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250924.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 Wednesday, September 24, 2025, Vol. 26, No. 191 Headlines B E R M U D A NABORS INDUSTRIES: Credit Amendment Allows Annual $100MM Buyback B R A Z I L BRAZIL: Finance Minister Sees Rate Cuts in Coming Months G U A T E M A L A ENERGUATE TRUST 2: $70MM Notes Add-on No Impact on Moody's Ba2 CFR H O N D U R A S HONDURAS: IDB OKs $25MM-Loan to Strengthen Forest Management J A M A I C A JAMAICA: Renewable Energy Unreliable Without Proper Storage M E X I C O FIDEICOMISO IRREVOCABLE CIB/4323: S&P Lowers 2031 Notes to CCC P E R U PERU LNG: Fitch Affirms 'B' Long-Term Currency IDRs, Outlook Stable T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: PM Sends Promising Signals on Budget Deficit - - - - - ============= B E R M U D A ============= NABORS INDUSTRIES: Credit Amendment Allows Annual $100MM Buyback ---------------------------------------------------------------- Nabors Industries Ltd. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company and its wholly owned subsidiary, Nabors Industries, Inc. ("Nabors Delaware"), entered into first amendment to the Amended And Restated Credit Agreement dated June 17, 2024, among themselves, the other guarantors from time to time party thereto, the revolving lenders, the letter of credit facility participants, the issuing banks and other lenders party thereto and Citibank, N.A., as administrative agent. The First Amendment revised the restricted payments covenant to permit Nabors Delaware to repurchase up to $100 million of equity of either Nabors Delaware or any parent entity in any fiscal year. Usage of this provision will reduce Nabors Delaware's ability to make dividends on a dollar-for-dollar basis; any dividends distributed by Nabors Delaware will likewise reduce Nabors Delaware's ability to make buybacks of equity on a dollar-for-dollar basis. The other provisions of the A&R Credit Agreement remain unchanged. A copy of the First Amendment is available at https://tinyurl.com/mvbwk9bj About Nabors Bermuda-based Nabors Industries Ltd. (NYSE: NBR) owns and operates land-based drilling rig fleets and provides offshore platform rigs in the United States and several international markets. Nabors also provides directional drilling services, tubular services, performance software, and innovative technologies for its own rig fleet and those of third parties. As of June 30, 2025, the Company had $5.04 billion in total assets, $3.59 billion in total liabilities, and $640.33 million in total stockholders' equity. * * * Egan-Jones Ratings Company on June 10, 2025, maintained its 'CCC+' foreign currency and local currency senior unsecured ratings on debt issued by Nabors Industries, Inc. =========== B R A Z I L =========== BRAZIL: Finance Minister Sees Rate Cuts in Coming Months -------------------------------------------------------- globalinsolvency.com, citing Reuters, reports that Brazilian Finance Minister Fernando Haddad said he expects interest rate cuts to begin in the coming months, citing a more favorable foreign exchange outlook in Latin America's largest economy. "I believe there will be room for rate cuts . . . in the coming months," Haddad told an event hosted by J. Safra Bank, according to globalinsolvency.com. He noted that at the start of the year he said he would not pay more than 5.70 reais per dollar, while the exchange rate now stands near 5.30, the report notes. Although that level hurts government tax collection, he stressed it also brings "good news," the report adds. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian general election. He was sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. In October 2024, Moody's Ratings upgraded the Government of Brazil's long-term issuer and senior unsecured bond ratings to Ba1 from Ba2, the senior unsecured shelf rating to (P)Ba1 from (P)Ba2; and maintained the positive outlook. S&P Global Ratings raised on Dec. 19, 2023, its long-term global scale ratings on Brazil to 'BB' from 'BB-'. Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable Outlook. DBRS' credit rating for Brazil was last reported at BB with stable outlook at July 2023. ================= G U A T E M A L A ================= ENERGUATE TRUST 2: $70MM Notes Add-on No Impact on Moody's Ba2 CFR ------------------------------------------------------------------ Moody's Ratings said that the Ba2 Corporate Family Rating assigned to the Energuate Trust 2.0's (Energuate, Ba2 stable) and the Ba2 rating assigned to its senior unsecured notes, are unaffected by the planned issuance of an additional $70 million, which is an add-on to Energuate's existing $600 million 6.35% senior unsecured notes due 2035 (B loan). The proceeds of the add-on will be used to fully repay Energuate's outstanding bank loan at a 7.25% rate with Banco Industrial of roughly $68 million and transaction costs, therefore Moody's do not anticipate any material change to the company's credit profile. The rated notes are part of a financing structure that contemplates an A/B Bond where the International Finance Corporation (IFC, Aaa stable) will act as lender of record and hold $100 million of the issuance (A loan), while distributing the remaining $670 million to institutional investors (B loan), allocating repayments on a pro-rata basis. Energuate's credit profile reflect the combined cash flows of DEOCSA and DEORSA, headquartered in Guatemala City, which are the two largest electricity distribution utility companies in Guatemala in terms of the number of customers and the guarantors of the senior unsecured notes. Collectively, they serve more than 2.5 million customers, accounting for approximately 74% of the country's end-users. DEOCSA operates in the southwestern part of the country, while DEORSA provides services in the northern and eastern regions. The Comision Nacional de Energia Electrica (CNEE) regulates the utilities. Their distribution operations are subject to 50-year governmental authorizations, which expire in 2048. Threelands Energy Ltd. S.à r.l. (Threelands Energy Group) control DEOCSA and DEORSA companies since September, 2023. =============== H O N D U R A S =============== HONDURAS: IDB OKs $25MM-Loan to Strengthen Forest Management ------------------------------------------------------------ The Inter-American Development Bank (IDB) has approved a $25 million loan to support forest conservation and restoration efforts in Honduras. The project, "Sustainable and Resilient Agroforests", approved by the IDB's Board of Executive Directors, aims to promote the adoption of forestry and agroforestry practices that increase forest cover, boost community forestry through sustainable management and income diversification, and strengthen the institutional capacity of the Honduran National Institute of Forest Conservation and Development, Protected Areas and Wildlife (ICF). The operation will directly benefit more than 4,800 people in the departments of Atlantida, Colon, Yoro, Olancho, and El Paraiso, and will strengthen 50 agroforestry organizations. Planned actions include technical assistance, delivery of technology packages, restoration of micro-watersheds, implementation of business and entrepreneurship plans, modernization of the forest registration and monitoring system, and enhanced capacity for wildfire prevention and risk management. The project also includes strengthening the Honduran Forest Seed Bank, developing a pilot program for results-based incentives for wildfire prevention, and updating regulations to facilitate forest management. These efforts will focus on areas with high restoration potential and active community participation, promoting sustainable and resilient forest management and creating economic opportunities. The IDB financing includes $15 million from its regular ordinary capital and $10 million on concessional terms. The loan features has repayment periods of 25 and 40 years, respectively, with a grace period of 5.5 years. ============= J A M A I C A ============= JAMAICA: Renewable Energy Unreliable Without Proper Storage ----------------------------------------------------------- RJR News reports that Chief Executive Office of Jamaica Energy Partners, Wayne McKenzie, has warned that renewable energy remains unreliable without proper storage. He said solar and wind power are intermittent, switching on and off depending on conditions, and so more batteries are needed to store the power generated, according to RJR News. Mr. McKenzie noted that the Jamaica Public Service Company should be providing storage for 171 megawatts of power, but has not yet started, the report relays. He stressed that relying on renewables without batteries to hold excess power during off-peak periods makes the national grid insecure, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. =========== M E X I C O =========== FIDEICOMISO IRREVOCABLE CIB/4323: S&P Lowers 2031 Notes to CCC -------------------------------------------------------------- S&P Global Ratings lowered to 'CCC (sf)' from 'B- (sf)' its long-term global scale rating on Fideicomiso Irrevocable De Emision, Administracion Y Pago Numero CIB/4323's senior secured notes due 2031. At the same time, S&P maintained its placement of the rating on CreditWatch with negative implications. Fideicomiso Irrevocable De Emision, Administracion Y Pago Numero CIB/4323 is a CMBS transaction backed by two lodging properties in Cancun, Quintana Roo, and their associated revenues. On Sept. 12, 2025, Murano Global Investments PLC announced that it had not made the scheduled interest payment on its 2031 11% senior secured notes. This is part of the group's ongoing efforts to preserve liquidity as it seeks long-term financial sustainability, as stated by the company. The transaction documents provide for a 30-day period to cure any missed interest payments, after which an event of default can be triggered and interest on the notes will accrue until full repayment either by collecting from Murano or through the foreclosure and liquidation of the properties. Murano is in conversation with noteholders to negotiate a potential restructuring of the notes. The missed interest payment reflects mainly the inability of the properties that compose the collateral for the notes to generate the expected level of cash flows, which would allow the transaction to maintain adequate reserves for interest repayment. This results from the properties' operational uncertainties, as the Dreams Hotel remains non-operational and is likely to require additional capital expenditures before it starts generating cash flows. Meanwhile, the average daily rates and occupancy level of the Vivid Hotel also remain below expectations. Furthermore, Murano's own financial struggles have limited its ability to provide additional support to the transaction. The downgrade of the notes reflects S&P's view that, absent unexpected favorable developments, the likely options to investors are either a restructuring of the notes under distressed conditions or a challenging foreclosure and liquidation process. The latter option also carries significant uncertainties, given the effect of accruing interest on the notes' principal and the fact that one of the properties is not operational, which can result in a low valuation and therefore potentially less than 100% recovery to noteholders. CreditWatch Placement Maintained The rating on the transaction remains on CreditWatch with negative implications, as a restructuring of the notes is possible in the near term, before the end of the 30-day cure period. S&P said, "We expect to resolve the CreditWatch placement on the notes once we have more clarity on whether a restructuring agreement will be reached, or if the transaction will go into liquidation following the declaration of an event of default if the nonpayment of interest is not cured on time. We may view a restructuring of the notes as a distressed negotiation, given the current scenario, and therefore tantamount to default." ======= P E R U ======= PERU LNG: Fitch Affirms 'B' Long-Term Currency IDRs, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed PERU LNG S.R.L.'s (PLNG) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B'. Fitch has also affirmed PLNG's USD940 million senior unsecured notes due 2030 at 'B' with a Recovery Rating of 'RR4'. The Rating Outlook on the IDRs is Stable. The ratings incorporate adequate liquidity, supported by cash on hand of USD95 million as of Sept. 12 plus USD85 million in confirmed collections from Shell International Trading Middle East Limited (SITME), which together cover USD99 million of debt service due Sept. 22. PLNG's ratings and Outlook also reflect Fitch's view that shareholder support is highly likely, if required, and that constraints on revenue upside under its sale and purchase agreement (SPA) will further diminish as the Minimum Manzanillo (MM)-linked volumes decline to 41% in 2026 and cease to apply from 2027 onward. Key Rating Drivers Adequate Liquidity Profile: PLNG's liquidity is adequate. The company held USD95 million of cash as of Sept. 12 which, combined with confirmed receivables from SITME of up to USD85 million over the next two weeks, is sufficient to cover USD99 million in debt service due Sept. 22 and to meet working capital needs. Given the expected improvement in economics, Fitch believes shareholder support is highly likely, if required. The DSCR ratio and EBITDA interest coverage are estimated to remain above 1.0x and 4.5x, respectively, over 2025-2026. Fitch's base case projects positive FCF over the rating horizon. Improving Profitability: As the MM clause constraint phases out, Fitch expects EBITDA margins above 20% in FY2026-FY2028, assuming steady annual production around 200 TBtu. Reduced Henry Hub (HH) linkage enables greater allocation to higher-priced markets (NBP, JKM), strengthening margins. For non-HH sales, Fitch uses Title Transfer Facility (TTF) prices as a proxy for JKM/NBP realizations. Fitch expects 2H25 EBITDA of around USD100 million leading to FY2025 of USD215 million and USD222 million in 2026. The DSCR ratio is estimated to be remain above 1.0x between 2025 and 2026. Fitch's base case projects positive FCF over the rating horizon. Declining Leverage: Fitch forecasts EBITDA leverage to improve to 3.5x by end-FY2025, down from 7.5x in FY2024, driven by favorable pricing and stable sales volumes, with EBITDA of about USD215 million on 191 TBtu of sales. The SPA limits revenue upside and increases price exposure, with 55% of FY2025 revenue tied to HH. This reduces to 41% in 2026 and phases out thereafter. Strategic Asset in Peru: PLNG is a strategic asset for Peru, supporting continued gas development in the country. As of FY2024, the Peruvian government received close to USD1.6 billion in natural gas exports from Block 56 in the Camisea field. The company has no domestic competitors given the high investment barriers to entry and the gas supply agreement (GSA) that effectively grants it exclusive rights to much of the country's exportable gas supply, allocated from the prolific low-cost operations of Block 56 and Block 57. Standalone Approach: Fitch believes there is potential for increased backing given that PLNG has generally received timely support from its shareholders, as Fitch views PLNG as a strategic asset to its shareholders. The shareholder agreement shows a commitment to maintaining PLNG's viability through contract clauses, capital injections, or subordinated loans. Peer Analysis PLNG has limited regional peers. Even outside of Latin America, liquified natural gas (LNG) plants tend to operate on a more purely take-or-pay, capacity-based tolling business model, whereas PLNG incorporates commodity price risk, resulting in a volatile financial profile. Tolling-based peers such as Transportadora de Gas del Peru S.A. (TGP; BBB+/Stable) and GNL Quintero S.A. (GNLQ; A-/Stable) benefit from the related cash flow stability afforded by their revenue structures, and low or no exposure to commodity prices or volume risk. GNLQ's leverage is expected to continue to decrease annually as the company's outstanding notes amortize, projected to fall below 1.5x by 2026. TGP's leverage is anticipated to follow a similar trend, while PLNG's leverage should be around 3.5x in 2026. TGP's revenue is derived from long-term ship-or-pay contracts to transport natural gas and natural gas liquids from the country's main gas production formation, Camisea, to the main consumption area and export terminal. Like GNLQ, PLNG is considered a strategic asset for the country. However, while GNLQ handles the liquefaction from imported natural gas in Chile, PLNG is the main infrastructure allowing Peru to export natural gas. Key Assumptions - Fitch's gas price deck for HH at USD3.4/mcf by YE 2025, USD3.5/mcf in 2026, USD3.0/mcf in 2027, and long-term price at USD2.75/mcf; - Fitch's gas price deck for TTF at USD12.0/mcf by YE 2025, USD8.0/mcf in 2026, USD7.00/mcf in 2027, and long-term price at USD5.00/mcf; - HH-indexed destinations receive 55% of shipments in 2025 and 41% in 2026, which does not apply from 2027 onward. Remainder volumes evenly distributed between European and Asian indexed destinations; - Minimum YE cash balance of USD50 million over the rating horizon; - Exported volumes at 191 TBtu in 2025 and 200 TBtu on average between 2026 and 2027; - Average plant efficiency of 91% for the rating horizon; - Transportation costs annually adjusted by the U.S. Producer Price Index; - Annual capex of USD10 million in 2025 and average of USD15 million between 2026 and 2028; - No dividend payments and/or any other shareholder distributions between 2025 and 2027. Recovery Analysis The Liquidation Value (LV) approach usually involves discounting the book value of balance sheet assets and summing the results to estimate the total asset liquidation proceeds in a hypothetical liquidation process. The recovery analysis assumes that PLNG would be liquidated in an event of bankruptcy rather than continue as a going concern (GC). This assumption is driven by the high book value of PLNG's assets as the LNG plant is the main infrastructure allowing Peru to export natural gas and has several years of useful life left, absent large-scale investment needs. Fitch bases its recovery ratings on 2Q25 reported accounts. - Fitch has assumed a 10% administrative claim; - A 20% cut to adjusted net inventory, as Fitch anticipates potential for lower recovery; - A 20% cut to net property, plant and equipment; - A 20% cut to account receivables. The above assumptions result in a recovery rate assumption within the 'RR2' range for the senior unsecured notes. Due to the 'RR4' cap for Peru's corporates, Fitch limits the recovery for the senior unsecured bond at 'RR4' despite a higher projected recovery. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Cash available below USD50 million; - Dividend payments and/or any kind of shareholder distributions impacting liquidity; - Material disruptions in gas supply or other operational outages eroding the company's cash flow generation; - Sustained negative FCF; - EBITDA leverage above 6.0x over the rating horizon; - EBITDA interest coverage below 1.25x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Sustained and material shareholder support such as capital injections, guarantees or other financial backing; - Amendments to contracts that would reduce price and volume risk, similar to its tolling-based peers in the region; - Greater visibility on medium- to long-term re-contracting options; - Liquidity ratio consistently above 1.25x over the rating horizon; - EBITDA interest coverage consistently over 5.0x; - Hedge strategy to mitigate the company's exposure to commodity price risk. Liquidity and Debt Structure As of end of Sept. 12, 2025, PLNG had USD95 million in cash on hand and had fully draw its available committed credit lines, while facing USD99 million in debt service due on Sept. 22. Fitch assumes PLNG will service its debt cash plus collections from SITME for up to USD85 million over the next two weeks. FCF in FY2025 should average USD45 million, and around USD210 million between 2026 and 2027 based on Fitch's price deck scenarios. Fitch estimates that cash and equivalents available, in addition to FCF in 2026 and in 2027, will cover debt obligations by 1.1x on average. The company has access of up to USD60 million in cash support from its SPA in low-price environments. Issuer Profile Established in 2003, PLNG operates a 4.5 million mtpa gas liquefaction plant, a marine terminal, and a 408 km pipeline transporting natural gas from the Camisea fields to the coast. External Appeal Committee Outcomes In accordance with Fitch's policies the Issuer appealed and provided additional information to Fitch that resulted in a rating action that is different than the original rating committee outcome. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts 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 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 ----------- ------ -------- ----- PERU LNG S.R.L. LT IDR B Affirmed B LC LT IDR B Affirmed B senior unsecured LT B Affirmed RR4 B ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: PM Sends Promising Signals on Budget Deficit --------------------------------------------------------------- Trinidad and Tobago Newsday reports that Trinidad and Tobago Prime Minister Kamla Persad-Bissessar confirmed that the budget will feature a deficit. That's not surprising, nor is it necessarily bad news, the report notes. "We have inherited some really bad treasury stock," Ms Persad-Bissessar told reporters at the Red House, according to Trinidad and Tobago Newsday. "We've inherited a lot of borrowing as well. I don't think we can have a balanced budget, so we may have expenditure outpacing revenues," the report notes. However, the PM tellingly added, "It may not be as bad as you think," the report relays. A further note of reassurance came when she disclosed the cabinet was working on ways to supplement revenues, saying, "I've been in this parliament long enough. There are creative ways of financing deficits and we will utilize the tools that are available," the report discloses. While debt levels suggest room for fiscal maneuvering may be somewhat limited – and there was also a warning issued this month about a possible softening of LNG prices – Ms Persad-Bissessar's hints that spending will not be drastically cut bodes well for the stimulation of economic growth, the report discloses. But her promise of creativity further raises expectations that Finance Minister Davendranath Tancoo's first fiscal package will have to boldly meet, the report relays. The PM's buoyant mood contrasted with the doom and gloom of PNM MP Colm Imbert, the report notes. "I'm hearing it's $15 billion, could be $20 billion," the former finance minister said of the upcoming deficit, the report relays. "If it's in that range, it means that our debt is going to skyrocket. It's not good for us, but I thought they had all the answers and they were going to balance the budget, so I'll wait and see," she added. This divergence was a preview of what to expect in the budget debate, the report says. That debate will paper over a reality that is somewhere in-between, the report discloses. Ms Persad-Bissessar cannot afford to drastically slash spending in key areas such as national security and education, the report relays. Indeed, she has already suggested expenditure in these areas will continue to dominate, the report notes. Previously, she has also suggested funding in other areas may well be ring-fenced, such as salaries and pensions, the report relays. The report discloses that her recent order of the immediate payment of salary arrears to 950 current and former National Insurance Board employees and a salary adjustment as outlined in a collective award for 2014-2016 has whet the appetite of trade unionists awaiting a similar resolution of pending settlements. But the measure was uncosted, meaning it will be left to Mr Tancoo to spell out the funding, the report relays. With Central Bank Governor Larry Howai this month indicating a slowdown in the economy at the start of 2025 – retail spending, cement purchases and LNG production are all down – holding strain and maintaining expenditure, even into a deficit, may be essential at this stage in order not to deflate consumer spending, the report notes. What will matter are the areas into which spending is spread and the terms of financing, the report says. Yet, all of this means the government needs to walk a tightrope come October. Paradoxically, it needs to be conservative in its approach to changes while unleashing innovation in a way that citizens will feel, the report adds. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. 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