260130.mbx

260130.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 Friday, January 30, 2026, Vol. 27, No. 22 Headlines A R G E N T I N A ARGENTINA: Peso Tightens Blue Gap as Stocks Surge B R A Z I L AZUL SA: Moody's Assigns 'B2' CFR Amid Post-Bankr. Exit Financing BRAVA ENERGIA: S&P Affirms 'B+' ICR & Alters Outlook to Stable NEW FORTRESS: BlackRock Holds 9.8% Equity Stake as of Dec. 31 PRIO SA: Moody's Upgrades CFR to Ba2 & Alters Outlook to Stable J A M A I C A KNUTSFORD EXPRESS: Incurs $3.6M Net Loss for Qtr. Ended November 30 T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: Government Secures US$1 Billion 10-Year Bond V E N E Z U E L A VENEZUELA: Trafigura Makes First Oil Sale Under US-Backed Deal VENEZUELA: US Planning License to Lift Sanctions on Energy Sector X X X X X X X X LATAM: Rides Out Trump's Trade Storm With Help From China - - - - - ================= A R G E N T I N A ================= ARGENTINA: Peso Tightens Blue Gap as Stocks Surge ------------------------------------------------- Rio Times Online reports that Argentina opened January 28 with the peso steady on the screen and the parallel market still unusually contained. On the widely watched reference feed in your charts, USD/ARS traded near 1,442.5 per $1 ($1) around 08:26 UTC. Local boards put Banco Nacion's retail sell rate at 1,465 per $1 ($1), while the blue sold near 1,490 per $1 ($1), according to Rio Times Online. That gap implies about a 1.7% premium versus retail, which stays tight by local standards, the report notes. The split between "official" and "street" prices remains the daily stress test, the report relays. A small premium usually means fewer forced buyers in cash dollars, the report says. It also hints that the current rules still have teeth, the report notes. This morning, the parallel market looked more like a pressure valve than a panic gauge, the report discloses. Alternative rails kept the more important signal, the report relays. MEP traded near 1,463 per $1 ($1). CCL sat near 1,511 per $1 ($1), the report says. Rio Times Online discloses that the market was still saying offshore hedging costs more than local hedging, even as the overall gap stayed manageable. The official wholesale lane was also near the upper edge of the crawling band, the report relays. Global headlines added a second driver, the report notes. The U.S. dollar slid sharply after President Trump played down the weakness, with traders treating it as a green light to sell, the report discloses. The dollar index hovered near 96 after briefly touching around 95.6, the report says. The euro pushed above $1.20. Gold traded above $5,200, the report relays. U.S. 10-year yields held near 4.23%, the report discloses. Intervention chatter around the yen amplified the move, the report notes. Technicals reinforced the near-term story, the report says. On the 4-hour USD/ARS chart, RSI jumped to about 70.9, which reads overbought, the report relays. Daily RSI sat near 48.9, suggesting consolidation rather than a clean breakout, the report discloses. Weekly RSI near 58.1 kept the broader trend intact, the report notes. On your levels, 1,447.9 per $1 ($1) and 1,450.0 per $1 ($1) were the next resistance markers, the report relates. Equities were the louder signal, the report says. The S&P Merval last printed near 3,244,319.97 points (about $2,249), the report relays. That was roughly a 3.6% jump on the session. Daily RSI rose to about 67.7, with weekly RSI near 66.6, the report relates. That is strong momentum, but also more extended. Top 5 Winners CRES (Cresud): +9.84% EDN (Edenor): +6.58% BBAR (BBVA Argentina): +6.09% BMA (Banco Macro): +5.51% COME (Comercial del Plata): +5.45% Top 5 Losers ALUA (Aluar): -4.07% TXAR (Ternium Argentina): -1.98% VALO (Banco de Valores): +0.81% (weakest gainer group) BYMA (BYMA): +1.68% (weakest gainer group) LOMA (Loma Negra): +2.00% (weakest gainer group) A key local subplot was financing, the report notes. Analysts focused on the Treasury's final January peso auction and the need for a high rollover, the report discloses. One widely cited estimate put maturities near AR$9.4 trillion (about $6.5 billion), the report says. Reported Treasury cash at the central bank was around AR$2.3 trillion (about $1.6 billion), the report says. The broader bet was that calmer rates and liquidity keep the rally alive, 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. =========== B R A Z I L =========== AZUL SA: Moody's Assigns 'B2' CFR Amid Post-Bankr. Exit Financing ----------------------------------------------------------------- Moody's Ratings has assigned a B2 corporate family rating to Azul S.A. (Azul) in connection with its post-bankruptcy exit financing. At the same time, Moody's assigned a B2 rating to the proposed $1 billion senior secured notes due in 2031 and to the proposed $210 million senior secured notes due in 2033 issued by Azul Secured Finance LLP. The outlook for the ratings is stable. The rating assignment follows the confirmation order of Azul debtor's joint plan of reorganization under the Chapter 11 of the US bankruptcy code issued on 12 December 2025 by the United States Bankruptcy Court of the Southern District of New York, which will allow the company to emerge from bankruptcy in the first quarter of 2026. 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 Azul's B2 corporate family rating (CFR) reflects the company's unique business position in Brazil (Ba1 stable) as the only carrier on 84% of its routes, which results in lower competition and strong pricing power. The rating also reflects the good fundamentals for passenger traffic in Brazil, as well as more rational competition and capacity in the Brazilian market. This environment has allowed carriers to increase airfares, mitigating the effect of higher jet fuel prices and other inflationary cost pressures. Azul's ability to reduce total debt and costs during the Chapter 11 process and its high cash balance upon bankruptcy exit are also incorporated in the B2 rating. The B2 rating is constrained by Azul's still strained credit metrics and free cash flow generation, exposure to foreign currency and fuel price volatility, and to the volatility of the airline industry in the context of rising macroeconomic and geopolitical risks. The company's ability to reduce leverage and control cash burn in the next 12 to 18 months will still be key aspects in Azul's rating assessment. As part of its reorganization plan, Azul has pursued structural changes to its capital structure that will allow it to post a fast recovery in credit metrics through 2026. The company reduced total debt by $3.6 billion mainly through the conversion of debt into equity, renegotiated lease agreements with lessors and is implementing a cost reduction plan that could save up to BRL907 million in 2026 alone (BRL747 million of which has already been implemented). The company plans a reduction of more than 35% in its future fleet size, slowing new deliveries and retaining older Embraer E1s. At the same time, Azul will simplify its network with a focus on core hubs and high demand leisure destinations, while removing loss-making cities from its routes. Moody's expects Azul's post-exit credit metrics to improve substantially, with total gross leverage (Moody's adjusted) declining to around 3.0x in 2026-2027 compared to 5.5x as of the last twelve months (LTM) finished in September 2025. The company's interest coverage (measured by FFO + Interest Expense / Interest Expense) is also set to improve from 0.6x in LTM September 2025 to around 1.5x-2.5x in 2026-2027. Upon bankruptcy emergence, Azul's total debt will comprise (i) $1.2 billion of exit notes, (ii) $2.2 billion in lease liabilities; and (iii) about $288 million in other debt instruments. The company will also raise $750 million through an equity rights offering and $200 million of new strategic equity investment. The company's debt will be entirely secured, with the new notes being subjected to a collateral package which includes Azul' brand and intellectual property (IP) as well as IP and receivables associated with Azul Fidelidade, Azul Viagens and Azul Cargo as well as a EUR180 million debt investment in Transportes Aereos Portugueses S.A ("TAP", Ba3 stable). Proceeds from the Exit Notes will be used to refinance Azul's $1.57 billion DIP, pay expenses and fees related to the restructuring and for general corporate purposes; any proceeds from the monetization of TAP's bond must be used to repay the exit debt. All debt rank pari passu and there is no notching of debt instruments relative to the corporate family rating. LIQUIDITY Azul will have, upon bankruptcy emergence, an adequate liquidity with a high cash balance and lower upcoming debt maturity compared to the previous capital structure. The company's pro-forma cash balance of around BRL1.5-2 billion in the end of 2026 will be sufficient to cover short term financial debt maturities of BRL600-700 million. The company's annual debt amortizations (including leases) will amount to around BRL2 billion until 2029, with most of upcoming maturities represented by the new exit financing, due in 2031 and 2033. The company also has alternate liquidity such as factorable receivables that could be used in financeable transactions. Moody's expects that the company's cash flow from operations will gradually improve to around BRL4 billion – BRL5 billion in 2026-27. Moody's also expects a negative free cash flow generation in 2025-26, but positive free cash flow generation from 2027 onwards, reflecting improved profitability and flexibility in maintenance capex and costs as well as reduced interest expense payments. ESG CONSIDERATIONS Azul faces high environmental risk due to carbon transition. This will primarily depend on evolving global decarbonization policies and regulations which may increase operating costs for airlines. Further, the desire to reduce carbon emissions may lead to reduced travel, in particular for business purposes, much of which can effectively be done virtually, as demonstrated during the pandemic. Azul has been renewing its fleet since 2019 with the acquisition of Embraer's E2 Jets, which are cleaner and more fuel-efficient than its predecessor. Azul also faces high industry-wide social risks related to demographic and societal policies moving to reduce carbon emissions. Azul's governance risks relate to the recent bankruptcy process. Upon bankruptcy emergence, Azul's shares will be primarily held by the backstop parties (63.84%) and previous creditors (19.15%), while United Airlines and American Airlines will hold 8.5% each as part of a new strategic investment. Azul's board of directors will be composed after bankruptcy emergence. RATING OUTLOOK The stable outlook reflects Moody's expectations that Azul's credit metrics and liquidity will improve in the next 12-18 months, but that the company still needs to execute on its post-exit business plan to achieve the targeted operational and financial performance. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade of Azul's rating would require longer term visibility over the industry's recovery or strengthened credit metrics that provide cushion to credit quality under various stress scenarios. Quantitatively an upgrade would require adjusted leverage (measured by total debt / EBITDA) below 5x and interest coverage (measured by (FFO + interest expense) / interest expense) above 4x, all on a sustained basis. The maintenance of an adequate liquidity profile would also be required for an upgrade. The rating could be downgraded if credit metrics' recovery falls behind Moody's expectations, with adjusted leverage remaining above 6.5x and interest coverage below 1x. A deterioration in the company's liquidity profile or additional shocks to demand or profitability that lead to cash burn could also result in a downgrade of the rating. COMPANY PROFILE Headquartered in Barueri near the City of Sao Paulo, Brazil, Azul S.A. is a Brazilian airline founded by David Neeleman in 2008. The company is the largest airline in daily departures with around 800 flights, serving 137 domestic destinations with an operating fleet of more than 180 aircraft. The company also flies its aircraft to 8 international destinations, including Fort Lauderdale, Orlando, Madrid, Punta del Este, Montevideo, Lisbon, Porto and Mendoza. Azul is the sole owner of the loyalty program Azul Fidelidade, a strategic revenue-generating asset that has more than 17 million members. As of the last twelve months ended in September 2025, Azul generated BRL21.6 billion ($3.8 billion) in net revenue. The principal methodology used in these ratings was Passenger Airlines published in December 2025. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. BRAVA ENERGIA: S&P Affirms 'B+' ICR & Alters Outlook to Stable -------------------------------------------------------------- S&P Global Ratings, on Jan. 27, 2026, revised its outlook on the global scale ratings on Brazilian oil and gas company Brava Energia S.A. to stable from positive. At the same time, S&P affirmed the 'B+' global scale issuer credit rating on Brava and the 'BB-' issue-level ratings on the senior secured notes, with a 2 (85%) recovery rating. The stable outlook reflects S&P's view of Brava's still somewhat high leverage in 2026 and that more significant EBITDA growth in 2027 will lead to debt to EBITDA below 2.5x. S&P said, "We expect Brava to deleverage more slowly than we previously expected during 2026 due to a combination of slower production growth, lower Brent oil prices, and a weaker exchange rate compared to our previous forecast. "Additional wells in Atlanta and Papa-Terra should help boost production, but with full-year impact from 2027 on. Considering that, we forecast debt to EBITDA close to 4.0x in 2026, falling below 2.5x only in 2027." The company recently announced the acquisition of a 50% stake in the Tartaruga Verde and Espadarte – Module III, subject to certain conditions. If completed, it would add more asset diversification and increase production in the coming years. Given the associated lease and asset retirement obligations (ARO), S&P anticipates a relatively neutral impact on our adjusted leverage metrics. S&P said, "The outlook revision primarily reflects another year of weaker production than we initially expected, combined with weaker oil prices and a less favorable exchange rate. These factors have affected the company's deleveraging trajectory. We initially projected daily production of 95,000 barrels of oil equivalent per day (boe/d) in 2025, and revised this down in September to 85,000 boe/d, with expectations of production reaching 100,000 boe/d in 2026. However, 2025 results fell short, averaging 81,300 boe/d due to lower-than-anticipated production in Papa-Terra and Atlanta, compounded by an ANP (the federal agency that regulates Brazil's oil sector) audit in Potiguar. We now forecast production of approximately 87,000 boe/d for 2026 and expect production of 100,000 boe/d in 2027. "Consequently, and considering lower oil prices, we now project EBITDA of R$4.9 billion for 2026, a significant decrease from our September estimate of R$6.1 billion, leading to higher leverage than we previously expected. Our base-case scenario, considering only organic growth, now assumes debt to EBITDA around 4x for both 2025 and 2026, compared to previous estimates of 3.5x and 3.0x, respectively, delaying the timeline for improved credit metrics. "In our view, the announced acquisition offers long-term benefits but limited near-term leverage improvement. Brava recently announced the acquisition of a 50% stake in the Tartaruga Verde and Espadarte – Module III assets from Petronas for a total of $450 million. We expect the acquisition to add approximately 27,500 boe/d to the company's current average of 81,300 boe/d, reinforcing its position in offshore operations and supporting the company's scale-up targets. "The transaction is subject to Petrobras' waiver of its preemption rights, and then to usual regulatory approvals. Management expects the transaction could close in fourth-quarter 2026. We don't currently incorporate the impact of the acquisition into our base-case projections. We estimate the acquired assets would add EBITDA of about $300 million per year and require approximately $50 million in annual capital expenditures (capex), but include a relevant amount of leases and ARO that, on close, will be added to adjusted debt. This will prevent S&P Global Ratings-adjusted debt to EBITDA from significantly improving in the next 12 months, and we forecast this ratio to only fall below 2.5x in 2027. "We think management is focused on portfolio management and reducing leverage. In our view, the recent acquisition aligns with the company's strategy to optimize its asset portfolio, mitigate asset-specific risks, and reduce leverage in the coming years. We anticipate a significant decrease in capex to approximately $400 million in 2027, down from the projected $600 million in 2026, as the company completes investments in new wells at Papa-Terra and Atlanta. We expect these wells to add 11,000 boe/d to production at each field in late 2026 and early 2027. "Brava has also been successfully reducing its cost of debt through the maturity of older obligations. We expect financial debt levels to remain relatively stable in the next 12 months, with deleveraging driven by stronger EBITDA generation in 2027 as production increases and lifting costs decrease. "The stable outlook reflects our view that Brava will continue working to increase production levels and cash flows, as it proceeds with drilling campaigns at Papa-Terra and Atlanta and with the revitalization works in onshore fields to sustain relatively stable production. We forecast gross debt to EBITDA still close to 4.0x in 2026 due to lower oil prices compared with 2025 and funds from operations (FFO) to debt around 17%. "We could lower the ratings in the next 12-18 months if production is significantly lower than what we expect because of further delays in project development or operational problems, or if oil prices stay below our current expectation for a prolonged period. Either of these scenarios could result in lower EBITDA. "We could also downgrade Brava if the company demonstrates a more aggressive acquisition or growth strategy, significantly increasing leverage and reducing free operating cash flow. In these scenarios, we would see gross debt to EBITDA above 4.0x and FFO to debt below 20% in 2027 and on a sustained basis. "We could upgrade Brava in the next 12-18 months if the company's leverage consistently improves, with average debt to EBITDA below 2.5x and FFO to debt above 30%. In our view, this would result from production levels above 100,000 boe per day in 2027 and improving margins." NEW FORTRESS: BlackRock Holds 9.8% Equity Stake as of Dec. 31 ------------------------------------------------------------- BlackRock, Inc., disclosed in a Schedule 13G (Amendment No. 1) filed with the U.S. Securities and Exchange Commission that as of December 31, 2025, it beneficially owns 27,907,624 shares of New Fortress Energy Inc.'s Common Stock, representing 9.8% of the shares outstanding. BlackRock, Inc. may be reached through: Spencer Fleming, Managing Director 50 Hudson Yards New York, NY 10001 Phone: (212) 810-5800 A full-text copy of BlackRock's SEC report is available at: https://tinyurl.com/art9cvy7 About New Fortress Energy Inc. New Fortress Energy Inc., a Delaware corporation, is a global energy infrastructure company founded to help address energy poverty and accelerate the world's transition to reliable, affordable and clean energy. The Company owns and operates natural gas and liquefied natural gas infrastructure, ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. The Company has liquefaction, regasification and power generation operations in the United States, Jamaica, Brazil and Mexico. The Company has marine operations with vessels operating under time charters and in the spot market globally. As of September 30, 2025, the Company had $11.9 billion in total assets, $10.8 billion in total liabilities, and a total stockholders' equity of $1.1 billion. * * * In November 2025, S&P Global Ratings lowered its issuer credit rating on New Fortress Energy Inc. (NFE) to 'SD' (selective default) from 'CCC'. At the same time, S&P lowered its issue level rating on NFE's 12% senior secured notes due 2029 to 'D' from 'CCC-'. The downgrade reflects NFE's decision to enter into a forbearance agreement. S&P will reevaluate its ratings on NFE before the end of November as more information becomes available. The Company has initiated a process to evaluate its strategic alternatives to improve its capital structure. It has retained Houlihan Lokey Capital, Inc. as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as legal advisor to assist it in this evaluation. The Company, along with its advisors, is considering all options available, including asset sales, capital raising, debt amendments and refinancing transactions, and other strategic transactions that seek to provide additional liquidity and relief from acceleration under its debt agreements. As part of this process, the Company is engaging in discussions with various existing stakeholders and potential investors. There are inherent uncertainties as the outcome of these negotiations and potential transactions are outside management's control, and therefore there are no assurances that management will be successful in these negotiations and that any of these potential transactions will occur. In addition, there can be no assurances that these transactions will sufficiently improve the Company's liquidity or that the Company will otherwise realize the anticipated benefits. Moreover, if the Company fails to obtain amendments and forbearance, the Company may be required or compelled to pursue additional restructuring initiatives to preserve value and optionality, including possible out-of-court restructurings, or in-court relief, which could have a material and adverse impact on the Company's stockholders. PRIO SA: Moody's Upgrades CFR to Ba2 & Alters Outlook to Stable --------------------------------------------------------------- Moody's Ratings has upgraded to Ba2 from Ba3 PRIO S.A.'s ("PRIO") corporate family rating and the rating on PRIO Luxembourg Holding S.a.r.l. ("PetroLux") $700 million senior unsecured notes due 2030 following the acquisition of an additional 40% stake in Peregrino, an oil and gas producing field in Brazil, that will materially increase PRIO's production and reserves size. At the same time, Moody's have upgraded to Ba1 from Ba3 the rating of PetroLux's $169 million backed senior secured notes due 2026 to reflect the privileged position of secured creditors within PRIO's capital structure. Both outlooks were changed to stable from positive. RATINGS RATIONALE The upgrade of PRIO's ratings follows the conclusion of the acquisition of an additional 40% stake at Peregrino from Equinor for approximately $1.5 billion, subject to usual price adjustments, including the retrospective cash generation of the asset since January 2024. This will bring PRIO's ownership of the asset to 80% and its operatorship, given it first acquired 40% of Peregrino back in December 2024 for $1.9 billion. With this acquisition, PRIO will add over 40kboed of oil production, increasing total production to more than 150 thousand bbl/d, an increase of about 58.8% from September 2025 levels. Peregrino produces around 100kboed of oil and is located near PRIO's Polvo and Tubarão Martelo cluster. The recent acquisition is only the first part of the transaction; the second part is expected to be concluded by mid-2026 with the acquisition of the remaining 20% of the field. Upon closing of the second part of the transaction, Peregrino's will be fully owned and operated by PRIO. The deal for the remaining 20% is subject to precedent conditions, such as the approval by the Brazilian oil and gas regulator and the antitrust body. Historically, PRIO has had extremely low leverage ratios. Though in order to fund the acquisition PRIO raised some debt, increasing Moody's adjusted gross leverage to 3.8x as of the twelve months ended September 2025, Moody's expects this metric to decline to levels more commensurate with the rating category in the next 12 to 18 months, reaching around 1.5x – 2.0x as the company benefits from the additional EBITDA of Peregrino. Net leverage ratios will remain more comfortable at the peak of around 3.5x at the end of 2025 considering Moody's methodologies, and Moody's also expects it to gradually decline to around 0.5x – 1.5x in the next 12 to 18 months. PRIO expects to extract synergies from the fields, namely reduced costs based on operational and logistics synergies between Peregrino and PRIO's current fields. All of PRIO's producing fields are mature and have high annual production decline rates of close to 10%. The company's current lifting costs of $12.8/bbl, full cycle costs of $25-30/bbl and breakeven costs of $20-25/bbl already compares favorably with offshore and onshore producers, and Moody's expects additional cost reduction as the company starts operations in Wahoo in 2026, assuming no delays on the extraction of the first oil in the field. Wahoo will have very low lifting costs because it will be operated by the same facilities such as FPSOs used for Frade. The low cost structure provides PRIO with flexibility to withstand commodity price volatility and continue generating positive free cash flow to meet debt maturities even under adverse scenarios. PRIO's Ba2 ratings reflect the company's high operating efficiency and cash generation, which supports low debt leverage and good interest coverage ratios. The ratings are also supported by PRIO's high capital spending flexibility, favorable regulatory environment, and the fact that the company's capital is listed on the Brazilian stock exchange, which strengthens its corporate governance. The Ba2 ratings also reflect the increase in the company's production and proved developed reserve size after the acquisition of the Albacora Leste and a substantial portion of the Peregrino field. The ratings are primarily constrained by PRIO's still-small asset base and size of crude oil production compared with those of peers, its high operating risk because of geographic concentration and the mature nature of its oil and gas assets, and the company's dependence on acquisitions of oil and gas assets to increase production levels sustainably and maintain the reserve level. LIQUIDITY PRIO has good liquidity, with a cash position of around $1.8 billion at the end of September 2025. With the Peregrino acquisition Moody's expects the company to generate free cash flow of around $1.5 - $2.5 billion through commodity cycles, more than enough to cover capital spending of around $600 million per year, and the company to maintain its conservative approach toward future M&A and dividend distribution to preserve its liquidity. With the tender offer done in October 2025, PRIO addressed its only major refinancing need, tendering around $431.3 million of the $600 million secured notes due 2026. Additionally, PRIO has a number of funding alternatives, such as access to capital markets, bilateral loans and bank funding from the pre-sale of crude and factoring of receivables. PRIO has also stated that intends to refinance the bilateral loans it raised to fund the acquisition. However, PRIO does not have committed credit facilities and the company's alternate liquidity is limited because its asset base is small and is largely encumbered. RATING OUTLOOK The stable outlook on PRIO's ratings reflect Moody's expectations that PRIO's credit metrics and liquidity will return to pre-acquisition levels in the next 12-18 months following the increase in production after the acquisition of the additional 40% stake at Peregrino and the increase in production in other fields, namely Wahoo, in 2026. The outlook also incorporates Moody's expectations that PRIO will maintain adequate liquidity even with potential volatility in oil prices. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS PRIO's Ba2 ratings could be upgraded if the company (1) increases its production diversification and average daily production, with levels approaching 250kbpd; (2) sustains leveraged full-cycle ratio, which measures an oil company's ability to generate cash after operating, financial and reserve replacement costs, consistently above 2.5x; (3) maintains E&P debt/proved developed reserves below $7.0, and (4) maintains retained cash flow (cash from operations before working capital requirements less dividends) to total debt above 30%, all of which while maintaining an adequate liquidity. PRIO's Ba2 ratings could be downgraded if (1) retained cash flow to total debt declines below 25%, with limited prospects of a quick turnaround; (2) if E&P debt/proved developed reserves remains above $10.0, with limited prospects of recovery and (3) if there is a deterioration of the company's liquidity profile. COMPANY PROFILE Founded in 2015 and headquartered in Rio de Janeiro, Brazil, PRIO is an independent oil and gas production company focused on assets located in the Campos basin. The company has operations in 5 offshore fields, and upon the closing of the second part of the Peregrino field acquisition, will own 6 fields. In the twelve months ended September 2025, the company generated $2.5 billion in revenue with total assets of $11.2 billion. The principal methodology used in these ratings was Independent Exploration and Production published in December 2022. The difference between the current scorecard indicated outcome and the actual Ba2 ratings exceeds two notches. This difference results from Moody's expectations of continued strong metrics and enhanced production from the Peregrino and Wahoo fields. In Moody's 12-18 month forward view, Moody's scorecard-indicated outcome maps to Ba2, in line with PRIO's current rating. The Ba1 rating of PRIO's $169 million secured notes due 2026 stand one notch above PRIO's CFR and senior unsecured ratings reflecting the notes security and collateral package, and the privileged position of secured creditors within the capital structure. Secured debt will represent around 88% of PRIO's total debt pro forma to the liability management concluded in October 2025. ============= J A M A I C A ============= KNUTSFORD EXPRESS: Incurs $3.6M Net Loss for Qtr. Ended November 30 ------------------------------------------------------------------- RJR News reports that the directors of Knutsford Express are reporting a net loss of $3.6 million on revenues of $412.9 million during the quarter ended November 30. These losses were recorded after administrative and general expenses of $409.2 million and operating profits of $3.8 million, according to RJR News. Finance income amounted to $2.1 million but finance cost amounted to $10.4 million, leading to a loss of $4.5 million before taxation and $3.6 million after taxation, the report notes. The directors attributed these losses to the impact of hurricane Melissa, which affected several of its routes and depots, the report relays. RJR News discloses that they stressed, however, that the company generated a net profit of $62.8 million on revenues of just over $1 billion during the six-month period which ended on November 30. These profits were generated after administrative and general expenses of $910.5 million, which led to operating profits of $102.2 million, the report says. The company had an operating profit of $79.8 million and net profits of $62.8 million after taxation of $16.9 million, the report adds. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: Government Secures US$1 Billion 10-Year Bond --------------------------------------------------------------- Joel Julien at Trinidad Express reports that Trinidad and Tobago has successfully raised US$1 billion through the issuance of a new ten-year international bond, set to mature in January 2036, according to information released to investors. The bond carries a coupon rate of 6.5%, with interest payable semi-annually, and was sold at a discount to face value, meaning investors are expected to earn a slightly higher overall return, according to Trinidad Express. The bond, denominated in US dollars, is unsecured and backed by the Government's general ability to meet its debt obligations rather than specific assets, the report notes. Finance Minister Davendranath Tancoo is currently in New York this week participating in a bond show, the report says. The report notes that when contacted for comment by the Express, Tancoo said, "There are several related matters pending. I will comment officially on my return home." A legal notice issued on January 12 confirmed that JP Morgan Securities LLC and Bank of America Securities Inc were appointed as joint lead managers and arrangers for the issuance, the report discloses. The bonds were issued under the External Loans Act, which authorises the Government to raise funds internationally for general development purposes and repayment of existing debt, the report says. The issuance comes as the Government addresses elevated financing needs this year, the report relays. Last September, international ratings agency S&P Global Ratings revised T&T’s outlook from stable to negative, noting the Government faced an amortising US$1 billion bond due in summer 2026, the report recalls. In parallel, the Government launched a cash tender offer to repurchase its outstanding US$1 billion in 4.5% notes due August 4, 2026, which are listed on the Euro MTF Market of the Luxembourg Stock Exchange, the report notes. The tender offer allows noteholders to sell back their bonds at par value (US$1,000 per US$1,000 principal amount), plus accrued interest up to - but excluding - the settlement date, the report adds. ================= V E N E Z U E L A ================= VENEZUELA: Trafigura Makes First Oil Sale Under US-Backed Deal -------------------------------------------------------------- RJR News reports that trading house Trafigura has sold its first cargo of Venezuelan crude oil as part of a 50-million-barrel supply deal between Caracas and Washington. Industry sources said Spanish refiner Repsol will be taking the shipment, according to RJR News. Two of the sources said the cargo is expected to be delivered to Repsol in Spain in February, the report notes. The deal would mark one of the first sales of Venezuelan oil to Europe since the United States captured the South American country's leader earlier this month and then struck agreements with Caracas to export up to 50 million barrels of its oil, the report relays. Trafigura and rival commodities trading house Vitol were tapped by Washington to facilitate the initial exports, the report adds. About Venezuela 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 its '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. VENEZUELA: US Planning License to Lift Sanctions on Energy Sector ----------------------------------------------------------------- RJR News reports that American officials are preparing to issue a general licence that would lift some sanctions on Venezuela's energy sector, a significant policy shift from the current practice of approving individual exemptions for companies looking to operate there. The move comes as Washington works to facilitate a multi-billion dollar oil supply agreement and a major plan to rebuild Venezuela's battered oil industry following the capture of President Nicolás Maduro earlier this month, according to RJR News. International energy firms Chevron, Spain's Repsol, Italy's ENI, and India's Reliance Industries, as well as several U.S. oil service companies have applied for special licences to expand output or exports, the report notes. But the sheer volume of individual requests has slowed progress, sources said, the report discloses. Under the new plan, a general licence would allow broader engagement with Venezuela's energy sector without companies having to wait for individual approvals, the report relays. U.S. and Venezuelan officials have not yet commented publicly on the proposal. About Venezuela 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 its '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. =============== X X X X X X X X =============== LATAM: Rides Out Trump's Trade Storm With Help From China --------------------------------------------------------- Beatriz Reis and Giovanna Serafim at Bloomberg News report that Latin America braced for a colossal blow when President Donald Trump's tariffs upended global trade last year. But it's never been a better time for the region's exports, according to Bloomberg News. Bloomberg News notes that Argentina said its shipments abroad last year were the second-highest in its history. The release followed data from Brazil and Chile, both of which reported this month that their own exports hit records in 2025, according to Bloomberg News. In coming days, figures from Mexico and Peru will likely also reveal milestones, Bloomberg News says. Bloomberg News relays that at a time when regions like Europe are grappling with Trump's renewed tariff threats, Latin America is heading into 2026 even better positioned to withstand any trade shocks from Washington. Exporters are benefitting from improved logistics, the ability to redirect shipments toward emerging markets and, above all, deeper ties with China, Bloomberg News notes. The world's second-largest economy is snapping up the region's commodity exports, such as soybeans, copper and iron ore, Bloomberg News says. "Strong export performance last year looks counter-intuitive given the tariff noise, but it was driven by a combination of increasing prices, volumes and geopolitics," said Andres Abadia, chief Latin America economist at Pantheon Macroeconomics, Bloomberg News relays. "Key exports in the region should remain relatively resilient," he added. Bloomberg News discloses that Latin America has hurdled to the forefront of global geopolitics as Trump’s administration aggressively seeks to assert its influence across the Western Hemisphere. When it comes to trade, the reality on the ground in most of the region’s countries is that China is more entrenched than ever, Bloomberg News says. China's Diversification The regional trade shift in 2025 was especially visible in food and agricultural goods. China's efforts to diversify sourcing boosted shipments of frozen Brazilian beef, which climbed nearly 50 percent from a year earlier, Bloomberg News relays. Greater soybean purchases from Argentina, spurred by a temporary suspension of export duties, helped offset reduced US supply amid ongoing trade frictions, Bloomberg News notes. Meanwhile, in Peru, Chinese purchases of gold and copper drove exports to Beijing, underscoring how the Asian giant’s industrial and energy transition needs are reshaping Latin America’s trade flows, Bloomberg News discloses. "There is a global friction between US and China, both of them are fighting for markets," said Alberto Ramos, chief Latin America economist at Goldman Sachs Group Inc, Bloomberg News says. "China is already a significant trading partner for most Latin American economies," Bloomberg News relays. Mexico is an outlier, given that roughly 80 percent of its exports go to the United States, and overall shipments to its northern neighbour were up seven percent year-to-date through November 2025, Bloomberg News notes. Furthermore, in late November, President Claudia Sheinbaum's government approved tariffs on 1,463 products – mostly from China – signalling an even closer alignment with Washington, Bloomberg News says. Chile posted record overseas sales of copper – a key input for clean energy technologies – to both China and the US as prices and consumption rose, Bloomberg News discloses. Treading Carefully Going forward, exports from Brazil, Chile, Colombia, Mexico and Peru will benefit from demand for raw materials and agroindustrial products, according to Abadia, from Pantheon Macroeconomics, Bloomberg News relays. Brazil's government sees exports this year hitting US$340 billion to US$380 billion, following shipments of US$348.7 billion in 2025, Bloomberg News notes. Chile's Central Bank expects exports of goods and services to rise 1.8 percent after the 2025 mark of US$107 billion, Bloomberg News says. In Argentina, exports will hit US$91.4 billion this year, according to a Central Bank survey from December, Bloomberg News discloses. That figure compares to $87.1 billion in 2025, Bloomberg News notes. In that context, regional leaders are avoiding overtly picking sides, Bloomberg News says. Argentina under President Javier Milei, one of Trump’s most outspoken global allies, continues to rely on China as the top destination for its exports, stopping short of a full break with Xi Jinping, Bloomberg News relays. Brazil's leftist leader Luiz Inacio Lula da Silva is also treading carefully to avoid conflicts, Bloomberg News notes. Relations with the US have improved after he succeeded in rolling back a large share of the massive tariffs imposed by Trump in 2025, Bloomberg News relays. "Trump's recent actions have shown US willingness to support politically aligned governments in the region," said Dan Pan, an economist at Standard Chartered, Bloomberg News discloses. "But even the most far-right leaders in the region will have to be pragmatic when it comes down to dealing with the largest buyers of the regions’ commodity exports," he added. ********* 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 2026. 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 * * *