260309.mbx

260309.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, March 9, 2026, Vol. 27, No. 48 Headlines A R G E N T I N A ENTRE RIOS: Fitch Affirms & Then Withdraws 'CC' LongTerm IDR B R A Z I L BANCO MASTER: Brazil Rocked by Probe of Central Bankers COMPANHIA BRASILEIRA: Taps Munhoz Advogados For Debt Restructuring COMPANHIA SIDERURGICA: Fitch Cuts LongTerm IDRs to B, On Watch Neg. NATURA COSMETICOS: Avon Settlement Credit Positive, Moody's Says E C U A D O R ECUADOR: Fitch Hikes Foreign Currency IDR to 'B-', Outlook Stable J A M A I C A JAMAICA: Manufacturers, Bankers in Talks to Modify Tax Proposals JAMAICA: Yet to Identify Specific Digital Services to be Taxed MAYBERRY JAMAICAN: Equities Racks Up Significant Loss For 2025 P U E R T O R I C O LINEAS DE PUERTO: Hires BIO Counselors as Special Counsel V E N E Z U E L A CITGO PETROLEUM: Jilted Buyer Takes Aim at Master's Fee Bid X X X X X X X X [] Fitch Affirms Ratings on Six LatAm Oil & Gas Production Cos. - - - - - ================= A R G E N T I N A ================= ENTRE RIOS: Fitch Affirms & Then Withdraws 'CC' LongTerm IDR ------------------------------------------------------------ Fitch Ratings has affirmed Province of Entre Rios' Long-Term Local and Foreign Currency Issuer Default Rating (IDR) at 'CC'. At the same time, Fitch has withdrawn the ratings. Fitch applied its rating definitions to determine Entre Rios' ratings and Standalone Credit Profile (SCP). Entre Rios' SCP of 'cc' reflects Fitch's view that the risk of default over the next 12 months remains elevated, as the province's actual debt service coverage ratio (ADSCR) and liquidity coverage ratio are expected to remain below 1.0x in 2026 and 2027. Fitch has chosen to withdraw Entre Rios' ratings for commercial reasons. It will no longer provide ratings or analytical coverage of the province. KEY RATING DRIVERS Standalone Credit Profile The 'cc' SCP results from the application of the Lower Speculative Grade of Fitch's "International Local and Regional Government Rating Criteria." Fitch qualitatively assesses the province's risk of default and the remaining margin of safety based on overall performance and guided by rating definitions. The 'cc' SCP is derived from a 'Vulnerable' Risk Profile and a 'bb' financial profile score. Risk Profile: 'Vulnerable' The 'Vulnerable' assessment weighs the sovereign IDR below the 'B' category rather than Argentina's implied operating environment of 'bbb'. The risk profile reflects the combination of six 'Weaker' key risk factors, as outlined below. Revenue Robustness: 'Weaker' Entre Rios' revenue robustness is assessed as 'Weaker', reflecting its high dependence on federal transfers which account for 62.4% (average for 2020 to 2024) of its operating revenues. These federal transfers are mostly automatic from the revenue-sharing regime (co-participations), which stem from a 'CCC+'-rated sovereign counterparty. Revenue Adjustability: 'Weaker' For Argentine LRGs, Fitch considers local revenue adjustability to be low and challenged by the country's large and distortive tax burden, along with high inflation that impacts affordability. The negative macroeconomic environment further limits the subnational's ability to increase tax rates and expand tax bases to boost local operating revenues. Expenditure Sustainability: 'Weaker' Argentine provinces have high expenditure responsibilities as the nation's fiscal program is structurally imbalanced in revenue expenditure decentralization. This is further exacerbated by the high inflationary operating environment, which weakens Entre Rios' control over total expenditure growth prospects. Currency depreciation also affects expenditure costs, such as capital expenditure (capex) projects. In addition, the lagged effect of inflation on expenditures, due to real-term wage adjustment expectations, compounds the weakness of expenditure predictability or sustainability as defined by Fitch's criteria. From 2022 to 2024, Entre Rios' operating margins averaged 1%. In 2025, Fitch expects the province's operating margin to remain at the same level. Expenditure Adjustability: 'Weaker' From 2020 to 2024, staff expenses averaged 69.5% of total expenses, limiting budgetary flexibility. In 2024, pension expenses accounted for 25% of total expenditure. Fitch believes Entre Rios has limited flexibility to cut expenses compared to its international peers, as only 4.9% of total expenditure from 2020 to 2024 was capex. Like other Argentine peers, the province faces very high infrastructure needs. This means that increasing capex does not translate into economic growth due to infrastructure lags and limited flexibility to adjust capex. Liabilities and Liquidity Robustness: 'Weaker' Exposure to unhedged foreign currency debt is a significant weakness, exacerbated by a weak national framework for debt and liquidity, as well as an underdeveloped local market. Fitch's assessment also considers the impact of the 'CCC+' rated sovereign, which restructured its debt in 2020, thereby limiting external market access for LRGs. The last payment was made on Feb. 8, 2026 and the next principal bond payment due on Aug. 8, 2026. The province intends to issue notes in the international market for USD500 million and a part of the bond proceeds would be to submit a tender offer on its outstanding USD280 million 8.25% bond due 2028. A successful international debt issuance, together with a tender offer transaction, could materially improve the province's financial profile; however, the final outcomes remain uncertain. Liabilities and Liquidity Flexibility: 'Weaker' Fitch believes the Argentine national framework for liquidity support and funding available to subnationals to be 'Weaker', as there are no formal emergency liquidity support or bailout mechanisms. Argentine provinces rely mainly on their own unrestricted cash for liquidity. Financial Profile: 'bb category' Entre Rios' financial profile was lowered to 'bb' from 'bbb' due to a reassessment of the primary metric, the payback ratio, which declined to 'bbb' from 'a'. The profile also considers an override from the weakest score of 'b' for the ADSCR. Fitch classifies Entre Rios as a Type B LRG, as it covers debt service from cash flow on an annual basis. Other Rating Factors Fitch does not apply any asymmetric risk or extraordinary support from upper-tier government. The rating is based on Fitch's rating definitions. Peer Analysis Entre Rios' 'CC' rating reflects national and international peer comparisons, particularly with the provinces of Chubut rated at CC and Salta and Neuquen (both rated CCC-). Entre Rios' SCP and IDRs compare well with that of 'CC' rated peers as their low budgetary flexibility and weak liquidity metrics underpin the positioning of their SCPs. Issuer Profile The Province of Entre Rios has an exceptional geographic location and endowment of natural resources. It is located in the northeast region of Argentina, the heart of Mercosur. Entre Rios is next to the Province of Buenos Aires, the main market of production and consumption in Argentina. Its territory is suitable for livestock, while 53% of the province's surface is suitable for agricultural activity and agribusiness, which represent the core of the productive and exportation structure. Entre Rios exports mainly to Asia. The province's population, at 1.4 million, equals approximately 3.1% of Argentina's. Key Assumptions Qualitative Assumptions Risk Profile: 'Vulnerable' Revenue Robustness: 'Weaker' Revenue Adjustability: 'Weaker' Expenditure Sustainability: 'Weaker' Expenditure Adjustability: 'Weaker' Liabilities and Liquidity Robustness: 'Weaker' Liabilities and Liquidity Flexibility: 'Weaker' Financial Profile: 'bb' Asymmetric Risk: 'N/A' Support (Budget Loans): 'N/A' Support (Ad Hoc): 'N/A' Rating Cap (LT IDR): 'N/A' Rating Cap (LT LC IDR) 'N/A' Rating Floor: 'N/A' Quantitative assumptions - Issuer Specific Fitch's rating action is driven by the following assumptions for reference metrics under its 2026-2027 rating case scenario: - Payback ratio: 15.1x; - Actual debt service coverage ratio: 0.4x; - Fiscal debt burden: 24%. In line with its LRG criteria, for an entity with base case financial profile indicating an SCP of 'b' or below, the base case analysis alone may be sufficient to evaluate the risk of default and transition for the debt. Therefore, in the case of Entre Rios, Fitch's base case is the rating case which already incorporates a very stressful scenario. It is based on 2020-2024 figures, updated figures as of November 2025, and 2026-2027 projected ratios. The key assumptions for the scenario include: - Operating revenue average growth of 50.4% for 2025-2027, assuming growth below average inflation toward the medium term; - Operating expenditure average growth of 50.1% for 2025-2027, assuming growth above average inflation in 2025 to assume real term expenditure re-composition, and for 2026 and 2027 the increase is aligned to inflation; - Average net capital balance of approximately negative ARS340 billion during 2025-2027 to be financed with operating margins, capital grants and financing from recurrent issuances in the local market, multilateral official creditors, and national agencies considering the province budget; - Cost of debt considers non-cash debt movements due to currency depreciation with an average exchange rate of ARS1,240 per U.S. dollar for 2025, ARS1,640 for 2026 and ARS1,895 for 2027, based on Entre Rios' debt service profile and Fitch's sovereign team assumptions for exchange rate; - Consumer price inflation (annual average % change) of 44% for 2025, 25% for 2026, and 17% for 2027, based on Fitch's sovereign team macroeconomic assumptions. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Not applicable as the ratings have been withdrawn. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Not applicable as the ratings have been withdrawn. ESG Considerations Entre Rios has an ESG Relevance Score of '4' for Rule of Law, Institutional & Regulatory Quality, Control of Corruption due to it presents weak management practices and regulations toward its financial obligations. This has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. Fitch has an ESG Relevance Score of '4' for Creditor Rights because the 2021 DDE continues to weigh on its credit profile. Fitch expects that fiscal challenges at the national and local level will continue to hinder the province's ability to repay its debt obligations. This has a negative impact on the credit profile and is relevant to the ratings 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 Prior ----------- ------ ----- Entre Rios, Province of LT IDR CC Affirmed CC LT IDR WD Withdrawn LC LT IDR CC Affirmed CC LC LT IDR WD Withdrawn =========== B R A Z I L =========== BANCO MASTER: Brazil Rocked by Probe of Central Bankers ------------------------------------------------------- globalinsolvency.com, citing Reuters, reports that evidence that two senior regulators at Brazil's central bank secretly advised embattled banker Daniel Vorcaro has sent shockwaves through the capital Brasilia, threatening to drag the institution deeper into a snowballing scandal. The revelations add to a widening blast radius surrounding Vorcaro, owner of the liquidated Banco Master, whose downfall has exposed a network of influence and conflicts of interest shaking trust in some of Brazil's most powerful institutions, according to globalinsolvency.com. About Banco Master Banco Master, S.A., formerly known as Banco Maxima, is a financial institution that provides corporate credit, foreign exchange, and treasury services, and later expanded into real estate credit as well as fund and wealth management activities. The bank began operations in 1974 and broadened its business lines in the mid-1990s as part of its growth strategy within the financial service sector. Banco Master filed a Chapter 15 Petition with the U.S. Bankruptcy Court for the Southern District of Florida on December 10, 2025 (Case No. 25-24568), with the Hon. Scott M Grossman presiding. COMPANHIA BRASILEIRA: Taps Munhoz Advogados For Debt Restructuring ------------------------------------------------------------------ Bloomberg News, citing people familiar with the matter, reports that Companhia Brasileira de Distribuicao, a Brazilian supermarket chain known as GPA (), hired the firm Munhoz Advogados, which specializes in debt restructuring. The goal is to negotiate in an organized manner with creditors and, eventually, even, said one of the people, requesting anonymity because the information is not public, according to Bloomberg News. A GPA spokesperson denied any discussion of a request for judicial recovery. Munhoz Advogados declined to comment. Companies in the retail sector in Brazil, such as supermarkets, have been pressured by double-digit interest rates and high levels of debt, Bloomberg News relates. GPA, which has struggled to turn around its core food business, said in February that management was taking steps to mitigate risks associated with heavy debt due in 2026, Bloomberg Newsnotes. "These measures include negotiations to extend financial debt terms, reduce costs and financial expenses and monetize tax credits," stated the company in the explanatory notes to its fourth quarter balance sheet, Bloomberg News says. GPA's leverage, measured by the ratio between net debt and earnings before interest, taxes, depreciation and amortization (EBITDA), jumped to 2.4 times at the end of 2025, from 1.6 times a year earlier, Bloomberg News notes. Net debt rose to 2.08 billion reais (US$395 million), from 1.39 billion reais in 2024, Bloomberg News adds. COMPANHIA SIDERURGICA: Fitch Cuts LongTerm IDRs to B, On Watch Neg. ------------------------------------------------------------------- Fitch Ratings has downgraded Companhia Siderurgica Nacional's (CSN) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'B' from 'BB-' and its National Long-Term ratings to 'BBB-(bra)' from 'AA-(bra)'. Fitch has also downgraded CSN Inova Ventures' and CSN Resources S.A.'s senior unsecured notes, guaranteed by CSN, to 'B' from 'BB-', and has assigned a Recovery Rating of 'RR4'. CSN Mineracao S.A.'s National Long-Term ratings and senior unsecured notes were also downgraded to 'BBB-(bra)' from 'AA-(bra)'. The Rating Watch remains Negative. The downgrade reflects CSN's persistently high gross and net leverage, continued negative FCF and elevated refinancing risk at the holding level. In the current environment of higher credit risk aversion, these factors are leading to a credit profile more consistent with the 'B' rating category under Fitch`s criteria. The Rating Watch Negative reflects CSN`s challenges in executing its deleveraging strategy through asset sales in the medium term. It also reflects uncertainty about CSN's ability to secure timely financing on competitive terms to implement its divestment strategy and repay debt. Key Rating Drivers Refinancing Risk Is a Stress Point: Recent increases risk aversion for large Brazilian corporates, mostly in international markets, poses additional risk to CSN's high near-term refinancing needs and add to its already elevated interest burden. Fitch estimates CSN's holding company refinancing exposure at around BRL7 billion in 2026, BRL5 billion in 2027, and BRL11 billion in 2028. Total adjusted holding company debt is about BRL39 billion. CSN is negotiating a secured loan to refinance the 2026 maturities, which would provide short-term relief. The need for a collateral package is also more consistent with the 'B' rating category. However, without successful asset sales later in the year to materially reduce debt, refinancing risk will remain high in 2027. Challenge to Deleverage: Fitch's current rating case does not assume any cash inflows from asset sales. However, CSN announced its intention to divest assets, and timely sales at favorable valuations could materially reduce leverage. Currently, CSN's leverage profile is consistent with the 'B' category (4.0x total EBITDA leverage midpoint), and its interest coverage is consistent with the 'CCC' category (1.25x EBITDA interest coverage) due to high interest expense. Fitch expects gross and net EBITDA leverage to decline to 6.1x and 4.6x, respectively, in 2025 and 5.7x and 4.6x, respectively, in 2026 from 6.7x and 4.2x, respectively, in 2024. Fitch adjusts its leverage ratio by including customer advances and forfaiting, in addition to its regular adjustments in EBITDA, including dividends received from and paid to non-controlling interests. Excluding CSN's mining segment, Fitch estimates its ex-mining total and net leverage at 15.5x and 13.7x, respectively, in 2025, with total debt around BRL48 billion. Refinancing risk at the holding level is high. Recurring Negative FCF: Fitch expects investments to rise in 2026-2027 as mining construction intensifies. Fitch forecasts 2026 EBITDA of BRL11.1 billion, capex of BRL6.5 billion, and only pass-through mining dividends, resulting in FCF of -BRL0.9 billion. Fitch expects FCF generation to remain negative for the following three years. CSN spends almost 40% of its EBITDA on interest expense, resulting in EBITDA interest coverage of 2.2x. Potential Asset Sales: CSN announced expected sales of a majority stake in its cement business and a significant minority stake in its infrastructure business to raise between BRL15 billion and BRL18 billion. The company targets signing to 2H26. On a hypothetical asset sale scenario of 60% and 49% in the cement and infrastructure businesses, respectively, CSN could raise around BRL15.6 billion per agency's estimates (about 27% of CSN's total debt as of Sept. 30, 2025, per Fitch). On a pro forma basis, CSN's total and net debt figures would decline to BRL40 billion and BRL14.5 billion, respectively. Governance Assessment Impact: An effective debt reduction strategy and clearer evidence of shareholders' commitment to a stronger credit profile are key to mitigating the impact from Fitch's updated criteria on governance assessment. The new criteria impose a one-notch discount from the IDR in cases of deficiencies in the assessment of key person risk and high-risk appetite tolerance (ownership and decision-making), complex group structure, and contagion risks. The current assessment of 'Good' acknowledges a higher priority for debt repayments. Consolidated Approach: Fitch applies its "Parent and Subsidiary Rating Linkage Criteria" to CSN Cimentos, CSN Mineracao, and their parent, CSN. CSN is assessed on a consolidated basis. Legal incentives for support are assessed as 'Medium': cross-acceleration clauses at CSN Cimentos and CSN Mineracao mitigate the absence of CSN corporate guarantees. Strategic incentives for support are high, as integration with iron ore and energy bolsters CSN's steel business cost advantage and cement adds cash flow diversification. The businesses are synergistic and fully integrated in management and strategy, with shared reputational risk. Peer Analysis CSN's integrated business profile and diversified steel portfolio are comparable to Usinas Siderurgicas de Minas Gerais S.A. (Usiminas) (BB/Stable). Both companies are highly exposed to Brazil's local steel market. However, both have weaker business positions than Gerdau S.A. (BBB/Stable) which benefits from international diversification, particularly in the U.S., and a flexible mini-mill model that helps mitigate market cycles. United States Steel Corporation (BBB-/Stable) and Cleveland-Cliffs Inc. (BB-/Stable) are similar to CSN in EBITDA size and blast furnace operations, but they have a broader geographic presence in the U.S., additional electric arc furnace facilities, higher output, and a more value-added product mix. CSN, however, maintains more diversified business lines. Among Brazilian steel producers, Gerdau has the strongest balance sheet, the most manageable debt schedule, and consistently improves its capital structure. In contrast, CSN's gross debt remains high relative to peers, and its debt amortization schedule is more concentrated, with high refinancing risks and recurring negative FCF generation. Fitch's Key Rating-Case Assumptions - Benchmark iron ore prices average USD100/ton in 2025, USD90/ton in 2026 and USD75/ton in 2027; - Iron ore volumes rise in 2025 to 43.5 million tons, grow 4% in 2026 and 8% in 2027; - Iron ore EBITDA/ton at USD25 in 2025, USD25 in 2026, and USD22 in 2027; - Steel volumes fall 6% to 4.3 million tons in 2025 and stay flat in 2026 and 2027; - Steel EBITDA/ton at USD80 in 2025, USD67 in 2026, and USD67 in 2027; - Cement volumes stay flat at 13.5 million tons in 2025 and grow 7% in 2026 and 3% in 2027; - Cement EBITDA/ton at BRL91 in 2025, BRL105 in 2026 and BRL110 in 2027; - No cash inflows from asset sales are considered; - Capex reaches BRL5 billion in 2025, BRL6.5 billion in 2026 and BRL7.0 billion in 2027; - An exchange rate of BRL5.4/USD1.00 at YE 2025, BRL5.6 in 2026 and BRL5.6 in 2027 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 (bb, Moderate), Sector Characteristics (bbb-, Low), Market and Competitive Positioning (bbb-, Moderate), Diversification and Asset Quality (bb+, Moderate), Company Operational Characteristics (bbb, Moderate), Profitability (bb-, Moderate), Financial Structure (b-, Higher), and Financial Flexibility (b, Higher). - The quantitative financial subfactors are based on custom CRT financial period parameters: 10% weight for the forecast year 2024, 20% weight for the forecast year 2025, 30% for the forecast year 2026, and 30% for the forecast year 2027 and 10% for the forecast year 2028. - No weakest link considerations result in no adjustment. - The Governance assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'bb+' results in no adjustment. - The SCP is 'b'. To derive the IDR: Fitch made no adjustments to the SCP, resulting in a Foreign and Local Currency IDR of 'B'. Recovery Analysis The recovery analysis assumes that CSN would be considered a going concern in an event of bankruptcy and that the company would be reorganized rather than liquidated. Fitch has assumed a 10% administrative claim. CSN's going concern EBITDA assumption is based on a fall of iron ore prices in 2025 through 2028. The going concern EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which it bases the enterprise valuation. An enterprise valuation multiple of 5.0x EBITDA is applied to the going concern EBITDA to calculate a post-reorganization enterprise value. The choice of this multiple considered the following factors: the historical bankruptcy case study exit multiples for peer companies were 4.0x-7.0x, difficult financial subfactors, mid-quality assets, and high growth prospects, despite challenging dynamics in a volatile and commoditized industry. Fitch applies a waterfall analysis to the post-default enterprise valuation based on the relative claims of debt in the capital structure. These assumptions result in a recovery rate for CSN's unsecured notes commensurate with recovery of 'RR4' range, resulting in a rating of 'B'/'RR4'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Failure to sell assets and use all proceeds to repay debt; - Weakening of liquidity position and financial access; - Lack of progress on gross debt reduction; - Sustained adjusted total debt/EBITDA and adjusted net debt/EBITDA ratios consistently above 6.0x and 5.0x, respectively; - Increased pressure from main shareholders on dividend payments. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A positive rating action will not be considered until there is further clarity on the company's ability to sell assets and its execution of its deleveraging strategy. Liquidity and Debt Structure CSN had BRL52.2 billion (USD9.8 billion) of debt, to which Fitch adds customer advances for iron ore and electric energy supply, as well as forfaiting, for an adjusted value of total debt of BRL57.3 billion (USD10.8 billion) as of Sept. 30, 2025. Fitch excludes lease-related debt from its adjustments. Capital markets represent 54% of the total, while banks account for 35%, customer advances for 7% and forfaiting for 4%. Readily available cash and marketable securities reached BRL16.5 billion (USD3.1 billion) as of Sept. 30, 2025. After the cash transfer from CMIN to CSN holding, pro forma holding cash would be BRL6.29 billion. Almost 80% of CSN's cash is located outside of Brazil. CSN is vulnerable to refinancing risk and needs to continuously access the market. CSN has an annual average of BRL9.0 billion of debt due in 2026-2028. About 79% of these maturities are comprised of bank debt. The largest maturity is expected in 2028 at BRL10.7 billion. Issuer Profile CSN is an integrated, high value-added steelmaker with a large market share in the Brazilian flat steels market and presence in Germany, the U.S. and Portugal. CSN is the second-largest iron ore exporter of Brazil. 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 The FY24 revenue-weighted Climate Vulnerability Signal (Climate.VS) for CSN for 2035 is 35 out of 100, suggesting moderate exposure to climate-related risks in that year. For more information on how Fitch perceives climate-related risks in the metals and mining sector, please see its "Metals & Mining Long-Term Climate Vulnerability Signals" report. ESG Considerations Companhia Siderurgica Nacional (CSN) has an ESG Relevance Score of '4' for Governance Structure due to key person risk and limited board independence through a single powerful shareholder, 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 ----------- ------ -------- ----- Companhia Siderurgica Nacional (CSN) LT IDR B Downgrade BB- LC LT IDR B Downgrade BB- Natl LT BBB-(bra) Downgrade AA-(bra) senior unsecured Natl LT BBB-(bra) Downgrade AA-(bra) CSN Mineracao S.A. Natl LT BBB-(bra) Downgrade AA-(bra) senior unsecured Natl LT BBB-(bra) Downgrade AA-(bra) CSN Inova Ventures senior unsecured LT B Downgrade RR4 BB- CSN Resources S.A. senior unsecured LT B Downgrade RR4 BB- NATURA COSMETICOS: Avon Settlement Credit Positive, Moody's Says ---------------------------------------------------------------- Moody's Ratings published on February 24 an issuer comment on Natura Cosmeticos S.A. (Ba2, stable) following the announcement of a definitive settlement related to litigation involving Avon Products, Inc. (API), its former non-operating US subsidiary. The settlement concludes Natura's divestment of the Avon International business, improves cash flow visibility, and allows the group to focus on execution in its core Latin American markets. On February 23, 2026, Natura announced the settlement of the Chapman litigation, which had been a key component of API's Chapter 11 proceedings initiated in August 2024 amid escalating talc related legal liabilities. The settlement entails a one off cash payment funded through proceeds from the sale of Avon International operations in Central America and Russia, together with existing cash balances. Moody's views the settlement as credit positive because it removes litigation related uncertainty tied to discontinued operations, reduces the risk of unexpected cash outflows, and lowers event risk. Despite the cash usage associated with the settlement, Natura maintains adequate liquidity. As of September 2025, the company reported approximately BRL2.3 billion (USD423 million) in cash and cash equivalents, and Moody's expects this balance to have increased to around BRL2.6 billion by year end 2025. While the settlement absorbs recent divestment proceeds and reduces cash on hand, the outflow is finite and non recurring and does not impair the company's ability to meet near term obligations or fund ongoing operations. Following the settlement, Natura remains exposed to Avon International through a secured credit facility of up to USD25 million provided as part of the divestment transaction. This facility is capped, subject to conditions, and limited in duration to the end of 2026. However, Natura no longer retains material legal, financial, or contingent obligations specifically related to API's bankruptcy proceedings or legacy talc litigation, significantly reducing its financial responsibility for the former US subsidiary. The conclusion of the Avon International divestment and the resolution of API related litigation allow Natura to fully concentrate on its strategic priorities in Latin America. Moody's expects the group's simplified corporate structure and sharper geographic focus to support gradual improvements in profitability and cash generation over time, although the turnaround of Avon in Latin America remains a key credit consideration. ============= E C U A D O R ============= ECUADOR: Fitch Hikes Foreign Currency IDR to 'B-', Outlook Stable ----------------------------------------------------------------- Fitch Ratings has upgraded Ecuador's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'B-' from 'CCC+'. The Rating Outlook is Stable. The upgrade of Ecuador's ratings reflects reduced government financing needs and improved financing flexibility following a successful return to international capital markets. The sovereign's ability to tap external markets to refinance upcoming amortizations lowers rollover risks and supports market confidence. In addition, the authorities have implemented reforms that support fiscal consolidation. Social unrest and political risks have remained contained to date, supporting policy implementation. Ecuador's ratings are supported by its fairly high per-capita income, macroeconomic stability under dollarization, a public debt burden that remains moderate relative to peers, and current account surpluses and multilateral financing that support external liquidity. The ratings are constrained by high commodity dependence, weak medium-term growth prospects, a poor debt-repayment record, and continued political and policy uncertainties. Key Rating Drivers Market Access Reduces Liquidity Risk: The government executed a liability management operation in January 2026, issuing USD4 billion in Eurobonds to repurchase nearly USD3 billion of outstanding bonds (USD2.5 billion of the 2030 bonds and USD0.6 billion of the 2035 bonds) and secure USD1 billion in budget financing. The notes had coupon rates of 8.75%- 9.25%, reflecting a tightening in bond spreads to around 430bp in January from 1,300bp post-April 2025 elections. The operation materially reduced rollover risks by cutting Eurobond debt service by about USD1.4 billion over the next five years. Cash buffers grew last year and rose to USD2.7 billion after the operation, further reducing liquidity risks. Reforms Advance, Social Unrest Contained: President Daniel Noboa eliminated a popular, decades-old diesel subsidy that was costing the cash-strapped government more than USD1 billion a year (0.8% of GDP). This was among the most significant, and politically difficult, measures to implement, alongside maintaining the 3pp VAT increase and the gasoline reform in 2024. Although the Confederation of Indigenous Nationalities of Ecuador (CONAIE) called a national strike in protest, demonstrations were relatively muted, and the measure was implemented. Fiscal Consolidation Progress: The budgetary central government deficit rose to USD4.6 billion (3.5% of GDP) in 2025 from USD3.4 billion in 2024 despite the VAT increase and subsidy cuts, due to lower oil revenue amid production disruptions. This was below its expectation of around USD5 billion, but partly reflected a December one-off accounting operation, whereby a USD0.9 billion liability from the Ministry of Economy and Finance (MEF) to Petroecuador was written off as a one-off above-the-line revenue. Fitch has raised its 2026 deficit forecast by a corresponding amount to 3% of GDP, although this still reflects an improvement given the full-year effect of subsidy removal of USD0.9 billion (net of permanent compensatory transfers). Fitch forecasts the CG deficit to decline gradually further after 2026, supported by additional revenue measures and spending-efficiency gains of around 0.2%-0.3% of GDP. EFF Compliance Could Become Harder: The IMF completed the fourth review of Ecuador's 48-month Extended Fund Facility (EFF) in December, enabling an immediate disbursement of nearly USD630 million and bringing total disbursements to about USD3.3 billion. Program performance has been strong so far. The IMF confirmed all end-October 2025 quantitative performance criteria were met and noted substantial progress on structural reforms. The program assumes stable tax revenue/GDP in 2026, with non-tax revenues adding 1.1% of GDP and spending falling by 0.5%. Fitch expects about 80% of the EFF's 6.6% of GDP consolidation plan to be implemented by the end of 2026. However, given the November-December deficit was already above the IMF target of USD1.2 billion for the November-January deficit, Fitch expects the government will miss that target. Stable Public Debt Ratio: Fitch estimates gross general government debt (GGGD) was stable at 51.1% of GDP in 2025 (below the 'B' median of 53.5%). This reflected additional borrowing from the wider CG deficit and an accumulation of deposits of nearly USD792 million, implying a decline in net debt. Fitch expects GGGD/GDP to remain broadly stable in 2026-2027, supported by narrower general government deficits, despite modest real GDP growth. Economic Recovery: Growth outperformed in 1H25 (3.8% yoy) following the normalization of electricity supply, supported by a recovery in domestic demand and record non-oil exports. However, the contraction in 3Q25 (-2.2% qoq), driven by oil-sector disruptions and weaker commerce, highlights Ecuador's vulnerability to shocks. Fitch forecasts real growth of 3.6% in 2025 (from -2.0% in 2024), moderating to 2.4% in 2026. Downside risks include further oil production disruptions, a return of electricity rationing, and/or a deterioration in the security environment. Record Current Account Surplus: Strong growth in traditional exports has supported a record current account (CA) surplus, which Fitch estimates at 6.0% of GDP in 2025 (5.7% in 2024). This has underpinned a continued build-up in international reserves, which reached USD9.8 billion at end-2025. Fitch expects external dynamics to remain supportive in 2026, driven by resilient non-oil exports (including shrimp, cocoa and bananas) and continued private-sector net inflows. Fitch forecasts the CA surplus to narrow to 4.6% of GDP in 2026. Fitch projects international reserves to rise to about USD12 billion by end-2026, covering 3.3 months of current external payments, still below the 'B' median of 4.3 months. Lower Political Uncertainty, Weaker Reform Capacity: Political uncertainty has eased following President Noboa's re-election, although approval ratings weakened after the removal of the diesel subsidy and security conditions remain challenging. This likely contributed to the setback in the November referendum, in which voters rejected four government-backed proposals (allowing foreign bases, cutting party financing, reducing the number of lawmakers, and convening a Constituent Assembly), contrary to pre-referendum polling. In its view, the administration has lost some political capital to pursue additional major reforms. ESG - Governance: Ecuador has an ESG Relevance Score (RS) of '5' for both Political Stability and Rights and for the Rule of Law, Institutional and Regulatory Quality and Control of Corruption. These scores reflect the high weight that the World Bank Governance Indicators (WBGI) have in its proprietary Sovereign Rating Model. Ecuador has a low WBGI ranking at 30.1, reflecting high political uncertainty undermined by periodic social protests and high insecurity, moderate voice and accountability, weak rule of law, and weak control of corruption. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Public Finances: Greater financing strains due to fiscal slippage or diminished access to market or other funding once IMF disbursements end. - Structural: An increase in political risk and uncertainty that weakens governability and undermines the capacity to advance on economic and fiscal reforms or willingness to service commercial debt. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Public Finance: Sustained fiscal consolidation that reduces gross financing needs and supports a declining debt-to-GDP trajectory, alongside improved financing access. - Macro: Further progress on reforms that could boost stronger medium-term economic growth prospects. - External: Further improvement of central bank reserves that bolster the underpinnings of the dollarization regime. Sovereign Rating Model (SRM) and Qualitative Overlay (QO) Fitch's proprietary SRM assigns Ecuador a score equivalent to a rating of 'B+' on the Long-Term Foreign-Currency (LT FC) IDR scale. Fitch's sovereign rating committee adjusted the output from the SRM to arrive at the final LT FC IDR by applying its QO, relative to SRM data and output, as follows: - Structural: -1 notch, to reflect to reflect risks of social unrest and rising insecurity that continue to strain the political environment, elevate the risk of political instability, and complicate policy implementation. - Public Finances: -1 notch, to reflect persistent financing challenges amid uncertainty around fiscal consolidation, rising amortizations to multilaterals from 2026, and a marked increase in medium-term refinancing risks when the current IMF program ends in 2028. Fitch's SRM is the agency's proprietary multiple regression rating model that employs 18 variables based on three-year centered averages, including one year of forecasts, to produce a score equivalent to a LT FC IDR. Fitch's QO is a forward-looking qualitative framework designed to allow for adjustment to the SRM output to assign the final rating, reflecting factors within its criteria that are not fully quantifiable and/or not fully reflected in the SRM. Debt Instruments: Key Rating Drivers Senior Unsecured Debt Equalized: Ecuador's senior unsecured long-term debt ratings are equalized with the applicable long-term IDR, reflecting Fitch's expectation of average recovery prospects in a default scenario, with the Recovery Rating assigned to these debt instruments revised to 'RR4' from 'RR3'. Fitch is more likely to view sovereigns in the 'B' category as having average expected recoveries unless there are clearly identifiable recovery drivers, which are not present in the case of Ecuador. The senior unsecured short-term debt ratings are equalized with the applicable short-term IDR. See the rating actions list below for the full set of instrument ratings and Recovery Ratings. Country Ceiling The Country Ceiling for Ecuador is 'B+', two notches above the LT FC IDR. This reflects strong constraints and incentives, relative to the IDR, against capital or exchange controls being imposed that would prevent or significantly impede the private sector from transferring the proceeds to non-resident creditors to service debt payments. Fitch's Country Ceiling Model produced a starting point uplift of one notch above the IDR. Fitch applied a one-notch qualitative upward adjustment for Long-Term Institutional Characteristics. The notching reflects its view that foreign-exchange control risks are mitigated by the absence of a separated legal tender. It also takes into account its expectation that the risks of imposing capital controls are higher for lower-rated sovereigns, especially low sub- investment grade countries. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for Ecuador. ESG Considerations Ecuador has an ESG Relevance Score of '5'' for Political Stability and Rights as World Bank Governance Indicators have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and a key rating driver with a high weight. As Ecuador has a percentile rank below 50 for the respective Governance Indicator, this has a negative impact on the credit profile. Ecuador has an ESG Relevance Score of '5' for Rule of Law, Institutional & Regulatory Quality and Control of Corruption as World Bank Governance Indicators have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and are a key rating driver with a high weight. As Ecuador has a percentile rank below 50 for the respective Governance Indicators, this has a positive/negative impact on the credit profile. Ecuador has an ESG Relevance Score of '4' for Human Rights and Political Freedoms as the Voice and Accountability pillar of the World Bank Governance Indicators is relevant to the rating and a rating driver. As Ecuador has a percentile rank below 50 for the respective Governance Indicator, this has a negative impact on the credit profile. Ecuador has an ESG Relevance Score of '4' for Creditor Rights as willingness to service and repay debt is relevant to the rating and is a rating driver for Ecuador, as for all sovereigns. As Ecuador has a fairly recent restructuring of public debt in 2020, this has a negative impact on the credit profile. 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 ----------- ------ -------- ----- Ecuador LT IDR B- Upgrade CCC+ ST IDR B Upgrade C Country Ceiling B+ Upgrade B senior unsecured LT B- Affirmed RR4 B- ============= J A M A I C A ============= JAMAICA: Manufacturers, Bankers in Talks to Modify Tax Proposals ---------------------------------------------------------------- RJR News reports that members of the Jamaica Manufacturers and Exporters Association (JMEA) and the Jamaica Bankers Association (JBA) have been meeting with the Ministry of Finance in an effort to secure a modification of the recent tax package and a reduction in interest rates. The manufacturers and exporters say these changes are necessary because the tax package and the interest rate regime make the sector uncompetitive in both the domestic and export markets, which has resulted in large trade deficits, according to RJR News. The trade deficit jumped to US$4.8 billion during the first 10 months of last year when imports climbed by 1.4 per cent to US$6.2 billion and exports tumbled by 8.1 per cent to US$1.4 billion, the report notes. They also say that the impact of the current war between the USA, Israel and Iran on global oil prices will lead to a further increase in this deficit, 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. JAMAICA: Yet to Identify Specific Digital Services to be Taxed -------------------------------------------------------------- RJR News reports that although the Jamaican government expects to collect $300 million from the proposed tax on digital services in the next fiscal year and $4.2 billion in the following year, Finance and Public Service Minister Fayval Williams says the specific services to be taxed have not yet been identified. Speaking in Parliament's Standing Finance Committee, Williams explained that the government is working with the Organisation for Economic Co-operation and Development to determine what qualifies as taxable digital services internationally, according to RJR News. She said it would therefore be premature to disclose which digital services will fall under the new tax regime at this time, the report notes. The minister told the committee that the administration will provide further details at a later date, while noting that digital services now represent a significant share of global economic activity and GDP, 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. MAYBERRY JAMAICAN: Equities Racks Up Significant Loss For 2025 -------------------------------------------------------------- RJR News reports that Mayberry Jamaican Equities Limited is reporting a significant loss for the year ended December 31. The investment company posted a net loss of just over US$31 million, compared with a loss of about US$886,000 in 2024, according to RJR News. The results were largely impacted by declines in the fair value of financial instruments and investments in associate companies, the report notes. The company recorded losses of approximately US$7.6 million from financial instruments and a further US$20.7 million from investments in associates, the report adds. ===================== P U E R T O R I C O ===================== LINEAS DE PUERTO: Hires BIO Counselors as Special Counsel --------------------------------------------------------- Lineas De Puerto Rico, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ BIO Counselors at Law, LLC as special counsel. The Debtor needs the firm's legal assistance in connection with the tax issues with the Puerto Rico Treasury Department, including the Administrative Revision of Notices of Deficiency issued by the Puerto Rico Treasury Department, and a litigation in Puerto Rico State Court captioned as Lineas de Puerto Rico, inc. v. Departamento de Hacienda, et. Al., Civil Case No. SJ2026CV00766). The firm will be paid at these rates: Tax Partner $300 per hour Tax Associates $185 per hour The firm will be paid a retainer in the amount of $2,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Santos disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Antonio Bauza Santos BIO Counselors at Law, LLC Plaza 273, Suite 900 San Juan, PR 00917-1934 Tel: (787) 710-8262 About Lineas De Puerto Rico, Inc. Lineas de Puerto Rico, Inc. provides highway, street, and bridge construction services in Puerto Rico, operating as a construction contractor focused on public infrastructure projects. The Company undertakes roadway-related construction and related contracting activities and serves government and other clients across the island. Lineas de Puerto Rico Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. Case No. 26-00298) on January 29, 2026. At the time of the filing, Debtor had estimated assets of between $100,001 to $500,000 and liabilities of between $1,000,001 to $10 million. NELSON ROBLES-DIAZ LAW OFFICES, P.S.C. is the Debtor's legal counsel. ================= V E N E Z U E L A ================= CITGO PETROLEUM: Jilted Buyer Takes Aim at Master's Fee Bid ----------------------------------------------------------- Rose Krebs at law360.com reports that jilted Citgo bidder Gold Reserve Ltd. continues to urge a Delaware federal court to reject a special master's bid for another $15.3 million in fees, saying he hasn't shown he is complying with a court order aimed at reducing his expenses, according to law360.com. About Citgo Petroleum Citgo Petroleum Corporation is a United States-based refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. Based in Houston, Texas, Citgo is majority-owned by PDVSA, a state-owned company of the Venezuelan government (although due to U.S. sanctions, in 2019, they no longer economically benefit from Citgo.) As reported in the Troubled Company Reporter-Latin America in September 2025, Fitch Ratings affirmed the Long-Term Issuer Default Rating (IDR) of CITGO Petroleum Corp. (CITGO, or Opco) at 'B' with a Stable Outlook and CITGO Holding, Inc. (Holdco) at 'CCC+'. Fitch also affirmed Opco's existing senior secured notes and industrial revenue bonds at 'BB' with a Recovery Rating of 'RR1'. =============== X X X X X X X X =============== [] Fitch Affirms Ratings on Six LatAm Oil & Gas Production Cos. --------------------------------------------------------------- Fitch Ratings has affirmed the ratings of six Latin American (LatAm) oil and gas production companies and their related subsidiaries: 1. Vista Energy Argentina S.A.U. (Vista Argentina) 2. Pluspetrol S.A. (PPSA) 3. Tecpetrol S.A. (TECPESA) 4. Pan American Energy S.L. (PAE) 5. Capex S.A. (Capex) 6. Petroquimica Comodoro Rivadavia S.A. (PCR) These actions follow the update of Fitch's "Corporate Rating Criteria" and "Sector Navigators Addendum to the Corporate Rating Criteria" on Jan. 9, 2026. The companies' ratings and Outlooks are unaffected by the criteria changes. Corporate Rating Tool Inputs and Scores Vista Energy Argentina S.A.U. (Vista Argentina) 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 (bb, Moderate), Diversification and Asset Quality (bb, Moderate), Company Operational Characteristics (bb-, Higher), Profitability (bb, Moderate), Financial Structure (bbb+, Lower), and Financial Flexibility (bb-, Moderate). - The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the latest historical year 2024, 40% for the forecast year 2025 and 40% for the forecast year 2026. - The Governance assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'b' results in an adjustment of -1 notch(es). - The SCP is 'bb-'. Fitch made no adjustments to the SCP, resulting in a Foreign and Local Currency IDR of 'BB-'. Pluspetrol S.A. (PPSA) 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 (bb, Moderate), Diversification and Asset Quality (bb+, Higher), Company Operational Characteristics (bb-, Moderate), Profitability (bb-, Moderate), Financial Structure (bb+, Moderate), and Financial Flexibility (bbb-, Moderate). - The quantitative financial subfactors are based on custom CRT financial period parameters: 10% weight for the forecast year 2025, 30% for the forecast year 2026, 30% for the forecast year 2027 and 30% for the forecast year 2028. - The Governance assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'b+' results in an adjustment of -1 notch(es). - The SCP is 'bb'. Fitch made no adjustments to the SCP, resulting in a Foreign and Local Currency IDR of 'BB'. Tecpetrol S.A. (TECPESA) 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 (bb+, Moderate), Diversification and Asset Quality (bb-, Higher), Company Operational Characteristics (bb-, Moderate), Profitability (bb, Moderate), Financial Structure (aa, Lower), and Financial Flexibility (bb, Moderate). - The quantitative financial subfactors are based on custom CRT financial period parameters: 10% weight for the forecast year 2024, 30% for the forecast year 2025, 30% for the forecast year 2026 and 30% for the forecast year 2027. - The Governance assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'b' results in an adjustment of -1 notch(es). - The SCP is 'bb-'. Fitch made no adjustments to the SCP, resulting in a Foreign and Local Currency IDR of 'BB-'. Pan American Energy S.L. (PAE) 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 (bbb-, Moderate), Diversification and Asset Quality (bb-, Moderate), Company Operational Characteristics (bbb, 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: 10% weight for the forecast year 2025, 30% for the forecast year 2026, 30% for the forecast year 2027 and 30% for the forecast year 2028. - The Governance assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'b' results in an adjustment of -2 notch(es). - The SCP is 'bb-'. Fitch made no adjustments to the SCP, resulting in a Foreign and Local Currency IDR of 'BB-'. Capex S.A. (Capex) 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 (bb, Lower), Sector Characteristics (b+, Moderate), Market and Competitive Positioning (b-, Higher), Diversification and Asset Quality (b, Moderate), Company Operational Characteristics (b-, Moderate), Profitability (ccc+, Moderate), Financial Structure (bb-, Moderate), and Financial Flexibility (b, Moderate). - The quantitative financial subfactors are based on custom CRT financial period parameters: 10% weight for the historical year 2024, 30% for the forecast year 2025, 30% for the forecast year 2026 and 30% for the forecast year 2027. - The Governance assessment of 'Some Deficiencies' results in no adjustment. - The Operating Environment assessment of 'b' results in no adjustment. - The SCP is 'b-'. Fitch made no adjustments to the SCP, resulting in a Foreign and Local Currency IDR of 'B-'. Petroquimica Comodoro Rivadavia S.A. (PCR) 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 (bb, Lower), Sector Characteristics (bb, Moderate), Market and Competitive Positioning (b-, Higher), Diversification and Asset Quality (bb-, Moderate), Company Operational Characteristics (b-, Moderate), Profitability (b-, Moderate), Financial Structure (b+, Moderate), and Financial Flexibility (ccc+, Higher). - The quantitative financial subfactors are based on custom CRT financial period parameters: 10% weight for the forecast year 2025, 30% for the forecast year 2026, 30% for the forecast year 2027 and 30% for the forecast year 2028. - The Governance assessment of 'Some Deficiencies' results in no adjustment. - The Operating Environment assessment of 'b-' results in no adjustment. - The SCP is 'b-'. Fitch made no adjustments to the SCP, resulting in a Foreign and Local Currency IDR of 'B-'. RATING ACTIONS Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Capex S.A. LT IDR B- Affirmed B- LC LT IDR B- Affirmed B- senior unsecured LT B Affirmed RR3 B Vista Energy Argentina S.A.U. LT IDR BB- Affirmed BB- LC LT IDR BB- Affirmed BB- senior unsecured LT BB- Affirmed BB- Tecpetrol S.A. LT IDR BB- Affirmed BB- LC LT IDR BB- Affirmed BB- senior unsecured LT BB- Affirmed BB- Pan American Energy, S.L. LT IDR BB- Affirmed BB- LC LT IDR BB- Affirmed BB- Pan American Energy, S.L., Argentine Branch senior unsecured LT BB- Affirmed BB- senior secured LT BB- Affirmed BB- Petroquimica Comodoro Rivadavia S.A. LT IDR B- Affirmed B- LC LT IDR B- Affirmed B- Pluspetrol S.A. LT IDR BB Affirmed BB LC LT IDR BB Affirmed BB senior unsecured LT BB Affirmed BB ********* 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 * * *