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T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Tuesday, June 30, 2026, Vol. 27, No. 129
Headlines
A R G E N T I N A
PLUSPETROL SA: Fitch Assigns 'BB' Rating on Senior Unsecured Bonds
PLUSPETROL SA: Moody's Affirms 'B1' CFR & Unsec. Notes Rating
PROVINCE OF NEUQUEN: Fitch Ups LongTerm IDRs to B-, Outlook Stable
B R A Z I L
BRASKEM SA: To File Protective Injunction Against Creditors
BRAZIL: S&P Affirms 'BB/B' Sovereign Credit Ratings, Outlook Stable
HIDROVIAS DO BRASIL: Fitch Affirms 'BB+' IDRs, Outlook Stable
C O L O M B I A
PROMIGAS SA: Fitch Rates USD920 Million Subordinated Notes 'BB'
J A M A I C A
JAMAICA: BOJ Incurs $7.7 Billion Net Loss Over Six Months to June
JAMAICA: Farmers, Businesses Benefitting From Tourism Linkages
P U E R T O R I C O
BITCOIN DEPOT: Hires Vinson & Elkins LLP as Bankruptcy Counsel
OMEGA INVESTIGATION: Unsecureds Will Get 1.5% over 60 Months
U R U G U A Y
URUGUAY: IDB OKs $78MM Loan to Improve Housing and Services
V E N E Z U E L A
VENEZUELA: To Reveal $240B Debt Pile in Largest Restructuring
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A R G E N T I N A
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PLUSPETROL SA: Fitch Assigns 'BB' Rating on Senior Unsecured Bonds
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Fitch Ratings has assigned a 'BB' rating to Pluspetrol S.A.'s
(PPSA) proposed benchmark size unsecured bonds. The net proceeds
will be used to refinance debt, fund capex and working capital,
support M&A in Argentina and for general corporate purposes. Fitch
rates PPSA's Long-Term Foreign and Local Currency Issuer Default
Ratings (IDRs) 'BB'. The Rating Outlook is Stable.
PPSA's ratings reflect its midsized business profile and adequate
financial metrics, with expected production of 147,000 boe/d in
2027 and gross leverage below 3.0x. Its Foreign Currency IDR is
four notches above Argentina's Country Ceiling (B-) due to
projected hard-currency debt service coverage above 1.5x over the
next three years, supported by offshore cash and export receipts.
A fully available USD500 million subordinated committed credit line
from sister company Pluspetrol Resources Corporation S.A. supports
financial flexibility, hard-currency debt service, and PPSA's
strategic importance to the Pluspetrol Group. The Stable Outlook
reflects these factors.
Key Rating Drivers
Midstream Capacity Supports Growing Scale: Fitch expects PPSA's
production to reach 147,000 boe/d by 2027, split roughly evenly
between oil and gas, implying a 37% CAGR from 2025. PPSA should
also maintain a 1P reserve life index above seven years, supporting
an operating profile consistent with the midpoint of the 'BB'
category. Growth is anchored by its core shale asset, Bajo del
Choique/La Invernada, which produced 34,210 boe/d in 1Q26, about
35% of total output. Stakes in Oldeval (32.9%) and the VMOS
pipeline (14.5455%) add diversification and secure 80,000 boe/d of
transport capacity, aiding volume growth and export market access.
Adequate Leverage Profile: Fitch expects both gross and net EBITDA
leverage to remain below 3.0x over the rating horizon despite an
accelerated capex plan. Fitch forecasts FCF will remain negative
over the next three years as the company executes a capex-intensive
growth plan of around USD5.0 billion over that period. Fitch views
this spending as strategic and discretionary because the company
has no committed capex obligations on its concessions and can
adjust the program to reflect market conditions.
Improving Profitability: Fitch estimates EBITDA to reach USD1.2
billion on revenue of USD2.0 billion in 2026, a significant
increase from 2025, driven by higher oil prices, larger production
scale and rising export volumes. Higher scale and improved
realizations should strengthen margins, internal cash flow
generation and hard-currency cash flows. The stronger earnings
profile should enhance PPSA's financial flexibility despite
negative FCF associated with its elevated growth capex plan over
2026-2028.
Rating Above the Country Ceiling: PPSA's cash flow is concentrated
in Argentina, but its Long-Term FC IDR is not constrained by the
Country Ceiling. Fitch expects PPSA to maintain adequate
hard-currency liquidity to service external debt through export
revenue, cash held abroad and a foreign-currency debt service
coverage ratio above 1.5x over the rating horizon. PPSA also has a
committed USD500 million subordinated credit line from Pluspetrol
Group, which Fitch views as meaningful financial support and
evidence of the strategic importance of its Argentine assets.
Peer Analysis
PPSA's ratings compare to those of Pan American Energy S.L. (PAE;
BB-/Stable) and Vista Energy Argentina S.A.U. (Vista Argentina;
BB-/Stable) as all their operations are concentrated in Argentina.
PAE and Vista Argentina have access to hard-currency cash and cash
flows that enables them to be rated three notches above the Country
Ceiling of Argentina. PPSA has material financial support from a
related party that grants it an additional notch differential in
comparison.
In terms of operational scale, PPSA's expected production of
approximately 110,000 boe/d is lower than Vista Argentina's of
150,000 boe/d and PAE's 222,000 boe/d. In terms of 1P reserves,
PPSA's 406 million boe sits at the lower end of the 'BB' category
and is lower than Vista Argentina's 588 million boe and PAE's 1.5
billion boe.
Fitch expects PPSA's EBITDA leverage to be below 3.0x over the
rating horizon. Compared to its peers, Fitch expects the average
leverage of these E&P companies to be below 2.0x over the next
three years.
Fitch’s Key Rating-Case Assumptions
- Average Brent prices from 2026 to 2029 (USD/bbl): 87, 65, 60,
60;
- Average daily production from 2026 to 2029 (kboe/d): 110, 147,
181, 216;
- Oil sales consider discount to Brent of $8/bbl;
- COGS of $25/boe between 2026 and 2029;
- Royalties of $5/boe between 2026 and 2028;
- Capex of USD1.5 billion in 2026 and annual average of USD1.8
billion between 2027 and 2029;
- 1P Reserve replacement ratio of 100% in 2026;
- Average rate of 8.5% for rollover of short-term debt;
- No dividend payments.
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 (bb, Moderate),
diversification and asset quality (bb, Higher), company operational
characteristics (bb-, Moderate), profitability (bb-, Moderate),
financial structure (bbb-, Higher), and financial flexibility (bb,
Moderate).
- The quantitative financial subfactors are based on custom CRT
financial period parameters: 20% weight for the forecast year 2026,
40% for the forecast year 2027 and 40% for the forecast year 2028.
- The Governance assessment of 'good' has no impact.
- The Operating Environment assessment of 'b+' results in an
adjustment of -1 notch.
- The SCP is 'bb'.
- Fitch made no adjustments to the SCP, resulting in a Local
Currency IDR of 'BB'.
- Country Ceiling considerations apply and result in no adjustment
to the Foreign Currency IDR as per Fitch's "Corporate Rating
Criteria." PPSA's Foreign Currency IDR can be rated up to 4 notches
above Argentina's country ceiling of 'B-'.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Material decline in export revenue;
- Downgrade of Argentina's Country Ceiling;
- Debt/EBITDA and net debt/EBITDA ratios above 3.5x and 3.0x,
respectively, on a sustained basis;
- Major operational disruptions at key assets, resulting in a
significant reduction in production;
- EBITDA margin erosion due to higher operating costs.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- For the IDRs: Further improvement of Argentina's operating
environment (OE) as long as the pre-OE SCP remains above 'BB';
- For the pre-OE SCP: Increasing production to more than 175 kboe/d
and 1P reserves of 1.5 billion boe.
Liquidity and Debt Structure
PPSA had USD376 million in cash and equivalents plus short-term
investments in financial assets of USD350 million while having
USD252 million in short-term debt as of 1Q26. PPSA, like other E&Ps
in Argentina, has taken advantage of local capital markets to
access cheap financing to fund its operations.
Fitch believes PPSA can comfortably service debt with cash on hand
and cash flows through the rating horizon in the event the company
faces a challenging financing environment due to Argentina's
capital controls. Also, the subordinated committed credit line of
up to USD500 million enhances the company's financial flexibility.
The rating case assumes PPSA's FCF will be negative through the
rating horizon.
Issuer Profile
PPSA is a midsize O&G producer with average production of 98,700
boe/d as of 1Q26. PPSA ranks as the third largest oil and gas
operator in Vaca Muerta and the second largest company in Vaca
Muerta by acreage.
Summary of Financial Adjustments
- Shareholder loans in the amount of ARS990 billion were classified
as equity by the end of 2025;
- ARS8.6 billion in Argentine national treasury dollar-linked bills
were excluded from cash and equivalents and reclassified as
short-term investments by the end of 2025.
Date of Relevant Committee
18-Jun-2026
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 for PPSA is 58. While elevated, this score
does not affect the current ratings given the long-term 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
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
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Pluspetrol S.A.
senior unsecured LT BB New Rating
PLUSPETROL SA: Moody's Affirms 'B1' CFR & Unsec. Notes Rating
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Moody's Ratings has affirmed Pluspetrol S.A. (Pluspetrol) B1
corporate family rating and senior unsecured notes' rating. The
outlook remains stable for all ratings.
RATINGS RATIONALE
The B1 ratings assigned to Pluspetrol reflect its strong
competitive position in Argentina's oil and gas sector, supported
by a high-quality asset base and significant growth potential in
production and reserves. These strengths are expected to sustain
cash flow generation and credit metrics over 2026–28 in line with
the B1 rating category. The company also benefits from an
experienced management team with a solid track record in developing
both conventional and unconventional resources.
Pluspetrol's high exposure to Argentina's operating environment
constrains its credit profile, as its creditworthiness remains
closely linked to that of the sovereign. Nonetheless, the ratings
are positioned three notches above Argentina's sovereign rating
(Government of Argentina Caa1 stable), reflecting the company's
relatively solid standalone credit metrics, increasing revenue
diversification through exports, and support from Pluspetrol
Resources Corporation S.A.
The company's support provides an additional layer of credit
strength. Pluspetrol Resources Corporation S.A. has demonstrated
its capacity and willingness to support the company, including
through the establishment of a $500 million subordinated committed
credit facility that is fully available as of right now. This
facility supports ongoing asset development and expected debt
service obligations, enhancing Pluspetrol's financial flexibility
and its ability to manage foreign currency debt.
At the same time, the ratings incorporate the company's asset and
production concentration in Argentina, as well as exposure to the
country's regulatory environment. These risks are partially
mitigated by growing export exposure, which represented around 34%
of revenues in the first quarter of 2026. Additionally, the company
remains exposed to commodity price volatility, with revenues
primarily driven by crude oil (approximately 80%) and, to a lesser
extent, natural gas (around 20%).
Pluspetrol's credit profile is underpinned by its strong growth
trajectory. The company plans to expand production from
approximately 94 Mboe/d after royalties currently to more than 150
Mboe/d after royalties by 2028, primarily driven by developments in
the Bajo del Choique concession and La Calera within Vaca Muerta.
Pluspetrol has adequate liquidity. The company reported $524
million in cash and equivalents as of March 2026, and Moody's
expects it to generate sufficient cash flow from operations through
2026 to cover interest payments of approximately $200 million and
debt amortizations of around $305 million. However, given its
ambitious capex program, Moody's expects Pluspetrol to fund these
investments through additional debt. Liquidity is further supported
by the parent company, which maintains significant foreign currency
cash reserves abroad and has the capacity to provide support if
needed.
The stable outlook reflects Moody's expectations that the
company´s credit metrics and operations will remain robust through
the next 12-18 months. Additionally, the company's creditworthiness
cannot be completely de-linked from the credit quality of the
Argentine government, where it generates the bulk of its revenue,
and thus its ratings and outlook incorporate the risks that it
shares with the sovereign, in line with Moody's cross-sector rating
methodology, Impact of Sovereign Credit Quality on Issuer Ratings,
published in May 2026.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade of Pluspetrol's ratings is contingent upon its relative
positioning in the event of an upgrade of the Government of
Argentina's credit rating. Additionally, an upgrade will be
supported by increasing production or by growth and diversification
of operations outside Argentina while maintaining a good liquidity
position.
The ratings could be downgraded if the government of Argentina's
Caa1 rating is downgraded. Also, a downgrade could be triggered by
reduced liquidity at Pluspetrol and/or Pluspetrol Resource
Corporation S.A., coupled with a significant deterioration in
credit metrics.
PROFILE
Pluspetrol S.A. is one of the leading oil and gas companies in
Argentina, with high-quality assets spanning approximately 565,000
net acres nationwide, including the Vaca Muerta shale play, the
largest shale oil and gas development outside of North America. The
company holds four exploration permits and fifteen exploitation
concessions, positioning it as the fourth largest oil operator and
the sixth largest gas operator in Argentina. Pluspetrol is
controlled by Pluspetrol Resources Corporation S.A, a holding
company incorporated under the laws of the Netherlands, which
develops, invests, and operates businesses related to the
production, transport, distribution, and commercialization of oil
and gas across several Latin American countries.
The principal methodology used in these ratings was Independent
Exploration and Production published in February 2026.
The net effect of any adjustments applied to rating factor scores
or scorecard outputs under the primary methodology(ies), if any,
was not material to the ratings addressed in this announcement.
PROVINCE OF NEUQUEN: Fitch Ups LongTerm IDRs to B-, Outlook Stable
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Fitch Ratings has upgraded the Province of Neuquen's (PN) Long-Term
Foreign and Local Currency Issuer Default Ratings (IDRs) to 'B-'
from 'CCC-'. Following the upgrade, Fitch has assigned a Stable
Rating Outlook.
The upgrade reflects Fitch's upward revision of Neuquen's
Standalone Credit profile (SCP) to 'b-' from 'ccc-', driven by a
projected actual debt service coverage ratio (ADSCR) above 2x in
Fitch's rating case (2026-2027), which indicates relatively lower
refinancing risk. Projected ADSCR increased to 2.1x from 1.0x in
the previous revision, driven by balanced fiscal results and growth
in Neuquen's own-source revenue amid a global supportive
geopolitical landscape. Medium-term uncertainty remains, as key
rating metrics depend heavily on the oil and gas sector relative to
national peers.
The upgrade also reflects a balanced pension burden at YE 2025, no
short-term debt uses since 2024, and potential international market
access. However, risks from Argentina's weak external liquidity
position and persistent economic vulnerabilities remain.
Key Rating Drivers
Standalone Credit Profile — SCP at 'b-': Neuquen's SCP is now
assessed at 'b-', which combines a 'Vulnerable' risk profile and
financial profile assessed in the 'aa' category under Fitch's
rating case scenario. The positioning of the SCP considers the
province's high economic concentration in the oil and gas sector as
well as comparison with its national and international peers in the
same rating category.
Risk Profile — 'Vulnerable': The 'Vulnerable' assessment reflects
the sovereign's weak external liquidity position and persistent
economic vulnerabilities, rather than Argentina's implied operating
environment of 'bb'. The risk profile reflects the combination of
six 'Weaker' key risk factors, as outlined below.
Revenue Robustness — 'Weaker': The 'Weaker' assessment reflects
the province's local revenue dependency on the highly cyclical
hydrocarbon sector and the country's complex and imbalanced fiscal
framework for LRGs.
The province relies less on federal transfers from the
co-participation regime. These transfers accounted for
approximately 11.0% of total revenue at YE 2025 and come from a
'B-' rated sovereign counterparty. Other sources, including other
federal current transfers, and social security contributions,
accounted for 33.1% of total revenue. Local tax collection
accounted for 24.1% of total revenue and royalties for
approximately 31.8%. Federal co-participation transfers decreased
by around 8.7% in real terms in 2025 due to major regulatory
changes and macroeconomic headwinds.
Revenue Adjustability — 'Weaker': For Argentine LRGs, local
revenue adjustability is low and constrained by the country's high,
distortive tax burden, weak macroeconomy, and high inflation, which
affects affordability. Over the 2021-2025 rating period,
Argentina's GDP has shown volatility; though it recovered in 2025
and reached 4.3%. In 2026, Fitch expects an estimated GDP growth of
3.4%.
Hydrocarbon royalties add cyclicality and volatility to PN's
finances because local taxes are highly concentrated in the sector.
This revenue depends on external factors, including local and
global market conditions and national regulation. Higher oil
production and productivity linked to large capital investments
drove a 3.1% real increase in hydrocarbon royalties, amid a
decrease of 15.2% in the Brent oil price in 2025. As of March 2026,
oil and gas production continued to rise, higher commodity prices
have benefited real royalty growth to about 7.2% year over year.
Expenditure Sustainability — 'Weaker': Argentine LRGs face high
expenditure due to high inflation. The Argentine fiscal regime's
revenue expenditure decentralization is structurally imbalanced,
leading to Fitch's 'Weaker' assessment of its expenditure
sustainability. PN's budgetary performance is volatile due to its
commodity-based economy and track record of opex growing close to
and above average inflation in most years.
During 2021-2025, PN's operating balance averaged 11.6% of
operating revenue (including the entity's social security burden).
The entity's operating balance decreased in YE 2025 and reached
7.7% of operating revenue (2024: 12.8%). Nonetheless, the real
cumulative annual growth rate for 2020-2025 indicates that
operating revenue (13.2%) grew faster than opex (12.3%). This
reflects sound expenditure management that adjusted key
spending-items for high inflation. As a result, Neuquen has no
major spending adjustments left.
For 2026, Fitch expects operating margins to increase to 13.1%,
supported by higher-than-expected oil prices. Higher oil
production, driven by large investment in the sector, should also
support margins in the short term and reduce exposure to oil price
volatility.
PN is among the provinces that did not transfer their pension
systems to the national government. Since 2024, higher employer and
employee contributions have kept the social security fund balanced
for the last two years. The fund also posted an unprecedented
economic surplus. Fitch will monitor whether this balance persists
and further reduces pressure on provincial finances.
Expenditure Adjustability — 'Weaker': For Argentine subnationals,
infrastructure needs and expenditure responsibilities are deemed as
high, while the flexibility to cut expenses is low. National capex
remains low and does not shift major capex burdens to LRGs. Fitch
views the province's flexibility to cut expenses as weak relative
to international peers.
In YE 2025, PN's staff expenses totaled a high 55.3% of operating
expenses (2024: 53.4%). Limited flexibility to reduce capex
reflects high infrastructure needs, as these projects support
hydrocarbon sector development. In YE 2025, the province recorded
low capex at around 7.6% of expenditure. However, Neuquen is
increasing capex from 2025.
Under Law 3434, Neuquen could access the international or national
market for up to USD500 million. Of this amount, USD350 million
would fund infrastructure projects and the remainder would cover
public debt amortization. The law clearly stipulates that the
proceeds cannot be used to cover operating expenses. The province
intends to increase capex through own revenues and through
long-term bank loans from regional development banks such as the
Inter-American Development Bank and Development Bank of Latin
America (CAF) while keeping debt on a declining trend. Fitch will
monitor the province's capex levels and financing sources.
Liabilities and Liquidity Robustness — 'Weaker': Neuquen's
exposure to unhedged foreign currency debt is a significant
weakness, along with an inadequate national framework for debt and
liquidity and underdeveloped local market. The assessment also
considers Argentina's 'B-' sovereign rating. Argentina's 2020 debt
restructuring significantly limited LRGs' access to external
markets. However, hydrocarbon royalties, linked to the exchange
rate, represented on average 33.2% of the PN's operating revenue
during 2021-2025.
Direct debt at YE 2025 totaled ARS1,175.4 billion, mostly
denominated in foreign currency (92.1%), and total debt grew 12.9%
relative to 2024 mainly due to currency depreciation. The PN's
TICADE notes are secured with hydrocarbon royalties, which are
linked to the U.S. dollar and payable in Argentine pesos. TICADE's
coverage has increased from an average of 2.4x in 2021 to 4.25x in
2024 and 4.23x through 2025.
Debt relief from the PN's 2020 distressed debt exchanges (DDEs)
resulted in improved ADSCRs above 1.0x from 2021 to 2025,
underpinned by improved budgetary results. Liquidity needs have
been more controlled throughout 2024-2025, reflected in the non-use
of short-term debt instruments compared to previous years.
The province's upgrade also reflects Fitch's expectation that ADSCR
will remain above 2x in the rating case and average 2x in
2026-2027, even if the operating balance falls in 2027 from YE
2026. This indicates lower refinancing risk for Neuquen than in
Fitch's previous rating case scenario, when ADSCR averaged 1x. It
also reflects lower oil and gas sector volatility, supported by a
sustained increase in oil production that could limit short-term
oil price swings and help keep royalty revenue stable.
Liabilities and Liquidity Flexibility — 'Weaker': Fitch assesses
the Argentine national framework for liquidity support and funding
available to subnationals as 'Weaker' because no formal emergency
liquidity support or bailout mechanisms exist. Although capital
controls recently expired, the government could re-impose exchange
regulations, which could affect LRGs' ability to meet their
financial obligations.
In December 2025, the province had liquidity totaling around
ARS272.4 billion. The province created a stabilization and
development fund in 2022. In line with current regulations, the
countercyclical fund can be used to cover capex certificates and
pay principal and interest on debt services in case of need. At YE
2025, the fund totaled ARS72.8 billion, and as of March 2026,
ARS70.5 billion. Overall, Neuquen's liquidity coverage ratio
averaged 1.9x during 2021-2025, improving toward 2.2x in YE 2025
and YE 2024, Fitch expects a ratio on average of 3.3x in
2026-2027.
Financial Profile — 'aa' Category: Given the current sovereign
rating of 'B-', Fitch projects a rating case only through YE 2026.
Fitch analyzes financial profile metrics to assess Neuquen's debt
repayment capacity and liquidity position over the next 12 months.
Fitch's rating case assumes the operating margin will rise to 13.1%
in 2026 and fall to 10% in 2027. The case incorporates own-revenue
growth above inflation, underpinned by higher oil production that
Fitch expects to be sustainable over time, while operating
expenditure rises in line with inflation. Additionally, the
financial profile already considers the province's pension burden.
The province has debt service payments of USD214 million in 2026
and USD155 million in 2027, based on debt in ARS and USD and
Fitch's average exchange rate.
Fitch classifies Neuquen as a Type B LRG and refers to a payback
ratio as a primary metric. Under Fitch's rating case scenario
(2026-2027), Fitch expects Neuquen's debt payback ratio (net
debt/operating balance; the primary financial profile metric) to be
close to 0.9x by 2026, which is consistent with a financial profile
assessment in the 'aaa' category. It is offset by a debt-servicing
coverage ratio at 2.1x, which is below the 'aaa' category threshold
that significantly improved from 1.0x in Fitch's past review. This
results in an overall financial profile in the 'aa' category.
Other Rating Factors: Fitch does not apply any asymmetric risk or
extraordinary support from the upper-tier government.
Debt Ratings: Fitch also upgraded PN's issue ratings to 'B-' from
'CCC-', which include TICADE senior secured step-up notes for an
original USD348.69 million due May 12, 2030 and an outstanding debt
of USD155.7 million as of May 2026, and TIDENEU senior unsecured
step-up notes for an original USD366 million and outstanding debt
of USD232.1 million due April 27, 2030. The bonds are rated at the
same level as the province's IDRs.
Peer Analysis: Neuquen's rating is derived from a 'Vulnerable' Risk
Profile and a 'aa' Financial Profile score. The SCP considers
comparison with national peers, including the Provinces of Chubut
(CC), Salta (CCC-) and Cordoba (B-/Stable), and international peers
such as Kaduna (B/Stable) in Nigeria and Dnipro (CCC) and Odesa
(CCC) in Ukraine.
Issuer Profile
The Province of Neuquen is located in southwestern Argentina. The
province's economy is highly concentrated in the hydrocarbon
sector. As of YE 2025, the province remains the country's main
crude oil and gas producer, contributing 63% and 69%, respectively,
to the national total.
Key Assumptions
Qualitative Assessments:
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: 'aa'
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: 0.9x;
- Actual debt service coverage ratio: 2.1x;
- Fiscal debt burden: 9.1%.
Fitch's rating case is a through-the-cycle scenario, which
incorporates a combination of revenue, cost and financial risk
stresses. It is based on 2021-2025 figures and 2026-2027 projected
ratios. The key assumptions for the scenario include the
following:
- Operating revenue average growth of 25.3% for 2026-2027; assuming
slightly above average inflation in the medium term.
- WTI price as per Fitch's assumptions for Oil and Gas for
2026-2027 (more information in Fitch Ratings Raises Its Near-Term
Oil and European Gas Price Assumptions, May 08, 2026)
- Operating expenditure average growth of 23.4% for 2026-2027;
assuming growth in line with average inflation in the medium term.
- Average capital expenditure/total expenditure levels of around
10%; aligned with the province's capex and financing plans.
- Additional debt in 2026 aligned with Neuquen's authorized
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 (year end 1,459), ARS1,640 for 2026 (year end
1,779), and ARS1,895 for 2027 (year end 2,011);
- Consumer price inflation (annual average % change) of 44.4% for
2025, 25.8% for 2026, and 17.8% for 2027.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A downgrade of Argentina's IDRs;
- The IDR could be lowered if Neuquen's estimated actual DSCR drops
below 1.2x in tandem with a liquidity coverage ratio below 1.0x
underpinned by lower operating margins and unrestricted cash,
regardless of whether the payback ratio remains below 5x, resulting
in the rating being guided directly by rating definitions.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- An upgrade in Argentina's IDR;
- The SCP could be raised to 'b' if the financial profile remains
in line with projections of a payback ratio below 5.0x and actual
debt service coverage ratio consistently remains above 2.0x, under
Fitch's rating case.
Climate Vulnerability Signals
The results of its Climate.VS screener did not indicate an elevated
risk for Neuquen.
ESG Considerations
Province of Neuquen has an ESG Relevance Score of '3' for Rule of
Law, Institutional & Regulatory Quality, Control of Corruption was
revised to '3' from '4' as government effectiveness, such as policy
formulation and implementation, and the credibility of the
government's commitment to such policies, is now being managed in a
way that results in low impact on Neuquen's rating.
Province of Neuquen has an ESG Relevance Score of '4' for
Biodiversity and Natural Resource Management due to the province's
significant economic and financial concentration in the volatile
hydrocarbon sector, which has a negative impact on the credit
profile, and is relevant to the ratings in conjunction with other
factors.
Province of Neuquen has an ESG Relevance Score of '4' for Creditor
Rights due to as despite the entity´s improved willingness to
service and repay its debt obligations, the 2020 DDE remains
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
----------- ------ -----
Neuquen, Province of
LT IDR B- Upgrade CCC-
LC LT IDR B- Upgrade CCC-
senior unsecured LT B- Upgrade CCC-
senior secured LT B- Upgrade CCC-
===========
B R A Z I L
===========
BRASKEM SA: To File Protective Injunction Against Creditors
-----------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that Brazil's
petrochemical firm Braskem is expected to file a protective
injunction against its creditors' claims, local newspaper Valor
Economico reported, citing unnamed sources.
A source told Valor the intention is to seek, after obtaining
protection, support from creditors for an out-of-court
restructuring, according to globalinsolvency.com.
Braskem declined to comment. Earlier in June, private
equity management firm IG4 Capital and Brazilian state-run
oil company Petrobras became the co-controllers of Braskem,
completing a deal signed in April, the report notes.
As reported in the Troubled Company Reporter - Latin America, Fitch
Ratings downgraded Braskem S.A.'s (Braskem) Long-Term Local
Currency Issuer Default Rating (IDR) and Long-Term Foreign Currency
IDRs to 'CC' from 'CCC+'. Fitch has also downgraded Braskem America
Finance Company's senior unsecured rating to 'CC', with a Recovery
Rating of 'RR4', from 'CCC+'/'RR4'; and Braskem Netherlands Finance
B.V.'s senior unsecured rating to 'CC'/'RR4' from 'CCC+/RR4', and
its subordinated rating to 'C'/'RR6' from 'CCC-'/'RR6'. Fitch has
also downgraded Braskem's National Scale and Senior Unsecured
ratings to 'CC(bra)' from 'CCC+(bra)' and 'CC(bra)'/'RR4' from
'CCC+(bra)'/'RR4', respectively.
BRAZIL: S&P Affirms 'BB/B' Sovereign Credit Ratings, Outlook Stable
-------------------------------------------------------------------
On June 25, 2026, S&P Global Ratings affirmed its 'BB/B' long- and
short-term foreign and local currency sovereign credit ratings on
Brazil. The outlook on the long-term ratings remains stable. The
transfer and convertibility assessment remains 'BBB-'.
Outlook
The stable outlook reflects S&P's expectation that over the next
two years, Brazil's strong external position will continue to
mitigate its fiscal weakness amid high general government deficits,
debt, and interest burdens. Commodity exports in agriculture and
energy, the real's status as a floating and actively traded
currency, and substantial international reserves help insulate
Brazil from volatile global conditions. Deepening domestic
financial markets facilitate financing for both the public and
private sectors.
Brazil's extensive checks and balances across the executive,
legislative, and judicial branches of government support its
institutional framework and slow but pragmatic policymaking. S&P
believes tackling entrenched budgetary rigidities enshrined in the
Brazilian constitution will be key to putting the fiscal trajectory
on a sounder footing.
Downside scenario
S&P could lower its ratings within the next two years if Brazil's
policy decisions exacerbate fiscal deficits or if policy inaction
weighs on government financing conditions. A deterioration in
policy signaling could also hit net foreign direct investment
inflows and thereby weaken Brazil's external position.
Upside scenario
S&P could raise its ratings over the next two years if policy
initiatives result in robust trend economic growth. This would also
likely strengthen fiscal outcomes. Similarly, proactive steps to
run higher primary balances, which would require a more flexible
budget structure, would in turn likely bolster growth and help
stabilize debt dynamics.
Rationale
Brazil's creditworthiness is anchored by its strong external
position and flexible exchange rate and monetary policy regimes
based on an inflation-targeting framework. The central bank is both
statutorily and operationally independent. Moreover, deepening
domestic capital and debt markets enable the sovereign to fund
itself predominantly locally and in Brazilian real.
On the other hand, Brazil's large fiscal deficits and high debt
burden are its key credit weaknesses. Progress on addressing
constrained economic growth is slow and uneven, alongside an
inflexible budgetary structure. The weak fiscal position has led
the central bank to maintain persistent high real interest rates to
contain inflation, contributing--alongside other factors--to
Brazil's economic performance remaining weaker than peers' with a
similar level of economic development.
Institutional and economic profile: Extensive checks and balances
and budgetary rigidity slow policy change
-- Widespread checks and balances and a pragmatic policy
orientation across political parties tend to limit the pace of
policy change.
-- S&P doesn't expect economic policy to shift significantly over
the next government term.
-- Less restrictive, albeit credible, monetary policy should lift
economic growth toward its potential by 2028.
Brazil's stable democracy has a track record of generally smooth
political transitions. It is also characterized by extensive checks
and balances, including an active judiciary. These factors have
increased economic resilience but contained or slowed effective
fiscal reform initiatives and fiscal consolidation.
Many budgetary rigidities are embedded in Brazil's constitution,
and tackling them requires extensive consensus across the political
spectrum. Passage of constitutional amendments requires
three-fifths majorities in two rounds of voting in each house of
Congress.
Brazil is heading to national elections in October 2026. According
to current polls, President Luiz Inacio Lula da Silva is the
front-runner for a second consecutive term (and a fourth in total).
Flavio Bolsonaro (son of former President Jair Bolsonaro) is
polling second.
However, much could change ahead of the elections amid the Banco
Master scandal, which involves public-sector individuals across
political parties. Corruption and security concerns dominate the
electoral themes so far. Leading candidates have not campaigned on
fiscal consolidation.
Given Brazil is already a highly taxed economy, future efforts to
increase revenue or reduce spending are politically challenging.
Legislative power is likely to remain dominated by a loose
affiliation of centrist parties with weak incentives for fiscal
consolidation.
S&P said, "We expect real GDP growth of 1.8% in 2026, from 2.3%
last year and an average of 3.2% over 2022-2024. We expect GDP per
capita in 2026 at around US$12,300. A pickup in inflation, high
real interest rates, and high household indebtedness will likely
constrain consumption this year. Moreover, we expect a
significantly softer decline in unemployment than in 2022-2025,
when falling unemployment was a key contributor to resilient
consumption."
Economic growth is likely to rise toward 2.2% by 2028, though
capped by lower but still high real interest rates that will
outweigh positive agricultural and hydrocarbon trends. Exports as a
share of GDP are low, and China is the largest trade partner, which
has contained the economic impact from tariffs imposed by the U.S.
Flexibility and performance profile: Strong external position
compensates for fiscal weakness
-- S&P expects persistent large fiscal deficits with rising debt
over the next several years, financed by deepening domestic
financial markets.
-- Growing commodity output, coupled with a low current account
deficit (CAD) fully financed by foreign direct investment (FDI),
should anchor Brazil's external position.
-- Headline inflation has resurged due to higher energy prices,
and we expect high real interest rates over 2026-2029.
S&P said, "We expect Brazil to run large fiscal deficits over
2026-2029, consistently around 7% of GDP. Our base case reflects an
absence of meaningful policy changes to enhance spending
flexibility, as well as only marginal yields from tax revenue
efforts, resulting in persistently small primary deficits and a
heavy interest burden."
Fiscal rigidity derives from mandatory spending per indexation
rules (for example, pension payments) or linked to fiscal revenue
performance (like health and education transfers). Changing
mandatory spending requirements and their indexation requires
constitutional amendments. Discretionary spending accounted for
only 6.3% of central government spending, on average, in 2021-2025,
and central government investment spending averaged only 0.6% of
GDP over the same period.
Growing oil output and strong prices will not have meaningful
fiscal benefits as long as the government uses extraordinary
revenue to reduce taxes on fuel sales to cap inflation. The
interest burden as a share of GDP should remain stable, given the
growing debt trajectory is compensated by still high but softening
real rates, with domestic reference rates dropping to 10% by
year-end 2028 from 15% as of year-end 2025.
S&P views the risk of significant parafiscal spending from Brazil's
government-related entities as still contained.
S&P expects Brazil's net general government debt to rise toward 74%
of GDP by 2029 from 60.4% of GDP in 2025. The interest burden
relative to general government revenue should represent around 20%
over 2025-2028.
Amid deepening financial markets, the local currency composition of
Brazil's debt contains the risks of the high debt burden. Moreover,
the central government's strong liquidity position mitigates
rollover risk. Lenders are captive, but the government has an
adequate number of debt instruments to satisfy investor demand.
High real interest rates increased nonresident demand for Brazilian
government paper in 2025, adding to financing sources. That said,
due to domestic inflation concerns and the weak fiscal position,
indexed and variable debt instruments have continued to increase as
a share of total debt.
Contingent liabilities from the financial system are low,
considering the size of the financial sector, at around 145% of
GDP. In addition, S&P's Banking Industry Country Risk Assessment
for Brazil is 6. (BICRA scores are on a scale from 1 to 10, with
group 1 representing the lowest-risk banking systems and group 10
the highest-risk ones.)
Debt issued by public-sector companies is less than 10% of GDP and
poses limited risk to the government. While the government has been
able to tackle significant legal claims, the amount of these claims
is still above 15% of GDP, which we consider a significant
contingent liability.
Brazil's commodity export output has grown significantly in the
agricultural and hydrocarbon sectors. Brazilian exports are more
sensitive to Chinese demand than to U.S. tariffs, which have had a
limited impact on a small number of subsectors. Two energy supply
shocks have raised awareness about Brazilian access to fertilizers,
but we assume a normalization of access over 2026-2029. CAD in 2026
should drop closer to 2% of GDP, and S&P expects similar levels for
the rest of the forecast horizon (2026-2029). S&P expects net FDI
to fully finance the relatively low CAD.
S&P said, "In addition, we expect the domestic market to fund most
government and private-sector financing needs, anchoring the
sovereign's strong external position. That said, high domestic real
interest rates, which we expect to continue to attract nonresidents
(which we include in external debt) into the domestic market,
result in a low narrow net external debt position, compared with a
creditor position over 2016-2021." The private and public sectors'
low reliance on the external markets, strong buffers from large
international reserves, and the economy's attractiveness to FDI,
given its large size and natural resources, make the economy less
vulnerable to shifts in the external debt and capital markets.
Inflation has been sticky since the start of 2021 and mostly
outside of the central bank's tolerance interval of plus or minus
1.5% around the 3% target. A surge in domestic demand following the
peak of the COVID-19 pandemic, weather events (droughts, floods,
and El Niño), two energy shocks, and expansionary fiscal policy
have contributed to inflation.
As a result, the central bank hiked rates, with the Selic peaking
at 15% between June 2025 and March 2026. A slowing economy and
normalizing energy prices should help inflation to fall back into
the tolerance range by 2027, leading to a monetary policy softening
over the next two years.
S&P classifies the Brazilian real as an actively traded currency,
based on the Bank for International Settlements' 2025 Triennial
Survey. The survey showed that the real contributes at least 1% of
global foreign exchange market turnover. Brazilian financial
markets continue to deepen, with private banking sector debt
expected to be about 60% of GDP by 2029. The private debt market
increased to 64% of GDP in 2025 from 46% of GDP in 2019.
In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.
After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.
The committee's assessment of the key rating factors is reflected
in the Rating Component Scores above.
The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.
Ratings List
Ratings Affirmed
Brazil
Sovereign Credit Rating BB/Stable/B
Transfer & Convertibility Assessment
Local Currency BBB-
Senior Unsecured BB
Short-Term Debt B
HIDROVIAS DO BRASIL: Fitch Affirms 'BB+' IDRs, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed Hidrovias do Brasil S.A.'s (Hidrovias)
Long-Term Foreign Currency and Local Currency Issuer Default
Ratings (IDRs) at 'BB+', and its National Long-Term Rating at
'AAA(bra)'. Fitch has also affirmed Hidrovias International Finance
S.a.r.l.'s senior unsecured notes at 'BB+' and Hidrovias' senior
unsecured debentures at 'AAA(bra)'. The Rating Outlook for the
corporate ratings is Stable.
The ratings reflect Ultrapar Participacoes S.A.'s (Ultrapar)
controlling ownership of Hidrovias and the legal and operational
incentives for support from Ultrapar under the Parent and
Subsidiary Linkage Rating Criteria. Ultrapar Group has a stronger
credit profile than Hidrovias. Hidrovias' standalone credit profile
reflects its strong market position in Brazil's North and South
Corridor waterway systems, supported by take-or-pay contracts, and
adequate liquidity. The ratings are constrained by hydrological
risks, crop volatility and client concentration.
The Stable Outlook incorporates Fitch's expectation that Hidrovias
will preserve moderate leverage, with adjusted net debt/EBITDAR at
about 2.5x.
Key Rating Drivers
Support of the Parent: Hidrovias' credit profile benefits from
Ultrapar's 60% stake and stronger legal incentive to provide
support. Ultrapar guarantees Hidrovias' BRL1.4 billion debenture
issuance, equal to about 39% of adjusted debt, as of March 31,
2026. Operational and strategic incentives are low to moderate,
reflecting Hidrovias' growth prospects and common board members.
These factors are offset by Hidrovias' limited contribution to the
group and low integration with other Ultrapar businesses.
Ultrapar has a stronger credit profile than Hidrovias. The group
benefits from diversified operations in Brazil's energy and
infrastructure sectors through subsidiaries including Ipiranga,
Ultragaz, Ultracargo and Hidrovias. Its business profile is
supported by scale, market position and operating expertise. Its
financial profile benefits from revenue diversification,
conservative leverage and strong liquidity.
EBITDAR Margins Close to 42%: Fitch forecasts EBITDAR of BRL900
million and cash flow from operations (CFO) of BRL459 million in
2026, from BRL1.0 billion and BRL563 million in 2025. Results
should be driven by 0.7% consolidated volume growth, including a
0.7% decline in the North Corridor, related to logistics
bottlenecks, and a 3.7% increase in the South Corridor. For 2027,
EBITDAR should rise to BRL960 million and CFO to BRL525 million,
assuming total volumes increase 5%. Base case scenario does not
incorporate potential impact from El Niño in navigation condition
in the North and South corridors.
Investments to Pressure FCF: Hidrovias should generate positive FCF
of about BRL190 million in 2026, supported by lower capex of BRL270
million and no dividends. Fitch's base case assumes annual capex
will rise to about BRL600 million on average from 2027 to 2029,
including the expansion in the North Corridor. Higher capex, along
with 25% dividends pay-out, should lead to neutral to slightly
negative FCF over the period. The expansion should strengthen its
position in Brazil's North Corridor agricultural and fertilizer
transport markets.
Stable Leverage: Hidrovias' capital structure should remain
adequate, with adjusted net debt/EBITDAR at about 2.5x over the
rating horizon, despite higher capex. Fitch forecasts net leverage
at 2.7x in 2026 and 2.5x in 2027. In 2025, net leverage
significantly improved to 2.6% from 7.1x in 2024. The increase was
supported by a BRL700 million cash inflow that year related to a
BRL1.2 billion capital increase, the sale of the cabotage business,
and higher EBITDAR generation.
Client Concentration: Hidrovias faces portfolio concentration risk
because its main clients are large commodity producers and trading
companies operating in Brazil's North corridor and iron ore
producers, in South corridor. In 2025, 42% of the revenues were
related to two main clients. EBITDAR by corridor was North 64%,
South 41%, and Santos operation 6%, while holding and other
segments reported negative EBITDAR. In the same year, 58% of net
revenue came from Brazil and 41% from Uruguay.
Hydrological Risk: Fitch views the company's operating performance
as structurally exposed to hydrological risk, which may
periodically constrain revenue and cash flow generation. Hidrovias'
businesses in both the South and North corridors are highly
dependent on rainfall patterns, an external factor not managed by
the company. In the South Corridor, the risk has been amplified by
the low draft of the Paraná-Paraguay River, which can restrict
navigability during periods of drought, as occurred during 2024.
This risk is partially mitigated by the company's take-or-pay
contract structure and the government's ongoing investments in
waterway infrastructure.
Peer Analysis
Hidrovias' ratings are the same as Brazilian transportation peers
Rumo S.A. (Rumo; Local Currency IDR: BB+/RWN) and VLI S.A. (VLI;
AAA[bra]/Stable) and lower than MRS Logistica S.A. (MRS Logistica;
Local Currency IDR: BBB-/ Stable). Although Hidrovias' Standalone
Credit Profile is lower than its railroad peers, the ratings
benefit from the support of its parent, Ultrapar.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- Weakening of legal and operational ties between Hidrovias and
Ultrapar;
- Deterioration of Ultrapar's credit profile;
- Gross and net adjusted debt to EBITDAR ratio consistently above
4.0x and 3.5x on a sustained basis;
- Deterioration of its liquidity position, with increasing short-
to medium-term refinancing risks;
- Large debt-funded mergers and acquisitions transactions or
entering a new business in the logistics sector that adversely
affects its capital structure on a sustained basis or increases
business risk exposure.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
- Higher legal, strategic and operational ties between Hidrovias
and Ultrapar may positively impact Hidrovias' IDR;
- Positive actions on the National Scale Long-Term Rating are not
possible, as the rating is at the top of the national scale.
Liquidity and Debt Structure
Hidrovias has consistently maintained strong cash balances. As of
March 31, 2026, Hidrovias' cash position was BRL918 million, with
short-term debt at BRL89 million. Total debt stood at BRL3.7
billion, mainly comprising international bonds (27%) maturing in
2031, local debentures (65%) and leasing obligations (7%).
Fitch’s Key Rating-Case Assumptions
- Consolidated volumes increase by 0.7% in 2026 and 5.0% in 2027;
- Average tariffs decline by 5.8% in 2026 and increase by 1.8% in
2027;
- Capex of BRL270 million in 2026 and average annual capex around
BRL600 million from 2027 to 2029, with the expansion project
accounting for BRL360 million annually from 2027 to 2029;
- Dividends of 25% of net income from 2027 onwards.
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 ('bb-',
Moderate), diversification and asset quality ('b+', Higher),
company operational characteristics ('bb+', Moderate),
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 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' has no impact.
The operating environment assessment of 'bb' has no impact.
The SCP is 'bb-'.
To derive the Long-Term IDR:
Application of Fitch's Parent Subsidiary Linkage Rating Criteria
results in an unconstrained approach.
Fitch made adjustments to the SCP, due to its linkage to its parent
company, Ultrapar Participações S.A.'s (Ultrapar), resulting in a
Local and Foreign Currency IDRs of 'BB+'.
Issuer Profile
Hidrovias is an integrated logistics provider focused on waterways
logistics services. It has an end-to-end infrastructure, including
transshipment, port terminals, and a fleet of barges and pusher
tugs. Ultrapar is the main shareholder with a 60% stake.
Summary of Financial Adjustments
- Lease expenses were adjusted back to operating expenses, reducing
EBITDA;
- The leasing obligation reported on the balance sheet is
considered debt.
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 Hidrovias do Brasil S.A..
ESG Considerations
Hidrovias do Brasil S.A. has an ESG Relevance Score of '4' for
Exposure to Environmental Impacts due to the significant impact
that hydrological risks have on the company's operations, 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 Prior
----------- ------ -----
Hidrovias International
Finance S.a.r.l.
senior unsecured LT BB+ Affirmed BB+
Hidrovias do
Brasil 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)
===============
C O L O M B I A
===============
PROMIGAS SA: Fitch Rates USD920 Million Subordinated Notes 'BB'
---------------------------------------------------------------
Fitch Ratings has assigned a 'BB' final rating to Promigas S.A.
E.S.P.'s (Promigas; BBB-/Stable) and co-issuers Gases del Pacifico
S.A.C.'s, Gases del Norte del Peru S.A.C.'s and Promigas Peru
S.A.'s USD920 million subordinated notes. This follows the receipt
of final documents conforming to information reviewed earlier. The
notes are due 2056 and were issued with an initial fixed 7.75%
annual interest rate for 5.5 years. Upon expiry of the fixed-rate
period, the notes transition to a floating rate equal to the
five-year U.S. Treasury Rate plus an initial differential margin,
with additional step-up margins applied at each subsequent 10-year
interval.
The notes are rated two notches below Promigas' current 'BBB-'
rating, reflecting deep subordination, long-term maturity, limited
events of default and optional coupon deferral. Deferred interest
would remain cumulative. The notes will be non-callable for at
least five years. Fitch assigned 50% equity credit under its
Corporate Hybrid Treatment methodology. Proceeds will be used to
refinance bank debt at Promigas and its Peru subsidiaries.
The credit metrics from the Zelestra acquisition for about USD460
million reflect the equity credit, which keeps leverage close to
4.2x over the rating horizon.
Key Rating Drivers
Equity Credit Preserves Leverage: The proposed issuance is expected
to preserve Promigas's leverage following the acquisition. Leverage
should remain broadly stable despite the additional USD500 million
raised to fund the transaction, which reflects Fitch's 50% equity
credit treatment to the proposed hybrid issuance.
Proceeds will refinance existing bank debt at Promigas and Peru's
subsidiaries. Fitch expects EBITDA gross leverage to remain close
to 4.2x for the next three years. The equity-like features of the
hybrid instrument support Promigas' capital structure, reflecting
the company's financial discipline, consistent growth strategy,
stable cash flow generation and strong revenue visibility.
Deep Subordination: The proposed notes are rated two notches below
Promigas' 'BBB-' Issuer Default Rating (IDR). The notes would be
structurally subordinated to all existing and future unsecured and
unsubordinated debt, providing loss-absorption capacity for more
senior obligations. The notes rank senior only to the claims of
equity shareholders.
Equity Treatment: The securities qualify for 50% equity credit
because they meet Fitch's criteria for deep subordination,
remaining effective maturity of at least five years, full
discretion to defer coupons for at least five years and limited
events of default. These equity-like characteristics will give
Promigas financial flexibility after the acquisition.
Cumulative Coupon: Coupon deferral is cumulative and compounded,
supporting 50% equity treatment under Fitch's criteria. Despite the
50% equity treatment, Fitch treats coupon payments as 100%
interest. Deferred coupons become mandatorily payable in certain
events, including following the declaration of a cash dividend.
Peer Analysis
Promigas' ratings are one notch below Gas Natural de Lima y Callao
(Calidda; BBB/Stable). Calidda benefits from a more conservative
capital structure and maintains its primary operations in Peru,
which has a stronger operating environment. Promigas has the same
rating as Transportadora de Gas Internacional S.A. ESP (TGI)
(BBB-/Stable) and Grupo Energia Bogota S.A. E.S.P. (GEB;
BBB-/Stable), which reflects a similar operating environment and
similarly strong business profile.
Fitch’s Key Rating-Case Assumptions
- Unaltered ring-fenced structure for Zelestra;
- New debt of USD500 million to acquire Zelestra;
- Average EBITDA of COP2.6 trillion in the next five years;
- Average cash dividends received from non-controlled companies of
COP230 billion during the rating horizon;
- Average capex of COP800 million between 2026 and 2030;
- Interest rates of 9.0%;
- The company refinances debt maturities;
- Neutral FCF over the rating horizon.
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, Moderate),
diversification and asset quality (bbb-, Moderate), company
operational characteristics (bbb, Moderate), profitability (bbb,
Higher), financial structure (bbb, Moderate), and financial
flexibility (bb-, Moderate).
- Assessments of the quantitative financial subfactors include
bespoke calculations.
- The Governance assessment of 'good' has no impact.
- The Operating Environment assessment of 'bb' has no impact.
- The SCP is 'bbb-'.
To derive the Long-Term IDR
- Fitch made no adjustments to the SCP, resulting in an IDR of
'BBB-'.
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Changes in the acquisition financial strategy leading to leverage
ratios above 4.5x on a sustained basis.
- Changes in acquired assets ring-fenced characteristics leading to
debt consolidation.
- Significantly lower tariffs that pressure cash flow generation;
- Material cost overruns or project delays that pressure Promigas'
credit metrics.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch considers a positive rating action unlikely in the near
term given elevated capex and leverage expectations over the rating
horizon;
- Gross leverage levels below 3.5x on a sustained basis.
Liquidity and Debt Structure
Promigas' liquidity is supported by cash on hand, stable cash funds
from operations (CFO), and reliable access to long-term local and
international financing. As of March 2026, cash of about COP0.9
trillion and CFO of COP1,2 trillion covered its short-term
maturities. Fitch considers refinancing risk to be low due to
Promigas' strong market access. The company also holds COP2.5
trillion in uncommitted credit lines available for additional
liquidity. The financial strategy that combines additional debt and
equity to fund acquisition could improve capital structure by
reducing maturities and projected liquidity for the next three
years.
Issuer Profile
Promigas is an operating holding company that participates in the
natural gas transportation and distribution business, as well as in
electricity distribution, in Colombia. The company also
participates in the natural gas distribution business in Peru.
Date of Relevant Committee
JUne 12, 2026
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Sector Forecasts Monitor
data file which aggregates key data points used in its credit
analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
Promigas S.A. E.S.P. has an ESG Relevance Score of '4' for Exposure
to Social Impacts due to social resistance and delays in
environmental licenses that can lead to project delays and higher
costs. 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
----------- ------ -----
Gases del Pacifico S.A.C.
Subordinated LT BB New Rating BB(EXP)
Promigas S.A. E.S.P.
subordinated LT BB New Rating BB(EXP)
Promigas Peru S.A.
subordinated LT BB New Rating BB(EXP)
Gases del Norte
del Peru S.A.C.
subordinated LT BB New Rating BB(EXP)
=============
J A M A I C A
=============
JAMAICA: BOJ Incurs $7.7 Billion Net Loss Over Six Months to June
-----------------------------------------------------------------
RJR News reports that the Bank of Jamaica recorded a net loss of
$7.7 billion for the period January 1 to June 10 this year.
The central bank's latest balance sheet shows that total assets
increased by 6.7 per cent to $1.28 trillion compared with June last
year, according to RJR News.
Foreign assets rose by 5.9 per cent year on year, while local
assets increased by 4.9 per cent, the report notes.
Demand liabilities recorded the sharpest movement, climbing 21.9
per cent compared with June 2025, the report relays.
The bank's capital reserves strengthened by 12.3 per cent,
reflecting continued growth in its capital position, 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: Farmers, Businesses Benefitting From Tourism Linkages
--------------------------------------------------------------
RJR News reports Tourism Minister Edmund Bartlett said the
government's tourism linkages initiatives are generating
significant benefits for local farmers, manufacturers and small
businesses.
Speaking during the Sectoral Debate, Mr. Bartlett said the Agri
Linkages Exchange (ALEX), has connected more than 2,000 small
farmers to the tourist industry, facilitating the supply of
approximately 2.57 million kilograms of agricultural produce,
according to RJR News.
He said the wider tourism linkage network has also generated nearly
$1 billion in agricultural revenue, $1 billion through
manufacturing speed networking initiatives and $168 million through
the annual Christmas in July trade show, 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.
=====================
P U E R T O R I C O
=====================
BITCOIN DEPOT: Hires Vinson & Elkins LLP as Bankruptcy Counsel
--------------------------------------------------------------
Bitcoin Depot Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the Southern District of Texas to hire Vinson
& Elkins LLP as counsel.
The firm will render these services:
a. provide legal advice with respect to the Debtors' powers
and duties as debtors in possession in the operation of
their businesses and the management of estate property;
b. advise and consult on the conduct of the Chapter 11 Cases,
including all of the legal and administrative requirements
of operating in chapter 11;
c. attend meetings and negotiations with representatives of
creditors and other parties in interest;
d. prepare substantially all necessary motions, answers,
orders, reports, and other legal papers on the Debtors'
behalf in connection with the administration of their
bankruptcy estates;
e. advise the Debtors in connection with any potential sale(s)
of assets and take necessary action(s) to guide the
Debtors through such potential sale(s);
f. advise the Debtors regarding tax matters;
g. take all necessary actions to protect and preserve the
Debtors' estates, including the prosecution of actions
on the Debtors' behalf, defense of any action commenced
against the Debtors, and representation of the Debtors
in negotiations concerning litigation in which the Debtors
are involved, including objections to claims filed against
the Debtors' estates;
h. analyze proofs of claim that may be filed against the
Debtors and potential objections to such claims;
i. represent the Debtors in connection with negotiating the
terms of potential financing during the Chapter 11 Cases
and obtaining authority for debtor-in-possession financing
and the continued use of cash collateral;
j. analyze certain executory contracts and unexpired leases
and potential assumptions, assignments, or rejections of
such contracts and leases;
k. advise the Debtors with respect to corporate and certain
litigation matters, including discovery requests, and
matters related to the Bankruptcy Code's automatic stay
as well as compliance with non-bankruptcy law;
l. consult with the U.S. Trustee, the Committee, any other
committees that may be appointed in these Chapter 11
Cases, and all other creditors and parties in interest
concerning the administration of these Chapter 11 Cases;
m. take action on the Debtors' behalf to obtain approval of
a disclosure statement and confirmation of a chapter 11
plan;
n. appear before the Court and any appellate courts to
represent the interests of the Debtors' estates; and
o. provide representation and all other legal services
required by the Debtors in discharging their duties as
debtors in possession or otherwise in connection with
these Chapter 11 Cases.
The firm will be paid at these rates:
Partners $1,700 to $2,695 per hour
Counsels $1,550 to $2,245 per hour
Associates $920 to $1,580 per hour
Paraprofessionals $645 to $685 per hour
The Debtors paid the firm an initial advance retainer of
$2,000,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
David S. Meyer, Esq., a partner at Vinson & Elkins LLP, 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 through:
David S. Meyer, Esq.
Vinson & Elkins LLP
1114 Avenue of the Americas, 32nd Floor
New York, NY 10036
Tel: (212) 237-0102
Fax: (917) 849-5337
E-mail: ghoward@velaw.com
About Bitcoin Depot Inc.
Bitcoin Depot, Inc. is a Delaware corporation with its principal
place of business in Georgia that operates the largest
cryptocurrency kiosk network in North America, claiming to operate
more than 8,400 Bitcoin ATMs across the United States, Canada, and
Puerto Rico.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 26-90528) on May 18,
2026. In the petition signed by W. Alexander Holmes, director, the
Debtor disclosed up to $50 million in both assets and liabilities.
Paul E. Heath, Esq., at Vinson & Elkins LLP, represent the Debtor
as legal counsel.
OMEGA INVESTIGATION: Unsecureds Will Get 1.5% over 60 Months
------------------------------------------------------------
Omega Investigation Services, Corp. filed with the U.S. Bankruptcy
Court for the District of Puerto Rico a Plan of Reorganization for
Small Business dated June 11, 2026.
Since 2014, the Debtor has been in the business of providing
private security services, access control, security patrols,
surveillance services, monitoring services, and related security
solutions to residential communities, commercial establishments,
educational institutions, government entities, and private clients
throughout Puerto Rico.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of $337,855. The final Plan
payment is expected to be paid on October 1, 2031.
This Plan of Reorganization proposes to pay creditors of the Debtor
from cash flow from operations.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately cents on the dollar. This Plan also provides for
the payment of administrative and priority claims.
Class 2 consists of Non-priority unsecured creditors. Each holder
of an Allowed General Unsecured Claim shall receive a pro rata
distribution equal to 1.5% of its allowed claim. Such distribution
shall be paid in sixty equal monthly payments after the Effective
Date of the Plan. Upon completion of such distribution, all
remaining balances of Class 3 claims shall be deemed satisfied and
discharged. This Class is impaired.
Class 3 consists of Equity security holders of the Debtor. Luis
Crespo as the only shareholder who provided new value ($20,000.00
and the cancellation of pre-petition debs of $27,000.00) to Debtor
in order to comply with the absolute priority rule through the post
petition financing approved by the Court, will be retain his shares
in the corporation. The interest of all other shareholders will be
canceled on the Effective Date of the Plan.
The plan will be funded from debtor's cash flow and the capital
contribution of Mr. Luis Crespo.
A full-text copy of the Plan of Reorganization dated June 11, 2026
is available at https://urlcurt.com/u?l=2GfxVc from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Alexis Fuentes-Hernandez, Esq.
366 Calle Fortaleza, Fl. 2
San Juan, PR 00901
About Omega Investigation Services Corp.
Omega Investigation Services Corp. is a company presumably
providing investigation and security-related services based in San
Juan, Puerto Rico.
Omega Investigation Services sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-03647) on Aug. 15,
2025. In its petition, the Debtor listed assets between $100,000
and $500,000, and liabilities between $500,000 and $1 million.
The Debtor is represented by Alexis Fuentes-Hernandez, Esq.
=============
U R U G U A Y
=============
URUGUAY: IDB OKs $78MM Loan to Improve Housing and Services
-----------------------------------------------------------
The Board of Executive Directors of the Inter-American Development
Bank (IDB) approved financing for $78.75 million to expand access
to housing, basic services, and opportunities for children,
adolescents, migrant populations, and other vulnerable households
in Uruguay, while improving living conditions and social
integration in disadvantaged neighborhoods.
The program is expected to benefit more than 31,000 people
directly, including approximately 2,700 migrants, as well as an
additional 62,500 people indirectly, building on more than two
decades of collaboration between the IDB and Uruguay to support
inclusive urban development and stronger social cohesion.
The initiative targets persistent gaps in semiformal urban areas,
where many households face overcrowding, inadequate housing
conditions, and limited access to basic services, challenges that
particularly affect migrant families.
According to the IDB Group Country Strategy with Uruguay
2026–2030, 76% of migrants live in inadequate housing conditions,
including informal settlements, pensions, homelessness, or other
precarious accommodations. This program will promote greater urban
integration by improving infrastructure, expanding housing
solutions, and strengthening access to education and care services.
"Improving living conditions in vulnerable neighborhoods is
essential to building more inclusive and resilient cities," said
Tatiana Gallego, Housing and Urban Development Division Chief at
the IDB. "This program supports Uruguay's efforts to expand access
to quality housing and services, while ensuring that children,
families, and migrant communities can fully participate in and
benefit from urban development."
Investments will include water, sanitation, drainage, electricity
and lightning networks, as well as safer public spaces, alongside
housing improvements, new construction, and support for tenure
regularization.
The plan supported by the IDB will also expand access to early
childhood services, education, and job training, helping reduce
barriers to social and economic inclusion for vulnerable households
across targeted communities. Institutional strengthening will
improve coordination across government agencies and enhance data
systems for planning and service delivery.
The program includes a $70 million loan from the IDB’s Ordinary
Capital and $8.75 million in grant resources. It is the fourth
individual operation under a Conditional Credit Line for Investment
Projects (CCLIP) that supports Uruguay’s long-term neighborhood
improvement efforts while advancing the inclusion of vulnerable
populations, including migrants.
=================
V E N E Z U E L A
=================
VENEZUELA: To Reveal $240B Debt Pile in Largest Restructuring
-------------------------------------------------------------
globalinsolvency.com, citing the Financial Times, reports that
Venezuela is set to reveal a $240 billion debt pile, much higher
than previously thought, as the country embarks on the biggest
sovereign restructuring in history following the U.S. removal of
Nicolas Maduro.
The country is on track to reveal borrowings that are significantly
larger than market estimates of $150 billion to $200 billion when
it lifts the veil for creditors on the state of its finances in the
coming weeks, according to globalinsolvency.com.
About Venezuela
Venezuela, officially the Bolivarian Republic of Venezuela, is a
country on the northern coast of South America, consisting of a
continental landmass and a large number of small islands and islets
in the Caribbean sea. The capital is the city of Caracas.
Moody's has withdrawn 'C' local currency and foreign currency
ceilings for Venezuela in September 2022. Standard &
Poors has also withdrawn its 'SD/D' foreign currency sovereign
credit ratings and 'CCC-/C' local currency ratings on Venezuela in
September 2021 due to lack of sufficient information. Fitch
withdrew its own 'RD/C' Issuer Default
Ratings on Venezuela in June 2019 due to the imposition of U.S.
sanctions on the country's government.
*********
S U B S C R I P T I O N I N F O R M A T I O N
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
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* * * End of Transmission * * *