260331.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
Tuesday, March 31, 2026, Vol. 27, No. 64
Headlines
A R G E N T I N A
ARGENTINA: Economy Grew in Line With Expectations in January
ARGENTINA: Sluggish Economy Testing Milei's Spending Cuts
B R A Z I L
KLABIN SA: Fitch Affirms 'BB' Long-Term IDR, Alters Outlook to Pos.
C O L O M B I A
FRONTERA ENERGY: Fitch Affirms 'B' Long-Term IDR, Outlook Stable
GEOPARK LIMITED: Fitch Affirms 'B+' LT IDR, Outlook Now Stable
J A M A I C A
JAMAICA: Net Remittances Rose to USD255 Million in January
JAMAICA: Trade Deficit Widened From January to November 2025
M E X I C O
DEL MONTE: Plan Confirmation Hearing Scheduled for May 7
ORBIA ADVANCE: Fitch Lowers Long-Term IDR to 'BB+', Outlook Stable
P U E R T O R I C O
FERRELLGAS PARTNERS: Converts Class B Units to 6.5MM Class A Units
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A R G E N T I N A
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ARGENTINA: Economy Grew in Line With Expectations in January
------------------------------------------------------------
Manuela Tobias at Bloomberg News reports that Argentina's economy
posted a slight expansion in January following a quarter of
weaker-than-expected growth for President Javier Milei.
Economic activity rose 0.4 percent from December, according to
government data published Thursday, March 26, reports Bloomberg
News. From a year ago, the gross domestic product proxy grew 1.9
percent, matching the median estimate of economists surveyed by
Bloomberg.
The agriculture sector led growth, while retail and manufacturing
fell, Bloomberg News relays.
Bloomberg News discloses that monthly inflation, which Milei vowed
to slow below one percent this year, came in closer to three
percent in February and last slowed in May. It's still a
significant improvement from the crisis Milei inherited, but his
disinflation campaign has lost momentum, Bloomberg News relays.
The president's approval rating this month hit its lowest since he
took office to 36 percent, according to LatAm Pulse, a survey
conducted by AtlasIntel for Bloomberg News.
"Solid Argentine activity in January put first-quarter growth on
robust footing, yet continued to flag uneven strength across
productive tradable sectors and most of the rest of the economy.
That's a risk for growth ahead -- and for markets more immediately
if that undermines political support for the current macroeconomic
program," said Jimena Zuniga, Argentina economist for Bloomberg
Economics.
Bloomberg News says gross domestic product rose 0.6 percent in the
fourth quarter compared to the three months through September,
below economists' estimates, while the economy expanded 2.1 percent
in the quarter.
Exports led growth, followed by private consumption, as public
spending and capital investment declined, Bloomberg News notes.
Unemployment climbed to 7.5 percent in the same quarter, the
highest fourth-quarter since the Covid-19 pandemic, Bloomberg News
relays.
Economists estimate Argentina will grow 3.4 percent this year and
inflation will slow to 26 percent this year, according to the
Central Bank's February survey, Bloomberg News adds.
About Argentina
Argentina is a country located mostly in the southern half of
South America. Its capital is Buenos Aires. Javier Milei is the
current president of Argentina after winning the November 19,
2023 general election. He succeeded Alberto Angel Fernandez
in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal
year 2019, according to the World Bank. Historically, however,
its economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
In March 2022, the International Monetary Fund (IMF) approved a
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota) -- with an approved immediate
disbursement of an equivalent of US$9.65 billion. Argentina's
IMF-supported program sought to improve public finances and start
to reduce persistent high inflation through a multi-pronged
strategy.
On April 11, 2025, the IMF further approved a 48-month Extended
Fund Facility (EFF) arrangement for Argentina totaling US$20
billion (or 479 percent of quota), with an immediate disbursement
of US$12 billion, and a first review planned for June
2025 with an associated disbursement of about US$2 billion. The
program is expected to help catalyze additional official
multilateral and bilateral support, and a timely re-access to
international capital markets.
Moody's Ratings on July 17, 2025, upgraded Argentina's
long-term foreign currency and local currency issuer ratings to
Caa1 from Caa3 and changed the outlook to stable from positive.
The upgrade reflects Moody's views that the extensive
liberalization of exchange and (to a lesser extent) capital
controls, alongside a new International Monetary Fund (IMF)
program, support the availability of hard currency liquidity and
ease pressure on external finances. This reduces the likelihood of
a credit event. In January 2025, Moody's raised Argentina's local
currency ceiling to B3 from Caa1 and the foreign currency ceiling
to Caa1 from Caa3.
Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term
Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to
'CCC+' from 'CCC'. S&P Global Ratings, in February 2025 lowered
its local currency sovereign credit ratings on Argentina to
'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from
'raB+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local
Currency Issuer Ratings to B (low) from CCC in November 2024.
ARGENTINA: Sluggish Economy Testing Milei's Spending Cuts
---------------------------------------------------------
Ignacio Olivera Doll at Bloomberg News reports that cracks emerging
in Argentina's economic growth are now threatening one of President
Javier Milei's signature achievements: the fiscal surplus.
In a country known for chronic deficits, Milei's chainsaw-style
spending cuts became a central pillar from the start of his
government in December 2023, according to Bloomberg News. "Fiscal
balance is non-negotiable," he repeatedly proclaimed. The open
question is -- 18 months before the next presidential election --
how much more austerity Argentines are willing to endure, Bloomberg
News notes.
The problem is that tax revenue hasn't kept up with inflation for
seven straight months, including a 10 percent drop just in February
when adjusted for price increases, according to the Argentine
Institute of Fiscal Analysis, Bloomberg News relays. Slower
growth, rising unemployment and sluggish retail sales are all
putting Milei's hard-fought fiscal anchor under pressure, Bloomberg
News says.
"Absolutely -- the economic slowdown threatens the fiscal anchor,
and the recent tax collection data suggest it could be a
challenging year," said Todd Martinez, co-head of Americas
sovereigns at Fitch Ratings, Bloomberg News notes.
Stagnation in parts of the economy is now seen as the main drag on
the fiscal accounts as consumer spending fails to recover to
pre-Milei levels, Bloomberg News discloses. Banco Mariva estimates
that lower sales tax collection -- both domestic and
customs-related -- explains at least a third of the real decline in
revenue, Bloomberg News says. Higher unemployment is also weighing
on social security contributions, Bloomberg News relays.
"Some of the weakness could be offset by one-off revenues like
privatisations, but the government may still need additional
spending cuts. Given its strong commitment, we believe it will take
the necessary measures," Martinez said, Bloomberg News relates.
In 2026, Milei is making moves that have already hit a nerve. His
administration is reducing subsidies for energy and public
transport, translating into higher utility bills and more expensive
commutes, Bloomberg News discloses. The relatively easier spending
cuts -- public works, government jobs and federal funding to
provinces -- have already been done, making every additional peso
of austerity more socially and politically expensive, Bloomberg
News says.
Milei's approval rating dropped to 36.4 percent in March, the
lowest of his Presidency, down from 44 percent at the end of last
year, according to Latam Pulse, a survey conducted by AtlasIntel
for Bloomberg News.
Moody's Ratings analyst Jaime Reusche sees Milei's government
"likely" losing its fiscal anchor this year, although the firm
believes the slippage would be "manageable." In fact, it could be
better for Milei, he argued.
"Tolerating some fiscal deficit may make sense, especially if it
helps avoid political or social shocks," Reusche said in an
interview, Bloomberg News relates. "But if there were a limited
deviation into a small deficit, it would not materially change our
base case," because Milei's government “has already built fiscal
credibility," he added.
Argentina's economy is still growing, yet it's increasingly uneven,
Bloomberg News notes. Agriculture, energy and mining are driving
growth while more labour-intensive industries like manufacturing,
construction, tourism and retail are hit by slower consumer
spending and an appreciated currency, Bloomberg News discloses.
The slowdown across most sectors is not only undermining the
government on the fiscal front. It's also complicating monetary
policy, Bloomberg News relays. Since early March, the Central Bank
has allowed a faster expansion of pesos that suddenly pushed local
interest rates lower, Bloomberg News notes. The shift also exposed
the need to give more breathing room to an economy beginning to
show signs of strain, analysts say, Bloomberg News discloses.
"The slowdown in activity will leave the government with less room
on the revenue side," said María Minatta, director of local
consultancy Map Latam, Bloomberg News relays. "Since the fiscal
anchor remains a key policy banner, this drop in activity and tax
collection may become an incentive to adjust monetary policy," he
added.
Bloomberg News relays that analysts still forecast a primary
surplus of 16.1 trillion pesos (US$11.7 billion) this year,
according to the Central Bank's latest market expectations survey.
The 2026 Budget was built on the assumption that revenue would grow
enough to sustain a primary surplus of about 1.5 percent of gross
domestic product and a financial surplus of 0.3 percent, Bloomberg
News notes. But those projections now look less comfortable than
they did only a few months ago, Bloomberg News discloses.
If March confirms the same pattern -- weaker activity, weaker
revenue and tighter fiscal accounts -- Milei will have to decide
whether the fiscal anchor is something to defend at any cost, or
something that needs to be reinterpreted before the economy does it
for him, Bloomberg News adds.
About Argentina
Argentina is a country located mostly in the southern half of
South America. Its capital is Buenos Aires. Javier Milei is the
current president of Argentina after winning the November 19,
2023 general election. He succeeded Alberto Angel Fernandez
in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal
year 2019, according to the World Bank. Historically, however,
its economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
In March 2022, the International Monetary Fund (IMF) approved a
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota) -- with an approved immediate
disbursement of an equivalent of US$9.65 billion. Argentina's
IMF-supported program sought to improve public finances and start
to reduce persistent high inflation through a multi-pronged
strategy.
On April 11, 2025, the IMF further approved a 48-month Extended
Fund Facility (EFF) arrangement for Argentina totaling US$20
billion (or 479 percent of quota), with an immediate disbursement
of US$12 billion, and a first review planned for June
2025 with an associated disbursement of about US$2 billion. The
program is expected to help catalyze additional official
multilateral and bilateral support, and a timely re-access to
international capital markets.
Moody's Ratings on July 17, 2025, upgraded Argentina's
long-term foreign currency and local currency issuer ratings to
Caa1 from Caa3 and changed the outlook to stable from positive.
The upgrade reflects Moody's views that the extensive
liberalization of exchange and (to a lesser extent) capital
controls, alongside a new International Monetary Fund (IMF)
program, support the availability of hard currency liquidity and
ease pressure on external finances. This reduces the likelihood of
a credit event. In January 2025, Moody's raised Argentina's local
currency ceiling to B3 from Caa1 and the foreign currency ceiling
to Caa1 from Caa3.
Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term
Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to
'CCC+' from 'CCC'. S&P Global Ratings, in February 2025 lowered
its local currency sovereign credit ratings on Argentina to
'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from
'raB+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local
Currency Issuer Ratings to B (low) from CCC in November 2024.
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B R A Z I L
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KLABIN SA: Fitch Affirms 'BB' Long-Term IDR, Alters Outlook to Pos.
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Fitch Ratings has affirmed Klabin S.A.'s Long-Term Foreign Currency
and Local Currency Issuer Default Ratings (IDRs) at 'BB+', National
Scale Long-Term Rating at 'AAA(bra)', and National Scale bonds
ratings at 'AAA(bra)'. Fitch has also affirmed Klabin Austria
GmbH's senior notes, guaranteed by Klabin, at 'BB+'. The Rating
Outlook for the IDRs has been revised to Positive from Stable. The
Rating Outlook for the National Scale Long-Term Rating is Stable.
The Outlook revision reflects the expectation that Klabin's net
leverage will reduce to around 3.0x by 2027, supported by strong
operating cash flow, lower investments and a more conservative
dividend policy.
The ratings reflect Klabin's leading position in the Brazilian
paper and packaging sector, large forestry assets, high vertical
integration and low-cost production. Strong liquidity and low
refinancing risk support the ratings. Fitch expects robust cash
flow generation to continue, underpinned by the company's cost
advantage and solid demand.
Key Rating Drivers
Strong Brazilian Market Share: Klabin holds a leading position in
Brazil's packaging sector, supported by high vertical integration,
which enhances product flexibility in the competitive but
fragmented packaging industry. The company has market shares of 22%
and 36%, respectively, in the Brazilian corrugated boxes and coated
board sectors. Klabin is the sole producer of liquid packaging
board in Brazil, and the largest producer of kraftliner and
industrial bags, with market shares of 62% and 58%, respectively.
Klabin's strong market share enables price leadership and more
stable sales volumes and margins during economic downturns. The
paper and packaging business represented 64% of Klabin's EBITDA in
2025, while pulp represented 36%. Competitive advantages are
sustained by scale, integration, and a diversified client base in
the more resilient food sector, which represents about 67% of paper
and packaging sales.
Leverage to Reduce: Klabin's net leverage reached 3.8x in 2025 and
Fitch expects it to continue trending toward 3.0x by 2027. During
2025, Klabin monetized BRL3.6 billion of forestry assets, mainly
related to non-strategic assets acquired from Celulosa Arauco y
Constitución S.A. (Arauco; BBB/Negative) in 2024, which allowed
the company to reduce gross debt to BRL38.6 billion in December
2025 from BRL42.7 billion in December 2024. Klabin updated
financial policy reduced dividends distributions and aims to
maintaining leverage below 3.5x across the cycle.
Strong Operating Cash Flow: Fitch projects EBITDA of BRL7.8 billion
and cash flow from operations (CFO) of BRL5.1 billion in 2026, and
BRL8.0 billion and BRL5.5 billion, respectively, in 2027. This
compares with BRL7.5 billion of EBITDA and BRL4.6 billion of CFO in
2025. Fitch expects Klabin's FCF to be positive throughout the
rating horizon, assuming annual dividends between BRL1.1 billion
and BRL1.2 billion between 2026 and 2028, and total investments
close to BRL8.6 billion in the period.
Pulp Price Volatility: Fitch estimates bleached eucalyptus kraft
pulp (BEKP) prices of USD625/tonne in 2026 and USD675/tonne in
2027. Pulp prices fell to an average of USD533/tonne in 2025, a
historical minimum in real terms, due to uncertainty around tariff
policies and the global macroeconomic outlook. Prices began
recovering in 4Q25 and are now near USD600/tonne. Sector
fundamentals remain solid, with no major new capacity expected
before 2028. Fitch expects this tolikely support upward price
trends despite slower demand growth.
Forestry Assets Key to Credit Profile: Klabin's significant
forestry holdings are a key credit consideration, which assure a
competitive production cost structure. The accounting value of
Klabins's owned forest plantation assets was about USD2.4 billion
as of Dec. 31, 2025.
Brazil Country Ceiling: Klabin's FC IDR of 'BB+' is not capped by
Brazil's Country Ceiling (BB+). If Fitch lowered Brazil's Country
Ceiling, Klabin's IDR could go up to two notches above the Country
Ceiling at the time. This is due to a combination of exports of
USD1.4 billion, about USD670 million of cash held in hard currency
and an undrawn USD500 million offshore credit facility. Hard
currency debt service for the next 18 months is covered more than
1.5x by 50% of EBITDA from exports, cash held abroad and a RCF.
Peer Analysis
Klabin has a leading position in the Brazilian packaging segment.
Its size, access to inexpensive fiber, and high level of
integration relative to many of its competitors give it sustainable
competitive advantages. Its business profile is consistent with a
rating in the 'BBB' category.
Klabin's leverage is reducing after peaking in 2024. Its leverage
is lower than Empresas CMPC S.A. (CMPC; BBB/Negative), Arauco, and
Eldorado Brasil Celulose S.A (Eldorado; BB/Stable); and in line
with Suzano S.A. (Suzano; BBB-/Positive). Liquidity is historically
strong for pulp and packaging producers, and Klabin has strong
access to debt and capital markets.
Klabin is more exposed to demand from the local market than Suzano,
CMPC and Arauco, as these companies are leading producers of market
pulp sold globally. This makes Klabin more vulnerable to
macroeconomic conditions than its peers. Positively, its
concentration of sales in the food and beverage industry, which is
relatively resilient to downturns in Brazil's economy, and its
position as the sole producer of liquid packaging board, add
stability to its operating results.
Fitch’s Key Rating-Case Assumptions
- Paper and packaging sales volume of 2.7 million tonnes and 2.5
million tonnes for 2026 and 2027, respectively;
- Pulp sales volume of 1.6 million tonnes in 2026 and of 1.5
million tonnes in 2027, considering scheduled stoppages;
- Average hardwood net pulp price of USD625 per ton in 2026 and
USD675 per ton 2027;
- Average foreign exchange rate of 5.5 BRL/USD in 2026 and 5.6
BRL/USD 2027;
- Investments around BRL8.6 billion during 2026-2028;
- Dividends around 15% of EBITDA.
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 (bbb,
Moderate), Market and Competitive Positioning (bbb+, Higher),
Diversification and Asset Quality (bbb, Moderate), Company
Operational Characteristics (bbb, Moderate), Profitability (a-,
Moderate), Financial Structure (bb-, Higher), and Financial
Flexibility (bbb-, Moderate).
- The quantitative financial subfactors are based on standard CRT
financial period parameters: 20% weight for the latest historical
year 2025, 40% for the forecast year 2026 and 40% for the forecast
year 2027.
- The Governance assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'bb+' results in no
adjustment.
- The SCP is 'bb+'.
Fitch made no adjustments to the SCP, resulting in a Local and
Foreign Currency IDR of 'BB+'.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Leadto to
Negative Rating Action/Downgrade
- Average net debt/EBITDA of 3.5x or higher throughout the pulp
price cycle;
- Average gross debt/EBITDA of 4.5x or higher throughout the pulp
price cycle;
- A more unstable macroeconomic environment that weakens demand for
the company's packaging products as well as prices.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Average net debt/EBITDA of 3.0x or below throughout the pulp
price cycle;
- Average gross debt/EBITDA of 4.0x or below throughout the pulp
price cycle following completion of the expansion project.
Liquidity and Debt Structure
Klabin has a strong liquidity position and low refinancing risk. As
of Dec. 31, 2025, it held BRL10.9 billion in cash and marketable
securities against BRL39.6 billion in total debt, including BRL1.8
billion of factoring, as per Fitch's criteria. The company's
amortization profile is extended, with BRL3.6 billion maturing in
2026 (including factoring), BRL3.1 billion in 2027, and BRL2.8
billion in 2028. Financial flexibility is supported by a USD500
million unused RCF. Fitch expects Klabin to maintain strong
liquidity, supporting resilience to price and demand volatility.
About 78% of debt was U.S. dollar-denominated at YE 2025. Debt
consisted of bonds (38%), bank loans (27%), factoring (5%), BNDES
(9%), export credit notes and prepayments (6%), agribusiness
receivables certificates and Agricultural Product Certificates (CRA
and CPR; 5%), debentures (4%), and Cédulas de Produto Rural com
Liquidação Financeira (CPR-F; 4%).
Issuer Profile
Klabin leads the Brazilian corrugated boxes and coated board
sectors. It is the sole Brazilian producer of liquid packaging
board and the largest producer of kraftliner and industrial bags,
with an annual production capacity of 1.6 million tonnes market
pulp.
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 Climate.VS for 2035 is 31 out of 100. This reflects a VSp of 25
and a VSt of 20.
The results of its Climate.VS screener did not indicate an elevated
risk for Klabin S.A..
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
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Klabin S.A. LT IDR BB+ Affirmed BB+
LC LT IDR BB+ Affirmed BB+
Natl LT AAA(bra) Affirmed AAA(bra)
senior unsecured Natl LT AAA(bra) Affirmed AAA(bra)
Klabin Austria Gmbh
senior unsecured LT BB+ Affirmed BB+
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C O L O M B I A
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FRONTERA ENERGY: Fitch Affirms 'B' Long-Term IDR, Outlook Stable
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Fitch Ratings has removed Frontera Energy Corporation's senior
unsecured notes from Rating Watch Positive (RWP) and affirmed the
notes at 'B' with a Recovery Rating of 'RR4'. Fitch also affirmed
Frontera's Long-Term Foreign- and Local-Currency Issuer Default
Ratings (IDRs) at 'B'. The Rating Outlook is Stable.
The RWP removal reflects the termination of the GeoPark Limited
(B+/Stable) transaction, previously viewed as credit positive, as
Frontera's bondholders would have benefited from a shareholder with
a stronger consolidated credit profile. Frontera has received a new
offer from Parex Resources (not rated). Fitch does not yet have
sufficient visibility into the combined entity's business and
credit profile until the transaction is approved, and the
post-closing capital structure, governance and financial policy are
observable.
If the combined entity achieves higher scale (above 75,000 boe/d)
and maintains leverage around 2.0x, this could support a stronger
credit profile. Parex's leverage is about 0.7x, and 2025 production
is 44,701 boe/d.
Key Rating Drivers
Proposed Sale to Parex: The RWP removal reflects Fitch's limited
visibility into the post-transaction credit profile until the
divestment closes and the resulting capital structure, governance
and financial policy are known. Frontera has agreed to divest
Frontera Petroleum International Holdings B.V. (its Colombian E&P
business, plus SAARA and Proagrollanos) to Parex for up to USD525
million (USD500 million at close plus a USD25 million contingent
payment), subject to regulatory approvals and customary closing
conditions. Parex will assume Frontera's USD310 million 2028 senior
unsecured notes and the USD80 million Chevron prepayment facility.
Based on public information, Parex's pro forma production of about
84,000 boe/d and 1P reserves of 208 mmboe are broadly consistent
with a 'B' category operating scale. However, Fitch lacks
sufficient visibility into the post-closing capital structure and
financial policy to conclude the transaction will result in a
stronger or weaker credit profile for the notes. Fitch does not
view the proposed transaction as inherently credit negative at this
stage, given the expectation of a more stable post-divestment
business profile and the affirmation of Frontera's IDRs at 'B'.
Infrastructure Focus: After the transaction closes, Frontera will
focus on its infrastructure business, including its participation
in Oleoducto de los Llanos Orientales S.A. (ODL) and Puerto Bahia
S.A. (Puerto Bahia). Fitch estimates Frontera's post-divestment
infrastructure EBITDA after dividends from affiliates will be close
to USD80 million following the sale of the upstream business. The
transaction will reduce volatility, as the post-sale cash flows
will be anchored on more stable infrastructure operations in Puerto
Bahia and dividends from the 35% equity interest in ODL.
Competitive Position: Puerto Bahia is a multimodal maritime
terminal and Colombia's largest roll-on/roll-off cargo operator.
Its strategic Cartagena location and potential expansion
projects—such as liquefied petroleum gas (LPG) imports, liquefied
natural gas (LNG) regasification, and containerized cargo—support
diversified revenues. The ODL pipeline connects the Rubiales,
Quifa, and Llanos-34 blocks to the Monterrey and Cusiana stations
in Casanare, which together hold nearly 70% of Colombia's proven
reserves. ODL transports about 30% of Colombia's oil production.
Proforma Adequate Leverage Profile: Fitch estimates gross leverage,
post-sale, should remain below 3.0x in 2026-2028, strong for the
current rating compared to the infrastructure leverage metrics.
Fitch assumes Frontera's infrastructure EBITDA after recurring
dividends to be close to USD80 million and debt around USD200
million.
Peer Analysis
Frontera's credit and business profile are comparable with other
small independent oil producers in Colombia (BB/Stable). The
ratings of GeoPark Limited (B+/Stable), SierraCol Energy Limited
(B+/Stable) and Gran Tierra Energy Inc. (B+/Stable) are all
constrained to the 'B' or below category, given the inherent
operational risk associated with the small scale and low
diversification of oil and gas production.
Frontera's eventual focus on infrastructure should provide the
company a more predictable cash flow profile, compared to other
midstream peers in the country, such as Oleoducto Central S.A.
(OCENSA; BB/Stable), which has a stronger financial profile, with
leverage of 0.3x over the rating horizon, and higher scale.
Fitch’s Key Rating-Case Assumptions
- Fitch's price deck for Brent oil prices of USD70 in 2026, USD63
in 2027, and USD60 in 2028 and 2029;
- Gross production average of 42,000 boed;
- Average USD5 per barrel (bbl) discount to Brent in 2024; average
of USD3/bbl between 2025 and 2027;
- COGS averaging USD46/boe in 2026;
- Net divesture income proceeds of USD500 million;
- Dividends payments of USD470 million in 2026;
- Annual dividends received from Oleoducto de los Llanos Orientales
S.A (ODL) of USD62 million in 2026.
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, Lower), Sector Characteristics (bb-,
Moderate), Market and Competitive Positioning (b, Moderate),
Diversification and Asset Quality (b+, Moderate), Company
Operational Characteristics (b-, Higher), Profitability (b,
Moderate), Financial Structure (a-, Lower), and Financial
Flexibility (bb-, Moderate).
- The quantitative financial subfactors are based on custom CRT
financial period parameters: 10% weight for the historical year
2025, 30% for the forecast year 2026, 30% for the forecast year
2027 and 30% for the forecast year 2028.
- B+ to CC considerations apply in its analysis and result in no
adjustment.
- The Governance assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'bbb' 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'.
Recovery Analysis
The recovery analysis assumes Frontera would be a going concern in
bankruptcy and it would be reorganized rather than liquidated.
Going Concern Approach
- A 10% administrative claim;
- The going concern EBITDA is estimated at USD290 million. The
going concern EBITDA estimate reflects Fitch's view of a
sustainable, post-reorganization EBITDA level upon which Fitch
bases the valuation of Frontera;
- Enterprise value multiple of 4.0x.
With these assumptions, its waterfall generated recovery
computation (WGRC) for the senior unsecured notes is in the 'RR2'
band. However, according to Fitch's Country-Specific Treatment of
Recovery Ratings Criteria, the Recovery Rating (RR) for corporate
issuers in Colombia is capped at 'RR4'. The RR for the senior
secured notes is therefore 'RR4' with a WGRC output percentage at
50%.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Sustainable production size declines to below 30,000 boed;
- 1P reserve life declines to below seven years on a sustained
basis;
- A significant deterioration of credit metrics to total
debt-to-EBITDA of 3.0x or higher;
- A persistently weak oil and gas pricing environment that impairs
the longer-term value of its reserve base;
- Sustained deterioration in liquidity and operating profile,
particularly in conjunction with more aggressive dividend
distributions than previously anticipated;
- Weakening if the contracted profile that ends up in higher
exposure to commodity volatility.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Strengthening of the contract portfolio in the infrastructure
business;
- Net production maintained at 45,000 boed or more, while
maintaining a 1P reserve life of seven years or greater and PDP
reserve life of at least four years;
- Maintain a conservative financial profile with gross leverage of
2.5x or below.
Liquidity and Debt Structure
As of December 2025, Frontera's cash and cash equivalents balance
was USD230 million, excluding USD11 million in restricted cash,
which covers interest expenses for the next three years by 4.0x.
Frontera debt amortization profile includes USD173 million in
amortizing loans maturing, of which USD85 million are due within
the next 24 months, while USD310 million in unsecured notes are due
in June 2028. The outstanding debt at the infrastructure level is
nonrecourse to Frontera.
On a pro forma basis, Fitch's base case assumes Frontera's debt
will hover around USD200 million between 2027 and 2028.
Issuer Profile
Frontera Energy Corporation is an oil and gas company incorporated
in Canada. It has operations in Latin America, including upstream,
pipeline and port facilities assets in Colombia and off-shore
Guyana.
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 Climate.VS at 2035 for Frontera is 56.
The results of its Climate.VS screener is elevated for Frontera.
However, this does not affect the current ratings, given the long
time horizon over which the transition is expected to occur. Any
potential future rating impact may change over time, reflecting
developments in Fitch's assessment of these risks
ESG Considerations
Frontera Energy Corporation has an ESG Relevance Score of '4' for
GHG Emissions & Air Quality due to the growing importance of the
continued development and execution of the company's
energy-transition strategy, which has a negative impact on the
credit profile, and is relevant to the rating[s] 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
----------- ------ -------- -----
Frontera Energy
Corporation LT IDR B Affirmed B
LC LT IDR B Affirmed B
senior unsecured LT B Affirmed RR4 B
GEOPARK LIMITED: Fitch Affirms 'B+' LT IDR, Outlook Now Stable
--------------------------------------------------------------
Fitch Ratings has affirmed GeoPark Limited's Long-Term Foreign- and
Local-Currency Issuer Default Ratings (IDRs) at 'B+' and its
unsecured notes at 'B+' rating with a Recovery Rating of 'RR4'. The
Rating Outlook has been revised to Stable from Positive.
The revision of the Rating Outlook reflects the cancellation of the
acquisition of Frontera Energy Corporation (B/Stable), which
eliminates the anticipated increase in operating scale that Fitch
had expected under the original terms. GeoPark's ratings continue
to be constrained by its limited business scale and are tempered by
its strong financial profile and low-cost structure.
Fitch's base case assumes GeoPark's production will average 27,000
barrels of oil equivalent per day (boed) in 2025 and 30,000 boed
over the rating horizon, while keeping proven (1P) reserves at
seven years. Fitch estimates GeoPark's EBITDA leverage will be
below 2.0x from 2026 to 2028.
Key Rating Drivers
Deal Cancellation Limits Scale: The cancellation of the acquisition
of Frontera eliminates the anticipated increase in operating scale
that Fitch had expected under the original terms. GeoPark's ratings
remain constrained to the 'B' category, given its relatively small
scale of operations. Production and 1P reserves are below the
threshold of the 'BB' category, at 75,000 barrels of oil equivalent
per day (boed) and at least 400 million barrels of oil equivalent
(mmboe), respectively.
Fitch's base case assumes GeoPark's production will be at least
30,000 boed in 2026. Fitch expects the reserve life index (RLI) to
remain around five years for proved developed producing (PDP)
reserves and seven years for 1P reserves in the coming years.
Strong Financial Profile: GeoPark's strong financial profile helps
mitigate these operational credit risks, underpinned by a favorable
debt maturity profile, with 70% of its debt maturing after 2030,
cash on hand of USD100 million, undrawn committed credit lines of
USD100 million, and USD300 million under the Vitol's prepayment
agreement. Moreover, the recent equity investment of USD111 million
from Grupo Gilinski, becoming the largest shareholder with a 24%
stake, strengthens GeoPark's financial flexibility. Fitch expects
any accretive transactions to not materially weaken the company's
credit profile.
Fitch's base case assumes GeoPark will finance its budget with a
combination of internal cash flows and debt over the next four
years. Cash flow from operations (CFO) is expected to cover capex
by an average of 1.1x. No dividends are assumed to be paid after
3Q26 as per the company's guidance.
Low-Cost Producer: Fitch expects Geopark to maintain its
cost-efficient production profile. The company's competitive
advantages stem from its operations in Colombia's onshore
oilfields, which result in lower exploration costs, partly from low
transportation costs associated with selling at the wellhead. In
2025, GeoPark's half-cycle cost was estimated at $19.3/boe and the
full-cycle cost was $35.0/boe. Lifting costs, excluding
transportation, were $14.0/boe.
Adequate Leverage: Fitch projects GeoPark's EBITDA leverage to be
at or below 2.0x in 2026 and 2027, remaining at or below 2.0x
afterwards. Fitch also projects debt/1P will be at or below
USD9/boe, assuming 1P replacement of at least 100%. Fitch's base
case assumes that the 2026-2028 capex plan will be about USD820
million.
Peer Analysis
GeoPark's credit and business profile is comparable to other small
independent oil producers in Latin America. The ratings of
SierraCol Energy Limited (B+/Stable), Frontera Energy Corporation
(B/Stable), and Gran Tierra Energy Inc. (B+/Stable) are all
constrained to the 'B' category, given the inherent operational
risks associated with the small scale and low diversification of
their oil and gas production. Brava Energia S.A.'s (BB-/Positive)
gas-focused business and robust reserves differentiate it from the
independent producers in Colombia.
Fitch expects GeoPark's production to be around 30,000 boed in
2026, which is lower than SierraCol's expected production of 45,000
boed, Frontera's 42,000 boed, and Gran Tierra's 50,000 boed.
GeoPark's 1P RLI is expected to be at least seven years over the
rating horizon, in line with its Colombian peers. GeoPark's
half-cycle cost of $19.3/boe and full-cycle cost of $35.0/boe in
2024 are at the lower end of the range for producers in the region.
Fitch expects GeoPark, like its Colombian peers, to maintain
leverage levels below 3.0x over the next four years.
Fitch’s Key Rating-Case Assumptions
- Average Brent prices from 2026 to 2029 (USD/bbl): 70, 63, 60,
60;
- Average production of 27,000 boed in 2026;
- No dividend distributions starting in 3Q26;
- Annual average capex of USD270 million between 2026-2028;
- Production cost per boe of USD14 in 2026-2028;
- SG&A plus selling expenses per boe of USD7.0 between 2026-2028;
- EBITDA leverage at or below 3.0x over the rating horizon;
- Reserve replenishment ratio annual average of 1P of 100%.
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, Moderate),
Diversification and Asset Quality (b+, Moderate), Company
Operational Characteristics (b, Higher), Profitability (b,
Moderate), Financial Structure (bbb+, Lower), 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 'bbb' results in no
adjustment.
- The SCP is 'b+'.
Fitch made no adjustments to the SCP, resulting in Foreign and
Local Currency IDRs of 'B+'.
Recovery Analysis
The recovery analysis assumes that GeoPark would be a going concern
(GC) in bankruptcy and that it would be reorganized rather than
liquidated.
GC approach:
- A 10% administrative claim;
- GC EBITDA estimated at USD300 million reflecting Fitch's view of
a sustainable, post-reorganization EBITDA level upon which Fitch
bases the valuation of GeoPark;
- EV multiple of 5.0x.
With these assumptions, Fitch's waterfall generated recovery
computation for the senior unsecured notes is in the 'RR3' band.
However, according to Fitch's "Country-Specific Treatment of
Recovery Ratings Criteria," the Recovery Rating for corporate
issuers in Colombia is capped at 'RR4'. The Recovery Rating for the
senior secured notes is therefore 'RR4' with 50% recoveries in a
hypothetical event of default.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Sustainable production falls below 30,000 boed;
- Reserve life declines to below 7.0 years on a sustained basis;
- A significant deterioration of total debt/EBITDA to 3.0x or
more.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Net production rising consistently to 75,000 boed on a sustained
basis while maintaining 1P reserves reserve life of at least 10
years, consistently;
- Maintenance of a conservative financial profile, with gross
leverage of 2.5x or below;
- Diversification of operations and improvements in realized oil
and gas differentials.
Liquidity and Debt Structure
Fitch views GeoPark's liquidity as adequate, with cash on hand of
USD103 million and undrawn committed credit lines of USD100 million
and USD300 million under the Vitol's prepayment agreement as of
Dec. 31, 2025. This compares favorably to short-term debt of USD19
million.
In early March 2026, Grupo Gilinski, one of the largest and most
diversified investment holding companies in Latin America, with a
strong presence in banking, food, media and, more recently, energy,
made an equity investment of USD111 million, strengthening
GeoPark's financial flexibility.
Issuer Profile
GeoPark Ltd. is a small but growing oil and gas exploration and
production company, with producing operations in Colombia and
Ecuador.
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 Climate.VS at 2035 for GeoPark is 60.
The results of its Climate.VS screener is elevated for GeoPark.
However, this does not affect the current ratings, given the long
time horizon over which the transition is expected to occur. Any
potential future rating impact may change over time, reflecting
developments in Fitch's assessment of these risks.
ESG Considerations
GeoPark Limited has an ESG Relevance Score of '4' for GHG Emissions
& Air Quality due to the growing importance of the continued
development and execution of the company's energy-transition
strategy, which 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 Recovery Prior
----------- ------ -------- -----
GeoPark Limited LT IDR B+ Affirmed B+
LC LT IDR B+ Affirmed B+
senior unsecured LT B+ Affirmed RR4 B+
=============
J A M A I C A
=============
JAMAICA: Net Remittances Rose to USD255 Million in January
----------------------------------------------------------
RJR News reports that the Bank of Jamaica is reporting that net
remittances -- the difference between funds sent to Jamaica and
those sent overseas -- rose by 5.4 per cent, or US$13 million, to
US$255 million in January, compared with the same period last
year.
The increase was driven mainly by a 5 per cent rise in inflows,
while outflows declined slightly by about US$100,000, according to
RJR News.
The central bank says the majority of remittances came from the
United States, accounting for 67.5 per cent, followed by the United
Kingdom at 12.2 per cent, Canada at 8.3 per cent, and the Cayman
Islands at 6.4 per cent, the report notes.
Meanwhile, the BOJ also says that the increase of 5 per cent in
remittance inflows recorded by Jamaica during the month of January
was below the 13.8 per cent recorded by El Salvador and 7.5 per
cent by Mexico, 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: Trade Deficit Widened From January to November 2025
------------------------------------------------------------
RJR News reports that Jamaica's trade deficit widened during the
first 11 months of 2025, as spending on imports increased while
export earnings declined.
Data released by the Statistical Institute of Jamaica (STATIN)
showed that total imports reached a US$6.8 billion between January
and November last year, according to RJR News.
This represents a 2.2 per cent increase over the same period in
2024, driven mainly by higher spending on raw materials and
consumer goods, the report notes.
At the same time export earnings fell to US$1.5 billion, an 11 per
cent decline compared with the previous year, the report relays.
The drop in exports was largely due to the 14.6 per cent fall in
crude materials, the report notes.
The figures highlight a growing imbalance in Jamaica's trade
performance over the review period, 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
===========
DEL MONTE: Plan Confirmation Hearing Scheduled for May 7
--------------------------------------------------------
The Hon. Michael B Kaplan of the U.S. Bankruptcy Court for the
District of New Jersey approved the Disclosure Statement for the
Joint Chapter 11 Plan of Del Monte Foods Corporation II Inc. and
its debtor affiliates.
The Debtors have all the necessary authority to propose and
prosecute the Plan and the Disclosure Statement.
The Disclosure Statement is approved on an interim basis under
section 1125 of the Bankruptcy Code and Bankruptcy Rule 3017. Any
objections to the adequacy of the information contained in the
Disclosure Statement are expressly reserved for consideration at
the Combined Hearing. All other objections to the relief sought in
the Motion that have not been withdrawn, waived, settled, or
specifically addressed in this Order are hereby overruled without
prejudice to any such parties' rights to raise such objections at
the Combined Hearing.
The Confirmation Schedule is approved in its entirety as follows
(subject to modifications as necessary):
Voting Record Date - March 11, 2026
Solicitation Deadline - Four (4) business days following entry of
the Disclosure Statement Order (but in no event later than March
26, 2026)
Plan Supplement Deadline - April 23, 2026, at 4:00 p.m.
(prevailing Eastern Time)
Final Witness and Exhibit Lists Deadline - April 23, 2026, at
4:00 p.m. (prevailing Eastern Time)
Confirmation & Final Disclosure Statement
Objection Deadline - April 28, 2026, at 5:00 p.m. (prevailing
Eastern Time)
Witness Declarations Deadline - April 28, 2026, at 5:00 p.m.
(prevailing Eastern Time)
Witness and Exhibit List Objections - April 30, 2026,
at 4:00 p.m. (prevailing Eastern Time)
Deadline to File Certification of Balloting - May 4, 2026,
at 4:00 p.m. (prevailing Eastern Time)
Confirmation Brief and Reply Deadline - May 5, 2026, at 1:00 p.m.
(prevailing Eastern Time)
Combined Hearing on Plan Confirmation and Final Disclosure
Statement Approval - May 7, 2026, at 11:30 a.m.
(prevailing Eastern Time)
As shared by the Troubled Company Reporter, Del Monte Foods
Corporation II Inc., and its Debtor Affiliates filed with the U.S.
Bankruptcy Court for the District of New Jersey a Disclosure
Statement describing Joint Chapter 11 Plan dated February 25,
2026.
Del Monte is one of the country's leading producers, distributors,
and marketers of premium quality, primarily branded, plant-based
packaged food products.
Del Monte has been a cornerstone of American grocery stores for
over 130 years. Founded in 1886 and headquartered in Walnut Creek,
California, as of the Petition Date, Del Monte employed
approximately 2,780 people and operated four plants, two in the
United States and two in Mexico. Del Monte has produced and sold
its products through both its own brands (including Del Monte(R),
Contadina(R), and Joyba(R), among others), as well as through
retailers under private labels.
Del Monte entered Chapter 11 with the support of its secured
lenders. The Prepetition ABL Lenders, who held 100% of the
aggregate outstanding principal amount under the Prepetition ABL
Facility as of the Petition Date, agreed to provide a
debtor-in-possession asset-backed loan facility.
Separately, the Ad Hoc Group, whose members collectively hold 73.2%
of the aggregate outstanding principal amount of Super Senior First
Out Loans (defined herein) and 61% of the aggregate outstanding
principal amount of Super-Senior Second Out Loans, entered into a
restructuring support agreement (the "RSA") with the Debtors,
pursuant to which the Ad Hoc Group agreed to provide a DIP term
loan facility (the "DIP Term Loan Facility" and together with the
DIP ABL Facility, the "DIP Facilities") and, subject to reaching
agreement on certain bidding procedures (the "Bidding Procedures"),
serve as a stalking horse bidder for a sale of all or substantially
all of the Debtors' assets as a going-concern business.
At the outset of the Chapter 11 Cases, the Debtors negotiated a
prepetition restructuring support agreement with the Ad Hoc Group,
pursuant to which the Ad Hoc Group agreed to act as a stalking
horse bidder (the "Stalking Horse Bidder") for a going-concern sale
of the Debtors' assets. In connection therewith, the Debtors filed
a proposed form of stalking horse purchase agreement on August 12,
2025.
On January 28-29, 2026, the Debtors sought approval of the proposed
SOTP Transactions at a hearing before the Bankruptcy Court. The
Bankruptcy Court approved the SOTP Transactions on the record at a
further hearing held on February 6, 2026. On February 20, 2026, the
Bankruptcy Court entered each of the Sale Orders – Multi-Business
Sale Order; Fruit Sale Order; and Broth & Stock Sale Order --
approving the SOTP Transactions.
Class 4 consists of General Unsecured Claims. Each Holder of an
Allowed General Unsecured Claim, unless such Holder agrees to less
favorable treatment, receives its Pro Rata share of (i) the GUC
Cash Recovery, which shall be funded from the GUC Recovery Reserve,
and (ii) the Distributable Proceeds pursuant to the Waterfall
Recovery, if any.
Class 5 consists of Other General Unsecured Claims. Each Holder of
an Other General Unsecured Claim, except to the extent that such
Holder agrees to less favorable treatment, shall be entitled to
their Pro Rata share of the Distributable Proceeds pursuant to the
Waterfall Recovery, if any.
Each Holder of an Allowed Intercompany Interest may be Reinstated,
set off, settled, distributed, contributed, cancelled, or released,
or receive other treatment as reasonably determined by the Debtors,
in consultation with the Ad Hoc Group.
The Wind-Down Debtors shall fund distributions under the Plan, as
applicable, with (i) Cash on hand as of the Effective Date using
Distributable Proceeds from the SOTP Transactions, (ii) Cash equal
to the GUC Recovery Amount from the GUC Recovery Reserve with
respect to Allowed General Unsecured Claims, and (iii) the proceeds
from other assets sold as part of the Wind-Down, including
Distributable Proceeds from the SOTP Transactions, and (iv) other
assets sold as part of the Wind-Down, including Other Excluded
Assets.
Prior to the Effective Date, the Debtors shall establish the Plan
Administrator Reserve and fund it with Cash using the proceeds of
the SOTP Transactions in the amount set forth in the Wind-Down
Budget (inclusive of the Professional Fee Escrow Amount to fund
certain Professional Fee Claims and the GUC Recovery
Contribution).
Prior to the Effective Date, the Debtors shall establish the Plan
Administrator Reserve with Cash, in the amount set forth in the
Wind-Down Budget, from the proceeds of the SOTP Transactions.
Before or on the Effective Date, the Debtors, the Wind-Down Debtors
or the Plan Administrator, as applicable, shall use the funds in
the Plan Administrator Reserve to establish segregated accounts for
(i) the Professional Fee Escrow Account in the amount of the
Professional Fee Escrow Amount, and (ii) the GUC Recovery Reserve
in the amount of $8,000,000.00, which will be funded using the GUC
Recovery Contribution for the benefit of Holders of General
Unsecured Claims from amounts that would otherwise be distributed
to the DIP Term Loan Lenders on account of the sale of their
collateral in the SOTP Transactions.
A full-text copy of the Disclosure Statement dated Feb. 25, 2026 is
available at https://urlcurt.com/u?l=9eThRu from Stretto, claims
agent.
A copy of the Court's Order dated March 19, 2026, is available at
http://urlcurt.com/u?l=lXG450from PacerMonitor.com.
About Del Monte Foods Corporation II Inc.
Del Monte Foods, Inc. produces, distributes, and markets branded
plant-based packaged food products in the United States and
Mexico. Founded in 1886 and headquartered in Walnut Creek,
California, the Del Monte business has been a cornerstone of
American grocery stores for more than 130 years. Del Monte Foods
has been driven by its mission to nourish families with earth's
goodness. As the original plant-based food company, Del Monte is
always innovating to make nutritious and delicious foods more
accessible to consumers across its portfolio of beloved brands,
including Del Monte, Contadina, College Inn, Kitchen Basics,
JOYBA, Take Root Organics and S&W. On the Web:
@ www.delmontefoods.com/ or @ www.joyba.com/
On July 1, 2025, Del Monte Foods Corporation II, Inc. and 17
affiliated debtors filed voluntary petitions for relief under
Chapter 11 of the United States Bankruptcy Code (Bankr. D.N.J.
Lead Case No. 25-16984) to address $1.235 billion in funded
debt obligations. At the time of the filing, the Debtors listed
$1 billion to $10 billion in both assets and liabilities.
Judge Michael B. Kaplan presides over the case.
The Debtors tapped Michael D. Sirota, Esq., at Cole Schotz P.C.
and Herbert Smith Freehills Kramer (US), LLP as legal counsel;
Jonathan Goulding, managing director at Alvarez & Marsal North
America, LLC, as chief restructuring officer; and Stretto, Inc.
as claims and noticing agent.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Chapter 11 cases
of Del Monte Foods Corporation II, Inc. and its affiliates. The
committee hires Morrison & Foerster LLP as counsel. Province, LLC
as financial advisor. Kelley Drye & Warren LLP as co-counsel.
Stifel, Nicolaus & Co., Inc. as investment banker.
ORBIA ADVANCE: Fitch Lowers Long-Term IDR to 'BB+', Outlook Stable
------------------------------------------------------------------
Fitch Ratings has downgraded Orbia Advance Corporation, S.A.B de
C.V.'s (Orbia) Long-Term Foreign and Local Currency Issuer Default
Ratings (IDRs) and senior unsecured notes to 'BB+' from 'BBB-'.
Fitch has also downgraded Orbia's National Scale Long-Term Rating
and local bond issuances to 'AA(mex)' from 'AA+(mex)' and affirmed
its National Scale Short-Term Rating and short-term program at
'F1+(mex)'. The Rating Outlook is Stable.
The downgrade reflects Orbia's weaker operating performance and
higher leverage metrics as previously anticipated by Fitch amid
challenging markets conditions due to PVC market oversupply and
subdued demand conditions in key markets. Orbia's gross and net
leverage, is projected to remain close to 4.5x and 3.5x in 2026 and
2027, respectively, both consistent with the 'bb' category.
The Stable Outlook incorporates Orbia's ability to recover
operating cash flow generation supported by its internal
initiatives related to costs savings, captures growth from
investment benefits and sale of non-core assets.
Key Rating Drivers
Leverage Above Expectations: Orbia's EBITDA net leverage (pre-IFRS
16, adjusted for dividends to minorities and including letters of
credits in total debt), as calculated by Fitch, was 5.1x at FY25,
up from 4.3x in FY24. This level was above its previous projection
and was not commensurate with an investment-grade rating.
Fitch projects Orbia's gross and net leverage at around 5x and 4x
in 2026, easing to about 4.5x and 3.5x in 2027. This trajectory
indicates weaker deleveraging and an inability to return to prior
investment-grade leverage levels over the rated horizon. Fitch's
base case does not assume any benefit from a potential divestiture
in 2026.
Challenged Operating Performance: Fitch expects that recovery in
the Polymer Solutions and Building and Infrastructure businesses
remains challenged due to the prolonged downcycle in PVC prices and
subdued construction demand in key markets. However, Fitch
anticipates a more favorable performance in 2026 and 2027 from
Fluor and Energy Materials and Connectivity Solutions and a
relatively stable contribution from Precision Agriculture.
Fitch projects Orbia's EBITDA (pre-IFRS 16) to be around USD 1.1
billion in 2026 and USD 1.2 billion in 2027 mainly driven by costs
savings, benefits from recently completed investment, growth from
value-added products and gradual normalization of prices and
margins in the PVC market.
CFO and FCF Recovery: Fitch's rating case incorporates Orbia's cash
from operations (CFO) and FCF to strengthen because of its
initiatives related to manage efficiently its working capital
needs, containing capex and delaying dividends payments. For
2026-207, Fitch projects the company's average annual CFO to be
close to USD550 million, while its FCF to reach around USD140
million. This projection will contribute to maintain a neutral to
slightly positive FCF through the business cycle.
Volatile PVC Industry: Fitch expects continued supply-demand
imbalance in the PVC market in the midterm, particularly from China
and the U.S. In its view, the recent conflict in the Middle East,
could provide a temporal benefit on margin expansion, and
accelerate the pace of capacity rationalization to normalize the
product oversupply. However, the extension of the conflict could
bring operating and economic disruptions that could delay the
recovery of the Polymer Solutions and Building and Infrastructure
sectors.
Diversification Supports Cash Flows: Orbia's diversified business
model bodes well for its credit profile and has supported
relatively stable cash flow across pricing cycles and provided
flexibility to counterbalance business risks. As of FY25, Orbia's
main markets by revenues were North America with 34%, Europe with
32%, South America with 21%, and Asia, Africa and others with 13%.
Orbia's exposure to volatile industries, such as Polymer Solutions
and Building and Infrastructure, which contributed about 64% of its
revenues, has been partially offset by the performance of Fluor and
Energy Materials, Connectivity Solutions and Precision Agriculture
businesses.
Solid Business Position: Orbia maintains a degree of vertical
integration in its operations, managing resources from salt mines
and fluorspar mines to production of final goods, potentially
offering some business adaptability and opportunities for product
cross-selling. The company has a strong presence in the PVC pipes
sector across Latin America and Europe, participates in the global
fluoroproducts market, and operates within data communication,
datacenters, power and precision agriculture.
Peer Analysis
Orbia is well positioned relative to peers, such as Alpek, S.A.B.
de C.V. (BB+/Negative) and Braskem S.A. (CC) in terms of the degree
of product and geographic diversification. Backward integration of
the company's PVC and fluorite businesses, which extend from the
salt mine and ethylene cracker in vinyls and from the fluorspar
mine in fluor to the final consumer, also distinguish it from
companies in the chemicals sector. Integration reduces the
volatility of cash flows as prices of final products are often more
stable.
Orbia's product portfolio has some specialized characteristics,
resulting in some margin uplift from pure commodity chemical
producers. Its ratings are tempered by material exposure to
volatile industries such as infrastructure and construction, as
well as by its high leverage relative to peers. Orbia has
demonstrated more solid and constant free cash generation compared
with Alpek and Braskem.
Westlake Corporation (BBB/Stable), the third-largest global
chlor-alkali and PVC producer, has added scale to its PVC resin and
vinyl-based building products through acquisitions. Although
Orbia's PVC production is smaller in scale compared to Westlake's,
it benefits from the backward integration and diversification of
its PVC and fluoroproducts businesses, which have a relatively
higher component of finished products.
Fitch’s Key Rating-Case Assumptions
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Revenues growing towards USD8 billion by 2027;
- EBITDA margin (pre IFRS 16) improving towards 15% by 2027;
- No dividend payment in 2026-2027;
- Capex of USD400 million in 2026 and USD425 million in 2027;
- Non-core assets divestitures of USD60 million in 2026.
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 (bbb-, Moderate),
Diversification and Asset Quality (bbb, Higher), Company
Operational Characteristics (bbb-, Moderate), Profitability (bbb,
Moderate), Financial Structure (b, Moderate), and Financial
Flexibility (bb+, Moderate).
- The quantitative financial subfactors are based on custom CRT
financial period parameters: 10% weight for the historical 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 'a-' results in no
adjustment.
- The SCP is 'bb+'.
Fitch made no adjustments to the SCP, resulting in a Foreign and
Local Currency IDR of 'BB+'
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A persistent deterioration in Orbia's operating performance due
to negative market dynamics;
- Sustained negative FCF generation that pressure its liquidity
position;
- EBITDA leverage and EBITDA net leverage, as calculated by Fitch,
above 4.0x and 3.5x, respectively, on a sustained basis.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- A recovery in Orbia's operating performance above Fitch's
expectations;
- Maintain positive FCF through economic cycles and investment
periods;
- EBITDA leverage and EBITDA net leverage, as calculated by Fitch,
below 3.0x and 2.5x, respectively, on a sustained basis.
Liquidity and Debt Structure
Orbia's liquidity is manageable with USD1 billion of cash and
equivalents and USD668 million of short-term debt, out of which
USD393 is related to letters of credit that Fitch includes in the
calculation of its USD5.2 billion of total debt at YE 25. The
company's liquidity position and financial flexibility is also
supported by a USD1.4 billion of undrawn RCF due in April 2029.
Fitch expects Orbia will have the capacity to refinance its next
significant debt maturities given its record of strong access to
local and international credit markets.
Issuer Profile
Orbia is a global diversified chemical and industrial products
company with vertical integration in PVC and fluoroproducts, along
with water management solutions. The company is the leader in
precision irrigation and conduit solutions for the telecom,
datacenter, and power sectors.
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 results of its Climate VS screener did not indicate an elevated
risk for Orbia Advance Corporation S.A.B. de C.V.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Orbia Advance
Corporation,
S.A.B. de C.V. LT IDR BB+ Downgrade BBB-
LC LT IDR BB+ Downgrade BBB-
Natl LT AA(mex) Downgrade AA+(mex)
Natl ST F1+(mex) Affirmed F1+(mex)
senior
unsecured LT BB+ Downgrade BBB-
senior
unsecured Natl LT AA(mex) Downgrade AA+(mex)
senior
unsecured Natl ST F1+(mex) Affirmed F1+(mex)
=====================
P U E R T O R I C O
=====================
FERRELLGAS PARTNERS: Converts Class B Units to 6.5MM Class A Units
------------------------------------------------------------------
Ferrellgas Partners, L.P. disclosed in a regulatory filing that
the Partnership made the previously disclosed cash distribution to
holders of its Class B Units and achieved the "Class B Conversion
Threshold", as defined in the Sixth Amended and Restated Agreement
of Limited Partnership of Ferrellgas Partners, L.P. dated as of
March 30, 2021.
On March 16, 2026, the Partnership delivered written notice to the
holders of the Class B Units of the Partnership's election,
pursuant to the terms of the Partnership Agreement, to convert
each Class B Unit into Class A Units of the Partnership at the
"Class B Conversion Factor", as defined in the Partnership
Agreement, in effect at the time of such election, which was 5.00.
Accordingly, effective as of the delivery of such notice on March
16, 2026, each outstanding Class B Unit was converted into five
Class A Units, with the aggregate number of Class A Units issued
upon conversion of all Class B Units being 6,500,000. The
Partnership has engaged Computershare Inc. and its affiliate
Computershare Trust Company, N.A. to serve as conversion agent for
such conversion.
Pursuant to the terms of the Partnership Agreement, the
Partnership's public accounting firm has determined that the Class
A Units issued upon conversion of the Class B Units are fully
fungible with all other Class A Units. Accordingly, the Partially
Converted Class A Units are "Fully Converted Class A Units", as
defined in the Partnership Agreement, and tradable pari passu with
the previously outstanding Class A Units.
A copy of the notice to holders of Class B Units is available at
https://tinyurl.com/sf5tdykc
About Ferrellgas
Ferrellgas Partners, L.P., through its operating partnership,
Ferrellgas, L.P., and subsidiaries, serves propane customers in
all 50 states, the District of Columbia, and Puerto Rico.
As of January 31, 2026, the Company had total assets of $1.5
billion, total liabilities of $1.9 billion (calculated as current
liabilities of $350.78 million + long-term debt of $1.5 billion +
operating lease liabilities of $21.7 million + other liabilities
of $55.9 million), mezzanine equity (Senior preferred units) of
$651.3 million, and total Ferrellgas Partners, L.P. deficit of
$982.3 million.
* * *
In October 2025, S&P Global Ratings raised its Company credit
rating on Ferrellgas Partners L.P. to 'B' from 'CCC'. "The
stable outlook reflects our expectation that Ferrellgas will
maintain S&P Global Ratings-adjusted leverage in the 6.0x-6.5x
range over our forecast period," S&P said.
*********
S U B S C R I P T I O N I N F O R M A T I O N
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Chapman, Editors.
Copyright 2026. All rights reserved. ISSN 1529-2746.
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