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251001.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, October 1, 2025, Vol. 26, No. 196 Headlines A R G E N T I N A ARGENTINA: Central Bank Slashes Repo Rate, Stalls Peso Rally ARGENTINA: Re-Establishes Grain Export Duties as Farmers Cry Foul ARGENTINA: U.S. Readies US$20 Billion Rescue to Help Milei Win B R A Z I L AMBIPAR PARTICIPACOES: Fitch Lowers LongTerm IDRs to C AMBIPAR PARTICIPACOES: S&P Downgrades Issuer Credit Rating to 'D' AZUL SA: Speeds Up Network, Simplifies Fleet to Exit Ch. 11 BRAZIL: Central Bank Signals 'New Stage' of Steady Interest Rates C A Y M A N I S L A N D S VISTRA HOLDINGS: Fitch Lowers LongTerm Foreign Currency IDR to 'B' D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Approves RD$1.74 Trillion Budget for 2026 M E X I C O BOWERS TRUCKING: Section 341(a) Creditors Meeting Set for Nov. 4 P E R U PERU: IDB Approves $550MM-Loan to Advance Fiscal Reforms - - - - - ================= A R G E N T I N A ================= ARGENTINA: Central Bank Slashes Repo Rate, Stalls Peso Rally ------------------------------------------------------------ Ignacio Olivera Doll & Nicolle Yapur at Bloomberg News report that Argentina's Central Bank cut its one-day peso repo rate by 10 percentage points to 25 percent, according to two people with direct knowledge of the matter, stalling the rebound in the currency. The new rate was reported through the SIOPEL platform, the country's main electronic trading system, the people said, according to Bloomberg News. The one-day repo rate has become one of the Central Bank's key monetary policy tools as it navigates persistent inflation pressures and swings in the exchange rate, Bloomberg News relays. Bloomberg News discloses that following the decision, the peso weakened to 1,370 per US dollar after briefly touching 1,330 per dollar earlier in the session. It subsequently strengthened back to 1,355 per US dollar. The peso recovered from record lows after the government announced grain export taxes would be suspended until October 31, Bloomberg News relays. The fiscal relief accelerated dollar sales from exporters and strengthened the peso by about nine percent in just two days, Bloomberg News discloses. Fear of a sudden devaluation also eased after the US government said it is discussing a US$20-billion swap line with Argentina, Bloomberg News notes. "The government is taking advantage of the flood of dollars and the increased optimism in the financial market to reduce domestic rates and give the economy a boost in the run-up to the election," said Juan Sola, an analyst at Banctrust & Co, Bloomberg News discloses. A spokesman for Argentina's Central Bank declined to comment. Bloomberg News relates that the US said it was ready to buy Argentina's dollar bonds, giving President Javier Milei breathing room until the midterm elections next month. The move underscores US President Donald Trump's eagerness to help his ally fend off a run on the peso, Bloomberg News notes. The two leaders and their teams met on the sidelines of the United Nations General Assembly in New York. Milei thanked his US counterpart for the "firm support," Bloomberg News discloses. "Now that it has found backing for the FX with the grain dollars, and with the expectation of a US loan, it is normal that it seeks to normalise rates," said Santiago Resico, an economist at brokerage firm one618, referring to the Argentine government. The move will help to "relieve pressure on the ARS curve and reduce the Treasury's financing needs in pesos," he added. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. The upgrade reflects the launch of a new IMF program, among other things. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. Moody's Ratings, in January 2025, raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. ARGENTINA: Re-Establishes Grain Export Duties as Farmers Cry Foul ----------------------------------------------------------------- President Javier Milei's government has re-established export duties on grain, which had been eliminated, after quickly reaching the dollar ceiling in the scheme but meat and poultry will stay exempt. The announcement closes out a week in which Milei and Argentina, weakened by financial turbulence, received resounding support from Washington. The United States Treasury disclosed that it was negotiating a swap line with the Central Bank to the tune of some US$20 billion, along with possible credit facilities or the purchase of Argentine debt. This announcement soothed markets and boosted Argentine assets, halting the depreciation of the peso and calming fears of a default after a run on the currency forced the Central Bank to intervene in the foreign exchange market, selling over US$1 billion. US Treasury Secretary Scott Bessent said in a post on the X social network thatWashington was working with its Argentine counterparts "to end the tax exemptions for the producers of primary materials who cash in foreign currency." Argentina had decided to suspend export duties on grain and meat until October 31 or until a target of US$7 billion was met with the aim of "generating a greater supply of dollars" in the economy. In a post two days later, the ARCA (Agencia de Recaudación y Control Aduanero) tax bureau pointed out that the target for grain had been reached and that the suspension would be lifted. "The regime of zero duties on the export of chicken and beef will continue until October 31," confirmed Presidential Spokesperson Manuel Adorni. The Milei government sought to encourage the farming sector, which represents around 60 percent of Argentina's total exports, to release its stocks held in reserve and export immediately, instead of waiting. After US President Donald Trump expressed support for his "good friend" President Milei on Sept. 23 and Bessent's announcement the following day, the dollar strengthened to trade at 1,345 pesos per greenback, compared to 1,515 on September 19 – an appreciation of over 12 percent in less than a week. Campo Criticism Agricultural producers reacted negatively to the decision to reimpose export duties, criticising the government for only keeping the policy in place for 72 hours. The measure was announced night of Sept. 22 and meant to last until the end of October, but by Wednesday the US$7-billion quota had been met. It was later revealed that only a dozen large agro-export companies had benefitted by filing their paperwork. According to reporting in local media, some firms registered sales in advance for soybean exports that have yet to even be planted, guaranteeing themselves future duty-free shipments. Stocks have yet to even been purchased from producers. Complaints from industry leaders began to rain down. Some smaller producers posted videos on social media suggesting that there had been a "set-up." Nicolas Pino, the head of the Sociedad Rural Argentina (SRA), said: "We want to see if producers were actually able to take advantage of this benefit. How is it possible that the export sector issued so many sworn declarations in such a short period of time to cover such a large sum of money?" Industry representative Andrea Sarnari of the Agrarian Federation noted that "small and medium-sized producers were not benefited, and they were not even close to getting past the barrier." ARCA head Juan Pazo rejected those claims. In an appearance on the Carajo streaming channel, he stated: "Transparency in the handling of information is very important, and whenever we take a fundamental measure, no-one ever knows" in advance. Felipe Nunez, an advisor at the Economy Ministry, joined the defence, insisting that "no-one knew about the measure" in advance. "It was taken, only a few of us knew about it, and, as always in this economic team, we don't create any secrets, and no-one finds out about the measures before they happen. The same thing happened with the [removal of] currency controls. So there's no problem there, no complicity," Nunez added. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. The upgrade reflects the launch of a new IMF program, among other things. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. Moody's Ratings, in January 2025, raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. ARGENTINA: U.S. Readies US$20 Billion Rescue to Help Milei Win -------------------------------------------------------------- Buenos Aires Times reports that the United States plans to extend a US$20-billion swap line to Argentina and is ready to buy the country's foreign bonds, providing much-needed financial support to President Javier Milei as he tries to regain investor confidence and stem a run on the peso. Terms of the deal are still being negotiated, Treasury Secretary Scott Bessent said in a post on X that sparked a brief rally in Argentine assets, according to Buenos Aires Times. He made clear in an interview on Fox News that the financing was meant to help Milei ahead of a crucial midterm vote next month, aiding an ideological ally in a region where US President Donald Trump has few friends in power, the report notes. "I don't think the market has lost confidence in him," Bessent said, referring to the Argentine leader. "I think the market is looking in the rearview mirror and looking at decades – about a century – of terrible Argentine mismanagement," he added. The report discloses that Milei, a free-market reformer, has faced mounting financial pressure in the two-and-a-half weeks since his party lost a key Buenos Aires Province election by a landslide, a bad omen just a month ahead of congressional elections. The defeat prompted investors to pull their money out of the country, fearful Milei is losing the support he needs to sustain his business-friendly reform agenda, tame inflation and stabilise a currency that's been ravaged by crisis, again and again, in recent decades, the report relays. Bessent described the aid as a "bridge to the election," referring to the October 26 vote in which Milei is looking to boost his La Libertad Avanza party's presence in Congress, the report discloses. In recent weeks, lawmakers there have moved to overturn the President's vetoes on spending bills, threatening the balanced books he sees as his crowning achievement so far, the report relays. In addition to the swap line, Bessent said the US is "prepared to deliver" a stand-by credit from the Treasury's Exchange Stabilization Fund. It wasn't immediately clear if the swap and stand-by credit would both come from the ESF, the report discloses. Washington's move ends "uncertainty about the liquidity difficulties generated by the economic program so far," said Federico Filippini, chief economist at Adcap Grupo Financiero, the report relays. "The announcement that the Treasury would be willing to directly purchase sovereign debt significantly increases the likelihood of a fall in country risk to the point that the government could issue debt in early 2026." After Bessent's announcement, Argentina's Central Bank slashed its one-day peso repo rate – one of its key monetary policy tools – by 10 percentage points to 25 percent, the report discloses. That blunted a rebound in the currency, with the peso about two percent stronger on the day, compared to almost three percent earlier, the report says. Dollar bonds jumped across the curve, with notes due in 2035 rising more than three cents, nearly erasing losses seen since the September 7 election setback, the report notes. The benchmark S&P Merval stock index was up 1.5 percent. Currency Policy The US support may be a moment for Milei to shift his currency policy so the Central Bank can rebuild its depleted foreign reserves, the report relays. Monetary officials blew through more than US$1 billion to keep the peso within a trading range established in April as part of Argentina's latest deal with the International Monetary Fund, the report discloses. "This helps to correct expectations," said Daniel Marx, a former Argentine finance secretary who is now director of consulting firm Quantum Finanzas. "The ideal thing now is to move as quickly as possible toward a more open, market-based mechanism" on foreign exchange, he added. Gita Gopinath, who was deputy managing director at the International Monetary Fund until the end of August, echoed that sentiment, the report says. "US support is certainly helpful to prevent speculative currency moves," she said in a post on X, the report notes. But durable progress will also require Argentina to institute a "flexible exchange rate regime, accumulate reserves, and build support for its reforms at home," she added, The report relays that Bessent's plan would mark an extraordinary turnabout for a US president who was elected on a promise to limit US military and financial interventions overseas in favour of focusing on domestic concerns. Since taking office, Trump has slashed billions in foreign aid and cut or suspended military assistance for Ukraine in its fight against Russia, the report notes. But in the case of Argentina, Trump appears to be coming to the aid of a leader whom the administration views as an ideological ally, the report discloses. Trump has made moves to aid Argentina before, though never so directly, the report says. During his first term in 2018, Trump pushed the IMF to approve an initial US$50-billion program for the country under Mauricio Macri, a deal that quickly unravelled, the report relays. Since then, the IMF has struck two more agreements with Argentina including the US$20-billion package Milei secured this year. That loan raised many red flags for the Fund's top decision-makers but got a green light anyway with another push by the United States. Now in his second term, Trump has stoked tensions with Brazilian President Luiz Inacio Lula da Silva, threatened new tariffs on Mexican President Claudia Sheinbaum, and ordered strikes on boats belonging to alleged drug-traffickers in the Caribbean as a warning to Venezuela's Nicolas Maduro. All the while, Milei has made repeated trips to the US to publicly praise Trump, the report notes. Criticism The report discloses that even before Bessent detailed the financial support, US economists were critical of Washington propping up Milei's policies after Argentina has repeatedly failed to comply with its IMF programmes, while defaulting on sovereign debt three times since 2001. "The US has to worry that it will end up in the same position as the IMF," Brad Setser, a senior fellow at the Council on Foreign Relations and former US Treasury official in the Barack Obama administration, said, the report relays. "The world has learned that it's a lot easier to lend their money to Argentina than to get it back," he added. There's also been political criticism. The report notes that Senator Elizabeth Warren of Massachusetts, who had earlier pressed Bessent for more information on the Argentina relief plan, blamed Trump for what the Democrat described as a bailout for "a political ally and his global investors before an election." Another key detail of Bessent's announcement was that the US was working "to end the tax holiday for commodity producers" in Argentina, referencing temporary tax cuts Milei put in place, the report relays. Exporters rushed to register nearly US$4.2 billion of grain shipments to qualify for the tax break and capture a relatively advantageous exchange rate, the report notes. The American Soybean Association criticised the Trump administration for aiding a country that's rushing shipments to China in competition with US soy farmers' harvest, which faces retaliatory tariffs in the Asian nation, the report discloses. The Trump administration's swap line, meanwhile, will likely raise questions in Beijing since the figure is bigger than Argentina's line with China's Central Bank, which is about US$18 billion, the report says. The US has been critical of the China swap in the past and local media reports suggest Milei is again under pressure to abandon it, the report relays. Despite his libertarian ethos, Milei has increasingly intervened in the stagnating economy to support the peso, seeking to prevent annual inflation from spiking again ahead of the midterm elections, the report relays. Inflation has dropped to 34 percent from 289 percent last year, and Milei needs a strong electoral showing to bolster his slim minority in Congress, where opposition lawmakers have so far resisted his market-friendly agenda and economic reforms, the report notes. Amid Milei's heavier hand, economic activity has fallen in recent months and analysts in Argentina forecast a third quarter contraction in gross domestic product after a minor dip in the previous period, the report discloses. Unemployment remains elevated, particularly as construction, manufacturing and retail have all struggled from weak consumer spending during Milei's Presidency, the report the report adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. The upgrade reflects the launch of a new IMF program, among other things. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. Moody's Ratings, in January 2025, raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. =========== B R A Z I L =========== AMBIPAR PARTICIPACOES: Fitch Lowers LongTerm IDRs to C ------------------------------------------------------ Fitch Ratings has downgraded Ambipar Participacoes e Empreendimentos S.A.'s (Ambipar) Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'C', from 'BB-', and National Long-Term Rating and its rated subsidiaries to 'C(bra)', from 'AA-(bra)'. Fitch has also downgraded the senior unsecured issuances by subsidiary, Ambipar Lux S.a.r.l., to 'C' with a Recovery Rating of 'RR4', from 'BB-', and the national long-term senior unsecured ratings on the issuances from Ambipar and its rated subsidiaries to 'C(bra)', from 'AA-(bra)'. The downgrade follows the approval for Ambipar's preliminary injunction petition from Rio de Janeiro's court that establishes, among other protection measures, the suspension of the effects of any and all contractual provisions that would trigger acceleration of Ambipar Group and its related parties' debts and the enforceability of all obligations under the relevant contractual instruments. Fitch considered that Ambipar entered into a default-like process. Should Ambipar formally announce a restructuring plan, the ratings will be downgraded to 'RD' to reflect a restricted default or 'D' if the company files a bankruptcy protection. Key Rating Drivers Injunction Petition: The approved injunction petition allows Ambipar to not pay its debt as requested from creditors, which Fitch considers as a default-like process. The company's intention is to preserve cash, prevent debt acceleration and asset seizure, and maintain business continuity until it reaches an agreement with creditors. Consolidated Approach: Fitch assesses Ambipar and its two subsidiaries on a consolidated basis due to the high legal ties between them, such as substantial guarantees and cross-default clauses in the group's financial obligations. This assessment is in accordance with Fitch's "Parent and Subsidiary Linkage Rating Criteria". Governance Concerns: Fitch assesses Ambipar's relevance score of governance at 5, reflecting limited transparency around its financial strategy and a series of recent governance shortcomings, including the late filing of a subsidiary's 20-F, an ongoing administrative process from Comissão de Valores Mobiliários (CVM) and limited transparency in recent accounting figures and financial policy. Peer Analysis The current ratings reflect that Ambipar entered a default-like process. Recovery Analysis The recovery analysis assumes that Ambipar would be considered a going concern (GC) in bankruptcy and that the company would be reorganized rather than liquidated. Fitch has assumed a 10% administrative claim. Ambipar's GC EBITDA is BRL1.6 billion, reflecting the low end of expected EBITDA in a distressed financial environment. This estimate represents Fitch's view of a sustainable, post-reorganization EBITDA level used to value the company. Fitch applies a 5.0x EV/EBITDA multiple, reflecting the company's market position and business model. 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 June 30, 2025. These assumptions result in a recovery rate for its total debt within the 'RR3' range. However, due to the soft cap of Brazil at 'RR4', Ambipar's debt issuances are rated 'C'/'RR4'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - The formal announcement of a distressed debt exchange or bankruptcy protection process; - Missed payment of any financial obligations after the preliminary injunction period. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A positive rating action is unlikely in the short-term. Liquidity and Debt Structure Given recent events, Ambipar's financial flexibility deteriorated sharply. Fitch has limited visibility on the company's most recent cash position apart from June 2025. In the same period, near-term maturities were BRL957 million versus an adjusted cash balance position of BRL4.1 billion. Issuer Profile Ambipar provides environmental services in Latin America (primarily in Brazil), the U.S., Canada and the U.K. It operates in two main segments: response (mitigating and preventing environmental damage from accidents) and environment (managing and recovering industrial waste from private clients). 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 Ambipar Participacoes e Empreendimentos S.A. has an ESG Relevance Score of '5' for Financial Transparency due to {DESCRIPTION OF ISSUE/RATIONALE}, which has a negative impact on the credit profile, and is highly relevant to the rating, resulting in {an implicitly lower/higher rating or outlook/watch or cite specific change(s) to the rating/outlook/watch: stable from positive, stable from negative, one notch downgrade, etc.}. 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 ----------- ------ -------- ----- Ambipar Lux S.a.r.l. senior unsecured LT C Downgrade RR4 BB- Environmental ESG Participacoes S.A. Natl LT C(bra) Downgrade AA-(bra) senior unsecured Natl LT C(bra) Downgrade AA-(bra) Ambipar Participacoes e Empreendimentos S.A. LT IDR C Downgrade BB- LC LT IDR C Downgrade BB- Natl LT C(bra) Downgrade AA-(bra) senior unsecured Natl LT C(bra) Downgrade AA-(bra) Emergencia Participacoes S.A. Natl LT C(bra) Downgrade AA-(bra) senior unsecured Natl LT C(bra) Downgrade AA-(bra) AMBIPAR PARTICIPACOES: S&P Downgrades Issuer Credit Rating to 'D' ----------------------------------------------------------------- S&P Global Ratings lowered its global scale issuer and issue-level credit ratings on Brazilian state court granted Ambipar Participacoes e Empreendimentos S.A. multiple notches to 'D' (default) from 'BB-'. S&P also removed all ratings from the CreditWatch with negative implications where it placed them on Sept. 18, 2025. At the same time, S&P withdrew the recovery ratings on the bonds. On Sept. 24, 2025, Ambipar judicial protection under a provisional remedy to suspend any contractual provision that could trigger a debt acceleration and the enforceability of all obligations on the company's debt instruments. The injunction relief granted to Ambipar on Sept. 24 suspends any contractual provision that could trigger a debt acceleration and the enforceability of all obligations on the company's debt instruments while it negotiates with creditors. We assess this as equivalent to a general debt restructuring of Ambipar's obligations. The company reported short-term debt of Brazilian reais (R$) 616 million, representing only about 5% of its consolidated gross debt, coupled with a sizable cash position of R$4.7 billion as of June 30, 2025. Environmental, social, and governance (ESG) credit factors for this change in credit rating/outlook and/or CreditWatch status: -- Risk management, culture, and oversight -- Transparency and reporting AZUL SA: Speeds Up Network, Simplifies Fleet to Exit Ch. 11 ----------------------------------------------------------- Alexander Mitchell of Simple Living reports that Azul Linhas Aereas, which has been under Chapter 11 bankruptcy protection since May 2025, is moving aggressively to simplify both its fleet and network in a bid to emerge from restructuring by early 2026. The Brazilian airline plans to return additional aircraft -- mainly first-generation Embraer E195s -- bringing its fleet reduction to about 35%. With a fleet of 186 aircraft at the end of the second quarter, Azul notes that the targeted planes were already out of service, minimizing the impact on customers while cutting costs tied to leasing and maintenance, according to the report. On the network side, Azul has already exited more than 15 cities and intends to eliminate over 50 routes to concentrate capacity on higher-margin markets and higher-fare travelers. Its restructuring plan aims to reduce more than $2 billion in debt, secure $1.6 billion in financing, and raise up to $950 million in new equity with support from American Airlines and United Airlines. The airline is also finalizing a $1 billion savings agreement with AerCap, one of the world's largest aircraft lessors, as part of its broader effort to strengthen liquidity and financial flexibility, according to Simple Living. By shrinking and modernizing its fleet, Azul expects to improve efficiency, reliability, and overall profitability while positioning itself for a leaner future. The trade-off, however, is reduced connectivity and potential market share losses in routes overlapping with competitors such as LATAM and GOL. Still, Azul has emphasized that the Chapter 11 process is enabling it to "effectively transform its business and simplify its balance sheet." Investors and creditors now expect disciplined cost control and a focus on high-yield traffic as the company works toward a sustainable recovery, the report states. About Azul S.A. Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of flight departures and cities served, offers 900 daily flights to over 150 destinations. With an operating fleet of over 200 aircrafts and more than 15,000 Crewmembers, the Company has a network of 300 non-stop routes. Azul was named by Cirium (leading aviation data analysis company) as the most on-time airline in the world in 2023. In 2020, Azul was awarded best airline in the world by TripAdvisor, the first time a Brazilian flag carrier earned the number one ranking in the Traveler's Choice Awards. On the Web: http://www.voeazul.com.br/imprensa On May 28, 2025, Azul S.A. and 19 affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 25-11176). The cases are pending before Judge Sean H. Lane. The Company is supported by Davis Polk & Wardwell LLP, White & Case LLP, and Pinheiro Neto Advogados as legal counsel; FTI Consulting as financial advisor; Guggenheim Securities, LLC as investment banker; SkyWorks Capital LLC as fleet advisor; and FTI Consulting, C Street Advisory Group, and MassMedia as strategic communications advisors. Stretto is the claims agent. The Participating Lenders are supported by Cleary Gottlieb Steen & Hamilton LLP and Mattos Filho as legal counsel and PJT Partners as investment banker. United Airlines is supported by Hughes Hubbard & Reed LLP and Sidley Austin LLP as legal counsel and Barclays Investment Bank as investment banker. American Airlines is supported by Latham & Watkins LLP as legal counsel. AerCap is supported by Pillsbury Winthrop Shaw Pittman LLP as legal counsel. The U.S. Trustee for Region 2 appointed an official committee to represent unsecured creditors in the Chapter 11 cases. The Committee retained Willkie Farr & Gallagher LLP as its counsel, Alvarez & Marsal North America, LLC, as its financial advisor, Houlihan Lokey Capital, Inc., as its investment banker. BRAZIL: Central Bank Signals 'New Stage' of Steady Interest Rates ----------------------------------------------------------------- globalinsolvency.com, citing Reuters, reports that Brazil's central bank said on Sept. 16 that it has entered a "new stage" in which policymakers opt to keep interest rates unchanged while evaluating whether the current level is enough to ensure inflation converges to its 3% target. In the minutes from its latest meeting, where it held the benchmark Selic rate at a near two-decade high of 15% for the second consecutive time, the bank said that policymakers would not hesitate to resume a hiking cycle if deemed appropriate, according to globalinsolvency.com. 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. =========================== C A Y M A N I S L A N D S =========================== VISTRA HOLDINGS: Fitch Lowers LongTerm Foreign Currency IDR to 'B' ------------------------------------------------------------------ Fitch Ratings has downgraded Vistra Holdings Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'B' from 'B+'. The Outlook on the IDR is Stable. Fitch has also downgraded the rating on the USD1,382 million and EUR835 million senior first-lien secured Term Loan Bs issued by Thevelia (US) LLC and Thevelia Finance, S.a.r.l. respectively, to 'B+' from 'BB-' with a Recovery Rating of 'RR3'. Both companies are wholly owned by Vistra. The downgrade reflects Vistra's slower deleveraging trajectory than previously expected, with EBITDA net leverage now projected to remain at above 6.0x in the near term. The delay in deleveraging was caused by subdued revenue growth amid increasing geopolitical tensions, while profitability was also reduced by continued M&A activities and ongoing investment in commercial initiatives. The Stable Outlook reflects Fitch's view that Vistra's credit metrics are supported by its enhanced market position in the global corporate and fund servicing industry, and Fitch expects merger synergies to drive profitability improvement in the medium term. Key Rating Drivers Pressures on Revenue Growth: Fitch believes geopolitical uncertainties will continue to weigh on revenue growth as corporates hold back on cross-border expansion. In 1Q25 and 2Q25, revenue growth excluding the newly acquired iiPay slowed to 2.2% and 5.3% yoy, from 4.6% and 6.2% in 1Q24 and 2Q24, respectively. Vistra attributed this to challenging economic and geopolitical conditions that dampened new sales and advisory mandates in the Global Solutions segment, particularly in the US, which also affected growth in the Fund Solutions segment. For 3Q25 and 4Q25, Fitch expects organic revenue growth to slow further from 2Q25, reflecting broader uncertainty in 2H25 versus 1H25. That said, Fitch believes Vistra can maintain around 5% revenue growth over the forecast period to 2027, supported by its strong customer base, M&A, and continued commercial investment. Continued M&A Delays Deleveraging: Fitch expects Vistra to continue bolt-on acquisitions in the near term as it keeps pace with industry changes and supplements its existing platform of services. Deleveraging will still occur but at a slower pace than previously expected, with EBITDA net leverage likely to remain above 6.0x before 2026, compared with 7.1x in 1H25 and 6.7x in 2024. Vistra spent about USD100 million on net acquisitions in 1H25, compared with Fitch's full-year estimate of USD150 million and including the iiPay acquisition in May. Nonetheless, management indicates it will balance price discipline with strategic fit and value creation in M&A. Profitability Improving Slowly: Fitch expects Vistra's EBITDA margin improvement to be tempered by investment initiatives and subdued revenue growth. The EBITDA margin was flat yoy at 30% in 1H25, despite synergy execution remaining largely on track. Fitch expects continued spending on commercial initiatives and IT to offset synergies in 2025, while slower near-term revenue growth delays the full realisation of scale benefits. Synergy execution is proceeding as planned, with USD54 million of savings budgeted for full realisation by 2026. Temporary Working-Capital Drag: Fitch expects Vistra to report working-capital cash outflow in 2025 but the situation should gradually normalise in 2026 as pricing-process delays ease and operations stabilise. Vistra's receivables increased by USD77 million in 1H25, which management attributes to timing effects from a new client-specific repricing programme and billing process adjustments. The pricing processes were not yet fully completed, leading to delays in billings and collections in 1H25. Enhanced Market Position: Fitch continues to believe that Vistra has strengthened its market position following its merger with Tricor Group, completed in July 2023. The wider multi-jurisdictional platform of complementary service offerings should solidify Vistra's one-stop-shop value proposition in the fragmented fund and corporate services market. The company has continued to pursue small, bolt-on acquisitions to help complete its service offerings. Further acquisitions, if funded by debt, may affect its deleveraging trajectory. Peer Analysis Fitch compares Vistra with relevant peers in the business services sector. Apex Structured Intermediate Holdings Limited (B/Positive) is a leading global provider of services to alternative investment management and corporate sectors. Both Vistra and Apex are comparable in size and benefit from strong product and geographic diversification. Their leverage is similar, with Fitch expecting Apex to reduce its leverage to 5.8x by 2026, while Vistra's leverage is likely to stay above 6.0x by 2026. Ellis Aggregator UK LP and PEX Holdings, LLC, (together doing business as Gen II; B+/Stable) is a smaller fund service company than Vistra. Nonetheless, Gen II holds a strong niche market position as the largest service provider to closed-end funds, particularly in private equity, real estate, infrastructure, and fund of funds. Fitch forecasts Gen II's EBITDA leverage, or debt to EBITDA, in the low to mid-4x range for 2025, lower than Vistra's 7x, which justifies the one notch difference. Vistra also competes with Corporation Service Company (CSC; BB/Positive) particularly in fund administration and select corporate services. Vistra is moderately smaller and has higher leverage than CSC. Fitch believes CSC's debt reduction over the next two years could decrease its EBITDA leverage to below 4.0x to support an upgrade to 'BB+'. Key Assumptions Fitch's Key Assumptions Within Its Rating Case for the Issuer: - Revenue growth of around 5% in 2025-2026 - EBITDA margin of 34%-35% in 2025-2026, excluding exceptional items - Capital intensity of 3%-4% in 2025-2026 - Acquisition spending of USD150 million in 2025 and USD80 million in 2026 - 1% loan amortisation of the US dollar tranche and Hong Kong dollar tranche of the TLB annually - USD86 million revolving credit facility draw-down to be repaid by 2025 Recovery Analysis Key Recovery Rating Assumptions - Vistra would be reorganised as a going-concern in bankruptcy rather than liquidated, given its asset-light business model. - Fitch estimates a post-restructuring pro forma going-concern EBITDA of around USD300 million. In this scenario, stress on EBITDA could result from a weakened standalone operation for Vistra amid intense competition and issues of customer attrition. - An enterprise value multiple of 6.0x is applied to the going-concern EBITDA to calculate a post-reorganisation enterprise value. The multiple is in line with that of similar peers. This reflects Vistra's enlarged market position following the merger, high revenue visibility combined with geographic and customer diversification, and a strong cash-generative business. - Fitch deducted 10% of administrative claims from the enterprise value to account for bankruptcy and associated costs. - The total amount of first-lien secured debt for claims includes secured first-lien Term Loan Bs and an equally ranking USD350 million revolving credit facility that Fitch assumes to be fully drawn. This results in the senior secured first-lien debt instrument rating of 'B+' with a Recovery Rating 'RR3', one notch above the IDR of 'B'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - EBITDA net leverage sustained above 6.5x due to weaker-than-expected EBITDA generation or aggressive M&A expenditure - EBITDA interest coverage sustained below 2.0x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: - EBITDA net leverage sustained below 5.5x; - EBITDA interest coverage sustained above 2.5x. Liquidity and Debt Structure Vistra had USD119 million of available cash at end-1H25, sufficient to buffer operational needs. Vistra has a total of USD350 million of revolving credit facilities, of which USD86 million were drawn for M&A in 1H25 but will be repaid by the end of 2025. All of Vistra's first-lien term loans will mature in 2029 and second-lien term loans will mature in 2030. Issuer Profile Vistra (formerly known as Thevelia Holdings) is a leading provider of fund and corporate services across more than 50 jurisdictions. Vistra is owned by BPEA EQT and completed a merger with Tricor in July 2023. The combined entity operates under the Vistra brand. 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 ----------- ------ -------- ----- Vistra Holdings Limited LT IDR B Downgrade B+ Thevelia (US) LLC senior secured LT B+ Downgrade RR3 BB- Thevelia Finance, S.a r.l. senior secured LT B+ Downgrade RR3 BB- =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Approves RD$1.74 Trillion Budget for 2026 ------------------------------------------------------------- Dominican Today reports that the Dominican government, led by Vice President Raquel Pena Rodríguez, approved the draft General State Budget for 2026 during its fifty-second Council of Ministers meeting. The proposal, totaling RD$1.74 trillion (20.1% of GDP), will be submitted to the National Congress before October 1, in line with constitutional requirements, according to Dominican Today. Minister of the Presidency Jose Ignacio Paliza explained that the plan prioritizes public investment, with capital spending set to increase by RD$39 billion compared to the initial 2025 budget, the report notes. Funds will focus on infrastructure in transportation, housing, drinking water, and sanitation, aimed at boosting the economy and improving quality of life, the report relays. About 46% of total spending is earmarked for social services, including a guaranteed 4% of GDP for education, expanded health and social security budgets, and more resources for sports ahead of the 2026 Central American and Caribbean Games, the report discloses. Budget Director José Rijo Presbot outlined the framework, which assumes 4.5% GDP growth and 4% inflation, the report says. The meeting also reviewed progress in institutional performance, priority government goals in sectors such as agriculture, energy, and industry, and the 2026 Government Program Prioritization Plan, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCR-LA reported in April 2019 that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Standard & Poor's credit rating for Dominican Republic was raised to 'BB' in December 2022 with stable outlook. Moody's credit rating for Dominican Republic was last set at Ba3 in August 2023 with the outlook changed to positive. Fitch, in December 2023, affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' and revised the outlook to positive. =========== M E X I C O =========== BOWERS TRUCKING: Section 341(a) Creditors Meeting Set for Nov. 4 ---------------------------------------------------------------- Bowers Trucking Inc. filed Chapter 11 protection in the Western District of Oklahoma on Sept. 18, 2025. According to court filing, the Debtor reported between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under Section 341(a) in the Debtor's case wil be held on November 4, 2025 at 02:30 PM telephonically with the following call in number 888-330-1716 and passcode 2164492. About Bowers Trucking Inc. Bowers Trucking Inc., d/b/a Bowers Trucking & Logistics, headquartered in Ponca City, Oklahoma, provides transportation services across ground, ocean, and air throughout the US, Canada, and Mexico, including import and export container shipments to China and Japan. Founded in the early 1960s by Glen C. Bowers to support his sawmill operations in Fairfax, Oklahoma, the Company has expanded under subsequent generations to serve large and small businesses with flatbed freight, commodities, and time-sensitive shipments. Bowers Trucking focuses on operational standards, safety, and communication. Bowers Trucking Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Okla. Case No. 25-12884) on September 18 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by Stephen J. Moriarty, Esq. at FELLERS, SNIDER ET AL. ======= P E R U ======= PERU: IDB Approves $550MM-Loan to Advance Fiscal Reforms -------------------------------------------------------- Peru has secured a $550 million loan from the Inter-American Development Bank (IDB) to implement fiscal reforms aimed at boosting economic growth through increased productivity and private investment. This loan is the first in a series of two operations that form part of a program designed to close structural gaps in state capacity. It supports reforms focused on strengthening fiscal policy and management to achieve two main goals: improving public spending efficiency and enhancing the efficiency of the tax system. The credit will support policies to strengthen systems for public investment management, budgeting, public procurement, and corporate governance of state-owned enterprises. Specifically, the project will support measures to improve the prioritization, review, and execution of public investment projects, especially at the subnational level. It will also promote better resource allocation and support the regulation of the new public procurement law, which incorporates value-for-money and sustainability criteria. Additionally, the project will support the introduction of mechanisms to encourage the participation of women-led businesses and those that employ people with disabilities in the public procurement market. The project will also support reforms aimed at simplifying the tax system, ensuring greater sufficiency and certainty in tax policy, and achieving more efficient tax administration. It will back the design of reforms to simplify tax regimes and encourage the formalization of small and medium-sized enterprises, as well as measures to improve e-commerce tax collection and transfer pricing regulation for multinational companies, in line with OECD standards. Actions will also be taken to facilitate tax compliance, including the launch of a cooperative compliance program for large taxpayers. The IDB policy-based loan, approved by its Board of Executive Directors, has a 19-year term, with a 6.5-year grace period, and an interest rate based on SOFR. ********* 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. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *