2024, the company's proved reserves totaled 81.8 million barrels of oil. SierraCol's average daily production net of royalties reached 36.5 Mboe/d, with 99% being crude oil, as of September 2025. While SierraCol's reserves and production are modest compared to global E&P companies, a reserve life of 7.1 years is considered adequate. =========== M E X I C O =========== CONTRATO DE FIDEICOMISO CIB4323: Moody's Cuts Secured Notes to Caa3 ------------------------------------------------------------------- Moody's Ratings has downgraded the rating on one class of Contrato de Fideicomiso Irrevocable de Emisión, Administración y Pago No. CIB 4323 as follows: Senior Secured Notes, Downgraded to Caa3 (sf); previously on Sep 11, 2025 Downgraded to B3 (sf) and Placed On Review for Downgrade RATINGS RATIONALE The rating was downgraded primarily due to the loan's delinquent status based on the missed interest payment on the September 2025 payment date, the absence of payment during the subsequent 30-day grace period, and the continued lack of funding of the required Debt Service Reserve Account (DSRA). Furthermore, the Dreams hotel is no longer expected to commence operations in the fourth quarter of 2025 and the sponsor has reported they are currently in discussions with the noteholders regarding restructuring of the notes with potential changes to the original purpose of the building. The rating action also reflects the high Moody's LTV ratio and the potential for higher expected losses given the payment default, the performance of the operating collateral and uncertainty of the opening timeline and use of the Dreams hotel. The action concludes the review for downgrade that was initiated on September 11, 2025. The collateral is primarily secured by two full-service hotels, the Vivid (414 rooms) and the Dreams (600 rooms). The Vivid hotel opened in the second quarter of 2024 and through the first eight months of 2025 the property's average daily rate (ADR) has been significantly below Moody's initial expectations causing lower than anticipated net cash flow (NCF) at this property. The Dreams hotel has not yet opened, and the opening date remains uncertain. Moody's have also not received any update on the Hyatt Franchise agreement that was originally contingent on the Dreams Hotel opening no later than July 01, 2025. METHODOLOGY UNDERLYING THE RATING ACTION The principal methodology used in this rating was "Large Loan and Single Asset/Single Borrower Commercial Mortgage-backed Securitizations" published in January 2025. Factors that would lead to an upgrade or downgrade of the rating: The performance expectations for a given variable indicate Moody's forward-looking view of the likely range of performance over the medium term. Performance that falls outside the given range can indicate that the collateral's credit quality is stronger or weaker than Moody's had previously expected. Factors that could lead to an upgrade of the rating include a significant amount of loan paydowns or amortization or a significant improvement in loan performance. Factors that could lead to a downgrade of the rating include a decline in the performance of the loan or an increase in realized or expected losses. DEAL PERFORMANCE As of the September 12, 2025 distribution date, the transaction's aggregate note balance increased to $306.0 million, from $300.0 million at securitization due to the payment-in-kind ("PIK") structure of the transaction for the first three years of the securitization. The securitization is backed by a single fixed rate loan collateralized by the Grand Island Cancun I Hotel Resort (the "GIC I Hotel", or the "Portfolio") located in Cancun, Mexico. The Portfolio consists of three properties: (i) The Hyatt Vivid Grand Island Hotel (the "Vivid Hotel"), which is a 414-guestroom, all-inclusive resort and the Dreams Grand Island (the "Dreams Hotel"), which is a 600-guestroom, all-inclusive resort, each located on a parcel of land known as "Private Unit 1"; (ii) A parcel of land where the Grand Island Cancun Spa will be developed known as "Private Unit 2"; and (iii) A leasehold interest with respect to The Grand Island Beach Club (the "Beach Club"), which provides amenities and services to guests of the Vivid and Dreams hotels as well as hotels to be built in the future as part of the GIC Complex. The loan's sponsor is Murano Global Investments PLC ("Group Murano"). The Vivid hotel (414 rooms) opened for business during 2024 and is operating at lower than expected NCF and the Dreams hotel (600 rooms) has not yet opened. In recent filings the sponsor reported the hotel is expected to commence operations in the fourth quarter of 2025, but that timeline remains uncertain and will be delayed until at least 2026. Furthermore, on September 30, 2025, the loan's sponsor, Group Murano, filed form 6-K indicating that while the interim financial statement were prepared assuming they will continue as a going concern, management has identified material uncertainties that may cast substantial doubt on the ability of the company to continue as a going concern. The sponsor also disclosed that they are currently evaluating whether to continue with the Dreams hotel or to convert a portion of the Dreams to residential units. The combination of the Dreams hotel not operating and lower performance from the Vivid hotel has caused the NCF to be well below Moody's expectations and the NCF has not been sufficient to cover required debt service payments. The lower performance of the Vivid hotel is primarily due to lower than expected Average Daily Rates (ADR) and Revenue per Available Room (RevPAR) as a result of competitive pressure from surrounding hotels. The reported ADR and RevPAR for the Vivid hotel during the first eight months of 2025 averaged $280 and $196, respectively, and occupancy rates during the same period ranged averaged 70%. The transaction pays interest and PIK interest semi-annually, in March and September. While the March 2025 payments were made using funds from the Debt Service Reserve Account (DSRA), the DSRA was not funded on a monthly basis for the September 2025 payment date and remains unfunded. The sponsor published a press release on October 15, 2025 indicating that the September payment was not made within the 30-day grace period following the September 12, 2025 payment date and they are in discussions with the noteholders around potential consensual restructuring of the notes. Additionally, the hotel management agreement with Hyatt was contingent on the Dreams hotel opening no later than July 01, 2025, and Moody's have not received any definitive update on this agreement. Moody's values is based on stabilized net cash flow across both hotels and incorporates projections based on trends in the hotel's market and the current performance of the Vivid Hotel. While Moody's stabilized cash flow and cap rate are in-line with Moody's prior review, this rating action reflects the potential for higher expected losses based on the payment default and potential restructuring of the debt. The current mortgage balance of $306.0 million (which is inclusive of the 2% capitalized interest that occurred during the September 2025 remittance) represents a Moody's LTV of 129% compared to the Moody's LTV of 89% based on the original balance of $300 million at securitization. Moody's analysis also assumes the expected further capitalization of interest over the allowable period, which if occurred could increase the mortgage balance to approximately $318.5 million. Inclusive of this capitalized amount, Moody's LTV would increase to 134%. MEXICO REMITTANCES: Moody's Puts Ba3 Rating on Review for Downgrade ------------------------------------------------------------------- Moody's Ratings has placed under review for downgrade the rating on the following Notes issued by Nueva Elektra del Milenio -Mexico Remittances Funding Fiduciary Estate Series - Public Credit Rating: US$350M Series 2024-1 Fixed Rate Notes, Class A Notes, Ba3 Placed On Review for Downgrade; previously on Oct 29, 2024 Definitive Rating Assigned Ba3 The Notes are backed by remittance reimbursement receivables that are Mexican peso-denominated reimbursement rights that arise from money transfer agreements and all other reimbursement-based contracts Nueva Elektra del Milenio, SA de CV. ("NEM") has entered in with the remitters whether now in existence or entered into in the future. The issuer is a Luxemburg SPV fiduciary estate that is managed by Mexico Remittances Funding Fiduciary Estate Management (the "Fiduciary"), a private limited liability company incorporated under Luxemburg law. The Fiduciary is entirely owned and operated by a foundation ("Stichting"), incorporated under the laws of the Netherlands. The remittances backing the securitization include all rights, titles and interests (but none of the obligations) of NEM in all amounts owed or to be owed by a remitter to NEM in connection with the settlement of Peso-denominated Payment Orders paid out by NEM under any Reimbursement Remittance Transaction, excluding any commissions. The rating is mainly based on the financial and operational strength of NEM, its fundamental importance in the Mexico remittance market, its crucial role as the premier provider of money transfers from the US in Mexico and the Guarantee provided by Grupo Elektra, S.A.B. de C.V. to unconditionally and irrevocably guarantee the full and prompt payment of any default payment due under the Notes. RATINGS RATIONALE The rating action taken is the result of a rating action on NEM' rating, which was placed under review for downgrade on October 23, 2025. Methodology Underlying the Rating Action The principal methodology used in this rating was "Future Receivables Securitizations" published in April 2024. Factors that would lead to an upgrade or downgrade of the rating: Moody's notes that this transaction is subject to a high level of macroeconomic uncertainty, which could negatively impact the rating of the Notes, as evidenced by (1) uncertainties of credit conditions in the general economy and (2) more specifically, any uncertainty associated with the underlying credits in the transaction could have a direct impact on the transaction. ===================== P U E R T O R I C O ===================== DORADO PUTT PR: Case Summary & Five Unsecured Creditors ------------------------------------------------------- Debtor: Dorado Putt PR, LLC 1250 Ponce De Leon Ave. Ste. 301 San Juan, PR 00907 Business Description: Dorado Putt PR, LLC operates as an investment company engaged in financial and investment activities, based in Sanâ€¯Juan, Puerto Rico, serving the local financial services industry. Chapter 11 Petition Date: October 29, 2025 Court: United States Bankruptcy Court District of Puerto Rico Case No.: 25-04894 Debtor's Counsel: Alexis Fuentes-Hernandez, Esq. FUENTES LAW OFFICES, LLC P.O. Box 9022726 San Juan PR 00902-2726 Tel: (787) 722-5215 Email: fuenteslaw@icloud.com Total Assets: $39,696,936 Total Liabilities: $22,389,444 The petition was signed by Frank Gadams as manager. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/ZPJQTVA/DORADO_PUTT_PR_LLC__prbke-25-04894__0001.0.pdf?mcid=tGE4TAMA List of Debtor's Five Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Promethean Fund IV, LP Capital Call $22,156,652 3330 Pacific Avenue Suite 501 Virginia Beach, VA 23451 2. Baughman Kroup Bosse PLLC Legal Services $133,481 One Liberty Plaza 46th Floor New York, NY 10006 3. Azraps, LLC Contractual $45,320 C/O Raffaele Allen Agreement 207 Granby St. Ste. 203 Norfolk, VA 23510 4. GTG Investments, LLC Contractual $33,990 C/O Grayson Gadams Agreement 7307 Heron Lane Norfolk, VA 23505 5. McIntyre Thanasides, P.A., P.C. Legal Services $20,000 c/o John D. McIntyre 150 Boush Street Suite 401 Norfolk, VA 23510 ===================================== T R I N I D A D A N D T O B A G O ===================================== CONSOLIDATED ENERGY: S&P Cuts ICR to 'CCC+' on Liquidity Concerns ----------------------------------------------------------------- S&P Global Ratings lowered its long-term issuer credit and issue-level ratings to 'CCC+' from 'B' on Consolidated Energy Ltd. (CEL) and on its secured and unsecured debt. The stable outlook reflects S&P's expectation that the company will navigate industry and economic challenges while refinancing upcoming maturities, though it continues to depend on favorable conditions. CEL's short-term liquidity position is strained by upcoming debt maturities, a situation further complicated by weaker-than-expected operating cash flow. CEL faces a $224 million (as of June 30, 2025) 6.5% senior unsecured note maturity in 2026 (within the next 12 months). S&P said, "We assess CEL's liquidity as weak, given its current cash position, partially drawn committed credit lines, and decreased cash flow from operations in Trinidad and Tobago (T&T) and Oman. We acknowledge that CEL is actively looking for refinancing options, and we'll follow closely its efforts. We are now deconsolidating Natgasoline's numbers from our calculation of CEL's key financial ratios to better reflect the ringfencing around the project." S&P said, "We now forecast adjusted debt to EBITDA will remain at 7.0x-9.0x for at least the next two years. Adjusted EBITDA for the first six months of 2025 was approximately $133 million (excluding Natgasoline), with an adjusted EBITDA margin of 18% (down from 25.8% at the end of 2024). Year to date, CEL's adjusted methanol sales (excluding Natgasoline) have decreased by 13%, primarily due to production interruptions, highlighting the planned and unplanned outages of the T&T and Oman operations. While insurance has covered some plant disruptions in the past, recovery amounts have not adequately compensated for the EBITDA the company could have otherwise generated. "Our revised 2025 adjusted forecast indicates that EBITDA will be constrained because of lower methanol production in T&T, while prices remain at lower levels. Consequently, we now anticipate adjusted EBITDA margins of 18%-22% over the next 24 months, down from our previous estimates of approximately 30%. Although asset retirement obligations (AROs) have decreased significantly, from $240 million to $70 million, we now anticipate that CEL's adjusted debt will remain at $2.8 billion, as the reduction in AROs was offset by the exclusion of Natgasoline's cash balance. "The company's prioritization of its parent's (Proman AG) interests, over its deleveraging and reduction of refinancing risks, has eroded its financial policy. We previously expected the December 2025 repayment of an approximately $360 million loan from its parent to drive a rapid improvement in CEL's debt to EBITDA. However, the extension of this loan's repayment to 2031 has significantly reduced our expectation of CEL's deleveraging in the near term. This increases the risk of unpredictable credit metrics and weaker performance than in our prior projections. Despite the 10.25% interest rate on the loan from Proman, CEL continues to incur higher interest expenses, as seen in the 12% interest rate on its bonds it refinanced in early 2024, suggesting potentially adverse financial policy decisions. "A timely parent loan repayment would have reduced CEL's deleveraging risk and reinforced typical parent-subsidiary financing. We believe Proman could better support CEL by strengthening its capital structure. For instance, the company could have benefited from the full repayment of its upcoming $224 million senior unsecured notes due 2026. Refinancing these notes will now result in a higher interest rate, foregoing the current favorable 6.5% rate. As of this report's date, the company's long-term maturity bonds are trading with a yield above 15%. "We believe that there is downside risk stemming from historically inconsistent production--due to outages and disruptions--and potential economic and operational challenges in the next 12-24 months. Our current forecast does not anticipate production disruptions; however, the company has experienced recurring unplanned outages across its facilities, which have historically reduced operating cash generation. We now also expect external risks to potentially pressure credit metrics beyond our base-case assumptions. These risks include the possibility of slower economic growth, increased market competition, changes in U.S. trade policies, and constraints on natural gas feedstock. CEL benefits from mitigating factors such as its established presence in the U.S. market, strategic alliances with natural gas suppliers in Trinidad, and participation in the methanol market and a strong presence in the ammonia/aum markets, which has demonstrated relative stability. "Our stable outlook reflects our view that CEL's operating performance will continue to face challenges in the next 12 to 18 months because of the macroeconomic and competitive environment resulting in lower profitability and weak liquidity. The outlook reflects our view that debt to EBITDA will remain well above 5.0x and the company will continue its efforts to refinance its notes due 2026." S&P could lower its ratings if it sees a heightened likelihood of a payment default or distressed debt exchange within the next 12 months. This could occur if: -- The company does not address the refinancing risk associated with its upcoming 2026 debt maturities. -- A deterioration in economic or operating conditions beyond S&P's expectations, resulting in operating cash declines denting its liquidity position, which would indicate a diminished financial strength and an increased risk of failing to meet liabilities. S&P could raise the ratings if CEL can deleverage resulting in a capital structure that it would view as sustainable. An upgrade would also hinge on the company's ability to maintain adequate liquidity. This could occur if: -- The company operates at constant production rates, reducing operating risks. -- Favorable market and economic conditions bolster revenue and EBITDA through improved pricing or increased demand. -- S&P sees tangible financial support from the parent for deleveraging and/or strengthening liquidity. ============= U R U G U A Y ============= MERCADOLIBRE INC: Moody's Puts 'Ba1' CFR Under Review for Upgrade ----------------------------------------------------------------- Moody's Ratings has placed MercadoLibre, Inc.'s (MELI) Ba1 Corporate Family Rating and senior unsecured notes' ratings under review for upgrade. Previously, the outlook was stable. The action reflects consistent improvement in MELI's credit metrics and enhanced credit risk disclosure on its fintech business. RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The review for upgrade of MELI's ratings reflects Moody's expectations on the company's ability to sustain strong operational results, reliable access to funding channels for its credit portfolio, and continue enhancing transparency in the fintech segment through detailed disclosures. MELI's proactive reporting of granular data—such as historical credit portfolio performance indicators—has enabled us to perform a more thorough risk analysis and improve Moody's confidences in its risk management and operational rigor. Furthermore, MELI's commitment to regular financial disclosures to regulators in Brazil and Mexico, combined with its plans to obtain digital bank licenses in Mexico and Argentina in the near term, highlights a forward-thinking stance towards regulatory compliance and adaptation of its business model to evolving market demands. MELI's strong credit profile is supported by its leading position as Latin America's largest online marketplace, a well-known brand, and experienced management. Its broad regional reach and integrated e-commerce and fintech services drive robust user engagement and support growth, especially given the region's underpenetrated digital sales market and limited fintech access for small businesses and consumers. The fintech division leverages the marketplace to cross-sell and uses behavioral and third-party data for credit analysis, achieving solid origination and lending results with conservative funding. However, MELI's ratings are constrained by exposure to event risks that could restrict securitization market access, a key funding source for fintech expansion, and by high credit risk retail loans, though these are partly offset by high interest rates and strong provisioning. MELI's ratings are currently under review for a possible upgrade, contingent on sustained operating performance and no significant increase in credit risk within the fintech business. Based on quantitative measures and with the commerce business currently as the main source of revenue and profit, an upgrade would require maintaining EBITA to interest expense ratio above 6.0x (9.45x as of LTM Sep-25) and lease-adjusted debt to EBITDA below 3.5x (2.4x LTM Sep-25). MELI's rating movements are subject to the ratings' relative position to the Government of Brazil's (Ba1 stable) ratings. MELI's liquidity profile is good due to its robust cash position and diversified funding sources. The company reported $2.6 billion in cash and cash equivalents as of September 2025, excluding an additional $6.6 billion in restricted cash primarily held for Central Bank guarantees. Additionally, as of the twelve months ended September 2025 (LTM Sep-25), MELI generated approximately $1 billion in adjusted free cash flow, and Moody's expects it to sustain a range of $1.0- $1.5 billion in 2025–2026. MELI uses internally generated cash flow and external financing sources—primarily unsecured debt and securitization of credit card and loan receivables—to fund its fintech operations. The company also has access to an $800 million revolving credit facility with the full borrowing capacity available as of September 2025, offering additional flexibility and security for future needs. Despite rising debt related to the fintech business, Moody's expects MELI to maintain a lease-adjusted debt to EBITDA ratio near 2.5x-3.0x during fiscal years 2025–2026, compared to 2.3x as of LTM Sep-25. COMPANY PROFILE MercadoLibre Inc., founded in 1999 in Uruguay, is Latin America's leading e-commerce and payment platform. By Q3 2025, it operated in 18 countries with $16.5 billion in gross merchandise value, $71 billion in total payment volume, and $26.2 billion in LTM revenue. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. MELI's Ba1 rating is two notches below the Baa2 indicated by Moody's Business and Consumer services methodology scorecard as of September 2025. This is mainly due to the company's credit and origination risks associated with its fintech business. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *