/raid1/www/Hosts/bankrupt/TCRLA_Public/240722.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, July 22, 2024, Vol. 25, No. 146
Headlines
A R G E N T I N A
TRANSPORTADORA DE GAS: Fitch Assigns 'B-' IDR, Outlook Stable
B E R M U D A
NABORS INDUSTRIES: Moody's Affirms B1 CFR, Outlook Remains Stable
B R A Z I L
AZUL SA: Fitch Affirms 'B-' LongTerm IDR, Alters Outlook to Neg.
RIO OIL: Fitch Affirms BB Rating on Three Tranches, Outlook Stable
TRANSPORTADORA ASSOCIADA: Fitch Affirms 'BB+' IDR, Outlook Stable
X X X X X X X X
[*] BOND PRICING: For the Week July 15 to July 19, 2024
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A R G E N T I N A
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TRANSPORTADORA DE GAS: Fitch Assigns 'B-' IDR, Outlook Stable
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Fitch Ratings has assigned Transportadora de Gas del Sur S.A.'s
(TGS) Long-Term Foreign and Local Currency Issuer Default Ratings
(IDR) at 'B-'. The Rating Outlook is Stable. Fitch has also
assigned a 'B'/'RR3' rating to TGS's approximately USD480 million
in proposed unsecured obligations to be issued the week of July 15.
TGS will use the proceeds from the planned issuance to repay its
outstanding 2018 bonds, which have a bullet maturity due in May
2025.
TGS's ratings are underpinned by its robust business profile,
characterized by limited exposure to commodity price fluctuations,
a strong market position as the largest gas transportation service
provider in Argentina, and low leverage. However, the company
operates in a challenging environment, marked by the country's
economic issues, including hyperinflation and regulatory
unpredictability, which significantly affect its credit strengths.
TGS's rating is also constrained by Argentina's 'B-' Country
Ceiling, which limits the Foreign Currency IDR due to transfer and
convertibility risk.
KEY RATING DRIVERS
Operating Environment Constrains Ratings: TGS's assets are mostly
located in Argentina, making the company vulnerable to the
country's volatile economy, the risk of abrupt interruptions in
financial access, and the weak systemic governance. These factors
negatively affect TGS's rating.
Regulatory Exposure: TGS's natural gas transportation (NGT) segment
is regulated by the National Gas Regulatory Authority (ENARGAS),
which recently approved two temporary NGT tariff increases (95% in
April 2023 and 675% in April 2024). However, tariffs have been
largely frozen since 2019, despite rising costs from inflation. An
updated tariff framework is likely following the completion of the
Integral Tariff Revision (RTI) process by the end of 2024.
TGS's Liquids Production and Commercialization (LPC) segment is
regulated by the Secretariat of Energy regarding the volumes of
liquefied petroleum gas (LPG) products sold domestically to ensure
that domestic demand is fully met. Additionally, the Secretary of
Hydrocarbon Resources sets the prices for approximately 100% of the
butane and 20% of the propane sold in the country to ensure the
supply of LPG in the domestic market is affordably priced. Only the
tax rate and settlement ratio on LPG exports are regulated; the
midstream and telecommunications segments are not regulated.
Asset Diversity; Strategic Importance: TGS is the largest natural
gas transporter in Argentina, connecting the country's major gas
fields. The company operates through four business segments: NGT
Services, LPC, Midstream, and Telecommunications (through its
subsidiary, Telcosur S.A.). TGS's competitive edge is reinforced by
its leadership in NGT services, transporting approximately 60% of
the gas consumed domestically via an extensive network of over
5,700 miles of gas pipelines. In 2023, the NGT segment contributed
22% to the company's total revenues and 16% to its total EBITDA.
TGS's LPC segment activities are conducted at the Cerri Complex,
where ethane, liquefied petroleum gas (LPG) products and natural
gasoline are recovered and sold domestically and internationally.
Revenues and EBITDA from the LPC segment represent 59% and 51% of
the company's total EBITDA.
TGS's midstream services segment primarily includes natural gas
gathering, compression, processing, treatment, and marketing. TGS
pioneered midstream services in the Vaca Muerta region and was the
first technical operator for the initial phase of the President
Néstor Kirchner Gas Pipeline (NKP). Ongoing development in the
region will present TGS with midstream growth opportunities. In
2023, the company was awarded a five-year contract to operate and
maintain the first phase of the NKP, a project of critical
importance for the country. The midstream segment accounted for 20%
of TGS's total revenues and 33% of EBITDA in 2023. The
telecommunications segment remains marginal to TGS's business in
terms of sales and EBITDA.
Some Cash Flow Volatility: The company's cash flows in the NGT
segment are primarily driven by revenue from long-term (over 10
years), ship-or-pay NGT contracts. These contracts represent 81% of
the segment's total revenues and are based on a firm contracted
capacity of 83.1 million MMm3/d. Four domestic gas distribution
companies (MetroGas, Camuzzi Gas Pampeana S.A., Naturgy Argentina,
and Camuzzi Gas del Sur S.A.) serve approximately 6.3 million
end-users and constitute the bulk of TGS's customer base.
In the LPC segment, ethane is entirely sold to Polisur S.R.L. (PBB)
under a long-term take-or-pay agreement that expires in December
2027, while natural gasoline is fully exported and sold through a
two-year contract with Trafigura Pte Ltd. that expires in Feb.
2026. Almost all revenue from the midstream segment is derived from
shorter-term (10 years or less) firm contracts with high-quality
off-takers operating in the Vaca Muerta area.
Commodity Price Exposure: TGS's LPC segment is somewhat exposed to
fluctuations in international prices for propane, butane, and
natural gasoline, although these prices are denominated in U.S.
dollars. Propane and butane exports are carried out on a spot
basis. The price for natural gasoline is set at the international
market price, minus a discount. Export revenues comprised 21% of
TGS's total revenues and 36% of LPC revenues, with revenues from
the LPC business comprising 59% of total revenues overall in 2023.
Solid Financial Profile: TGS's EBITDA margins have been relatively
stable, averaging approximately 44% over the past three years. In
2023, EBITDA was ARS177 billion, and gross leverage was 2.6x. The
debt primarily consists of USD470 million in international bonds
due May 2025, which are being cancelled with proceeds from the
current planned issuance. Tariff increases for TGS's NGT business
are lagging behind inflation, and domestic butane sales in its LPC
segment are often priced lower than their processing costs.
However, the company has successfully maintained strong cash
generation without incurring additional debt. As of March 2024, TGS
had ARS37 billion in total available cash and cash equivalents,
most of which is held locally.
DERIVATION SUMMARY
TGS's ratings are similar to other midstream companies in Latin
America such as GNL Quintero S.A. (GNLQ; A-/Stable), Transportadora
de gas del Peru (TGP; BBB+/Negative), Transportadora de Gas
Internacional S.A. ESP (TGI; BBB/Stable), and Oleoducto Central
S.A. (OCENSA; BB+/Stable) due to their stable and predictable cash
flows.
All of the companies are characterized by manageable business risk,
resulting from solid contractual structures and low exposure to
commodity price or volume risk. Fitch considers TGS's operating
environment challenging due to Argentina's economic issues and
regulatory unpredictability. However, its financial profile is
still in line with its peers, with leverage at 2.6x in 2023.
Additionally, TGS's midstream services off-takers, in particular,
are of high credit quality.
KEY ASSUMPTIONS
- A tariff increase of 675% in April 2024 and no additional
increases for the remainder of the year; tariffs increase with
inflation thereafter;
- Prices for natural gasoline exports indexed to Fitch's forecast
Brent prices less a $35 discount;
- Prices for propane and butane exports pegged to forecast price
changes estimated by OPIS;
- Prices for midstream transport and conditioning services indexed
to U.S. PPI;
- Costs for natural gas transportation business segment to increase
with inflation;
- Costs for liquids production and commercialization segment to
increase by 5% annually post-2024;
- Forecast depreciation and amortization for each business segment
estimated as a percentage of revenue using historical three-year
average;
- Maintenance capex of USD68 million each year, and expansion capex
of USD200 million in 2024;
- Interest rate applied for proposed debt issuance per Fitch's
guidance;
- No meaningful expiration of any firm contract over the rating
horizon;
- No dividend pay-outs over the rating horizon.
RECOVERY ANALYSIS
Fitch classifies Argentina as a Group D country based on an
assessment of the country's governance environment, which would
ordinarily result in TGS's Recovery Rating (RR) being capped at
'RR4'. However, historical precedent exists where issuers launched
direct debt exchanges (DDEs) that did not result in a reduction in
principal and had recoveries above the implied RR of an 'RR3' (51%
to 70%). Therefore, Fitch has assigned TGS an RR of 'RR3'.
Fitch's recovery analysis yields a RR of 'RR2', but the ratings are
constrained by Argentina's transfer and convertibility risk. The
recovery analysis assumes that TGS would be reorganized as a
going-concern in bankruptcy rather than liquidated.
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- An upgrade of Argentina's sovereign rating;
- Improvement in the regulatory framework;
- Establishment of a tariff framework with automatic inflation
adjustments through the RTI process.
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A downgrade of Argentina's sovereign rating;
- Worsening of the regulatory environment;
- An increase in commodity exposure, a decline in competitive
position, and/or heightened re-contracting risk, which result in
more volatile operating cash flow and a weaker financial profile.
LIQUIDITY AND DEBT STRUCTURE
Strong Liquidity: TGS maintains strong liquidity, primarily driven
by internally generated cash flows. As of March 2024, the company
had ARS37 billion in total available cash and cash equivalents,
most of which is held locally. During the same period, debt
consisted of ARS415 billion in international senior unsecured notes
with a bullet maturity in May 2025 and an additional ARS71.3
billion in loans from local banks.
ISSUER PROFILE
TGS is the largest natural gas transporter in Argentina,
transporting roughly 60% of the gas consumed domestically through
more than 5,700 miles of gas pipelines. The company's operations
include Natural Gas Transportation Services, Liquids Production and
Commercialization, Midstream, and Telecommunications.
DATE OF RELEVANT COMMITTEE
08 July 2024
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 Recovery Prior
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Transportadora de Gas
del Sur S.A. (TGS)
LT IDR B- New Rating WD
LC LT IDR B- New Rating WD
senior unsecured LT B New Rating RR3
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B E R M U D A
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NABORS INDUSTRIES: Moody's Affirms B1 CFR, Outlook Remains Stable
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Moody's Ratings affirmed Nabors Industries Ltd.'s (Nabors) B1
Corporate Family Rating, B1-PD Probability of Default Rating, and
the B3 ratings on its backed senior unsecured notes due 2026 and
2028. A B3 rating was assigned to Nabors Industries, Inc.'s (NII)
proposed backed senior unsecured notes due 2031. The Ba3 ratings on
NII's two issues of backed senior unsecured global notes due 2027
and 2030 were affirmed. The proceeds from NII's proposed notes
offering will be used to repay Nabors' notes due in January 2026.
The rating outlooks for Nabors and NII remain stable.
"Nabors Industries' debt refinancing transaction improves its
liquidity profile, while not impacting leverage," stated James
Wilkins, a Moody's Ratings Vice President."
RATINGS RATIONALE
The B3 rating on the proposed NII notes is the same as the Nabors
notes due 2026 and notes due 2028, because the proposed NII notes
benefit from the same subsidiary guarantees as the Nabors notes and
therefore rank pari passu in the capital structure.
Nabors' B1 CFR reflects global drilling industry fundamentals,
healthy profit margins and Moody's expectation the company will
generate positive free cash flow. Its international business has
benefitted from rising rig utilization rates and is expected to
continue to grow further over the remainder of 2024 and 2025. The
US land rig business has maintained healthy gross margins, despite
softness in the market resulting from a decline in rig count.
Nabors' leverage (debt to EBITDA) was 3.0x as of March 31, 2024.
Moody's expect the company to generate positive free cash flow in
2024 and to modestly reduce debt.
The rating also reflects the cyclical and competitive nature of the
drilling industry with pricing and rig utilization rates not
supporting free cash flow generation throughout industry cycles,
and its significant level of debt and very complex capital
structure. The credit profile is supported by Nabors' large scale,
high quality rig fleet, long-standing contractual relationship with
some of the world's largest oil companies, and a strong and
diversified international footprint. The company's relationship
with its largest customer, Saudi Arabian Oil Company (Saudi Aramco,
A1 positive), which is expanding its fleet of rigs, will continue
to provide a base level of earnings and stability.
The SGL-2 rating reflects Moody's expectation that Nabors will have
good liquidity through 2025 supported by cash and short-term
investments, positive free cash flow and availability under its
credit facilities. As of March 31, 2024, Nabors had $426 million of
unrestricted cash and short-term investments, including $254
million that was held at a joint-venture and was not readily
accessible. Moody's expect the company to generate ~$200 million of
free cash flow in 2024 and apply surplus cash towards reducing
debt.
In June 2024, Nabors amended and extended its credit agreement
which provides for up to $350 million in revolving loans and $125
million in letters of credit. As of March 31, 2024, the $350
million revolving credit facility was undrawn and $47.1 million of
letters of credit were outstanding. Availability is subject to a
minimum collateral coverage threshold requirement. The revolver
financial covenants include a minimum interest coverage ratio
(EBITDA / interest expense) of 2.75x, and a minimum guarantor
value, requiring guarantors and their subsidiaries to own at least
90% of the consolidated PP&E of the company. Moody's expect Nabors
to comply with its credit agreement financial covenants through
2025. With the amendment, the credit agreement matures June 2029,
but is subject to a springing maturity date: (a) 90 days prior to
the maturity of the 7.250% notes, 7.375% notes, and 7.500% notes,
if more than 10% of the principal amount of the notes are
outstanding 90 days prior to their maturity date, or (b) 90 days
prior to the maturity of the 1.750% notes if 50% or more of the
principal amount of the notes remain outstanding. Nabors' next debt
maturity following the repayment of the 2026 notes is $700 million
of notes maturing in May 2027.
The company also has an accounts receivable facility that allows it
to sell up to $250 million of receivables, subject to the amount of
eligible receivables. As of March 31, 2024, $157 million of
receivables had been sold. The facility matures April 1, 2027, but
is subject to a springing maturity dates of 90 days prior to the
maturity of the credit agreement and October 15, 2025, if any of
the 7.25% Senior Guaranteed Notes due 2026 are outstanding at that
time.
Nabors' debt capital structure includes a secured revolving credit
facility and unsecured notes issued by Nabors and NII that have
different subsidiary guarantees. Nabors Industries, Inc. (NII) has
a senior secured revolving credit facility (unrated) that has a
priority claim over Nabors' assets relative to the super priority
guaranteed notes (SPGNs) issued by NII given the lower tier notes
guarantors will be contractually subordinated in right of payment
with respect to the lower tier notes guarantor's guarantee of the
revolving credit facility. In addition to having a downstream
guarantee from the parent (Nabors), the SPGNs have upstream
guarantees from certain lower tier subsidiaries that are closer to
Nabors' assets relative to the guarantors of the priority
guaranteed senior unsecured notes (PGNs). The new senior unsecured
notes being issued by NII are guaranteed by Nabors and are
guaranteed by the same subsidiaries as the PGNs issued by Nabors,
and therefore are pari passu in the capital with the PGNs. The
SPGNs issued by NII are rated Ba3, one notch above the CFR. The
Nabors 2026 and 2028 guaranteed unsecured notes (PGNs) and new NII
senior unsecured notes (PGNs) are rated B3, two notches below the
CFR, given their structurally subordinated position to the revolver
and the SPGNs. NII has $250 million of senior unsecured
exchangeable notes outstanding (unrated), that is the most junior
debt in the capital structure owing to the lack of subsidiary
guarantees.
The stable outlook reflects Moody's expectation that Nabors will
grow its international rig business and experience relatively
stable demand for its rigs in the US lower 48 states through 2025.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade could be considered if Nabors generates free cash flow
consistently and achieves meaningful debt reduction. The company
being able to sustain leverage (debt/EBITDA) below 3x in a down
cycle would be supportive of an upgrade. The ratings could be
downgraded if debt/EBITDA rises above 4x or the company generates
material negative free cash flow, does not proactively address debt
maturities or its liquidity cushion erodes.
The principal methodology used in these ratings was Oilfield
Services published in January 2023.
Nabors Industries Ltd., a Bermuda-incorporated entity, is one of
the largest global land drilling contractors with operations in
nearly two dozen countries and several offshore markets. Nabors
Industries, Inc. is a wholly owned subsidiary of Nabors Industries
Ltd.
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B R A Z I L
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AZUL SA: Fitch Affirms 'B-' LongTerm IDR, Alters Outlook to Neg.
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Fitch Ratings has affirmed Azul S.A.'s (Azul) Long-Term Foreign and
Local Currency Issuer Default Ratings (IDRs) at 'B-' and its
Long-Term National Scale rating at 'BB(bra)'. Fitch has also
affirmed Azul Investments LLP's unsecured bonds at 'CCC+'/'RR5', as
well as Azul Secured Finance LLP's senior secured notes at
'B-'/'RR4'. The Rating Outlook of Azul's IDRs has been revised to
Negative from Stable. Fitch has assigned a Negative Outlook to
Azul's Long-Term National Scale Rating.
The Negative Outlook reflects Azul's cash flow burn pressures from
its high lease and interest expense burden, BRL depreciation and
fuel price volatilities and its significant dependence on accessing
credit market to fund its free cash flow generation and to maintain
healthy liquidity levels.
Azul's ratings are supported by its strong regional market position
in the Brazilian domestic airlines industry and solid operating
margins, as well as its limited geographic diversification and
foreign exchange (FX) exposure. In terms of leverage, Azul's credit
metrics are relatively adequate but the high operating leverage
(pos-pandemic restructuring) and its ongoing capex program require
additional funding. Azul has limited financial flexibility given
its already high secured debt basis.
KEY RATING DRIVERS
Challenge to Access Credit Lines: Azul's ability to continue to
access new credit lines, seeking to support its liquidity position
and fund cash burn/negative free cash flow generation are key
factors to its ratings. The company faces important business
seasonality with a large portion of its cash flow being generated
during second half of the year, most notable during the fourth
quarter. The current scenario of BRL depreciation and fuel price
volatilities put further pressure on its cash flow in the
short-term. During 1H24, Fitch estimates that Azul has raised
around BRL1.5 billion, including bond re-tap and local issuance,
which helped to sustain liquidity position.
Ongoing Refinancing Risks: The need to fund the recurring negative
free cash flow generation and equity notes are Azul's main
refinancing issues until 2027. Azul´s major outstanding bonds
mature on 2028, 2029 and 2030. In the short to medium term, Azul's
faces maturity of its unsecured 2024 and 2026 bonds (USD68 million
and USD32 million, respectively), and instalments of its lease
notes and equity instruments. During second half of 2024 Azul faces
around BRL841 million of debt maturities, including outstanding
bond due 2024 (USD68 million). For 2025-2027, the company starts to
face larger maturities of its lease equity instrument.
Pressures on EBITDA Growing: Fitch expects Azul's adjusted EBITDA
to continue to improve during 2024 and 2025 due to the solid
domestic traffic level as well as cost efficiencies, including
fleet modernization, and capacity expansion. As mentioned, the
exogenous factors (FX rate and fuel) are expected to put some
pressure on cash flow this year. Fitch forecasts Azul's adjusted
EBITDA to reach around BRL6.2 billion in 2024 and BRL7.2 billion in
2025, an increase from BRL5.0 billion in 2023 and BRL3.6 billion
during 2019 (pre-pandemic).
EBITDA margin are expected around 30%-32%. Azul's traffic levels
have been above 2019's levels since mid-2021, given the company's
strong growth strategy. Fitch estimates Azul's 2024 total traffic
volume are around 28% higher than 2019, and capacity level at 33%.
FCF to Remain Negative: In Fitch's forecasts, Azul's free cash flow
generation remains negative during 2024 and 2025, at around BRL1.3
billion and BRL1.5 billion, respectively. The high leasing and
interest expenses post-restructuring after the COVID-19 pandemic
and its ongoing growth strategy and fleet modernization further
dent its operating cash flow generation. For 2024 and 2025, Fitch
estimates capex of around BRL2.1 billion and BRL2.5 billion,
respectively. The fleet modernization is a key pillar on Azul's
strategy to improve profitability. The company expects to double
its E2 fleet by 2025, and those aircraft brings around 26%
reduction per cost per seat.
Improving Credit Metrics: The ongoing improvements of EBITDA
generation are expected to help restore its credit profile in terms
of leverage. Fitch's base case scenario forecasts the company's
total and net adjusted leverage/EBITDAR ratios at around 4.5x and
4.2x, respectively, during 2024, an improvement from the 2023
levels of 5.3x and 4.8x. Fitch calculates Azul's total debt at
BRL27.7 billion, which also includes convertible debentures, leases
notes and leases equity instrument. Lessors exchanged COVID lease
deferrals for notes due 2030 and equity instrument convertible into
Azul's shares (40/60 split).
Strong Domestic Market Position: Azul's credit profile benefits
from its unique regional airline market position in Brazil, with a
strong presence in underserved markets and limited route overlap
with competitors, GOL Linhas Aereas Inteligentes S.A. and LATAM
Airlines Group S.A. (LATAM). Azul is the sole provider of services
on 82% of its routes and is one of the three largest airline
companies in Brazil, with a market share of around 29%, as measured
by revenues/passenger/kilometer (RPK) in 2023.
As Brazil is the company's key market, Azul's operating results are
highly correlated to the Brazilian economy. During 2023, 93% of its
revenues derived from passengers and 7% from cargo and others, and
79% of its revenues were originated within local market.
Potential Merger with GOL: The current rating does not incorporate
any consolidation movement. Azul has been vocal on its strategy to
consolidated the market and it is considering a potential
transaction with GOL Linhas Aereas Inteligentes S.A. (GOL; IDR, D),
that is going through Chapter 11 Process in US. It is still unclear
the final terms of the deal and the proforma capital structure of
the combined entity.
DERIVATION SUMMARY
Azul has a weaker position relative to global peers given its
limited geographic diversification, higher operating leverage and
weaker financial flexibility. In terms of its regional peers, it
has a weaker position compared to LATAM (BB-/Positive) and Avianca
Group International Limited (B/Stable) in terms of business
diversification, liquidity and financial flexibility, but has a
stronger cash position compared to GOL Linhas Aereas Inteligentes
S.A. (D). Different from the others, Azul has not completed a debt
haircut as part of the debt restructuring post COVID, like LATAM
and Avianca did.
Azul's strong position in the Brazilian regional market and high
operating margins have been key rating drivers. Foreign exchange
risk exposure is a negative credit factor for Azul considering its
limited geographic diversification; the company operates currency
hedging which only partially mitigates this risk.
Fitch expects LATAM and Avianca to maintain gross leverage around
2.5x and 3.5x in the next two years, while Azul is still to move
around 4.5x in 2024. Azul's leasing and interest burden and ongoing
capex program implies in much higher risks to fund its sizeable
negative free cash flow. In terms of EBITDA coverage, Azul is
expected to report 1.3x in 2024, while LATAM and Avianca 2.3x and
4.2x.
In terms of liquidity position, measured as cash over LTM revenues,
Azul also has weaker metric (around 10%-12%) compared to LATAM
(24%, including revolving facility) and Avianca (around 15-20%).
LATAM has a sizeable stand-by credit facility of USD1.1 billion.
KEY ASSUMPTIONS
- Fitch's base case during 2024 and 2025 includes an increase in
ASK by 9% and RPK of around 8%;
- Load factors around 79% during 2024 and 2025;
- Adjusted EBITDAR Margin of around 30%-32% in 2024 and 2025
- Capex of BRL2.1 billion in 2024 and BRL2.5 billion in 2025
RECOVERY ANALYSIS
KEY RECOVERY RATING ASSUMPTIONS
The recovery analysis assumes that AZUL would be considered a going
concern in bankruptcy and that the company would be reorganized
rather than liquidated. Fitch has assumed a 10% administrative
claim.
Going-Concern Approach: AZUL's going concern EBITDA is BRL2.5
billion which incorporates the low-end expectations of Azul's
EBITDA post-pandemic, adjusted by lease expenses, plus a discount
of 20%. The going-concern EBITDA estimate reflects Fitch's view of
a sustainable, post-reorganization EBITDA level, upon which Fitch
bases the valuation of the company. The enterprise value
(EV)/EBITDA multiple applied is 5.5x, reflecting AZUL's strong
market position in the Brazil.
Fitch applies a waterfall analysis to the post-default EV based on
the relative claims of the debt in the capital structure. The debt
waterfall assumptions consider the company's total debt as of March
31 2024. These assumptions result in a recovery rate for the
first-lien secured bonds within the 'RR1' range and second-lien
secured notes within 'RR2' range, but due to the soft cap of Brazil
at 'RR4', Azul's senior secured are rated at 'B-'/'RR4'. For the
unsecured notes, the recovery is within the RR5 range, therefore
results in a rating downgrade from the IDR, being rated at
'CCC+'/'RR5'.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Improved liquidity position, and maintenance of well-spread debt
amortization profile with no major refinancing risks in the medium
term;
- Gross and net leverage ratios consistently below 4.5x and 4.0x;
- EBITDAR fixed-charge coverage sustained at or above 1.5x;
- FCF generation above Fitch's base case expectations;
- Continued solid rebound of the Brazilian domestic air traffic and
healthy yields scenario;
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Liquidity deterioration and/ or difficulties to continue to
access credit lines;
- Gross and net leverage ratios consistently above 5.5x and 5.0x;
- EBITDA fixed-charge coverage sustained at or below 1x;
- Competitive pressures leading to severe loss in market-share or
yield deterioration;
- Aggressive growth strategy leading to consolidation movement
financed with debt.
LIQUIDITY AND DEBT STRUCTURE
Refinancing Risks: Azul's liquidity position is poor in light of
the recurring negative free cash flow and refinancing risks. As of
March 31 2024, Azul's total debt, calculated by Fitch, was BRL27.7
billion, with BRL4.9 billion in short term (BRL3.7 billion of
leasing obligations) and BRL1.4 billion of cash readily available.
During 2023 and LTM March 2024, Azul's cash to LTM revenue were 12%
and 7%, respectively. Fitch expects Azul to maintain this ratio
around 9%-10% during 2024 and 2025.
Per Fitch's calculation, Azul's total debt also includes
convertible debentures, leases, notes and leases equity instrument.
The company faces maturities of BRL1.5 billion during April-Dec
2024, BRL1.2 billion in 2025, BRL1.4 billion in 2026, BRL1.1
billion in 2027, BRL6.0 billion in 2028 and remaining amount (BRL6
billion) spread 2029 on. Azul has limited financial flexibility
given its already high secured debt basis. During 1H24, Fitch
estimates that Azul has raised around BRL1.6 billion, including
bond re-tap and local issuance, which helped to sustain liquidity
position.
ISSUER PROFILE
Azul is one of Brazil's largest local airlines, with significant
presence in the regional market and being the sole player on 82% of
its routes. During 2023, 93% of its revenues were derived from
passengers and 7% from cargo and others.
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 Recovery Prior
----------- ------ -------- -----
AZUL
Investments LLP
senior
unsecured LT CCC+ Affirmed RR5 CCC+
Azul S.A. LT IDR B- Affirmed B-
LC LT IDR B- Affirmed B-
Natl LT BB(bra)Affirmed BB(bra)
Azul Secured
Finance LLP
senior
secured LT B- Affirmed RR4 B-
Senior Secured
2nd Lien LT B- Affirmed RR4 B-
RIO OIL: Fitch Affirms BB Rating on Three Tranches, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed the long-term series 2014-3 and 2018-1
notes issued by Rio Oil Finance Trust at 'BB'. The Rating Outlook
is Stable.
The ratings are not directly linked to the originator's credit
quality. The ratings are based on potential production and
generation risk and are ultimately linked to Petrobras' Issuer
Default Rating (IDR), as it is the main source of cash flow
generation. The ratings are capped at Petrobras' rating level
(BB/Stable), as the largest obligor of royalties and special
participations payments. Additionally, the ratings are also capped
at Banco do Brazil's rating level (BB/Stable), given it cannot be
replaced as collection account bank.
The assigned ratings address timely payment of interest and timely
payment of principal on a quarterly basis.
Entity/Debt Rating Prior
----------- ------ -----
Rio Oil Finance Trust
2014-1 76716XAA0 LT PIF Paid In Full BB
2014-1 REGS USU76673AA72 LT PIF Paid In Full BB
2014-3 76716XAB8 LT BB Affirmed BB
2014-3 regs USU76673AB55 LT BB Affirmed BB
2018-1 76716XAC6 LT BB Affirmed BB
TRANSACTION SUMMARY
The notes issued by Rio Oil Finance Trust, a Delaware-based special
purpose vehicle (SPV) constituted for the sole purpose of this
transaction are backed by the royalty flows owed by oil
concessions, predominantly operated by Petrobras, to the government
of the state of Rio de Janeiro (RJS), which has assigned 100% of
the flows to RioPrevidencia (RP). For the purpose of this
transaction, RP sold its rights to Rio Oil Finance Trust.
KEY RATING DRIVERS
Ratings Not Directly Linked to Originator: RP is an autonomous
government agency that is part of the Secretary of State for
Planning and Management of RJS (BB/Stable). Performance of the
originator will not affect the collateral as the generation of the
cash flow needed to meet timely debt service is not dependent on
either RP or RJS.
Largest Obligor Rating Cap: Petrobras' rating is the ultimate cap
for the proposed transaction, as it is the main source of cash flow
generation. Petrobras carries Local and Foreign Currency IDRs of
'BB'/Stable and 'AAA(bra)'/Stable. The company is majority
controlled by the federal government of Brazil and has the rights
to E&P of the vast majority of Brazil's oil fields.
Future Production Risk: The transaction benefits from growth in
production levels as it increases the total royalty flows.
Depressed oil prices have led Petrobras to reduce production
targets on multiple occasions. Nevertheless, Petrobras recently
increased their 2024-2028 capital expenditure projections from
2023-2027 projections, and increasing production levels would
benefit the transaction in the near to medium term.
Cash Flows Support Rating: The expected high levels of quarterly
debt service coverage ratios (QDSCRs) and annualized average debt
service coverage ratios (AADSCRs) partially mitigate the
transaction's exposure to fluctuations in oil prices and production
levels at the current rating level. On an ongoing basis, Fitch
expects QDSCRs and AADSCRs to be over 8.0x for the life of the
transaction, assuming that Law 12,734 has been implemented. The
expected increase in QDSCRs and AADSCs by Fitch is primarily driven
by the recent repayment of the series 2014-1 notes, reducing
overall debt service owed by the issuer on a quarterly basis.
Oil Revenues Dedicated Account Modification Mitigates Redirection
Risk: Pursuant to the Oil Revenues Dedicated Account Modification
Legislation, the RioPrevi Oil Revenues initially deposited to the
RJS Oil Revenues Dedicated Account are no longer required by
legislation to be deposited into a state-owned account. Oil
revenues assigned to this transaction are instead deposited into an
account under the name of the issuer. This change in the account
mitigates potential redirection of flows to RJS. As Banco do Brasil
(BdB) cannot be replaced as a collection bank, the transaction is
directly linked to the credit quality of BdB (BB/Stable).
Ample Liquidity for Timely Payment: The transaction benefits from
liquidity, in the form of a debt Service reserve account and a
liquidity reserve account. Funds in deposit in these two accounts
shall at all times be sufficient cover three P&I payments, which is
considered sufficient to keep debt service current on the notes
under different stress scenarios.
Potential Exposure Political Risk Partially Mitigated: The state's
liquidity constraints, evidenced by various delays in commercial
and other payments, have heightened the transactions political risk
exposure. However, provisions included in the sixth rescission
waiver and amendment, such as the rescission of the trapping of
excess cash and of the early amortization period, will increase the
cash flows returned to the state, and, in turn, decrease the
transaction's exposure to potential political risk.
Legal Changes May Affect Collateral Stability: Although, to date,
no amendments affecting the distribution of royalties for the
existing concession Regime have been implemented, provisions
regarding the change in allocation percentages incorporated in Law
12,734 are currently under review. The transaction was analyzed
assuming the law will change and DSCRs remain sufficiently robust
and commensurate with the expected ratings.
True Sale Valid under Brazilian Law: Collateral backing this
transaction was transferred to RP by RJS through a state decree,
making RP the legal owner of the royalties. This transfer gives RP
the right to sell the collateral into the trust.
Transfer and Convertibility Risk: Series 2014-3 and 2018-1 notes
are exposed to transfer and convertibility risk as royalty flows
are paid in an account in Brazilian reais. This exposure caps the
rating of the transaction at the country ceiling of Brazil, which
is currently 'BB+'. To partially mitigate operational risk that may
arise from transferring and converting flows on a daily basis to an
off-shore account, the transaction contemplates reserve funds that
covers three P&I payment.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- The transaction is exposed to oil price and production volume
risks. Sustained low prices or declines in prices or production
levels significantly below expectations may trigger downgrades;
- The ratings are capped by the credit quality of Petrobras, the
main obligor generating cash flows to support the transaction, and
to the sovereign rating and country ceiling assigned to Brazil. A
downgrade of Petrobras or the sovereign would trigger a downgrade
on the notes;
- The ratings are sensitive to the rating of BdB given the
excessive counterparty exposure to the transaction; therefore, a
downgrade of BdB would trigger a downgrade on the notes.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- The main constraints to the program rating are the ratings of
Petrobras and BdB. An upgrade of both Petrobras and BdB, together
with sustained high oil prices, which in turn supports growth in
production levels, could trigger a positive rating action.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
The future flow ratings are ultimately capped by the credit risk of
Banco do Brasil S.A. and Petroleo Brasileiro S.A. (Petrobras) as
measured by their Long-Term IDR.
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.
TRANSPORTADORA ASSOCIADA: Fitch Affirms 'BB+' IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed Transportadora Associada de Gás S.A.'s
(TAG) Long-Term Foreign Currency (FC) Issuer Default Ratings (IDR)
at 'BB+' and Local Currency (LC) IDR at 'BBB-'. Fitch has also
affirmed the Long-Term National Scale Rating of TAG and its
unsecured debenture issuance at 'AAA(bra)'. The corporate Ratings
Outlook is Stable.
The ratings reflect TAG's solid business model, supported by
natural gas transportation contracts with no volumetric risk, which
offer adequate protection for the company's revenues and high
operating margins.
Fitch believes that TAG will adequately manage the maturity of one
of its contracts by the end of 2025, in order to sustain low
financial leverage, and record positive FCFs, even with the
assumption of a relevant dividend distribution and higher
investments. Brazil's Country Ceiling, 'BB+', limits TAG's FC IDR,
since the operations are located entirely in the country and the
company has no factor to pierce the Country Ceiling.
KEY RATING DRIVERS
Predictable Sector: TAG's revenue and operating cash generation are
solid, stemming from four long-term gas transportation agreements
(GTAs) with Petróleo Brasileiro S.A. (Petrobras, FC and LC IDRs
'BB' and National Scale Rating 'AAA(bra)', all with Stable
Outlook). These contracts do not carry volumetric risk and are
annually adjusted based on the Brazilian inflation or indexed to
the U.S. dollar and the U.S. Producer Price Index (PPI).
The closest maturity is December 2025, referring to the GTA for
Malha Nordeste, which is equivalent to around 25% of revenue, for
which Fitch considers a 30% price reduction on a new contract
starting in 2026. The other GTAs matures from 2030 onwards.
Strategic asset for Brazil: TAG operates a strategic pipeline
network for the North, Northeast and Southeast regions of Brazil.
Gas distributors in those regions rely on the company's
infrastructure to receive natural gas. The infrastructure is also
important as it connects the gas transportation network in the
Southeast, which is crucial for the operational flexibility of the
gas sector, especially after regulatory updates. TAG is focused on
diversifying its customer base and expanding its transportation
infrastructure to serve new shippers, also subject to the same
existing contractual conditions.
Conservative Leverage: TAG's net debt/EBITDA ratio is expected to
remain below 2.5x over the next four years, even with the expected
revenue reduction on the Malha Nordeste pipeline from 2026 onwards.
At the end of the 12-month period ended March 31, 2024, total
debt/EBITDA and net debt/EBITDA were 2.4x and 2.3x, respectively.
At the end of March 2024, TAG's total debt was BRL18 billion and
consisted mainly of debentures (BRL6.6 billion) and a dollar loan
(BRL10.3 billion) with a syndicate of banks.
Solid CFFO: Fitch estimates TAG's robust EBITDA at around BRL7.6
billion in 2024 and 2025, and some reduction to BRL7.4 billion in
2026, with strong margins averaging 85% over the forecast period.
The base case scenario considers annual cash flow from operations
(CFFO) at BRL5.6 billion in 2024 and BRL5.5 billion on average per
year in the following two years, sufficient to support the strong
increase in average annual investments projected to BRL1.3 billion
over the next three years. Average annual FCF should be BRL2.0
billion between 2024 and 2026, despite the robust dividend
distribution of BRL2.7 billion on average per year.
Revenue Concentration Risk Mitigated: TAG is exposed to
concentration risk with Petrobras as the sole counterparty to the
GTAs. The guarantee structure mitigates this risk, as it includes
receivables from a group of gas distributors and thermal power
generators that are Petrobras' clients, which must equate at least
120% of the monthly payment to TAG. The credit profile of the gas
distributors is robust, which also helps mitigate default and
concentration risk. The possibility of Petrobras discontinuing the
gas supply to its customers is reduced, since there are limited
alternatives for the company to use this gas.
DERIVATION SUMMARY
TAG's sound business profile - characterized by robust and
predictable cash flows - is similar to that of Brazilian power
transmission companies rated by Fitch, such as Transmissora
Aliança de Energia Elétrica S.A. (Taesa, BB+/BB+/AAA(bra)/Stable)
and Alupar Investimentos S.A. (Alupar, BB+/BBB-/AAA(bra)/Stable),
with revenues based on the availability of the network rather than
the volume transported. Long-term contracts automatically adjusted
for inflation is another common feature of the gas transportation
and power transmission businesses. TAG's financial leverage is
expected to remain lower than that of the two companies, while the
transmission companies show greater dilution of operating risks due
to assets diversification.
Other gas transportation companies in the region such as
Transportadora de Gas Internacional S.A. E.S.P.'s (TGI;
BBB/Stable), based in Chile, and Transportadora de Gas del Peru
S.A. (TGP; BBB+/Negative), based in Peru, also present low business
risk profiles, predictable revenues and robust cash flow
generation, with limited demand risk exposure given revenue based
on available infrastructure capacity under long-term contracts.
These companies also present strong credit metrics. The main
difference between the IDRs of the Brazilian companies and their
regional peers is the revenue-generating country and assets'
geographic location. Although TGP and TGI are in investment-grade
countries, TAG's, Taesa's and Alupar's ratings are negatively
affected by Brazil's Country Ceiling of BB+ and its operating
environment.
Similarly, TAG's credit profile positions below that of Southern
Natural Gas Company, L.L.C.'s (SNG; BBB+/Stable) given SNG's
operation in the U.S. without Country Ceiling limitations. SNG also
presents solid credit and financial operating metrics, and a credit
profile anchored by solid investment grade counterparties.
KEY ASSUMPTIONS
- Revenues based on contracted amounts and adjusted annually for
inflation, with part of the tariffs linked to exchange rate
variations, according to GTAs;
- 2.7% reduction in total revenues in 2026, following expiration of
the GTA for Malha Nordeste;
- Average annual investments of BRL1.3 billion between 2024 and
2026;
- Average annual dividend distribution of BRL2.7 billion between
2024 and 2026 and reduction of BRL1.3 billion in 2024 of the
capital transaction reserve account.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Positive rating actions are limited by Brazil's Country Ceiling
of 'BB+' and sovereign rating of 'BB';
- An upgrade to the Long-Term National Scale Rating does not apply
as it is at the top of the national scale.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Lower Brazil's Country Ceiling;
- A persistent weakening of Petrobras' receivables guarantee
structure with clients that deposit into a collection account;
- Leverage above 3.5x, on a sustainable basis;
- Inability to recontract the capacity of the GTA of the Northeast
Network, which is expiring;
- Regulatory or contractual changes that affect the fundamentals of
the gas transportation sector or TAG's business model.
LIQUIDITY AND DEBT STRUCTURE
Manageable Liquidity: TAG's cash/short-term debt ratio has
historically been weak to moderate. This is mitigated by the
expectation of positive FCFs and strong access to the capital and
debt markets, as well as flexibility in dividend distribution. At
the end of March 2024, the company's cash and financial investments
position was BRL1.1 billion, compared to BRL3.5 billion in debt
maturing in the short term. The recent proposed BRL3.0 billion
debenture issue materially strengthens liquidity and better
positions the company to face these obligations.
ISSUER PROFILE
TAG operates the largest gas pipeline network in Brazil, with
approximately 4,500 kilometers located in the North and Northeast
regions of the country. The company's shareholders are the Engie
group and the institutional investor Caisse de Dépôt et Placement
du Québec in equal ownership.
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
----------- ------ -----
Transportadora
Associada de
Gas S.A. – TAG LT IDR BB+ Affirmed BB+
LC LT IDR BBB- Affirmed BBB-
Natl LT AAA(bra)Affirmed AAA(bra)
senior unsecured Natl LT AAA(bra)Affirmed AAA(bra)
===============
X X X X X X X X
===============
[*] BOND PRICING: For the Week July 15 to July 19, 2024
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MTR Corp CI 3.0 73.1 3/11/2051 KY HKD
MTR Corp CI 3.0 75.4 4/26/2047 KY HKD
MTR Corp CI 3.2 73.7 2/5/2055 KY HKD
MTR Corp CI 3.0 73.1 3/11/2051 KY HKD
NIO Inc 4.6 73.1 10/15/2030 KY USD
Panama Gov'tInt'l Bond 4.5 63.1 4/1/2056 PA USD
Panama Gov'tInt'l Bond 2.3 70.2 9/29/2032 PA USD
Panama Gov'tInt'l Bond 3.9 55.8 7/23/2060 PA USD
Panama Gov'tInt'l Bond 4.5 64.9 4/16/2050 PA USD
Panama Gov'tInt'l Bond 4.5 62.0 1/19/2063 PA USD
Panama Gov'tInt'l Bond 4.5 66.6 5/15/2047 PA USD
Panama Gov'tInt'l Bond 4.3 62.6 4/29/2053 PA USD
Peruvian Gov'tInt'l Bond 3.6 71.8 3/10/2051 PE USD
Peruvian Gov'tInt'l Bond 2.8 57.3 12/1/2060 PE USD
Peruvian Gov'tInt'l Bond 3.2 57.3 7/28/2121 PE USD
Peruvian Gov'tInt'l Bond 3.6 65.7 1/15/2072 PE USD
Peruvian Gov'tInt'l Bond 3.3 74.3 3/11/2041 PE USD
Petroleos del Peru SA 5.6 68.3 6/19/2047 PE USD
Petroleos del Peru SA 5.6 68.3 6/19/2047 PE USD
Powerlong Real Estate 6.3 10.3 8/10/2024 KY USD
Provincia de Cordoba 7.1 39.6 10/27/2026 AR USD
Provincia de la Rioja 7.5 45.9 7/20/2032 AR USD
Provincia de la Rioja 4.5 51.8 1/20/2027 AR USD
Chaco Argentina 4.0 0.0 12/4/2026 AR USD
QNB Finance 13.5 63.1 10/6/2025 KY TRY
QNB Finance 11.5 71.7 1/30/2025 KY TRY
QNB Finance 2.9 74.2 9/16/2035 KY AUD
QNB Finance 2.9 72.9 12/4/2035 KY AUD
QNB Finance 3.0 75.4 2/14/2035 KY AUD
QNB Finance 3.4 72.0 10/21/2039 KY AUD
Radiance Holdings Group 7.8 49.6 3/20/2024 KY USD
Rio Alto Energias Renovaveis 7.0 29.1 7/15/2027 BR BRL
Santander Consumer Chile SA 2.9 72.7 11/27/2034 CL AUD
Seazen Group 6.0 75.2 8/12/2024 KY USD
Seazen Group 4.5 34.1 7/13/2025 KY USD
Shui On Development Holding 5.5 61.2 6/29/2026 KY USD
Shui On Development Holding 5.5 73.0 3/3/2025 KY USD
Silk Road Investments 2.9 66.8 1/23/2042 KY AUD
Skylark 1.8 59.0 4/4/2039 KY GBP
Autopista Central 5.3 37.2 12/15/2026 CL CLP
Autopista Central 5.3 50.6 12/15/2028 CL CLP
SQM 3.5 65.5 9/10/2051 CL USD
SQM 3.5 65.5 9/10/2051 CL USD
Southern Water Service 3.0 70.8 5/28/2037 KY GBP
SPE Saneamento RIO 1 7.2 10.8 1/15/2042 BR BRL
SPE Saneamento RIO 1 SA 6.9 10.5 1/15/2034 BR BRL
SPE Saneamento Rio 4 SA 7.2 10.2 1/15/2042 BR BRL
SPE Saneamento Rio 4 SA 6.9 10.2 1/15/2034 BR BRL
Spica 2.0 74.9 3/24/2033 KY AUD
Spirit Loyalty Cayman 8.0 72.2 9/20/2025 KY USD
Spirit Loyalty Cayman 8.0 73.0 9/20/2025 KY USD
Spirit Loyalty Cayman 8.0 70.3 9/20/2025 KY USD
Spirit Loyalty Cayman 8.0 72.5 9/20/2025 KY USD
Sylph 2.7 68.5 3/25/2036 KY USD
Sylph 3.1 74.7 9/25/2035 KY USD
Sylph 2.4 64.2 9/25/2036 KY USD
Sylph 2.9 74.5 6/24/2036 KY AUD
Telecom Argentina SA 1.0 74.0 3/9/2027 AR USD
Telecom Argentina SA 1.0 66.1 2/10/2028 AR USD
Telefonica Moviles Chile SA 3.5 74.4 11/18/2031 CL USD
Telefonica Moviles Chile SA 3.5 74.4 11/18/2031 CL USD
Tencent Holdings 3.2 67.9 6/3/2050 KY USD
Tencent Holdings 3.3 64.0 6/3/2060 KY USD
Tencent Holdings 3.9 73.9 4/22/2061 KY USD
Tencent Holdings 3.8 75.4 4/22/2051 KY USD
Tencent Holdings 3.2 67.6 6/3/2050 KY USD
Tencent Holdings 3.9 73.9 4/22/2061 KY USD
Tencent Holdings 3.3 64.1 6/3/2060 KY USD
Three Gorges Finance 3.2 71.6 10/16/2049 KY USD
Grupo Travessia 9.0 1.6 1/20/2032 BR BRL
Volcan Cia Minera SAA 4.4 62.2 2/11/2026 PE USD
Volcan Cia Minera SAA 4.4 62.0 2/11/2026 PE USD
VTR Comunicaciones SpA 5.1 61.6 1/15/2028 CL USD
VTR Comunicaciones SpA 4.4 60.8 4/15/2029 CL USD
VTR Comunicaciones SpA 5.1 61.9 1/15/2028 CL USD
VTR Comunicaciones SpA 4.4 60.6 4/15/2029 CL USD
YPF SA 7.0 72.6 12/15/2047 AR USD
YPF SA 1.0 66.8 4/25/2027 AR USD
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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 2024. All rights reserved. ISSN 1529-2746.
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of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Peter A. Chapman at 215-945-7000.
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