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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 17, 2025, Vol. 26, No. 229
Headlines
A R G E N T I N A
ARGENTINA: Extends Agricultural Emergency in Key Farming Regions
ARGENTINA: Milei Keeps Peso From Driving Huge Price Hikes
ARGENTINA: October Inflation Ticks Up to 2.3%
EDENOR: Moody's Rates New $184MM Unsec. Notes Due 2030 'B3'
PAMPA ENERGIA: Fitch Assigns 'B' Rating to New Sr. Unsecured Notes
PLUSPETROL SA: Moody's Rates Up to $500MM Unsecured Notes 'B1'
B A H A M A S
FTX GROUP: Ex-Bank Owner Fights FTX Investment Clawback Attempt
B E R M U D A
NABORS INDUSTRIES: Fitch Hikes LongTerm IDR to 'B', Outlook Stable
C O L O M B I A
CITY OF MEDELLIN: Fitch Affirms 'BB+' IDR, Outlook Neg.
J A M A I C A
JP FARMS: Suffers Near Total Loss of Banana, Plantain Crops
M E X I C O
ALSEA SAB: Moody's Affirms 'Ba3' CFR & Alters Outlook to Positive
COEUR MINING: Moody's Puts 'B2' CFR Under Review for Upgrade
COEUR MINING: S&P Places 'B+' Issuer Rating on Watch Pos.
P U E R T O R I C O
TOWER BONDING: A.M. Best Affirms B(Fair) Fin'l. Strength Rating
V E N E Z U E L A
VENEZUELA: Efforts to Disqualify Judge in Debt Case Come Up Short
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A R G E N T I N A
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ARGENTINA: Extends Agricultural Emergency in Key Farming Regions
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Buenos Aires Times reports that Argentina's government has declared
and extended an agricultural emergency across major farming areas
in the provinces of Entre Rios, Buenos Aires and Rio Negro
following severe weather that has damaged crops and livestock
production.
The measures, disclosed by the Economy Ministry and published in
the Official Gazette, are aimed at supporting producers affected by
hailstorms, floods and droughts, according to Buenos Aires Times.
In north-eastern Entre Rios Province, the district of Mandisovi –
part of the Federacion department near the border with Uruguay –
was declared under emergency status after citrus growers reported
significant losses from hail and strong winds, the report notes.
The declaration covers a period from May 2025 to May 2026, the
report discloses.
Further south in Buenos Aires Province, Resolution 1776/2025
extends an agricultural emergency from September 2025 to February
2026, the report says. The measure applies to flood-affected farms
in rural areas surrounding the towns of Bolivar, Nueve de Julio,
Carlos Casares and Tapalque, part of the province's central
grain-producing belt, the report notes.
In Rio Negro Province, northern Patagonia, a state of emergency was
prolonged from June 2025 to May 2026 for cattle farms suffering
from prolonged drought across several departments, including
Avellaneda, Conesa, El Cuy, General Roca, Pichi Mahuida and 9 de
Julio. Coverage was also broadened to include additional
drought-hit areas such as Norquinco, Pilcaniyeu and May 25, the
report relays. Across all affected regions, May 2026 has been set
as the end of the relevant production cycle, the report discloses.
Farmers seeking financial relief under the Agricultural Emergency
and Disaster Law (Law 26,509) must present a certificate issued by
their provincial authorities confirming that their land lies within
the designated emergency zones, the report notes. Provincial
governments are then required to submit lists of affected producers
to the National Commission for Agricultural Emergencies and
Disasters, which coordinates federal aid, the report says.
Public and semi-public banks, as well as the national Revenue and
Customs Control Agency (ARCA), have been instructed to ensure that
eligible producers receive tax and credit benefits, the report
relates.
The Economy Ministry also authorized the Agriculture, Livestock &
Fisheries Secretariat to sign agreements and implement measures to
put the emergency relief plan into effect, the report adds.
About Argentina
Argentina is a country located mostly in the southern half of
South America. Its capital is Buenos Aires. Javier Milei is the
current president of Argentina after winning the November 19,
2023 general election. He succeeded Alberto Angel Fernandez
in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal
year 2019, according to the World Bank. Historically, however,
its economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
In March 2022, the International Monetary Fund (IMF) approved a
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota) -- with an approved immediate
disbursement of an equivalent of US$9.65 billion. Argentina's
IMF-supported program sought to improve public finances and start
to reduce persistent high inflation through a multi-pronged
strategy.
On April 11, 2025, the IMF further approved a 48-month Extended
Fund Facility (EFF) arrangement for Argentina totaling US$20
billion (or 479 percent of quota), with an immediate disbursement
of US$12 billion, and a first review planned for June
2025 with an associated disbursement of about US$2 billion. The
program is expected to help catalyze additional official
multilateral and bilateral support, and a timely re-access to
international capital markets.
Moody's Ratings on July 17, 2025, upgraded Argentina's
long-term foreign currency and local currency issuer ratings to
Caa1 from Caa3 and changed the outlook to stable from positive.
The upgrade reflects Moody's views that the extensive
liberalization of exchange and (to a lesser extent) capital
controls, alongside a new International Monetary Fund (IMF)
program, support the availability of hard currency liquidity and
ease pressure on external finances. This reduces the likelihood of
a credit event. In January 2025, Moody's raised Argentina's local
currency ceiling to B3 from Caa1 and the foreign currency ceiling
to Caa1 from Caa3.
Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term
Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to
'CCC+' from 'CCC'. 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+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local
Currency Issuer Ratings to B (low) from CCC in November 2024.
ARGENTINA: Milei Keeps Peso From Driving Huge Price Hikes
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Buenos Aires Times reports that Romina Jara has navigated five runs
on the peso in recent years. This year brought the sixth. But
unlike in the past, Jara – a manager in a wholesale supermarket
– and other shopkeepers don't plan on passing on the cost
increase to customers, at least not immediately, according to
Buenos Aires Times. "This time, we're not going crazy and rushing
to raise prices," the 46-year-old said, the report notes.
Among the reasons for this: weak consumer spending in Argentina and
President Javier Milei's crusade against inflation, which includes
deep budget cuts, a tight grip on the currency and a move by the
Central Bank to stop printing money to finance public spending, the
report notes. But, despite lower inflation overall, many consumers
are feeling the squeeze from rising bills for school tuition,
private health-insurance and other expenses, the report discloses.
Shoppers increasingly stick to essentials and foot traffic is
thinning, limiting the ability of businesses to raise prices, the
report says.
As a result, declines in the peso are fuelling smaller increases in
consumer prices than in the past, the report relays. One618, a
local brokerage, estimates that each one percent drop in the peso
pushes the national inflation index up 0.17 percent, far below the
long-term average of 0.5 percent in Argentina, the report says.
Analysts point out three factors that might limit the impact of the
recent peso devaluation, which has declined more than 20 percent
against the dollar since June, on inflation: the slowing economy
that's restraining demand; Milei's tighter fiscal and monetary
stance; and the government's determination to defend the peso's
trading band, come what may, the report notes. Should the effects
last, the economy could regain some of the competitiveness it lost
in recent years due to inflation, the report says.
Still for Jara the steadiness in prices isn't a good sign, the
report discloses. Sales in her supermarket are down 30 percent to
40 percent this year compared to the prior-year period, making her
hesitant to raise prices, the report notes. Jara held off on
repricing for two months and now portions cheese to keep shoppers'
bills low, the report says.
"Sales are really weak and we can't afford to raise prices," she
said, notes the report. "If you raise prices, you don't sell."
Jara now organises raffles and tastings to attract more people to
her shop, the report adds.
Other businesses are under similar strain. Retail sales have
declined eight out of 10 months so far this year, according to
CAME, an organization that represents 400,000 mid-size companies,
the report notes. Confidence among supermarket executives in
August fell to the lowest level in more than a year, according to a
recent survey by the INDEC national statistics bureau, the report
says. More than a third of respondents rated their companies'
situation as poor, with only 12.5 percent describing it as good,
the report discloses. The next edition of the survey is consumer
price data for October, the report adds.
"The pass-through should be lower than in previous episodes because
activity is weak and the fiscal stance is in order," said Ivan
Stambulsky, an economist at Barclays. "This depreciation isn't
being aggravated by expectations that it will recur, the report
relays. The starting point for inflation is low, the fiscal
situation is in order, and economic activity is weak," he added.
The bond market in turn is pricing in a decline in implied
inflation over the coming months, from current levels near 30
percent to about 19 percent in 2026, according to local brokerage
Max Capital, the report notes.
That would mark a big change for entrepreneurs like Ana Paz, who
runs a supermarket chain north of Buenos Aires, the report notes.
Paz still recalls the jitters from sudden peso devaluations in the
past, for example in August 2023, when annual inflation shot up to
124 percent, the report discloses. Suppliers, Paz said, at the
time preferred to sit on their goods rather than sell, the report
relays. "I preferred to buy everything before everything went to
hell," she said. "Retailers would even raise prices more than
necessary – preemptively, so they wouldn't be left behind," she
added.
After Milei's party suffered a landslide defeat in regional
elections in Buenos Aires Province in September, some boutique
wineries raised prices by 2.5 percent to five percent almost
immediately, the report notes. "But most of the market, including
big brands like Arcor and Coca-Cola, didn't move," Paz said. "The
adjustment is much slower now."
The peso came under heavy pressure in the months before October's
midterm elections, with Argentine officials and even the US
Treasury selling dollars to defend it, the report relays. The
tension rattled markets and put Milei on the back foot ahead of the
vote, the report discloses. The currency settled after the
president's surprisingly strong showing in the vote, but remains
weaker compared to the highs hit earlier this year, the report
says.
Argentina recorded a US$8.7-billion current account deficit in the
first half of the year, according to official data, which many
analysts see as a problem, the report relates. But, the real
exchange rate versus a basket of other currencies has depreciated
35 percent since April, according to One618, the report says.
Improved investor confidence after the elections sparked a wave of
private debt sales that could boost dollar inflows into the local
foreign exchange market, the report discloses. Those inflows –
together with dollars from energy exports – could support the
peso, the report notes.
"Pass-through is contained" because investors view the present
exchange rate as sufficient to keep the current account stable, "so
it doesn't need to move," according to Juan Manuel Pazos, chief
economist at One618, the report says. "In previous devaluations,
retailers overshot price increases to get ahead of future moves and
not be left behind," he added.
Milei, who built his campaign around the promise to defeat
inflation, now faces the consequences of the currency's
depreciation, which caused markets to gyrate and put his
performance in the midterm elections at risk, the report notes. So
far, the data suggests the blow will be softer than in past
decades, buying him valuable time. But if the peso comes under
renewed attack, the fragile equilibrium could unravel quickly and
lead entrepreneurs like Jara and Paz to hike prices again, the
report adds.
About Argentina
Argentina is a country located mostly in the southern half of
South America. Its capital is Buenos Aires. Javier Milei is the
current president of Argentina after winning the November 19,
2023 general election. He succeeded Alberto Angel Fernandez
in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal
year 2019, according to the World Bank. Historically, however,
its economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
In March 2022, the International Monetary Fund (IMF) approved a
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota) -- with an approved immediate
disbursement of an equivalent of US$9.65 billion. Argentina's
IMF-supported program sought to improve public finances and start
to reduce persistent high inflation through a multi-pronged
strategy.
On April 11, 2025, the IMF further approved a 48-month Extended
Fund Facility (EFF) arrangement for Argentina totaling US$20
billion (or 479 percent of quota), with an immediate disbursement
of US$12 billion, and a first review planned for June
2025 with an associated disbursement of about US$2 billion. The
program is expected to help catalyze additional official
multilateral and bilateral support, and a timely re-access to
international capital markets.
Moody's Ratings on July 17, 2025, upgraded Argentina's
long-term foreign currency and local currency issuer ratings to
Caa1 from Caa3 and changed the outlook to stable from positive.
The upgrade reflects Moody's views that the extensive
liberalization of exchange and (to a lesser extent) capital
controls, alongside a new International Monetary Fund (IMF)
program, support the availability of hard currency liquidity and
ease pressure on external finances. This reduces the likelihood of
a credit event. In January 2025, Moody's raised Argentina's local
currency ceiling to B3 from Caa1 and the foreign currency ceiling
to Caa1 from Caa3.
Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term
Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to
'CCC+' from 'CCC'. 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+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local
Currency Issuer Ratings to B (low) from CCC in November 2024.
ARGENTINA: October Inflation Ticks Up to 2.3%
---------------------------------------------
Buenos Aires Herald reports that Argentina's prices went up by 2.3%
in October, a slight increase from the previous month's 2.1%
inflation rate, figures released by the INDEC statistics bureau
showed.
It is the third month in a row that inflation has risen and the
fifth month it has not fallen, according to Buenos Aires Herald.
Prices rose by 31.3% in the past 12 months and by 24.8% in the
first 10 months of the year, the report notes.
The highest increase came in the transportation sector, with a 3.5%
jump, followed by household (rent and expenses) and fuels, which
increased by 2.8%, the report relays.
Last month, the INDEC also announced it would change the way it
measures inflation from January 2026 onwards, the report discloses.
The institute is set to replace the current goods basket, which
dates back to 2004, with a more recent selection from 2017-2018,
the report says.
The economy ministry celebrated the figure in a communique posted
on social media, saying the year-on-year variation was the lowest
since July 2018 and that it marked "eighteen consecutive months of
deceleration compared to the same month of the previous year," the
report notes.
The ministry added that the disinflation process continued "despite
the fall in money demand generated by electoral uncertainty and the
opposition's attempts to break the fiscal anchor in recent months,"
the report says.
"This reflects the strength of the economic program and the success
of fiscal and monetary policy in reducing the impact of financial
volatility on Argentines' purchasing power," the statement said,
the report adds.
About Argentina
Argentina is a country located mostly in the southern half of
South America. Its capital is Buenos Aires. Javier Milei is the
current president of Argentina after winning the November 19,
2023 general election. He succeeded Alberto Angel Fernandez
in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal
year 2019, according to the World Bank. Historically, however,
its economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
In March 2022, the International Monetary Fund (IMF) approved a
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota) -- with an approved immediate
disbursement of an equivalent of US$9.65 billion. Argentina's
IMF-supported program sought to improve public finances and start
to reduce persistent high inflation through a multi-pronged
strategy.
On April 11, 2025, the IMF further approved a 48-month Extended
Fund Facility (EFF) arrangement for Argentina totaling US$20
billion (or 479 percent of quota), with an immediate disbursement
of US$12 billion, and a first review planned for June
2025 with an associated disbursement of about US$2 billion. The
program is expected to help catalyze additional official
multilateral and bilateral support, and a timely re-access to
international capital markets.
Moody's Ratings on July 17, 2025, upgraded Argentina's
long-term foreign currency and local currency issuer ratings to
Caa1 from Caa3 and changed the outlook to stable from positive.
The upgrade reflects Moody's views that the extensive
liberalization of exchange and (to a lesser extent) capital
controls, alongside a new International Monetary Fund (IMF)
program, support the availability of hard currency liquidity and
ease pressure on external finances. This reduces the likelihood of
a credit event. In January 2025, Moody's raised Argentina's local
currency ceiling to B3 from Caa1 and the foreign currency ceiling
to Caa1 from Caa3.
Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term
Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to
'CCC+' from 'CCC'. 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+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local
Currency Issuer Ratings to B (low) from CCC in November 2024.
EDENOR: Moody's Rates New $184MM Unsec. Notes Due 2030 'B3'
-----------------------------------------------------------
Moody's Ratings has assigned a B3 rating to Empresa Distribuidora y
Comercializadora Norte S.A. (Edenor)'s $184 million outstanding
senior unsecured notes due October 2030 (2030 Notes) and to its
proposed add-on of up to $200 million (additional 2030 Notes). At
the same time, Moody's affirmed Edenor's B3 Corporate Family
Rating. The outlook remains positive.
The additional senior unsecured notes are being offered as a
re-opening of Edenor's 2030 Notes. The company targets to raise
$120 million, with the option to increase the offering to $200
million, to strengthen its liquidity position and support ongoing
liability management initiatives. The notes will amortize in three
equal annual installments in 2028, 2029 and 2030.
The assigned rating is based on preliminary documentation received
by us as of the rating assignment date and confirmation of issuance
amounts. Moody's do not expect changes to the debt amount or
documentation reviewed over this period, nor Moody's anticipates
changes in the main conditions that the notes will carry. Should
issuance conditions and/or final documentation of the notes deviate
from the original ones submitted and reviewed by the rating agency,
Moody's will assess the impact that these differences may have on
the ratings and act accordingly.
RATINGS RATIONALE
Edenor intends to apply the net proceeds from the offering
primarily to strengthen its cash position and reinforce financial
flexibility. The funds will be used to refinance existing
indebtedness, thereby optimizing the company's debt profile and
reducing near-term maturities. Additionally, a portion of the
proceeds will support capital expenditures in Argentina, enabling
continued investment in network reliability and service quality.
The affirmation of Edenor's B3 Corporate Family Rating mainly
reflects the company's relatively low financial leverage and strong
market position as an essential provider of electricity
distribution services in the northwestern zone of the greater
Buenos Aires metropolitan area and the northern part of the City of
Buenos Aires. The rating is constrained by its credit links to the
Government of Argentina (Caa1 stable) and the country's regulatory
framework with an inconsistent track record on the sufficiency of
tariffs and returns.
Edenor's positive rating outlook reflects Moody's expectations that
operating conditions for regulated utilities in Argentina will
continue to improve over the next 12 to 18 months. Moody's
anticipates that the timeliness and adequacy of tariff adjustments
will support a gradual recovery in the company's cash flow
generation and profitability. These developments are expected to
strengthen Edenor's financial profile and reinforce its ability to
meet operational and investment needs.
The recent tariff adjustments approved by the regulator are helping
to considerably restore the company's financial performance with
operating margins improving from negative figures pre-2024 to
approximately 2.1% in LTM Jun-25. This recovery supports stronger
cash flow generation and credit metrics. However, the company
remains exposed to significant amounts of accumulated payables on
energy purchases (CAMMESA debt), which constrains the rating. While
these deferrals allowed Edenor to retain cash balances and cover
its operating expenditures it has also increased the company's
liabilities. The settlement of CAMMESA's debt will occur in 72
installments through 2031.
Edenor presents adequate financial metrics for the rating level, as
illustrated by a CFO pre Working Capital (WC) to debt of around
1.14% times and CFO pre WC + Interest/Interest of 1.06x for the
last twelve month ended June 2025, both improving from negative
leves prior to tariff normalization. Moody's expects further
improvement as regulatory conditions evolve.
The rating incorporates Edenor's adequate liquidity position and
expected improvement in debt maturity profile following the
proposed issuance. As of September 2025, the company reported ARS
474.471 million in cash and equivalents (USD340 million at the
official currency conversion rate).
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade of the company's rating will require the consolidation
of the improvement in operating conditions, regulatory environment
and financial metrics. Specifically, upward pressure on the rating
could develop if the company continues to report a sustained
improvement in metrics, such that its Moody's-adjusted CFO pre
WC/Debt ratio improves towards 14% and CFO pre WC +
Interest/Interest towards 1.5x.
A downgrade of Argentina's ratings, deterioration in the operating
environment or a shift in policies or regulations that lead to
reduced ability to improve cash generation and higher liquidity
needs, would result in negative rating pressure.
LIST OF AFFECTED RATINGS
Issuer: Empresa Distribuidora y Com. Norte S.A.
Affirmations:
LT Corporate Family Ratings, Affirmed B3
Assignments:
Senior Unsecured, Assigned B3
Outlook Actions:
Outlook, Remains Positive
The principal methodology used in these ratings was Regulated
Electric and Gas Utilities published in August 2024.
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.
Empresa Distribuidora y Comercializadora Norte S.A. (Edenor),
headquartered in Buenos Aires, is Argentina's largest electricity
distribution company. It serves about 3.3 million customers within
its exclusive concession area covering the northern part of the
City of Buenos Aires and the northwestern zone of Greater Buenos
Aires. Edenor supplies around 20% of the country's electricity
demand and operates under a regulated monopoly within its license
area.
PAMPA ENERGIA: Fitch Assigns 'B' Rating to New Sr. Unsecured Notes
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Fitch Ratings has assigned a 'B' rating with a Recovery Rating of
'RR3' to Pampa Energia S.A.'s (Pampa) proposed benchmark-size
unsecured bonds. Net proceeds will be used to refinance debt and
other general corporate purposes. Fitch currently rates Pampa's
Long-Term Foreign Currency Issuer Default Rating (IDR) and Local
Currency IDR 'B-'. The Rating Outlook is Stable.
Pampa's Long-Term Foreign Currency IDR is constrained by
Argentina's 'B-' Country Ceiling, which limits the IDR by
incorporating transfer and convertibility risk. The ratings reflect
Pampa's strong operating performance despite the country's economic
challenges.
The ratings incorporate Pampa's exposure to Compania Administradora
del Mercado Mayorista Electrico (CAMMESA), which relies on
government subsidies to cover electricity generation costs. The
development of Rincón de Aranda (RdA) will be key to diversifying
the exploration and production (E&P) segment's production portfolio
and will partially offset Pampa's exposure to payments from
CAMMESA.
Key Rating Drivers
Strong Operator; Weak Operating Environment: Pampa is an integrated
energy company in Argentina (CCC+) with significant market share
across its business segments: 15% in power generation, 9% in E&P,
and between 94% and 100% in petrochemicals. Pampa's operations are
concentrated in in Argentina, which has been characterized by high
inflation, unemployment, high cost of capital, capital controls,
and an unstable regulatory environment. However, the company has
maintained a conservative leverage profile and strong liquidity.
Shale Oil Shift: RdA will be Pampa's flagship asset for the
unconventional oil segment. Development of this asset will be key
in diversifying the E&P segment's production portfolio, which is
currently concentrated in gas production and closely tied to
CAMMESA. The block's rising oil production will be primarily
exported, supporting Pampa's financial profile by improving access
to hard currency.
As of 3Q25, RdA block production reached 18,000 oil barrels per day
(bbl/d) compared to 900 bbl/d in 1Q25, highlighting the potential
of the asset. Fitch estimates production total oil production
should average 12,500 bbl/d by FY 2025.
Negative FCF: Fitch expects free cash flow (FCF) to be negative in
2025-2026 as the company deploys a capex plan of about USD2.9
billion over this period. Most capex will be directed to
development of the Rincon de Aranda shale oil project. The company
plans to fund capex with cash on hand and cash flows from its power
generation business, which benefits from strong contracts. Fitch
projects FY 2025 cash flow from operations (CFO) of approximately
USD420 million and USD700 million in FY 2026.
Adequate Leverage Profile: Fitch expects Pampa's leverage to be
around or below 2.5x over the rating horizon, with the power
generation and E&P segments each representing roughly 50% of
EBITDA. Last 12 months (LTM) 3Q25 gross leverage was 1.7x and net
leverage was 0.9x, while EBITDA was USD1.0 billion. Fitch
anticipates Pampa's EBITDA interest coverage will remain around
5.0x on average in 2025-2028.
Peer Analysis
Pampa's ratings are constrained by Argentina's 'B-' Country
Ceiling. Pampa's generation business compares with those of AES
Argentina Generacion S.A. (CCC+) and MSU Energy S.A. (CCC+). In
integrated energy, Pampa's closest peer is Capex S.A. (B-/Stable).
Pampa and Central Puerto S.A. (not rated) are power producers with
the largest market share in Argentina by installed capacity in 2024
at 15% each, followed by AES Argentina at 7%. In addition, Pampa is
a leading developer in the sector and has added 1.2GW of installed
capacity since 2018.
Capex is the company's closest peer in Argentina and, like Pampa,
is an integrated oil and gas producer and generation company. Fitch
expects Capex's gross leverage to be higher than Pampa's, averaging
2.5x over the rating horizon.
Key Assumptions
- Daily oil production average of 12,500 bbl/d in 2025, 27,000
bbl/d in 2026 and 43,000 bbl/d in 2027;
- Daily gas production average of 80,000 boed in 2025-2027;
- Average realized natural gas price of USD3.00 per million Btu,
flat over the rated horizon under Plan Gas;
- Average realized Brent crude oil price of $70 per barrel in 2025;
$65 in 2026-2027 and $60 per barrel in 2028;
- Installed year-end capacity of 5,471 MW;
- CAMMESA payments received within 45 days;
- Cumulative capex of USD2.9 billion over the 2025-2027 period;
- No dividends.
Recovery Analysis
The recovery analysis assumes that Pampa would be a going concern
(GC) in bankruptcy and that it would be reorganized rather than
liquidated.
GC Approach:
- A 10% administrative claim;
- The GC EBITDA is estimated at USD500 million. The GC EBITDA
estimate reflects Fitch's view of a sustainable,
post-reorganization EBITDA level upon which Fitch bases the
valuation of Pampa;
- EV multiple of 5.0x.
Argentina is assigned to Group D, as per the Country Groups
specified in Fitch's "Country-Specific Treatment of Recovery
Ratings Criteria," where the assigned Recovery Ratings are capped
at 'RR4'. Fitch believes the recovery prospects for Pampa 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 in place by the Argentine
Central Bank. In all cases, the calculated recovery was higher than
the expected recovery of 51%-70% for the 'RR3' band, but Fitch
capped the Recovery Ratings at 'RR3' to reflect a less predictable
range of outcomes.
A Recovery Rating of 'RR3' supports a one-notch uplift for the
instrument rating from the issuer's FC IDR.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- A downgrade of Argentina's Country Ceiling;
- Significant delays in payments that negatively affect working
capital, liquidity and leverage, or revision of existing contracts
with CAMMESA;
- Amendments to capital control rules that weaken the company's
ability to access capital and refinance debt;
- Significant deterioration of credit metrics, with total
debt/EBITDA of 4.5x or more.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
- An upgrade of Argentina's Country Ceiling;
- Higher EBITDA contribution from the O&G business segment;
- Hard-currency debt service coverage ratio of at least 2.0x over
the rating horizon;
- Long-term contracted exports with high-quality offtakers, or PPAs
with non-regulated customers, with adequate legal protections to
avoid limit federal government interference.
Liquidity and Debt Structure
Fitch views Pampa's liquidity as strong. The company reported
consolidated cash and equivalents of USD879 million and short-term
debt of USD282 million at 3Q25. Available liquidity covers interest
expense over the rating horizon. The company's debt and interest
expense are predominately in U.S. dollars, and Fitch's rating case
assumes it will continue to access the official exchange to service
its debt.
The company benefits from CAMMESA's improved payment terms,
currently around 45 days, which is in line with the contractually
agreed upon 42 days.
Issuer Profile
Pampa is the largest independent energy integrated company
operating in Argentina, where it and its subsidiaries focus on
electricity generation and transmission, oil and gas E&P, refining,
petrochemicals, and hydrocarbon commercialization and
transportation.
Criteria Variation
The criteria variation applies to the section titled "When an
Instrument Enters a Distressed or Defaulted State" in the
"Country-Specific Treatment of Recovery Ratings Criteria," where
the criteria allow for the assigned Recovery Rating to be above the
defined cap for distressed issuers when Fitch has reason to believe
that recoveries in an individual case would be consistent with a
higher recovery rating.
Fitch has applied a variation to extend this analytical approach to
all Argentine-based corporates rated 'B-', reflecting their highly
speculative credit profiles and their operations within a
distressed operating environment (Argentina, Foreign Currency IDR
CCC+).
Date of Relevant Committee
15-May-2025
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
----------- ------ --------
Pampa Energia S.A.
senior unsecured LT B New Rating RR3
PLUSPETROL SA: Moody's Rates Up to $500MM Unsecured Notes 'B1'
--------------------------------------------------------------
Moody's Ratings has affirmed Pluspetrol S.A. (Pluspetrol) B1
corporate family rating and senior unsecured notes' rating. At the
same time, Moody's have assigned a B1 rating to the proposed up to
$500 million senior unsecured notes. The outlook remains stable for
all ratings.
Net proceeds from the proposed issuance will be used for
investments in fixed assets located in Argentina, refinancing or
repayment of existing indebtedness in an amount of up to 40% of the
proceeds, working capital, potential acquisitions, capital
contributions to subsidiaries or related companies, and other
general corporate purposes.
The rating of the proposed notes assumes that the final transaction
documents will not be materially different from draft legal
documentation reviewed by us to date and assume that these
agreements are legally valid, binding and enforceable.
RATINGS RATIONALE
The B1 ratings assigned to Pluspetrol reflect its strong
competitive position in the natural gas and oil production in
Argentina, bolstered by high-quality assets and significant growth
potential in both production and reserve development, supporting a
solid cash flow and credit metrics over 2025-27 for the B1 rating
category. The company's experienced management team has a notable
track record in developing conventional and unconventional
resources, contributing to its overall strength.
Given Pluspetrol's high exposure to Argentina's business
environment, its B1 ratings reflect Moody's views that the
company's creditworthiness cannot be completely de-linked from the
credit quality of the Argentine government and, thus, the rating
needs to closely reflect the risk that the company shares with the
sovereign. However, Pluspetrol's rating surpasses Argentina's
rating by three notches (Government of Argentina, Caa1 stable),
which reflects Pluspetrol's relatively strong credit metrics for
its rating position and diversification of sales revenue through
exports, expected to increase going forward.
Pluspetrol´s ratings are mainly constrained by the concentration
of assets and oil and gas production in Argentina, although this is
partially mitigated by sales diversification through export markets
(around 40% of revenue as of September 2025). The company is also
exposed to regulatory risks within Argentina's local hydrocarbon
market. Additionally, the company is vulnerable to the volatility
of energy commodity prices, with approximately 30% of its revenues
generated from natural gas sales and around 70% from crude oil
sales.
Pluspetrol's competitive position is boosted by substantial growth
potential in both production and reserve development. The company
plans to expand its operations in Vaca Muerta, aiming to increase
total production from 89 Mboe/d to over 140 Mboe/d by 2027. Most of
this growth will come from Bajo del Choique concession and from La
Calera.
The ratings also take into account the strong support from its
related company, Pluspetrol Resources Corporation S.A., which can
support the company if needed, given its strong liquidity position,
as was the case when it established a $500 million subordinated
committed credit facility, sufficient to cover the development of
the assets and expected debt service payments of its previous bond
offering. These factors enhance Pluspetrol's capacity to manage
foreign currency debt. Given the strong linkages with the company's
parent, governance risk is a consideration in the rating action.
Pluspetrol has adequate liquidity. Pluspetrol had $483 million in
cash and equivalents as of September 2025, and Moody's expects it
to generate adequate cash flow from operations through 2026 to
cover interest payments of about $144 million and debt amortization
of $303 million. However, given the ambitious capex plan, Moody's
expects the company to fund it through debt acquisition. The parent
company holds significant cash reserves in foreign currency abroad
to support Pluspetrol if necessary.
The stable outlook reflects Moody's expectations that the
company´s credit metrics and operations will remain robust through
the next 12-18 months. Additionally, the company's creditworthiness
cannot be completely de-linked from the credit quality of the
Argentine government, where it generates the bulk of its revenue,
and thus its ratings and outlook incorporate the risks that it
shares with the sovereign, in line with Moody's cross-sector rating
methodology, Assessing the Impact of Sovereign Credit Quality on
Other Ratings, published in June 2019.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade of Pluspetrol's ratings is contingent upon its relative
positioning in the event of an upgrade of the Government of
Argentina's credit rating. Additionally, an upgrade will be
supported by increasing production or by growth and diversification
of operations outside Argentina while maintaining a good liquidity
position.
The ratings could be downgraded if the government of Argentina's
Caa1 rating is downgraded. Also, a downgrade could be triggered by
reduced liquidity at Pluspetrol and/or Pluspetrol Resource
Corporation S.A., coupled with a significant deterioration in
credit metrics.
PROFILE
Pluspetrol S.A. is one of the leading oil and gas companies in
Argentina, with high-quality assets spanning approximately 565,000
net acres nationwide, including the Vaca Muerta shale play, the
largest shale oil and gas development outside of North America. The
company holds four exploration permits and fifteen exploitation
concessions, positioning it as the fourth largest oil operator and
the sixth largest gas operator in Argentina. Pluspetrol is
controlled by Pluspetrol Resources Corporation B.V., a holding
company incorporated under the laws of the Netherlands, which
develops, invests, and operates businesses related to the
production, transport, distribution, and commercialization of oil
and gas across several Latin American countries.
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.
=============
B A H A M A S
=============
FTX GROUP: Ex-Bank Owner Fights FTX Investment Clawback Attempt
---------------------------------------------------------------
Rick Archer at law360.com reports that counsel for the owner of a
defunct bank asked a Delaware bankruptcy judge to stop efforts to
claw back an $11.5 million investment by bankrupt cryptocurrency
exchange FTX, saying there were no allegations he personally
profited from the deal.
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9, 2022, struck a deal to
sell itself to its giant rival Binance, but Binance walked away
from the deal amid reports on FTX regarding mishandled customer
funds and alleged US agency investigations. SBF agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
billion in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year.
According to Reuters, SBF shared a document with investors on Nov.
10, 2022, showing FTX had $13.86 billion in liabilities and $14.6
billion in assets. However, only $900 million of those assets were
liquid, leading to the cash crunch that ended with the company
filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims
agent, maintaining the page
https://cases.ra.kroll.com/FTX/Home-Index
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
=============
B E R M U D A
=============
NABORS INDUSTRIES: Fitch Hikes LongTerm IDR to 'B', Outlook Stable
------------------------------------------------------------------
Fitch Ratings has upgraded Nabors Industries Ltd. and Nabors
Industries Inc.'s Long-Term Issuer Default Rating to 'B' from 'B-'.
The Outlook on the IDR is Stable. Fitch has assigned a 'BB-' rating
with an 'RR2' Recovery Rating to Nabors Industries Inc.'s proposed
senior priority guaranteed notes due 2032. Fitch has also upgraded
the revolving credit facility to 'BB'/'RR1' from 'BB-'/'RR1', the
existing senior priority guaranteed notes to 'BB-'/'RR2' from
'B+'/'RR2', the senior guaranteed notes to 'B-'/'RR5' from
'CCC'/'RR6', and the senior unsecured notes to 'CCC+'/'RR6' from
'CCC'/'RR6'.
The upgrade reflects cash proceeds from the Quail Tools divestment
used for material gross debt reduction and assumption of successful
completion of the proposed senior priority guaranteed notes
offering as well as the expected refinancing of the 2027 notes.
Fitch expects medium-term refinancing risk to persist but to be
more manageable by the longer maturity runway, lower gross debt,
and lower EBITDA leverage, with modest FCF generation.
Key Rating Drivers
Quail Divestment Supports Debt Reduction: Fitch assesses Nabors'
divestment of Quail Tools as credit-positive, as Fitch expects it
to use the proceeds to reduce gross debt by around $575 million.
Management applied $375 million of initial cash proceeds toward
repaying revolver borrowings and redeemed $150 million of SPGN
notes due 2027. Fitch expects proceeds from the Superior seller
note could be used to repay additional gross debt. Fitch forecasts
Nabors' gross debt at around $2.1 billion following the
transactions. This, along with the extended maturity profile,
supports the upgrade.
SPGN Issuance Extends Maturities: Fitch views the company's
proposed SPGN issuance favorably as it will facilitate the
refinancing of the company's existing SPGN due 2027, which reduces
near-term refinance risks. Fitch projects management could also
address a material amount of the PGN notes due 2028 with proceeds
from the repayment of the seller note related to the initial Quail
financing transaction. The transaction provides over three years of
runway for Nabors to address the exchangeable notes maturity in
2029, which Fitch views as achievable.
Modest FCF Outside Joint Venture: Fitch's base case forecasts
neutral FCF for Nabors in 2026 on a consolidated basis and around
$100 million to $125 million of FCF outside of its Saudi Aramco
joint venture (JV). Fitch projects the JV will generate around $100
million to $150 million of negative FCF for the next two years to
fund the new-build rig program. Full-year capital expenditures are
projected at around $705 million, with around $300 million expected
for the JV. Fitch expects management to allocate excess FCF toward
gross debt reduction to help manage the medium-term maturities.
Stable International Segment Performance: Nabors' international
drilling segment exhibits resilience through the cycle, even though
a considerable portion of international EBITDA is generated through
the JV, from which Nabors has a limited ability to extract cash in
the near term. The international segment's average rig count
modestly improved to 89 rigs in 3Q25 from 85 in 3Q24, in contrast
with the softening U.S. segment. Historically, international
margins have been slightly higher than U.S. margins and the longer
contracts provide more certainty of future utilization. Daily rig
margins also increased to $17,931 in 3Q25, up from $17,085 in
3Q24.
Softer U.S. Activity, Utilization: Nabors' U.S. drilling segment
has exhibited softness since 1Q25, primarily driven by weaker oil
prices and reduced drilling activity. Nabors' U.S. Lower 48 (L48)
quarterly average rig count declined to 59 in 3Q25, down from 68 in
3Q24. The company's daily gross margin also declined to $13,151 in
3Q25 from $15,051 in 3Q24 due to the weaker L48 conditions.
Management projects the L48 quarterly average rig count to rebound
modestly in 4Q25 and into 2026, predominately from gas-focused
drilling.
Medium-Term Refinance Risk: Fitch believes medium-term refinancing
risks persist after the company's proposed SPGN issuance because of
the large note maturities starting in 2030. Fitch expects
management will allocate its incremental FCF toward repaying the
senior exchangeable notes due in 2029 and then toward the 2030
maturities, which should help lower refinance risks. However,
negative trends in the drilling environment and/or a reduction in
projected FCF generation, combined with the complicated capital
structure, could potentially present difficulties accessing capital
markets to refinance the large debt maturities starting in 2030.
2.5x Leverage Metrics: Fitch projects Nabors' EBITDA leverage will
remain at or below 2.5x throughout the rating horizon, which Fitch
recognizes is moderately higher than oilfield services (OFS) peers.
Continued commitment from management to reduce gross debt should
help reduce EBITDA leverage over time.
Peer Analysis
Fitch compared Nabors with Canadian-focused onshore driller
Precision Drilling Corporation (BB-/Stable) and offshore drillers
Valaris Limited (B+/Stable) and Seadrill Limited (B+/Stable).
Nabors' gross margins in the U.S. are higher than Precision's
margins and are supported by its offshore and Alaskan rig fleet
which operate at higher margins. Nabors' significant international
presence typically benefits from longer-term contracts, reducing
U.S. market volatility.
Nabors' margins are typically less volatile through the cycle than
its offshore peers, Valaris and Seadrill, although Precision,
Valaris and Seadrill are projected to generate higher FCF in the
medium term than Nabors. Precision, Valaris and Seadrill have
stronger credit metrics and materially lower maturity risk than
Nabors, while their liquidity profiles are broadly similar.
Key Assumptions
- West Texas Intermediate (WTI) oil price of $65 per barrel (bbl)
for the remainder of 2025, $60 per bbl in 2026 and 2027 and $57 per
bbl thereafter;
- Henry Hub natural gas prices of $3.40 per million cubic feet
(mcf) for the remainder of 2025, $3.50 per mcf in 2026, $3.00/mcf
in 2027 and $2.75 thereafter;
- Proposed SPGN issuance and subsequent debt repayment closes as
planned;
- Acquisition-related revenue and EBITDA growth in 2025, flat
growth in 2026 followed by modest declines in line with price
assumptions;
- Capex of $715 million in 2025 followed by growth-linked
increases;
- FCF generation used to reduce gross debt.
Recovery Analysis
Key Recovery Rating Assumptions
- The recovery analysis assumes Nabors would be reorganized as a
going concern in bankruptcy rather than liquidated;
- Fitch has assumed a 10% administrative claim.
Going-Concern Approach
Nabors' going-concern EBITDA was increased to $525 million from
$500 million to account for the incremental EBITDA generation from
the remaining Parker businesses. Nabors' going-concern EBITDA
estimate reflects Fitch's view of a sustainable,
post-reorganization EBITDA level on which Fitch bases its
enterprise valuation. The going-concern EBITDA assumption for
commodity-sensitive issuers at a cyclical peak reflects the
industry's move from top-of-the-cycle commodity prices to midcycle
conditions and intensifying competitive dynamics.
The going-concern EBITDA assumption represents the emergence from a
prolonged commodity price decline. Fitch assumes stress case WTI
oil price assumptions of $55 per bbl for the remainder of 2025, $32
per bbl in 2026, $42 per bbl in 2027 and $45 per bbl thereafter.
The going-concern EBITDA assumption reflects a loss of customers
and lower margins, as exploration and production companies cut rigs
and pressure oil service firms to reduce operating costs. The
EBITDA assumption also incorporates the structural weakness outside
of the JV and overall high rig supply but improving demand.
The assumption reflects corrective measures taken in the
reorganization to offset adverse conditions that triggered default,
such as cost cutting and optimal deployment of assets.
An enterprise value multiple of 4.0x EBITDA is applied to
going-concern EBITDA to calculate a post-reorganization enterprise
value.
The Choice of this Multiple Considered the Following Factors:
- The historical bankruptcy case study exit multiples for peer
energy OFS companies have a wide range, with a median of 6.1x. The
OFS sub-sector ranges from 2.2x to 42.5x due to the more volatile
nature of EBITDA swings in a downturn;
- Fitch used a multiple of 4.0x to estimate a value for Nabors
because of concerns over a longer-duration downturn with a high mix
of international rigs that are not easily mobilized and continued
capital investment required to remain competitive with peers and
maintain high-quality, technologically advanced rigs for
operators.
Liquidation Approach
The liquidation estimate reflects Fitch's view of the value of
balance sheet assets that can be realized in sale or liquidation
processes conducted during a bankruptcy or insolvency proceeding
and distributed to creditors.
Fitch assigns a liquidation value to each rig based on management
discussions, comparable market transaction values, and upgrades and
new build cost estimates.
Different values were applied to top-of-the-line super-spec rigs,
lower-value super-spec rigs, non-super-spec rigs and higher-value
international rigs.
The secured credit facility is assumed to be fully drawn upon
default and is super senior in the waterfall.
The allocation of value in the liability waterfall results in
recovery corresponding to 'RR1' for the secured credit facility, a
recovery of 'RR2' for the SPGN, which are subordinated to the
secured credit facility, a recovery of 'RR5' for the PGN (which are
subordinated to the SPGN) and an 'RR6' to the senior unsecured
notes.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Inability to reduce gross debt and proactively manage the
maturity schedule, leading to heightened refinancing risks;
- Inability to access the revolving credit facility or other
material reductions in liquidity;
- Maintenance of midcycle EBITDA leverage above 3.5x.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Proactive management of the maturity profile that reduces
medium-term refinancing risks;
- Positive FCF generation with proceeds applied to reduce total
gross debt;
- Maintenance of midcycle EBITDA leverage below 2.5x.
Liquidity and Debt Structure
Cash attributable to Nabors at 3Q25 was approximately $211 million,
which is net of approximately $217 million held in the Saudi Aramco
JV and not available to Nabors. Following proposed SPGN issuance
and receipt of the seller note proceeds, Nabors will have full
availability under its $350 million secured revolving facility,
which includes an accordion feature for an additional $200 million
of commitments, subject to lender approval. The next material
maturity is the $250 million exchangeable note due June 2029 which
provides a moderate runway for Nabors to generate FCF and continue
repaying gross debt.
Issuer Profile
Nabors is one of the largest drilling contractors in the world,
with operations in both the U.S. and international markets. Nabors
also owns a drilling solutions business that offers specialized
drilling technologies along with a rig technologies business
offering advanced drilling rig equipment.
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
----------- ------ -------- -----
Nabors Industries, Ltd. LT IDR B Upgrade B-
senior unsecured LT B- Upgrade RR5 CCC
Nabors Industries, Inc. LT IDR B Upgrade B-
senior unsecured LT BB- New Rating RR2
senior unsecured LT CCC+ Upgrade RR6 CCC
senior unsecured LT B- Upgrade RR5 CCC
senior unsecured LT BB- Upgrade RR2 B+
senior secured LT BB Upgrade RR1 BB-
===============
C O L O M B I A
===============
CITY OF MEDELLIN: Fitch Affirms 'BB+' IDR, Outlook Neg.
-------------------------------------------------------
Fitch Ratings has affirmed the City of Medellin's Long-Term Foreign
and Local Currency Issuer Default Ratings (IDRs) at 'BB+' with a
Negative Outlook. Fitch also affirmed Medellin's Long- and
Short-Term National Scale Ratings at 'AAA(col)'/Stable Outlook and
'F1+(col)', respectively. Fitch has also affirmed the city's
'AAA(col)' Long-Term National Scale Rating on the COP113,700
million senior unsecured notes issued in 2014.
The City of Medellin's fiscal performance remained strong in 2024,
driven by tax revenue growth, national transfers and Empresas
Publicas de Medellin's (EPM) surpluses. These factors supported
solid operating margins of a steady 24% and positive overall
results, increasing unrestricted cash. As a result, Medellin's
financial profile based on payback and debt service coverage ratios
improved to 'aa' from 'a'. Therefore, Medellin's Standalone Credit
Profile (SCP) rose to 'bbb' from 'bb+', above Colombia's ratings
(BB+/Negative). The Negative Outlook for the IDRs mirrors the
sovereign's.
KEY RATING DRIVERS
Standalone Credit Profile
Medellin's SCP rose to 'bbb' from 'bb+' due to a stronger financial
profile and improved positioning versus international and national
peers. Fitch continues to assess the risk as 'Low Midrange'. As a
result, Medellín's ratings are now capped at Colombia's sovereign
'BB+' rating/ Negative Outlook. Fitch identifies no asymmetric
risk.
Risk Profile: 'Low Midrange'
Medellín's 'Low Midrange' risk profile reflects five 'Midrange'
key risk factors and one 'Weaker' factor.
Revenue Robustness: 'Midrange'
Revenue robustness is assessed as 'Midrange'. Although Fitch
considers the city's tax revenues moderately correlated with
economic cycles, they are supported by a diversified economy. The
service and tourism sectors have gained relevance over the last
years. This is reflected in the increasing share of the gross
receipts tax (Impuesto de industria y comercio; ICA) in the city's
tax collection (2024: 39.3% up from 2020: 36.4%), while property
tax has declined (36.6% and 43.4%, respectively).
In 2024, Medellin's tax revenue grew 16.7%, driven by higher ICA
tariffs on financial services and rebound in commercial activity.
Property tax collection grew by 15.3%, supported by efficient
cadastral updates that aligned assessed values with the district's
real estate market dynamics. National transfers also increased,
with SGP resources up 33.9%, mainly for education. EPM
surpluses—the city's principal capital revenue for social sector
investment and capex—remain stable and contribute materially,
accounting for about 22% of total revenues.
Fitch expects city's revenue growth to remain positive and aligned
to moderate economic dynamism.
Revenue Adjustability: 'Midrange'
Medellin has limited discretion to raise tariffs within legal
limits set by Congress, and local rates already sit near those
caps. Some fiscal room remains in property taxes, which are set
primarily by in accordance with taxpayer's socioeconomic profile
and land use. The city could apply maximum property tax rates to
higher-value properties to lift revenues. Expected gains in tax
collection could cover at least 50% of reasonably expected revenue
declines.
Fitch assesses taxpayers' ability to absorb marginal tax rate
increases as moderate, despite political reluctance. This reflects
the city's diversified economy and an above-average socioeconomic
profile versus national peers.
Expenditure Sustainability: 'Midrange'
Health and education services are the principal responsibilities of
the city, representing moderately countercyclical spending. The
city's operating expenditure has grown in tandem with revenue,
maintaining a positive and stable operating margin. In 2024,
operating revenues increased by 21% due to tax collection
performance, higher national transfers and surpluses from EPM. Opex
grew at a similar pace. As a result, Medellin's operating margin
remained steady over the period 2022-2024 and averaged 24.1%.
In Fitch's rating scenario, Medellin's operating margins will
remain positive and close to historical trends. However, operating
balance will be influenced by a moderate inflationary context, with
pressures on subsidies and salaries for health care and education
sectors.
Expenditure Adjustability: 'Midrange'
Medellin complies with the subnational expenditure fiscal rule.
From 2020-2024, Fitch estimates mandatory expenditure averaged 72%
of total expenditure, capital expenditure 25.5%, and the current
balance funded about 19% of total spending. This mix indicates
moderate capacity to curtail spending growth, particularly capital
expenditure, during a downturn.
Fitch assesses Medellín's ability to cut spending as moderate,
supported by the sizable share of capital expenditure funded with
EPM surpluses, despite potential political repercussions.
Liabilities and Liquidity Robustness: 'Midrange'
Medellin has extensive access to debt from varied sources. The city
operates under subnational regulatory borrowing limits and an
evolving financial market. As of August 2025, the city's long-term
debt balance was COP2.15 trillion. The city has some risk appetite,
as around 90% of its debt is linked to a floating interest rate.
This creates some interest rate exposure, particularly under the
current tighter credit conditions.
Foreign exchange (FX) risk also arises from Agence Française de
Developpement's loans, which roughly account for 21% of the debt.
Medellin's direct debt includes an intergovernmental obligation
with the national government for Medellin's metro infrastructure.
Although the city's weighted average debt life is short at 6.2
years, Fitch does not foresee significant refinancing risk.
Medellin' s debt plans for 2026-2027 increased by COP 1.300
trillion, reaching COP 1.7 trillion. In 2025 the city will take
COP1 trillion from local banks. Their maturity will be for 10 years
with a three-year grace period.
Liabilities and Liquidity Flexibility: 'Weaker'
Although Medellin has access to short- and long-term loans with
local banks, its liquidity flexibility is limited by counterparty
risk, which is below investment grade. The city's liquidity
consists of unrestricted cash from internal resources and EPM
surpluses. At the end of 2024, the total cash balance was COP1.6
trillion, of which 50% was unrestricted cash, which improved
notably compared to last review. However, Medellin's liquidity
availability has been relatively volatile as it is influenced by
the political spending cycle, which also supports the 'Weaker'
assessment.
Financial Profile: 'aa category'
According to Fitch's International Local and Regional Government
(LRG) Rating Criteria, Medellin is classified as a Type B LRG, as
it is required to cover its debt service from cash flow on an
annual basis. Therefore, the primary metric to assess financial
profile is the payback ratio.
In Fitch's rating case, Medellín's average payback ratio rises to
4.1x for 2028-2029 from 2.0x in 2024, supporting an 'aaa'
assessment for the primary metric. This contrasts with the prior
review's rating case, which averaged 5.5x and was assessed at 'aa'.
The SDSCR is in the 'aa' range, just above 2.0x. Because the SDSCR
sits one category below the primary metric, Fitch adjusts the
financial profile down one notch from the primary metric's 'aaa' to
'aa'. Overall, the financial profile improved to 'aa' from 'a'.
Medellin's operating margins improved over the last three years,
driven by higher tax collections and EPM surpluses. In Fitch's
rating case, operating margins decline to below 17% from 24% in
2024. Fitch estimates a COP2.1 trillion net increase in long-term
debt throughout the scenario horizon, above the last rating review.
The stronger financial profile metrics reflect the 2024 results and
Fitch's updated treatment of EPM surpluses for social investment,
which positively adjusts Medellin's operating balance.
Other Rating Factors
Medellin's IDRs are capped by the sovereign's rating of 'BB+' with
a Negative Outlook. Fitch does not apply asymmetric risks and
extraordinary support from the national government.
Short-Term Ratings
The National Short-Term Rating is assessed at 'F1+(col)' and is
derived from the NLTR.
National Ratings
Fitch has affirmed Medellin's National Long-term rating at
'AAA(col)'. This is based on the city's Long-Term IDR of 'BB+',
which is capped by the sovereign. In addition, Fitch views
Medellin's risk profile and debt ratios as comparable to national
peers rated 'AAA(col)'.
Peer Analysis
The issuer's PCI level and rating compare favorably with entities
such as Bogotá, Galați in Romania, and Apodaca in Mexico. The PCI
is positioned in the middle of the category, given a "Lower
Midrange" risk profile, most FCRs assessed at "Midrange," and a
financial profile assessed at 'aa' in the mid band.
Regarding credit metrics, Medellín's payback ratio is comparable
to Cali's and stronger than Antioquia's, Bogotá's, and
Barranquilla's. Medellín's coverage is at the same assessment
level as Cali, Envigado, and Madrid (in Colombia), and Apodaca (in
Mexico).
Issuer Profile
Medellin has a population close to 2.6 million and is Colombia's
second-most important city, contributing to slightly more than 7.0%
of national GDP. The city's unemployment rate has reduced and is
positioned among the lowest of local capital cities.
Key Assumptions
Qualitative Assumptions:
Risk Profile: 'Low Midrange'
Revenue Robustness: 'Midrange'
Revenue Adjustability: 'Midrange'
Expenditure Sustainability: 'Midrange'
Expenditure Adjustability: 'Midrange'
Liabilities and Liquidity Robustness: 'Midrange'
Liabilities and Liquidity Flexibility: 'Weaker'
Financial Profile: 'aa'
Asymmetric Risk: 'N/A'
Support (Budget Loans): 'N/A'
Support (Ad Hoc): 'N/A'
Rating Cap (LT IDR): 'BB+'
Rating Cap (LT LC IDR) 'BB+'
Rating Floor: 'N/A'
Quantitative assumptions - Issuer Specific
Fitch's rating action is driven by the following assumptions for
reference metrics under its 2025-2029 rating case scenario
Payback ratio: 4.1x,
Coverage ratio: 2.6x,
Fiscal debt burden: 68%,
Fitch's rating case is a "through-the-cycle" scenario, which
incorporates a combination of revenue, cost and financial risk
stresses. It is based on 2020-2024 figures and 2025-2029 projected
ratios. The key assumptions for the scenario include:
- Tax revenues grow in line with national GDP and lagged inflation,
resulting in an average annual growth rate of 4.3%;
- Current transfers received grow at an average rate of 8.2% per
annum, considering allocation made for 2025, historical and
conservative expectations for growth of national government
revenues;
- Surpluses from EPM are based on 2025 distributions, management
forecasts for 2026 - 2027, and an average growth rate of two
percentage points below nominal GDP growth thereafter, this results
in an average annual growth rate for the whole scenario horizon of
8.3%;
- Total operating revenue grows at an average rate of 6.6% per
annum;
- Most operating expenditure items grow in line with lagged
inflation plus between 0 and 3 percentage points, resulting in an
average rate of 8.6% per annum;
- Average capital balance to increase to near COP2.1 trillion per
year due to an increase in the level of capex;
- Average cost of debt of 8.9%.
- New borrowing according to management forecasts and Fitch's
assumptions that long-term debt nears COP4.8 trillion by the end of
the scenario, close to legal debt limits.
- Other Fitch-classified debt based on a Fitch-estimate of
Medellin's share of the debt of infrastructure projects partially
funded by the District and future debt forecast for these projects,
reaching approximately COP570 billion by the final year of the
scenario;
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A downgrade of Colombia's Sovereign Rating.
- If the enhanced payback ratio is close to 9.0x, coupled with an
enhanced synthetic debt service coverage ratio (DSCR) below 1.5x,
under Fitch's rating case, a negative rating action is possible.
However, Fitch considers this to be very unlikely in the medium
term.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- An upgrade to Colombia's Sovereign Rating would lead to a
corresponding rating action on Medellin. National Ratings are at
the highest level, so positive rating actions are not possible.
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.
Summary of Financial Adjustments
- Fitch classifies a portion of the dividends the city receives
from EPM as operating revenue, to reflect the structural use of
dividends to finance operating-type components embedded within
investment expenditure. The amount classified as operating revenue
is based on a Fitch estimate of the amount of dividends that could
potentially be allocated to cover operating components of
'investment expenditure', up to 80% of total dividends, which is
the maximum share that the city has allocated to such items in
recent years. This replaces its prior practice of only considering
the amount actually allocated each year to those components.
- The change reduces sensitivity to annual administrative decisions
and aligns with the city's structural budget framework.
- Intergovernmental debt includes an estimate of Medellin's share
in the liability recognized by Empresa de Transporte Masivo del
Valle de Aburrá Ltda. (Metro de Medellin) towards the national
government, related to the construction of the city's first metro
lines.
- Adjusted debt Fitch includes an estimate of Medellin's share in
the debt of Metro de Medellin raised for the construction of the
"Avenida Calle 80" metro line
- Revenues from the environmental surcharge are excluded from the
analysis, as well as the corresponding transfers made to the
environmental authority.
- Revenues do not include previous-year fiscal surpluses.
- Personnel expenses include social security contributions to the
National Teachers' Benefits Fund (Fomag) that were deferred due to
insufficient resources. Payments made for prior-year debt are
excluded.
- Fitch reclassifies certain expenses reported as acquisition of
goods and services from operating expenditure to capital
expenditure according to their nature (for example, construction
and construction-related services, feasibility and design studies
for investment projects, information services, among others).
- Expenditures do not include prior-year deficits
Public Ratings with Credit Linkage to other ratings
Medellin's ratings are capped by the sovereign's rating at 'BB+';
Rating Outlook Negative.
Entity/Debt Rating Prior
----------- ------ -----
City of Medellin LT IDR BB+ Affirmed BB+
LC LT IDR BB+ Affirmed BB+
Natl LT AAA(col) Affirmed AAA(col)
Natl ST F1+(col) Affirmed F1+(col)
senior unsecured Natl LT AAA(col) Affirmed AAA(col)
=============
J A M A I C A
=============
JP FARMS: Suffers Near Total Loss of Banana, Plantain Crops
-----------------------------------------------------------
RJR News reports that JP Farms has reported almost complete
destruction of its St. Mary operations following the passage of
Hurricane Melissa.
This is the second straight year of major hurricane-related damage
suffered by the company, according to RJR News.
Initial assessments show that Hurricane Melissa caused an estimated
near 100% loss across the company's banana and plantain farms, the
report relays.
Although St. Mary avoided a direct hit, prolonged high winds from
Melissa's outer bands flattened crops that were still recovering
from Hurricane Beryl, the report notes.
Despite the devastation, Pan Jamaica Group, parent company of JP
Farms, has pledged to immediately invest in recovery efforts, the
report discloses.
This follows a $250 million injection last year to restart
production and restore profitability after Beryl's impact, the
report says.
The report discloses that Pan Jamaica's Vice Chairman and CEO
Jeffrey Hall said the company remains steadfast in its commitment
to Jamaica's agricultural sector and to support families in the
parish.
JP Farms has also committed to maintaining employment and benefits
for its team during the low production recovery phase, the report
says.
Meanwhile, General Manager Mario Figueroa shared that a test plot
of wind-resistant banana plants developed in partnership with the
Bodles Agriculture Research Station sustained less damage than
traditional crops, the report relates.
He said, while still affected, this confirms they are on the right
path to adopting more resilient varieties, the report notes.
JP Farms expects full recovery within six months, with its products
returning to store shelves by mid-2026, the report says.
Despite the losses at JP Farms, Pan Jamaica Group says it expects
to maintain strong overall profitability and preserve its solid
balance sheet, the report adds.
JP Farms is a banana and plantain producer in Jamaica.
===========
M E X I C O
===========
ALSEA SAB: Moody's Affirms 'Ba3' CFR & Alters Outlook to Positive
-----------------------------------------------------------------
Moody's Ratings affirmed Alsea S.A.B. de C.V.'s ("Alsea") Ba3
Corporate Family Rating and the senior unsecured Global Notes
rating. Moody's have also affirmed the Ba3 rating of the senior
unsecured notes pertaining to Food Service Project S.A., a wholly
owned subsidiary senior of Alsea. The outlook on all ratings was
changed to positive from stable.
The positive outlook reflects Moody's expectations that Alsea will
successfully execute its liability management plan, resulting in
improved credit metrics and a strengthened financial profile.
RATINGS RATIONALE
The change in outlook to positive from stable reflects Alsea's key
liability management and refinancing initiatives, which will
significantly strengthen its credit profile over the next 12–18
months. The company plans to refinance its USD500 million notes due
December 2026 with a MXN10 billion club loan maturing in 2031, and
its EUR-denominated debt, including EUR300 million notes due
January 2027, through a new EUR-denominated liability management
transaction. In addition, Alsea has recently repaid short-term bank
loans with a new MXN4 billion, 8-year bullet loan from Nacional
Financiera. These transactions will clear all material maturities
until 2030, reduce interest expense, and improve interest coverage
to levels consistent with a higher rating, while maintaining
leverage below the upward trigger. The refinancing strategy will
also shift a substantial portion of foreign currency debt into
local currency, mitigating FX risk and lowering the cost of debt
servicing and hedging.
The liability management plan will have a direct and positive
impact on Alsea's credit metrics. Moody's expects EBIT/interest
expense at around 2.1x by 2026, up from 1.7x as of the last twelve
months ended in September 2025 (LTM Sep-25) and 1.4x in 2024, which
is closer to around 2.5x upgrade threshold. This improvement will
be driven by lower interest costs and enhanced operating
performance. Moody's-adjusted debt/EBITDA will remain below the
3.5x upgrade threshold, with leverage sustained at around 3.0x in
2026 from 2.8x in the LTM Sep-25.
Alsea's strong brand portfolio—particularly Starbucks and
Domino's Pizza—along with geographic diversification and a focus
on high-growth, high-margin brands, enhances its business profile
and resilience. The company's ongoing investments in digitalization
and delivery sales (up 44%) will also support profitability and
cash flow generation.
Alsea's ratings remain constrained by intense competition, cash
flow concentration in one region (Mexico), and high capital
spending needs. While Alsea can reduce expansion investments if
needed, ongoing spending is still required to maintain its market
position.
Alsea's consolidated debt, including leases under IFRS16, was
MXN51,763 million as of September 2025, nearly unchanged from
MXN52,182 million in December 2024. As of September 30, 2025, cash
and equivalents were MXN4,657 million versus MXN12,378 million in
short-term debt (including MXN3,444 million in operating leases).
The recent MXN4 billion, 8-year loan from Nacional Financiera was
primarily used to repay short-term debt.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could lead to an upgrade of Alsea's ratings include a
sustained decline in Moody's-adjusted debt to EBITDA ratio to below
3.5x, adjusted EBIT to interest expense exceeding 2.5x, and the
ongoing maintenance of good liquidity.
Conversely, factors that could lead to a downgrade include a
sustained increase in Moody's-adjusted debt to EBITDA ratio above
4.5x and a drop in EBIT to interest expense below 2.0x.
COMPANY PROFILE
Alsea S.A.B. de C.V. (Alsea), headquartered in Mexico City, is a
restaurant operator with a presence in Mexico, Europe and South
America. Alsea targets the fast food, coffee shop, casual dining
and family dining segments. Alsea operates 13 brands, such as
Starbucks, Domino's, VIPs and Burger King, among others. The
company reported revenue of MXN83,441 billion ($4.2 billion) as of
LTM Sep-25.
The principal methodology used in these ratings was Restaurants
published in September 2025.
Alsea's Ba3 rating is two notches below the Ba1 indicated by
Moody's Restaurants methodology scorecard as of September 2025.
This is mainly due to the company's exposure to earnings volatility
and highly competitive environment.
COEUR MINING: Moody's Puts 'B2' CFR Under Review for Upgrade
------------------------------------------------------------
Moody's Ratings placed Coeur Mining, Inc.'s ("Coeur") ratings on
review for upgrade, including its B2 corporate family rating, its
B2-PD probability of default rating, and the B3 rating on its
senior unsecured notes. Previously, the outlook was stable.
The rating action follows announcement of a definitive agreement
for Coeur to acquire New Gold Inc. ("New Gold") in a $7 billion
all-equity transaction. The transaction is subject to various
approvals and is expected to close in the first half of 2026.
RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR
DOWNGRADE OF THE RATINGS
Coeur's ratings were placed on review for upgrade based on the
potential for a stronger credit profile for the combined company.
The combined company will have a larger, more diversified asset
base in North America. The acquisition adds two mines - one gold
and silver, the other gold and copper - to Coeur's portfolio, both
located in Canada, which is typically viewed as a low-risk mining
jurisdiction. The combined company should generate strong EBITDA
and free cash flow at current gold, silver and copper prices.
The review will conclude once the transaction has closed and there
is clarity on the combined company's capital structure and capital
allocation policy.
Coeur Mining, Inc. is a mid-tier gold and silver producer. The
company's producing properties include Las Chispas silver-gold
mine in Mexico, Rochester silver-gold mine in Nevada, Palmarejo
gold-silver complex in Mexico, Wharf gold mine in South Dakota and
Kensington gold mine in Alaska. The company also owns the Silvertip
project (silver-zinc-lead) in Canada. Coeur generated about $1.7
billion of revenue in the LTM period ending September 30, 2025.
The principal methodology used in these ratings was Mining
published in April 2025.
The scorecard indicated outcome is Ba2, which is three notches
above the B2 CFR. The CFR places greater emphasis on Coeur's
smaller scale and relatively shorter mine life.
COEUR MINING: S&P Places 'B+' Issuer Rating on Watch Pos.
---------------------------------------------------------
S&P Global Ratings placed all its ratings on Chicago-based Coeur
Mining Inc., including the 'B+' issuer rating, on CreditWatch with
positive implications.
S&P expects to resolve the CreditWatch upon transaction close and
after a detailed review of the combined business, its proposed
capital structure, and financial policy.
Coeur Mining has signed a definitive agreement to acquire all the
issued and outstanding shares of Toronto-based New Gold Inc. in an
all-equity transaction valued at approximately $7 billion.
The acquisition will strengthen Coeur's competitive position
through increased scale and operating breadth, adding two mining
operations that bring the total asset base to seven mines
concentrated in less risky jurisdictions. S&P expects stronger
earnings and cash flow from the combined entity given declining
capital expenditure and a favorable outlook for gold, silver, and
copper prices.
S&P said, "We see the potential for a higher rating on Coeur.
Stronger business characteristics and an improved earnings profile
for the combined entity could result in a higher business
assessment. The transaction would increase Coeur's operating assets
to seven mines from five and improve product diversity and
operational efficiency. It adds meaningful copper volumes and
creates a lower cost profile. We view the transaction as
transformative because it will almost double Coeur's production
volume to 1.25 million gold equivalent ounces. The combined entity
would also generate about 82% of revenues in the relatively stable
mining jurisdictions of U.S. and Canada. However, like many mergers
in mining, we do not expect significant operational synergies.
Mining assets are often isolated, which can preclude the
asset-level cost savings that often characterize takeovers in other
sectors. Mergers in mining improve portfolio breadth and corporate
sustainability by adding reserves and resources.
"We expect the integration of New Gold will be accretive to EBITDA,
cash flow, and credit quality, especially given declining capital
expenditure and a favorable price outlook for gold, silver, and
copper. Coeur's rolling-12-months leverage as of Sept. 30, 2025,
was below 1x and New Gold's was 1.1x. Leverage for the combined
entity could remain below 1.5x upon close given the proposed
all-equity financing, subject to shareholder and other regulatory
approvals.
"The CreditWatch with positive implications reflects the likelihood
that we could raise the ratings on Coeur, potentially by more than
one notch, at transaction close, based on the proposed terms. We
expect to resolve the CreditWatch by the first half of 2026, the
announced expected closing."
=====================
P U E R T O R I C O
=====================
TOWER BONDING: A.M. Best Affirms B(Fair) Fin'l. Strength Rating
---------------------------------------------------------------
AM Best has revised the outlook to positive from stable for the
Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the
Financial Strength Rating (FSR) of B (Fair) and the Long-Term ICR
of "bb" (Fair) of Tower Bonding and Surety Co., Inc. (Tower
Bonding) (San Juan, PR). The outlook of the FSR is stable.
The Credit Ratings (ratings) reflect Tower Bonding's balance sheet
strength, which AM Best assesses as adequate, as well as its
adequate operating performance, limited business profile and
marginal enterprise risk management.
The revision of the Long-Term ICR outlook to positive from stable
reflects the improvement in Tower Bonding's balance sheet strength
metrics from operating profitability. Overall risk-adjusted
capitalization and improving balance sheet metrics have benefited
from the company's consistent operating profitability. Tower
Bonding has produced profitable pre-tax operating results in each
of the previous five years and through the first half of 2025,
largely driven by underwriting income supplemented by investment
income.
Positive rating action could occur with continued improvement in
the balance sheet strength metrics over the intermediate term.
=================
V E N E Z U E L A
=================
VENEZUELA: Efforts to Disqualify Judge in Debt Case Come Up Short
-----------------------------------------------------------------
Caroline Simson at law360.com reports that a federal judge denied
efforts to unseat him and the court-appointed special master
overseeing the sale of Citgo's parent company to satisfy billions
of dollars in Venezuelan debt, ruling that the motions are both
procedurally defective and unmeritorious.
Venezuela, officially the Bolivarian Republic of Venezuela, is a
country on the northern coast of South America, consisting of a
continental landmass and a large number of small islands and
islets in the Caribbean sea. The capital is the city of Caracas.
Hugo Chavez was president to Venezuela from 1999 to 2013. The
Chavez presidency was plagued with challenges, which included a
2002 coup d'etat, a 2002 national strike and a 2004 recall
referendum. Nicolas Maduro was elected president in 2013 after
the death of Chavez. Maduro won a second term at the May 2018
Venezuela elections, but this result has been challenged by
countries including Argentina, Chile, Colombia, Brazil, Canada,
Germany, France and the United States who deemed it fraudulent and
moved to recognize Juan Guaido as president.
The presidencies of Chavez and Maduro have challenged Venezuela
with a socioeconomic and political crisis. It is marked by
hyperinflation, climbing hunger, poverty, disease, crime and death
rates, social unrest, corruption and emigration from the country.
Moody's has withdrawn 'C' local currency and foreign currency
ceilings for Venezuela in September 2022. Standard & Poors has
also withdrawn its 'SD/D' foreign currency sovereign credit
ratings and 'CCC-/C' local currency ratings on Venezuela in
September 2021 due to lack of sufficient information. Fitch
withdrew its own 'RD/C' Issuer Default Ratings on Venezuela in
June 2019 due to the imposition of U.S. sanctions on the country's
government.
*********
S U B S C R I P T I O N I N F O R M A T I O N
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