260226.mbx

260226.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 Thursday, February 26, 2026, Vol. 27, No. 41 Headlines A R G E N T I N A PROVINCE OF ENTRE RIOS: S&P Affirms 'CCC+' ICR, Outlook Stable YPF SA: Readies War Chest For Shale Push As Milei Bolsters Oil B E R M U D A VALARIS LIMITED: Fitch Puts 'B+' LongTerm IDR on Watch Negative B R A Z I L COMPANHIA SIDERURGICA: Moody's Cuts CFR to B2, Outlook Negative J A M A I C A JAMAICA: BOJ Pumps US$15 Million Into Forex Market M E X I C O ALPEK SAB: Moody's Cuts Unsecured Notes to Ba1, Outlook Negative ALPEK SAB: S&P Downgrades ICR to 'BB+', Outlook Negative TEXAS INTERNATIONAL: To Sell Laredo Property for $4.28MM T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: THA to Double Egg Prices - - - - - ================= A R G E N T I N A ================= PROVINCE OF ENTRE RIOS: S&P Affirms 'CCC+' ICR, Outlook Stable -------------------------------------------------------------- S&P Global Ratings, on Feb. 23, 2026, affirmed its 'CCC+' foreign and local currency long-term issuer credit ratings on the Province of Entre Rios. The outlook remains stable. S&P also assigned a 'CCC+' issue rating to the planned international debt issuance of up to $500 million. Outlook The outlook on S&P's 'CCC+' issuer credit ratings on Entre Rios is stable, balancing the province's ongoing efforts to contain spending pressures (in a context of weak local revenue and transfers affected by persistent economic vulnerabilities) with its limited financing options. Downside scenario S&P said, "We could lower the ratings on the Province of Entre Rios over the next 12 months if its budgetary performance weakens and erodes its liquidity, pointing to rising risk of a distressed debt exchange or a conventional default. We could also lower the ratings if the national government tightens access to foreign currency, which could impair the province's ability to service foreign currency debt." Upside scenario S&P could raise the ratings during the next six to 12 months if the province builds further resilience through improved fiscal outcomes while it enhances its debt and liquidity management. Successful execution of the proposed debt transaction would improve the province's debt profile by addressing most debt service obligations in coming months. This, coupled with continued fiscal discipline, would reduce the province's financing requirements and mitigate risks that could lead to default. Rationale On Feb. 23, the Province of Entre Rios announced a proposed issuance of global notes for up to $500 million. This would be the first instance of the province tapping the global markets since 2017, when it issued the outstanding 2028 notes. The proposed transaction would follow recent issuances by the City of Buenos Aires and the provinces of Cordoba and Santa Fe, and it signals modest improvement in market confidence after the debt restructurings that most provinces carried out in 2020-2021. The Province of Entre Rios would use part of the proceeds to refinance debt; this includes the proposed repurchase (for cash) of its international bond due in 2028. S&P said, "We view the proposed repurchase as liability management. We believe the offer does not entail a loss of value for holders of the 2028 bonds. According to the offer, bondholders would be paid at par. At the same time, we think that, if this debt transaction isn't successful, the province would have some time to implement alternative initiatives to refinance its next payment due in August for $56 million (principal and interest), including the use of accumulated cash reserves." Entre Rios, like most Argentine issuers, remained cut off from international debt markets between 2018 and 2025. The province has shifted to domestic financing, including domestic bank loans, short-term national government loans, and cash reserves to repay $285 million between 2023 and 2026, including the latest $46 million due Feb. 8. S&P said, "We expect that the province's debt burden will decline to 20% at the end of 2026 (from 45% in 2020), mainly because of the limited access to financing in the recent past, as well as real appreciation in the Argentine peso. However, we also note that the province has been making efforts to tackle long-standing fiscal challenges. In the context of weak transfers performance, Entre Rios has taken steps to broaden its tax base and tackle its pension deficit. We expect that deficits after capital expenditure will remain below 5% of total revenue in 2026-2027, although there's still limited budgetary room for maneuvering. Capital investment has been an important source of fiscal adjustment and remains very low, even when compared with capital investment in local peers." The proposed issuance shouldn't increase the province's indebtedness, since it'll use the bulk of it for the refinancing payment, and since it's a step toward improving the province's financial profile. The 2028 bond represents 54% of the province's total debt stock. The proposed transaction would push debt service maturities to 2031-2033 and reduce debt service for 2026-2028 to about 4% of revenue (from an estimated 8%) according to the current calendar of payments, reducing roll-over risks. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee's assessment of the key rating factors is reflected in the Rating Component Scores above. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. Ratings List Ratings Affirmed Entre Rios (Province of) Issuer Credit Rating CCC+/Stable/-- Senior Unsecured CCC+ New Rating Entre Rios (Province of) Senior Unsecured CCC+ YPF SA: Readies War Chest For Shale Push As Milei Bolsters Oil -------------------------------------------------------------- Jonathan Gilbert at Bloomberg News reports that YPF SA is setting aside funds to keep spending in the fast-growing Vaca Muerta basin even if oil prices fall this year as management handpicked by libertarian President Javier Milei looks to build the state-run company into a global shale star. "We've prepared ourselves," Chief Executive Officer Horacio Marin said Wednesday during an interview in Buenos Aires, according to Bloomberg News. "We've managed our portfolio very well, so that in a low oil-price environment we don't need to reduce investment. Our capex doesn't change whether a barrel is worth US$70 or US$55," Bloomberg News notes. YPF, easily Argentina's biggest oil producer, invested US$3.5 billion upstream in the 12 months through September, Bloomberg News relates. Marin is keen for spending to stay around that level in order to maintain momentum for the company's shale push and, in turn, make good on a promise of big returns for investors, Bloomberg News notes. A fresh policy move from Milei to spur crude investments should help too, Bloomberg News says. "This is the key year," said Marin, a 62-year-old oil veteran who’ll lay out YPF’s full strategy for 2026 in a February 27 earnings call. "Because it's the final year of our transition – and then we can lift off," he added. YPF wants to surpass 200,000 barrels a day of shale oil this year, Marín said, up from 170,000 in the third quarter of 2025, after two years of aggressive cost-cutting and divestments, Bloomberg News discloses. That push included two recent asset sales that raised an extra US$1 billion for the company's war chest and a pending deal to exit natural gas distributor Metrogas SA, Bloomberg News says. If the plan to grow profits succeeds over the next few years, YPF is targeting its first shareholder dividend payouts in a decade, Bloomberg News notes. Its New York-traded shares have gained 127 percent since Milei took office and are worth about US$38, Bloomberg News relates. Marin's target for the end of 2027, when Milei finishes his term, is to reach US$60, Bloomberg News says. Bloomberg News discloses that the Vaca Muerta shale patch in Patagonia is key to Milei's plan to stabilise Argentina's crisis-prone economy because it can drive huge energy trade surpluses, including the biggest on record last year. That's why the government stretched out its marquee investor incentives program to include shale oil drilling, Bloomberg News relays. Previously, the oil element of the programme, known by its Spanish acronym RIGI, only included upstream features like separation plants, pipelines, as well as offshore exploration, Bloomberg News says. Expanding it to shale oil wells — the minimum investment in a single project is US$600 million - will spur more production to "accelerate use of pipeline and export infrastructure and, at the same time, enhance competitiveness," the government said in a decree, Bloomberg News notes. "It will be great for the industry," Marin said from his corner suite overlooking the River Plate estuary, Bloomberg News relays. RIGI's tax, currency and customs benefits, which greatly improve the economics of energy and mining projects, may help to lure US independents looking to take their shale expertise abroad as so-called Tier 1 acreage runs out in the Permian Basin, Bloomberg News discloses. Continental Resources Inc, owned by shale billionaire Harold Hamm, recently became the first of those independents to place a bet on the Vaca Muerta, Bloomberg News notes. Marin said he has chatted loosely – not to do a deal – with Continental and also with Devon Energy Corp, which earlier this month moved to become one of the world's biggest shale companies by agreeing to acquire Coterra Energy Inc, Bloomberg News relays. "Argentina is a logical destination for those companies to continue growing," Marin said, Bloomberg News relays. "Their geologists like Vaca Muerta – we've discussed that informally," he added. Bloomberg News notes that RIGI may also help against the backdrop of a potential re-birth of the vast oil industry in Venezuela, where Marín worked for several years. While Venezuela churns out heavy and sour crude, versus Argentina's light and sweet shale, the YPF chief highlighted how extra regional production accentuates the need to keep costs down, Bloomberg News notes. "We can't have spurious costs because that's exactly what takes you out of the competition,” Marin added. As well as shale oil, Marin is overseeing Argentina's signature liquefied gas export project, a venture with Italy's Eni SpA and Abu Dhabi National Oil Co.'s XRG that will ship at least 12 million tons a year of LNG, along with plenty of associated natural gas liquids, Bloomberg News says. With XRG now confirmed as a partner – it made the commitment binding last week – the search for at least US$14 billion in financing is now heating up, Bloomberg News relates. By any account, that would be the biggest project finance deal in Argentine history. Marin compared gathering the cash, a chunk of which could come from export credit agencies, to a jigsaw puzzle, Bloomberg News notes. "We have to see how we'll put it together,” he said. "There are several banks that are offering initial tickets that are very expensive," he added. ============= B E R M U D A ============= VALARIS LIMITED: Fitch Puts 'B+' LongTerm IDR on Watch Negative --------------------------------------------------------------- Fitch Ratings has placed Valaris Limited's 'B+' Long-Term Issuer Default Rating (IDR) and 'B+' second lien secured notes rating with an 'RR4' Recovery Rating, co-issued by Valaris Finance Company LLC, on Rating Watch Negative (RWN). This follows the announcement that Valaris will be acquired by Transocean Ltd. (NR) in an all-stock deal valued at around $5.8 billion. The RWN reflects Fitch's expectation that the combined entity may have a weaker credit profile than standalone Valaris. The combined company will have higher leverage metrics and lower coverage metrics compared with Valaris, although it will benefit from enhanced scale, improved FCF generation and synergy opportunities. Fitch plans to resolve the RWN at the close of the transaction, anticipated in 2H26. The closing of the transaction and resolution of the RWN could take longer than six months. Key Rating Drivers Acquisition by Weaker Parent: Fitch views the announced acquisition negatively for Valaris as the agency believes the combined entity may have a weaker profile than Valaris. Transocean has much higher leverage metrics and lower coverage metrics compared with Valaris, and it has significant near-term maturity risk. Under the contemplated deal terms, the resolution of the RWN at close will likely result in a negative rating action for Valaris. Transaction Creates Global Industry Leader: The announced transaction brings together highly complementary, premium offshore assets, which should enhance future FCF and the overall global reach for Transocean. The combined company will own 33 drillships, 31 jackups and nine semi-submersible rigs which will result in an industry-leading backlog of approximately $10 billion. The Transocean management team has identified around $200 million in cost synergies which will further strengthen the company's financial flexibility and could bolster deleveraging capacity. Improving Standalone FCF: Fitch projects Valaris' standalone FCF at around $200 million for full-year 2025. Fitch expects EBITDA will moderate in 1H26, driven by lower fleet utilization and higher costs associated with preparing rigs for recently awarded contracts. Fitch expects cash generation to improve thereafter as these contracts commence through 2026 and enhance FCF in 2027. Adequate Standalone Leverage; Strong Liquidity: Fitch forecasts EBITDA leverage at around 1.9x in 2025 and 2026 and 2.5x at the mid-cycle as its commodity price assumptions decline toward $60 per barrel (bbl) Brent in 2028 and beyond. Valaris also maintains strong liquidity with over $600 million cash on hand and full availability under the $375 million revolver at 3Q25. The company also maintains a clear maturity schedule until its notes are due in 2030. Joint Venture with Saudi Aramco: Valaris has a 50% stake in Saudi Aramco Rowan Offshore Drilling Company (ARO), an equity method-accounted joint venture (JV) with Saudi Aramco. ARO is an offshore drilling company with contracts with Saudi Aramco. Fitch does not forecast any dividends from the JV. Fitch expects the company to fund capital expenditure (capex) through FCF generation and standalone debt without any cash calls from the partners. Peer Analysis Valaris' peers include Noble Corporation plc (Noble; BB-/Stable) and Seadrill Limited (Seadrill; B+/Stable). The combined company's scale will be significantly larger than both Noble and Seadrill with similar EBITDA margins. The combined company will have higher leverage than both Noble and Seadrill along with elevated refinance risks due to Transocean's significant near-term maturities and complicated capital structure. Fitch’s Key Rating-Case Assumptions - Brent oil price averages $63/bbl in 2026, $63/bbl in 2027 and $60/bbl thereafter; - Standalone EBITDA margin increases to the mid-to-high 20s in 2025, remains relatively flat in 2026, and decreases modestly thereafter in line with price assumptions; - Standalone Capex of around $350 million in 2025, with growth-linked spending thereafter; - No dividends paid; - Standalone FCF primarily funds share buybacks. - Announced Transocean acquisition closes in 2H26 as contemplated. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): - Business and financial profile factors (assessment, relative importance): Management (bbb, Lower), Sector Characteristics (bb-, Moderate), Market and Competitive Positioning (b+, Higher), Diversification and Asset Quality (bb, Moderate), Company Operational Characteristics (b, Higher), Profitability (bb, Moderate), Financial Structure (bb, Moderate), and Financial Flexibility (bb, Moderate). - The quantitative financial subfactors are based on custom CRT financial period parameters: 5% weight for the historical year 2024, 5% for the forecast year 2025, 15% for the forecast year 2026, 25% for the forecast year 2027 and 50% for the forecast year 2028. - Assessments of the quantitative financial subfactors also include bespoke calculations. - The Governance assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'a' results in no adjustment. - The SCP is 'b+'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - Fitch expects to resolve the RWN upon completion of the announced transaction under proposed terms. Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Independent of the Transaction: - Deteriorating market fundamentals, such as decreasing day rates and offshore rig utilization; - A significant increase in gross debt; - Weakening liquidity; - Midcycle EBITDA leverage above 3.0x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: - Sustainably stronger offshore drilling market fundamentals, including high day rates, longer contracts, and growing backlog and rig utilization; - A track record of conservative financial policy that keeps gross debt in check; - Midcycle EBITDA leverage below 2.0x. Liquidity and Debt Structure At 3Q25, Valaris had $663 million of unrestricted cash and full availability under the $375 million long-term committed revolving credit facility (RCF) which expires in 2028. The company also has a clear maturity window with no maturities until 2030, which Fitch views favorably. Issuer Profile Valaris provides offshore drilling services to oil and gas companies across the globe. It owns the world's largest fleet of offshore rigs, including jackups and floaters. Valaris is incorporated in Bermuda and headquartered in the U.S. 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. Climate Vulnerability Signals Valaris' 2025 Climate.VS of 60 out of 100 by 2035 is consistent with the oilfield services industry. Offshore drilling operations, like their onshore counterparts, are subject to regulatory scrutiny and environmental regulations. Additionally, oilfield services face risks related to emissions, personnel safety, environmental disasters and other catastrophic events. Valaris' diverse operational basins provide geographical diversification, which may help minimize the impact of localized regulations. Valaris has taken various steps to mitigate risks, including investing in real-time emission-monitoring systems, implementing process safety frameworks and conducting offshore emergency event drills. The company reports Scope 1, 2 and 3 emissions and has set a target to reduce Scope 1 emissions intensity by 10% to 20% by 2030 compared to 2019. Key energy transition risks arise from potential declines in oil demand driven by policies aimed at reducing the use of oil in the global economy. These risks do not significantly influence the rating, given the extended timeframe of the energy transition and uncertainty regarding the future changes, policies, and corporate responses to the changes. For further information on how Fitch perceives climate-related risks in the oil and gas sector, see Oil & Gas and Chemicals - Climate Vulnerability Signals Update. ESG Considerations Valaris Limited has an ESG Relevance Score of '4' for Waste & Hazardous Materials Management; Ecological Impacts due to the risk that a possible offshore oil spill may affect the company, which has a negative impact on the credit profile, and is relevant to the rating in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Valaris Limited LT IDR B+ Rating Watch On B+ Senior Secured 2nd Lien LT B+ Rating Watch On RR4 B+ Valaris Finance Company LLC Senior Secured 2nd Lien LT B+ Rating Watch On RR4 B+ =========== B R A Z I L =========== COMPANHIA SIDERURGICA: Moody's Cuts CFR to B2, Outlook Negative --------------------------------------------------------------- Moody's Ratings has downgraded Companhia Siderurgica Nacional (CSN)'s Corporate Family Rating to B2 from Ba3. At the same time, Moody's downgraded to B2 from Ba3 the ratings of CSN Resources S.A.'s Backed Senior Unsecured Notes and the rating of the Backed Senior Unsecured Notes of CSN Inova Ventures. The outlook for all ratings is negative. This concludes the review process initiated on November 17th 2025. RATINGS RATIONALE The downgrade of CSN's ratings to B2 reflects the company's highly leveraged capital structure and the company's need to pursue deleveraging initiatives to reduce debt levels, interest burden and increase free cash flow generation to avoid refinancing risks. On January 15, 2026, CSN announced plans to sell a minority stake in its infrastructure assets and a majority stake in its cement assets and raise BRL15-18 billion. The company intends to use the proceeds to reduce total debt at the holding level, which will improve leverage, reduce the interest burden, ease liquidity risks related to upcoming debt maturities and improve capital allocation within the group, balancing debt at the holding and subsidiaries levels. However, until CSN is able to execute on the plan, credit metrics will remain weak and liquidity risks elevated, particularly during periods of market volatility and increased risk aversion. CSN's adjusted EBITDA increased to around BRL9.8 billion in the 12 months that ended in September 2025 from BRL8.6 billion in 2024, while the company's Moody's adjusted leverage decreased to 5.5x from 6.7x during the same period. Moody's expects CSN's adjusted leverage ratio to remain within 5.0x-6.0x over the next 12-18 months based on lower steel and iron ore prices, but to strengthen to 4.0x-5.0x over time based on the price scenario of $80-$100 per ton for iron ore (61% Fe) and normalized profitability on steel operations. However, unless CSN is able to accelerate deleveraging through asset sales, capex reduction or proactive debt reduction, the company's credit metrics and free cash flow generation will be more commensurate with a lower rating category. The company's liquidity is adequate, but cash burn and upcoming refinancing needs could create refinancing risk in the medium-term. CSN has BRL16.5 billion in consolidated cash, of which BRL13.6 billion is at the mining subsidiary. Most of upcoming refinancing needs relate to bank debt, and the next relevant bond maturity is in 2028. However, with the current cash burn, refinancing risk has increased. Capital allocation within the group is also a concern. Most of CSN's debt sits at the holding level, while most of cash generation comes from mining subsidiary. CSN needs to address this situation to balance the risk among the group. RATING OUTLOOK The negative outlook reflects Moody's expectations that CSN's credit metrics will remain weak until the company is able to pursue deleveraging initiatives. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Positive pressure on CSN's rating could emerge if the company is able to improve credit metrics, with leverage below 5x, interest coverage above 1x and adequate liquidity. The rating could be further downgraded if liquidity risks increase, or if leverage remains above 6x and interest coverage below 1x without prospects for improvement. COMPANY PROFILE With an annual capacity of 5.6 million tons of crude steel, Companhia Siderurgica Nacional (CSN) is a vertically integrated, low-cost producer of flat-rolled steel, including slabs, hot and cold rolled steel, and a wide range of value-added steel products, such as galvanized sheets and tin plates. In addition, the company has downstream operations to produce customized products, pre-painted steel and steel packaging. CSN sells its products to a broad array of sectors and industries, including automotive, capital goods, packaging, construction and home appliances. CSN owns and operates cold rolling and galvanizing facilities in Portugal, along with long steel assets in Germany, through its subsidiary Stahlwerk Thüringen GmbH. The company also has a long steel line (500,000 tons capacity) at the Volta Redonda plant. CSN is a major producer of iron ore (the second-largest exporter in Brazil), with a sales volume of 44.6 million tons in the 12 months that ended September 2025. The company has operations in other segments, such as cement, logistics, port terminals and power generation. CSN reported revenue of BRL45.4 billion (or around $8.5 billion) in the 12 months that ended September 2025, with an adjusted EBITDA margin of 21.5%. The principal methodology used in these ratings was Steel published in September 2025. CSN's scorecard-indicated outcome under Moody's Steel rating methodology maps to Ba3, two notches above the assigned rating, reflecting the company's credit metrics under the current difficult industry environment, while the assigned rating captures Moody's expectations that credit metrics will remain weak and liquidity risks are elevated. Moody's 12-18-month forward-looking view maps to B1, reflecting the company's still-strained credit metrics. ============= J A M A I C A ============= JAMAICA: BOJ Pumps US$15 Million Into Forex Market -------------------------------------------------- RJR News reports that the Bank of Jamaica intervened in the foreign exchange market with US$15 million on Friday morning, February 20. The bids was to be settled on Monday, February 23, according to RJR News. The bank says banks and cambios which buy this money must sell it back for more than 20 Jamaican cents above the buying price, and further that this money must be sold to only buyers who have foreign exchange bills to pay for imported raw materials, intermediate goods, spare parts, food and services, the report notes. The bank also says the minimum amount which can be purchased is $100,000, stressing that any bids above this amount must be rounded to the nearest $25,000, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. =========== M E X I C O =========== ALPEK SAB: Moody's Cuts Unsecured Notes to Ba1, Outlook Negative ---------------------------------------------------------------- Moody's Ratings has downgraded Alpek, S.A.B. de C.V.'s (Alpek) senior unsecured notes ratings to Ba1 from Baa3. Moody's also assigned a Ba1 Corporate Family Rating to Alpek. The outlook remains negative. RATINGS RATIONALE The rating downgrade reflects Moody's expectations that Alpek's operating performance will remain under pressure over the next 12 to 18 months, as challenging conditions in the global petrochemical cycle persist. While the company has announced a range of strategic initiatives — including footprint optimization, leveraging its scale position, portfolio rationalization, and the divestment of non-core assets — Moody's expects leverage to remain elevated, constraining the pace at which its credit profile can improve. Alpek's operating performance has been adversely affected by persistent global overcapacity, weak reference margins, relatively low ocean freight rates, and maintenance outages, particularly in its Polyester segment, which remains the primary source of earnings pressure. This has been compounded by the lack of a meaningful recovery in demand across key end markets linked to consumer activity. Results in the Plastics & Chemicals segment were comparatively more stable, supported by resilient margins in EPS and PP, but were not sufficient to offset pressures at the consolidated level. As a result, Moody's adjusted EBITDA declined to approximately $368 million in 2025 compared to $465 in 2024, while leverage increased to around 5.8x adjusted gross debt/EBITDA, from 5.3x in 2024. Although emerging businesses, including energy commercialization, continued to contribute incrementally, overall earnings weakness and elevated leverage are not consistent with a Baa3 rating. Moody's expects debt/EBITDA to remain relatively high, averaging around 4x based on Moody's updated view of its through-the-cycle earnings for the 2026-2027 period. Alpek's credit profile remains constrained by the volatility across global petrochemical and industrial markets, which are exposed to risk factors such as oversupply, commodity price fluctuations, energy costs, ocean freight rates, and end-market demand linked to consumer activity. As a result, Moody's expects credit metrics to remain outside the rating boundaries for several quarters before a meaningful improvement materializes. While Moody's recognizes management's credit-positive actions — including refinancing debt to extend maturities, suspending dividends, disciplined capital allocation, and pursuing non-core asset sales — these measures are insufficient to offset the structural earnings pressure and decrease leverage in the near term. Alpek maintains good liquidity. As of December 2025, the company reported $448 million in cash on hand, sufficient to cover more than three times its short-term debt. Liquidity is further supported by $529 million of undrawn committed credit facilities. Moody's expects Moody's-adjusted free cash flow (defined as cash from operations minus dividends and capital expenditures) to be modest but positive in 2026, at around $20 million, with a further improvement in 2027, although remaining tight. Capital expenditures are expected to be around $220 million annually. The negative rating outlook reflects Alpek's weak earnings and stressed credit metrics amid a slow recovery in its core polyester business. Subdued demand and pricing are expected to keep earnings below mid-cycle levels, resulting in elevated leverage above 3.5x over the next 6–12 months, despite adequate liquidity. Free cash flow generation is expected to remain constrained, and while non-core asset sales could provide some support, they are unlikely to have a material impact. As a result, material deleveraging is likely to be limited, which may be required to return to metrics that are more in line with the current rating. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Because of the negative outlook, a rating upgrade is unlikely. However, factors that could lead to a stable outlook for Alpek include a recovery in credit metrics toward levels more consistent with the current rating, including an improvement in leverage (total debt/EBITDA) to below 3.5x. A change in outlook to stable would also require Alpek to generate positive free cash flow on a sustained basis, while managing its capital expenditures, investments and dividend policy without jeopardizing liquidity. Moody's could downgrade Alpek's rating if its operating performance remains weak or if credit metrics fail to show signs of recovery. A downgrade could also be triggered by a more aggressive financial policy, including higher-than-expected investment spending or unexpected shareholder distributions, which could pressure liquidity. Quantitatively, a downgrade could occur if leverage (total debt/EBITDA) remains above 3.5x for the next 6-12 months without a clear path toward meaningful deleveraging, for example due to a further contraction in profitability in the polyester business or weaker-than-expected margins in a normalized operating environment. The principal methodology used in these ratings was Chemicals published in February 2026. 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. ALPEK SAB: S&P Downgrades ICR to 'BB+', Outlook Negative -------------------------------------------------------- S&P Global Ratings lowered its issuer credit and issue-level ratings on Alpek S.A.B. de C.V. to 'BB+' from 'BBB-'. Given the drop in the issuer credit rating to 'BB+', S&P assigned a '3' recovery rating to the company's senior unsecured debt, indicating its expectation for meaningful recovery (50-90%; rounded estimate: 60%) in a simulated default scenario. S&P said, "Our negative outlook on Alpek reflects concerns that further downgrades are possible if EBITDA declines aren't addressed amid industry competition. "We believe Alpek S.A.B. de C.V.'s weakened profitability and diminished competitive advantages will prevent its operations from recovering for the next couple of years, which makes for a less favorable comparison with investment-grade peers. "This led us to revise our assessment of Alpek's business risk profile to fair from satisfactory. "We now assess Alpek's business risk profile as fair, one category lower than what it was previously. The ongoing decline in Alpek's profitability, coupled with our revised projections indicating recovery challenges, points the company's weaker operating efficiency and competitive advantage. Alpek no longer performs in line with investment-grade peers. While other global chemical companies face similar pressures, Alpek's business strategies for the past two years have not increased its profitability, which we consider a further indication of its weakened competitive position amid increased global supply and soft prices." A less flexible cost structure constrains Alpek's ability to respond to cyclical pressures. Despite the company's efforts to optimize its installed capacity and footprint, including plant closures in the U.S. and Mexico, and production relocation among its remaining assets, its EBITDA margins have continued to decline. This stemmed from the company's dependence on high-volume production to maximize capacity and achieve profitability targets. S&P said, "Consequently, we believe Alpek's performance will depend on pricing power or cost improvements. However, we expect them to remain limited by external factors such as global oversupply, intense competition, and high raw material costs. As a result, we anticipate limited cost improvements over the next couple of years, resulting in EBITDA margins of 7.0%-7.5%, below peer average of 9%-14%." S&P believes the prolonged industry uncertainty and volatility have eroded Alpek's competitive advantage. Historically, Alpek's consistent revenue growth has stemmed from its strong market position in polyester products (purified terephthalic acid [PTA] and polyethylene terephthalate [PET]), which represent roughly 70% of total revenue, and the remainder corresponds to a diverse portfolio of plastics and chemicals. However, increased competition from Asian suppliers – fueled by oversupply and lower ocean freight rates – is now weakening these advantages. This has reduced sales volumes and prices, giving customers more options and constraining Alpek's ability to strengthen and expand its customer base until global demand matches current supply levels. Despite these challenges, Alpek maintains strong relationships with key investment-grade clients, including The Coca-Cola Co. (A+/Stable/A-1), PepsiCo Inc. (A+/Stable/A-1), Nestlé S.A. (AA-/Negative/A-1+), and Unilever Plc (A+/Stable/A-1). These long-term contracts have underpinned significant investments in delivering customized products across Alpek's operations in nine countries. S&P expects the total output of 4.4 million tons as of Dec. 31, 2025, will remain largely secured through these relationships, as the specialized plastic requirements for their products make contract cancellation relatively unlikely. S&P said, "We no longer anticipate Alpek will consistently deleverage to offset its weaker business risk profile. Given that our base-case scenario excludes an improvement in EBITDA, we believe Alpek's leverage metric will remain at about 3.0x for at least the next 18 months, weaker than we previously expected, even factoring no additional debt. Our base-case scenario does not incorporate potential extraordinary cash flow strategies, such as asset sales from U.S. plant capacity reductions, strategic investments in new business areas and products, further consolidation within higher-value specialty chemicals, or enhanced customer diversification. "Alpek's 'bb+' stand-alone credit profile (SACP) includes an upward adjustment because of our positive comparable rating analysis. The new rating reflects a one-notch uplift to the SACP, suggesting the potential revision of our assessment of the company's financial risk profile, despite the current low-price cycle. This could stem from potential significant noncore asset sales, which are not currently part of our base-case projections." In the next 18 months, such sales could generate approximately $150 million in additional cash flow and improve EBITDA by roughly $100 million annually, potentially reducing projected average debt to EBITDA to about 2.5x from the currently projected 3.0x. The liquidity position and cash generation after working capital and capital expenditure (capex) remain key strengths for Alpek. Given approximately MXN10.2 billion ($529 million) in committed credit lines, a stable cash position, and efficient cash generation thanks to controlled working capital and maintenance capex, Alpek maintains strong cash flow and a favorable financial position relative to those of industry peers. The company continues to strengthen its capital structure through low short-term debt amortizations, which will represent less than 5% of total debt for the next 24 months. Furthermore, Alpek's policy of suspending dividend payments until leverage falls below 2.5x supports its financial strength and could mitigate further downgrades. S&P said, "Our negative outlook reflects our view that the ongoing industry uncertainty could take a greater toll on Alpek's operations than those factors already factored into our downgrade. "We believe that heightened competition, weaker demand, and slow economic growth will continue to shape our assessment of the chemical industry's prospects for the next 12 to 24 months. "We could lower the ratings on Alpek in the next 12 months if its adjusted debt to EBITDA remains above 3x or if cash flow performance deteriorates, undermining its liquidity strengths." This could occur if: -- Sales do not improve and the utilization rates weaken. -- Current EBITDA margins suggest that operating costs are disproportionately eating into revenue, beyond expectations and with limited evidence of a defined strategy for cost optimization. -- The company adopts a more aggressive financial policy, such as funding capital investments or resuming dividends, requiring additional debt. S&P could revise the outlook to stable on Alpek in the next 12 months if: -- EBITDA margins rise toward 9% through a more flexible cost structure that can withstand weak industry conditions. -- Alpek maintains the leverage metric at about 2.5x, suggesting lesser uncertainty over the industry outlook. -- S&P believes the company is recovering its competitive advantage, as seen in increased contracted volumes and rising sales as Alpek regains its market share. -- Alpek keeps its robust liquidity profile, thanks to a strong cash position, consistent cash generation, committed credit lines, and disciplined capex and dividend policies. -- Accelerated noncore asset sales, the proceeds from which are used for debt repayment. TEXAS INTERNATIONAL: To Sell Laredo Property for $4.28MM -------------------------------------------------------- Texas International Enterprises Inc. seeks permission from the U.S. Bankruptcy Court for the Southern District of Texas, Laredo Division, to amend the sell of Property, free and clear of liens, claims, interests, and encumbrances. The Debtor's business consists of local and interstate freight hauling on highways from Laredo, Texas to points North and into Mexico. The Debtor entered two prepetition contracts on October 21, 2025 to sell the following described properties: A. An 11.43-acre tract of land in the North Webb Industrial Park, Block 1, Lot 7, Phase 1; and B. A 12.99-acre tract of land in the North Webb Industrial Park, Block 1, Lot 8, Phase. The proposed purchaser of both properties is Laredo Property Holding Gurvinder Virk. The proposed sale's price for Property A is $4,286,250.00. The proposed sale's price for Property B is $4,871,250.00. Although the closing date on Contract A expires on March 13, 2026, and the closing date on Contract B expired on January 9, 2026, the purchaser has requested an amendment to the earnest money contracts which would have both sales close on or before February 19, 2026. The Debtor needs authority to sign the Amendment. The title company has agreed to issue a commitment contingent on the Debtor receiving retroactive approval from the court. The properties are two tracts out of five tracts that contain 41.73 acres. The entire 41.73 acres appraised at $19,590,000.00. International Bank of Commerce is the sole lien holder on the 41.73 acres. The purchase price equals the appraised value. Debtor’s representative believes this represents the highest and best price that can be obtained for these properties at this time. The sale of the properties will reduce the Debtor's monthly obligations by approximately $80,000 per month in bank payments and approximately $250,000 a year in taxes. The property to be sold is not necessary for a successful reorganization. Debtor believes the sale of the tracts is in the best interest of the Estate as it will reduce the Debtor's overhead, thereby improving the Debtor's chances of a successful reorganization. Debtor believes that the relief requested herein will help to maximize the value of the Debtorâ€™s assets and facilitate the ultimate reorganization of the Debtor. About Texas International Enterprises Inc. Texas International Enterprises Inc. operates as a multifaceted company with interests in various commercial and service-based industries. The organization is built on principles of reliability, operational efficiency, and market adaptability. By focusing on sustainable growth and client satisfaction, Texas International Enterprises Inc. continues to strengthen its presence in its respective markets. Texas International Enterprises Inc. commenced its Chapter 11 case (Bankr. Case No. 25-50133) on December 6, 2025. In its petition, the Debtor listed estimated assets of $10 million to $50 million and estimated liabilities within the same range. Honorable Bankruptcy Judge Jeffrey P. Norman presides over the matter. The Debtor is represented by Carl M. Barto, Esq. of the Law Office of Carl M. Barto. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: THA to Double Egg Prices ------------------------------------------- Trinidad and Tobago Guardian reports that the price of eggs from Tobago House of Assembly-managed farms in Tobago has more than doubled. The Division of Food Security yesterday announced an increase from $7 per dozen to $15 per dozen, effective March 2, according to Trinidad and Tobago Guardian. The average price for a dozen eggs in a supermarket is $30, the report notes. The division said the price of eggs and other produce at its farms had remained unchanged since 2005, the report notes. It said the adjustment was caused by a significant increase in production costs, including feed and other essential farm inputs, and now aligns with the current market prices, the report relays. The discounted price of eggs sold by THA farms has been a source of controversy in the past, the report says. In 2021, Tobago farmers expressed outrage over the price the THA was selling its eggs, saying it was undermining their efforts and could potentially put them out of business, the report notes. The division said it remained committed to supporting local food production and long-term sustainability in the sector, the report discloses. Efforts to contact Secretary of Food Security Wane Clarke for further information about the price increase were unsuccessful up to press time, the report adds. ********* 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 * * *