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251020.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, October 20, 2025, Vol. 26, No. 209 Headlines A R G E N T I N A ARGENTINA: Approves Major Copper Mining Project in San Juan ARGENTINA: IMF Backs Growth Outlook as Others Trim Forecasts ARGENTINA: IMF Downgrades 2025 Growth Forecast to 4.5% B R A Z I L BANCO MASTER: Fitch Lowers Foreign & Local Currency IDRs to 'CC' BRAZIL: Brazil Set to Talk Tariffs with United States FS INDUSTRIA DE ETANOL: Fitch Assigns 'BB-' LongTerm Currency IDRs C O L O M B I A GRUPO SURA: S&P Affirms 'BB' Issuer Credit Ratings, Outlook Neg. G U Y A N A [] GUYANA: Urged to Collaborate With Jamaica to Develop Market M E X I C O GRUPO AXO: Fitch Hikes LongTerm IDR to 'BB+', Outlook Stable P U E R T O R I C O BED BATH: Secures Final Court OK for $1.95MM ERISA Deal CABALLITO LLC: Seeks Chapter 11 Bankruptcy in Puerto Rico V E N E Z U E L A CITGO PETROLEUM: Bidders Envision Starkly Different Futures - - - - - ================= A R G E N T I N A ================= ARGENTINA: Approves Major Copper Mining Project in San Juan ----------------------------------------------------------- Buenos Aires Times reports that President Javier Milei's government has approved a new US$2.6-billion copper mining project in San Juan Province via its flagship RIGI investor incentive scheme. Mining firm McEwen Copper will make the multi-billion-dollar investment to develop the Los Azules copper exploration and extraction project, according to Buenos Aires Times. Los Azules is located in the Andes mountain range, within the Calingasta Department, around 80 kilometres west-northwest of the town of Calingasta and six kilometres from the Chilean border, the report notes. The government's authorisation, granted through Resolution 1553/2025 and published in the Official Gazette, confirms the entry of the project into the RIGI framework, which offers benefits lasting three decades for foreign investors, the report relays. According to the document, the developers aim to complete feasibility studies, obtain the necessary permits and construct a mine, processing plant and related infrastructure to the production of copper cathodes, the report notes. The application was submitted by Andes Corporacion Minera SA, acting as the project's Single Project Vehicle (VPU), the report discloses. According to the government, the project is expected to create more than 3,500 direct and indirect jobs and – once fully operational – generate annual exports worth around US$1.1 billion, the report says. Of the total planned investment, US$2.35 billion will be allocated to qualifying capital assets, exceeding the minimum investment required under the RIGI scheme, the report relays. McEwen Copper has said that the company plans to invest US$33.5 million in the first year and US$382.3 million in the second year, for a total of US$415.8 million, representing more than 40% of the minimum threshold established in the Bases Law, the report notes. Buenos Aires Times relays that the company has committed to meeting the minimum qualifying investment by December 31, 2027, according to the submission approved by the government. In its supplier development plan, McEwen Copper stated that 61.1 percent of total expenditure on suppliers, goods, and infrastructure during construction and operation would go to local providers, exceeding both the 20 percent target required by law and the company's initial commitment, the report discloses. The RIGI Project Evaluation Committee reviewed the proposal and supporting technical reports from the relevant ministries, recommending its approval, a decision that was formalised by the Ministry of Economy, the report relays. Los Azules becomes the eighth project approved under the RIGI scheme, which now covers total planned investments worth US$15.74 billion, 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. ARGENTINA: IMF Backs Growth Outlook as Others Trim Forecasts ------------------------------------------------------------ Buenos Aires Times reports that Argentina's economic outlook is splitting opinion among major institutions. While the International Monetary Fund (IMF) is retaining its current growth forecast for 2025, the World Bank, Organisation for Economic Cooperation and Development (OECD) and private analysts have trimmed theirs, according to Buenos Aires Times. The IMF has kept its projection of 5.5 percent growth for 2025, praising President Javier Milei's sweeping fiscal adjustment, the report notes. The Fund highlighted improved exchange rate stability, fiscal tightening and falling inflation as positive signs, though analysts caution that the durability of the rebound will depend on how reforms are balanced with social cohesion, the report relays. By contrast, the World Bank now expects Argentina to grow 4.6 percent next year, down from its previous estimate of 5.5 percent, warning of "deep challenges," the report discloses. In a recently published report, the multilateral institution still forecast that Argentina remains the country in the region with the highest projected growth, the report says. "Argentina continues to experience a remarkable economic rebound after two consecutive years of contraction, although deep challenges persist," Buenos Aires Times stated. It also praised Argentina's fiscal discipline – a feature distinguishing it from the rest of the region. "The country has recently made significant progress toward fiscal consolidation, achieving budget surpluses," the World Bank noted. The OECD has lowered its forecast to 4.3 percent and raised its inflation outlook to nearly 40 percent, citing persistent financial instability, the report relays. Looking ahead to 2026, the OECD projects a continued recovery, with GDP growing by 4.3 percent and inflation slowing to 16.5 percent, the report notes. The Central Bank's Market Expectations Survey (REM) showed a 0.6 percent contraction in the third quarter and predicted a slower expansion rate next year, the report discloses. Analysts expect a 0.5 percent rebound in the fourth quarter of 2025, the report says. On average, they foresee real GDP in 2025 standing 3.9 percent above 2024 levels – 0.5 points lower than previously reported, the report relays. Fresh data from a recent FocusEconomics survey show similar caution, the report discloses. A report by the firm – compiling forecasts from local and international consultancies – sees GDP rising 4.4 percent in 2025 and inflation ending the year at 42.1 percent, Buenos Aires Times says. It expects price hikes to slow to 23.6 percent in 2026 if fiscal restraint holds, but warns that the peso's recent slide will delay disinflation, the report notes. The peso traded at 1,424 per dollar on October 3 under the Central Bank's managed-float system and is projected to reach 1,496 by December 2025, the report relates. Market rates have surged, with bank deposit yields jumping from 32 percent in June to 58 percent in August amid investor jitters, the report notes. Despite lower forecasts, analysts still see Argentina among Latin America's fastest-growing economies in 2025 and 2026, helped by deregulation and easing import restrictions, the report says. Yet the report cautioned that scenario could change if Milei's coalition loses ground in the midterm legislative elections, 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. ARGENTINA: IMF Downgrades 2025 Growth Forecast to 4.5% ------------------------------------------------------ Buenos Aires Times reports that the International Monetary Fund (IMF) has lowered its growth forecast for Argentina by one point and is now predicting economic activity will increase by 4.5 percent this year. An expert report by the multilateral lender also raised its estimate for inflation to 41.3 percent for the calendar year, according to Buenos Aires Times. In its previous official forecast, issued in April, the IMF had predicted GDP would expand 5.5 percent with consumer prices rising 35.9 percent, the report relays. In another blow for President Javier Milei's government, the IMF also lowered its estimate for 2026, slashing it by half a point to a four-percent improvement, the report notes. Inflation next year would be 16.4 percent, according to the report, Buenos Aires Times relays. In its recent 2026 Budget bill, which has been submitted to Congress for debate, the Milei administration said it expects growth of five percent in 2026 and inflation of 10 percent, the report discloses. Argentina's economy contracted 1.3 percent last year, the report notes. The IMF outlook is in line with projections from other institutions, the report says. In a recent report, the World Bank said it now expects Argentina to grow 4.6 percent next year, down from its previous estimate of 5.5 percent, the report discloses. The OECD has lowered its forecast to 4.3 percent and raised its inflation outlook to nearly 40 percent, citing persistent financial instability, the report notes. Looking ahead to 2026, the OECD projects a continued recovery, with GDP growing by 4.3 percent and inflation slowing to 16.5 percent, the report says. The Central Bank's Market Expectations Survey (REM) anticipates 4.4 percent growth this year, the report relates. According to the IMF, Argentina's unemployment rate will rise to 7.5 percent by the end of the year – a rise of 1.2 points up on its previous estimate. Joblessness will reach 6.6 percent the following year, it added. Buenos Aires Times discloses that zooming out, the IMF's World Economic Outlook report predicted a slight improvement in global growth to 3.2 percent this year, with 3.1 percent the following. The Fund's technicians warned of "uncertainty in trade policy" given the "absence of clear, transparent, and lasting agreements between trading partners," the report notes. However, they considered that "so far, the more protectionist trade measures have had a limited impact on economic activity and prices," the report says. "The impact on growth due to the trade shock is modest so far," IMF chief economist Pierre-Olivier Gourinchas told reporters ahead of the release of the report, Buenos Aires Times discloses. Latin America and the Caribbean will grow by 2.4 percent in 2025, unchanged from last year, a "stable" figure despite the threat of US tariffs, said the Fund, the report notes. The region's economy "will fall slightly to 2.3 percent in 2026," continued the report, Buenos Aires Times says. While Argentina remains the nation with the highest projected growth this year, despite its downgrade, the upward revision "is largely due to Mexico, which is expected to grow by one in 2025, 1.3 percentage points more" than had been projected in April, said the Fund, the report discloses. Brazil will also grow slightly more than expected, at 2.4 percent, although this is a decline from the 3.4 percent recorded in 2024, the report relays. Colombia will grow by 2.5 percent, Chile by 2.5 percent and Peru by 2.9 percent, the report notes. Ecuador will register 3.2 percent growth, Bolivia 0.6 percent, Uruguay 2.5 percent, Paraguay 4.2 percent and Venezuela 0.5 percent, 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 =========== BANCO MASTER: Fitch Lowers Foreign & Local Currency IDRs to 'CC' ---------------------------------------------------------------- Fitch Ratings has downgraded Banco Master S.A.'s (Master) Foreign and Local Currency Long-Term Issuer Default Ratings (IDRs) to 'CC' from 'B-', its Viability Rating to 'cc' from 'b-', and its National Long-Term Rating to 'CC(bra)' from 'BB-(bra)'. Fitch has also downgraded Master's Short-Term Foreign and Local Currency IDRs to 'C' from 'B' and National Short-Term Rating to 'C(bra)' from 'B(bra). Fitch has affirmed the Government Support Rating (GSR) at 'no support' (ns). Fitch has removed all of the ratings from Rating Watch Negative (RWN). Fitch typically does not assign Outlooks to ratings of 'CCC+' or below. The downgrade primarily reflects weakening of the bank's structural funding and liquidity profiles due to the lack of a definitive long-term funding solution after a proposed transaction with Banco de Brasília S.A. (BRB) failed to conclude. The downgrade also reflects Master's delay in publishing audited June 2025 financial statements, which amplifies information asymmetry and uncertainty regarding reported results and prudential metrics. This delay heightens governance and transparency risks and limits Fitch's visibility into performance quality, loan portfolio dynamics, capital adequacy, and contingencies. Key Rating Drivers Ratings Driven by Viability Rating: Master's ratings reflect its weaker standalone business capacity amid challenging cash flow pressures and heightened uncertainty over funding stability and cost, potential tenor shortening and tighter rollover conditions. Funding and Liquidity Under Strain: Fitch revised Master's Funding and Liquidity score to 'cc', reflecting the moderate concentration of short-term, high-cost retail deposits and the absence of stable market access. The reliance on non-recurring liquidity facilities, while providing temporary relief, underscores the underlying fragility of the funding base and the limited capacity to extend maturities or diversify sources under current conditions. Short-term liquidity has been supported by asset sales and by assistance operations provided by the Deposit Guarantee Fund (FGC), which has backed Master's restructuring since the discussions with BRB and is now being renewed for short periods until a more stable business plan is defined. Changes on Business and Risk Profile: Fitch revised Master's Business Profile and Risk Profile scores to 'ccc', reflecting both the loss of operational flexibility and changes in asset composition. As more liquid and collateralized assets slow their growth or are disposed of, the mix tends to shift toward higher-risk exposures, characterized by longer maturities and lower liquidity, whose quality and volume may fluctuate with market conditions. The prolonged uncertainty surrounding the bank's strategic direction and the absence of a credible, time-bound plan to restore market confidence further weaken the sustainability of its business mode. Governance and Transparency Risks: A delay in publishing audited June 2025 financial statements constrains visibility into capital, asset quality, and profitability metrics, and may indicate governance challenges. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Further negative rating action could occur if default appears imminent or inevitable. This would be the case if Master is unable to meet principal or interest payments on its obligations. - A downgrade would also be likely if the bank enters resolution or insolvency proceedings or engages in a distressed exchange in which creditors accept instruments with diminished economic or structural value to avoid a probable default. Under any of these circumstances, the rating would likely be lowered to 'C', indicating imminent default, or to 'RD'/'D' if a payment failure has occurred. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The approval and effective execution of a regulator-sanctioned business continuity plan that demonstrably stabilizes funding, restores operating flexibility, and supports predictable cash generation under current market conditions; - The timely normalization of comprehensive, audited financial disclosures (full financial statements), which would enhance transparency and allow for a clearer assessment of capital adequacy, asset quality, earnings sustainability, and liquidity coverage. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS The GSR of 'no support' (ns) reflects Master's small market position within the Brazilian financial system. In Fitch's view, there is no reasonable assumption of support being forthcoming. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade Master's GSR could be upgraded by a material improvement of its system importance Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Master's GSR downgrade potential is not possible as it is at the lowest level of the scale. VR ADJUSTMENTS The Viability Rating has been assigned below the implied Viability Rating due to the following adjustment reason(s): Weakest Link - Funding & Liquidity (negative). The Business Profile score has been assigned below the implied score due to the following adjustment reason(s): Historical and Future Developments (negative). The Asset Quality score has been assigned below the implied score due to the following adjustment reason(s): Historical and Future Metrics (negative). The Earnings & Profitability score has been assigned below the implied score due to the following adjustment reason(s): Historical and Future Metrics (negative). The Funding & Liquidity score has been assigned below the implied score due to the following adjustment reason(s): Deposit Structure (negative), Historical and Future Metrics (negative). ESG Considerations Fitch has revised Master's ESG Relevance score for Financial Transparency to '4' from '3' due to delays in the presentation of audited financial statements, raising concerns about governance, which has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Banco Master S.A. LT IDR CC Downgrade B- ST IDR C Downgrade B LC LT IDR CC Downgrade B- LC ST IDR C Downgrade B Natl LT CC(bra)Downgrade BB-(bra) Natl ST C(bra)Downgrade B(bra) Viability cc Downgrade b- Government Support ns Affirmed ns BRAZIL: Brazil Set to Talk Tariffs with United States ----------------------------------------------------- globalinsolvency.com, citing Reuters, reports that Brazilian President Luiz Inacio Lula da Silva said Brazil and the U.S. will hold negotiation talks on tariffs. Lula's remarks at an event in Rio de Janeiro followed a call between him and U.S. President Donald Trump in which Trump designated Secretary of State Marco Rubio to continue tariff negotiations with Brazilian officials, according to globalinsolvency.com. Brazilian Foreign Minister Mauro Vieira and Rubio agreed on a meeting, the report notes. 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. FS INDUSTRIA DE ETANOL: Fitch Assigns 'BB-' LongTerm Currency IDRs ------------------------------------------------------------------ Fitch Ratings has assigned FS Industria de Etanol SA (FS S.A.) 'BB-' Long-Term Local and Foreign Currency Issuer Default Ratings (IDR) and a 'AA-(bra)' Long-Term National Scale rating. The Rating Outlooks for all corporate ratings are Stable. FS S.A.'s ratings are the same as its sister company, FS Industria de Biocombustiveis Ltda. (FS Ltda), jointly referred to as FS. The ratings incorporate FS's large-scale production in the volatile Brazilian ethanol industry and lack of meaningful short-term price correlation between corn and ethanol. The ratings and the Outlooks also reflect FS's ability to maintain satisfactory financial flexibility and Fitch's expectation that EBITDA net leverage for the group (including sister companies) will be around 3.5x during the construction of a BRL2 billion new corn ethanol plant, due to favorable ethanol and corn prices assumptions for fiscal year-ends 2026 and 2027. Key Rating Drivers Large Ethanol Producer: FS benefits from a sizable production capacity of approximately 2.5 billion liters of ethanol and a robust corn supply from neighboring areas, allowing for price discounts relative to the Chicago Board of Trade (CBOT). Animal nutrition products provide a partial hedge, as their prices strongly correlate with regional corn and soybeans prices. Fitch expects revenues from these products to cover up to 50% of feedstock costs in the long term. FS's industrial plants in Mato Grosso, Brazil's largest corn producing state, mitigates corn origination risks. The new corn ethanol mill, due by fiscal December 2026, will add 540 million liters of ethanol per year and 390 tons of DDG, strengthening FS's scale and market position. Weaker Corn and Ethanol Prices Correlation: FS faces price volatility for both corn, its main raw material, and ethanol, its main output with low correlation. Corn prices adjust rapidly to global supply and demand imbalances, while Brazilian ethanol prices largely depend on local gasoline prices set by Petrobras, which are influenced by the Brent crude prices in BRL. Additionally, ethanol prices are indirectly influenced by sugar prices, as approximately 80% of local ethanol production comes from sugarcane. The base case assumes international corn prices of USD4.40 per bushel in 2025 and 2026 and average ethanol prices at BRL2.85/liter for fiscal YE 2026. Operating Cash Flow to Recover: Fitch expects EBITDA of BRL3.3 billion and cash flow from operations (CFO) of BRL1,089 million in fiscal YE 2026. This represents an improvement compared to fiscal YE 2025 EBITDA of BRL2.5 billion and CFO of BRL930 million in fiscal YE 2025. Higher ethanol prices and relatively competitive and stable corn prices should support higher EBITDA margin at around 31%, up from 24% in fiscal YE 2025 and 9% in fiscal YE 2024. Fitch projects negative FCF for fiscal 2026 and fiscal 2027, due to the new plant investments. The base case assumes dividends of BRL550 million in fiscal 2026 and BRL290 million in fiscal 2027. Group Structure and Related Parties: Fitch's updated group structure relevance score to '4' reflects increasing related-party transactions with FS Florestal S.A. and FS Infraestrura S.A., which are not included in FS's combined financial statements. Besides the partial guarantees that FS provides to these entities, there is debt at FS Florestal guaranteed by long-term commercial agreements between both companies. Fitch adjusted FS debt by adding BRL2.5 billion tied to sister companies. EBITDA Net Leverage Near 3.5x: Fitch projects that adjusted net leverage will be around 3.5x in fiscal 2026, driven by higher volumes and increased EBITDA margins due to relatively stable corn costs and higher-than-expected ethanol prices. Fitch's base case reflects EBITDA net leverage for FS will peak at 3.7x in fiscal 2027, falling to around 3.0x in fiscal 2028 after the new plant completes a full year of operations. Peer Analysis FS's 'BB-'/Stable IDR is at the same level as Ingenio Magdalena S.A. (IMSA; BB-/Stable). IMSA has a more stable cash flow profile compared to FS. As a corn-based ethanol producer, FS is more exposed to commodity price fluctuations in terms of both raw material and product prices. However, IMSA has tight liquidity and lower scale in terms of revenue, EBITDA and lower financial flexibility. FS has access to local and international bond markets and has longer debt maturities. FS's 'AA-(bra)' National Long Term Rating and Stable Outlook is one notch above Acucareira Quata S.A. (Zilor; National Long-Term Rating: A+[bra]/Stable). FS has stronger liquidity and financial flexibility and more satisfactory access to domestic and international capital markets than Zilor. FS's lower maintenance capex supports more robust FCFs compared to Zilor in a no-growth capex scenario. Zilor's results are less volatile due to is business characteristics. Key Assumptions - Ethanol production capacity of 2.5 billion liters in fiscal 2026 and 2.8 billion in fiscal 2027; - Sales of animal nutrition products of over 2.3 million tons in fiscal 2026 and 2.6 million in fiscal 2027; - Ethanol prices to vary in tandem with a combination of oil prices and FX rates. Brent crude prices have been forecast to average USD70 per barrel (bbl) in 2025 and USD65/bbl in 2026; - End-of-period FX rates of BRL5.60 per USD in 2025 and BRL5.70/USD in 2026; - Animal nutrition products providing around 50% coverage for total corn costs; - Total investments of BRL1.8 billion in fiscal 2026 and BRL1.2 billion in fiscal 2027; - Dividends of BRL550 million in fiscal 2026 and BRL290 million in fiscal 2027. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Deterioration in liquidity and/or difficulties to refinance short-term debt; - EBITDA margins below 20% on a sustained basis; - Combined EBITDA net leverage (including sister companies' debt) above 3.5x on a sustained basis. Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Longer positive track record in different cycles of ethanol and corn prices; - FCF consistently positive, with the maintenance of combined EBITDA net leverage (including sister companies' debt) below 2.0x through the cycle; - EBITDA interest coverage above 2.5x. Liquidity and Debt Structure FS has satisfactory liquidity and financial flexibility. As of June 30, 2025, the company reported cash and marketable securities of BRL3.9 billion and total debt of BRL13.0 billion, including reverse factoring transactions, guarantees to sister companies and net FX and IRS (Interest Rate Swaps). Excluding reverse factoring and derivatives, the company has BRL1.2 billion of debt maturing in the short term. FS has good access to the banking and the local and foreign capital markets and has a relatively lengthened debt maturity schedule, with most of its debt due in 2031 onwards, including the USD350 million 2031 and USD500 million 2033 bonds. Issuer Profile FS operates three plants and is constructing more one in Mato Grosso, producing corn-based ethanol, DDG for animal nutrition, corn oil, and energy. The plants have a total capacity to crush 5.1 million tons of corn and produce 2.5 billion liters of ethanol. 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 FS I Industria de Etanol S.A. has an ESG Relevance Score of '4' for Group Structure due to the increase of operations of two sister companies FS Infraestrura S.A. and FS Florestal S.A., companies that have commercial relationship with FS Group, but are not included in the combined figures due to different shareholders or businesses, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating ----------- ------ FS I Industria de Etanol S.A LT IDR BB- New Rating LC LT IDR BB- New Rating Natl LT AA-(bra) New Rating =============== C O L O M B I A =============== GRUPO SURA: S&P Affirms 'BB' Issuer Credit Ratings, Outlook Neg. ---------------------------------------------------------------- S&P Global Ratings affirmed its 'BB' global scale issuer credit ratings and issue-level ratings on Grupo de Inversiones Suramericana S.A. (Grupo Sura). The outlook on the long-term ratings on Grupo Sura remains negative. The restructuring of Grupo Sura's investment portfolio follows its strategy to focus on the financial sector. In the past two years, Grupo Sura began reorganizing its investment portfolio, first with the divestment of its stake in Nutresa (not rated) and recently with the spin-off of Grupo Argos (not rated). This restructure will allow Grupo Sura to enhance the performance of its main subsidiaries in the financial sector: Grupo Cibest S.A. (Cibest, BB/Negative/B), Suramericana S.A. (Suramericana), and Sura Asset Management (Sura AM). Even before the corporate restructure, Grupo Sura's financial businesses accounted for the majority of the group's total assets, capital, and dividends received. Therefore, we don't anticipate these divestments to entail immediate changes to Grupo Sura's management, business strategy, and operating performance for the next few years. Grupo Sura will remain the nonoperating holding company (NOHC) of the financial subsidiaries. S&P expects it to maintain a presence in 10 countries. Through its subsidiaries, it will keep providing diverse financial services such as banking, insurance, pensions, savings, investment, and asset management. S&P said, "We assess our 'bb+' group credit profile (GCP) on Grupo Sura based on the weighted average individual credit worthiness of its three financial subsidiaries. Given the broad business diversification of the Grupo Sura's subsidiaries, we evaluate each subsidiary's risk profile separately and then incorporate them to assess Grupo Sura's GCP considering their relative weights by revenue contribution--measured in terms of dividends upstreamed. Grupo Sura owns 93.3% of Sura AM, followed by Suramericana (81.1%), and Cibest (24.5%). In this regard, even though Cibest represents only 14% of Grupo Sura's total assets, it represents more than 50% of the revenues that Grupo Sura receives--as a dividend contribution. Therefore, we believe the banking business operation is highly relevant for Grupo Sura's creditworthiness, and we include it in the scope of Grupo Sura's GCP. In addition, we foresee Sura AM will contribute at 32%-35% and Suramericana 11%-15% of the total dividends that Group Sura will receive the next few years. "Even though Grupo Sura is domiciled in Colombia, we assess its GCP one notch above the long-term rating on Colombia (BB/Negative/B) due to the sound geographic diversification of its subsidiaries, mainly Sura AM, that has most of its business exposure and revenues out of Colombia. Sura AM has a presence in seven countries, with Chile (A/Stable/A-1), and Mexico (BBB/Stable/A-2) together contributing more than 70% of its revenues, followed by Colombia at about 22%. In our view, Sura AM has a high capacity to keep a strong, resilient, and diversified fee business despite the adverse economic challenges in Colombia. "We believe that the strong franchise, sound creditworthiness, and solid revenue generation of Grupo Sura's financial subsidiaries will derive a sustained flow of dividends from the investees to comfortably service the group's debt. As of Dec. 31, 2024, Grupo Argos represented 8% of the consolidated dividends, so we don't foresee a significant impact on the dividends that Grupo Sura will receive once the spin-off concludes." The remaining subsidiaries' stable financial performance will be sufficient to compensate for the dividend loss and service the full amount of Grupo Sura's debt during the next few years. Grupo Sura's financial subsidiaries have a strong market share, business stability, and brand recognition in the countries in which they operate. The rating on Grupo Sura is one notch below its GCP. This notch of subordination reflects Grupo Sura's dependence on dividends from its subsidiaries to service its financial obligations. Typically, S&P rates a non-investment grade financial institution's NOHC two notches below its GCP. However, Grupo Sura controls multiple material operating units that are sufficiently diverse and independent such that the suspension of cash flows from any of its operating entities would not substantially weaken the holding company's financial position. S&P said, "Additionally, in our view, Grupo Sura won't face significant regulatory restrictions to receive dividend payments from its diversified operating subsidiaries in the next years. We consider Cibest and Suramericana have adequate regulatory capital and liquidity metrics and would be capable of maintaining their payout ratio in line with its historical levels. Moreover, we expect Sura AM to remain as the second largest dividend supplier for Grupo Sura and we believe it would face low restrictions to potentially upstream dividends up to the total of its net income generation given its core business focused on asset management, pension and fund administration. Thus, we believe that revenue generation capacity and dividends contribution of Sura AM, provides GIS additional financial flexibility to timely meets its financial obligation. This flexibility is particularly valuable in adverse economic scenarios, where the banking and/or insurance group might be restricted in its dividend distribution to GIS. "Lastly, we foresee the double leverage at the holding company will reach its highest peak at the end of 2025 and then shrinks gradually over the next years given our expectation that its shareholders' equity will rise in a higher proportion that the investment in its subsidiaries. We expect double leverage to gradually reduce towards 130% over the following two years. "We believe Grupo Sura's risk management will continue allowing it to address operating risks and mitigate any potential cash flow volatility. We anticipate the sound financial profile, business and geographic diversification of Grupo Sura's financial subsidiaries provide the group with a reliant cash flow upstream that translates in a broad interest coverage and therefore, a manageable refinancing risk. "In addition, we expect Grupo Sura to maintain a prudent risk approach and benefit from its well-established relationships with diverse banks as proven with the recent agreement to obtain two banking facilities for COP 1.8 trillion with a five-year maturity. This amount doesn't represent an increase in the group's current level of indebtedness since it will use it to refinance the remaining outstanding of its international bond of $300 million due 2026, and make a partial prepayment of its Club Deal loan. In our view, these transactions improve the group's debt profile and enables it to advance with its debt management strategy to keep reducing its leverage while providing the group greater financial flexibility for the next few years. "Likewise, we anticipate Grupo Sura will remain with a generally high standing in domestic and international credit markets, therefore we believe Grupo Sura could continue tapping the market debt if economic conditions are viable and within their funding cost capabilities. Finally, we believe the rigorous liability management that Grupo Sura has demonstrated will allow it to comply with its financial obligations while maintaining adequate liquidity during the next 12-24 months. Grupo Sura maintains flexibility to adjust dividend payments, and we believe it would prioritize its liquidity position, if needed. "We view environmental, social, and governance (ESG) credit factors for Grupo Sura as neutral to its credit quality. We think that Grupo Sura has an experienced management team, and its engagement toward sustainability seeks to embed ESG elements across the subsidiaries' processes and initiatives. We also expect Grupo Sura's subsidiaries to continue implementing top-notch sustainability standards and guidelines as demonstrated by their sound governance practices that comply with local regulations and their clear targeted markets for growth and profitability. "In addition, we believe Grupo Sura will continue pursuing long-term value creation with a gradual shift toward energy transition schemes. We anticipate the banks subsidiaries' exposure to sectors with high greenhouse gas emissions will keep shrinking while the insurance companies' financial exposure to environmental risk will remain manageable, mainly because of good reinsurance protection. "The negative outlook on Grupo Sura stems from our negative outlook on Colombia. This is because the ratings of Grupo Sura's banking and insurance subsidiaries -- Cibest and Suramericana -- are capped by the sovereign of Colombia. A downgrade on the sovereign would have the same impact on these subsidiaries, which would prompt us to lower Grupo Sura's GCP. "If we downgrade Colombia in the next 12 months, we could take the same negative rating action on Grupo Sura." In addition, if Grupo Sura's credit quality worsens, S&P could downgrade Grupo Sura in the next 12 months. This could occur if: -- The individual creditworthiness of any of the group's main subsidiaries weakens; -- Grupo Sura's liquidity position weakens due to either a reduction in received dividends, a higher dividend distribution, or major unexpected obligations; or -- Grupo Sura fails to produce a refinancing strategy related to its short-term debt. Additionally, S&P could downgrade Grupo Sura if its double leverage ratio doesn't gradually shrink toward 130% in n the next 12-24 months. If S&P revises the outlook on Colombia to stable in the next 12 months, it would take the same action on Grupo Sura. =========== G U Y A N A =========== [] GUYANA: Urged to Collaborate With Jamaica to Develop Market -------------------------------------------------------------- RJR News reports that Jamaica and Guyana are being encouraged to collaborate more closely to develop the regional capital market. This follows the recent visit to the island by Guyanese businessman Komal Samaroo, chairman of Demerara Distillers Enterprises, Demerara Bank, Trust Company (Guyana) and the Institute of Private Enterprise Development, according to RJR News. Mr. Samaroo met with Livingstone Morrison, Chief Executive Officer of the Jamaica Stock Exchange recently, and stressed that Guyana wanted to collaborate more deeply with Jamaica because this is the key to development, the report notes. He also noted that when countries and popular brands work together, they build the foundation for growth and act as catalysts for regional integration, adding that this must be driven by the private sector, the report adds. =========== M E X I C O =========== GRUPO AXO: Fitch Hikes LongTerm IDR to 'BB+', Outlook Stable ------------------------------------------------------------ Fitch has upgraded Grupo AXO, S.A.P.I. de C.V.'s (AXO) Foreign and Local Currency Long-Term Issuer Default Ratings (IDRs) to 'BB+' from 'BB'. Fitch has also upgraded AXO's National Long-Term rating to 'AA-(mex)' from 'A+(mex)'. The Rating Outlook is Stable. The upgrade reflects AXO's continued improvement in its business profile as a leading apparel retailer in Latin America, supported by greater scale and further diversification. It also considers its stronger financial profile and solid record of executing inorganic growth funded by operating cash flows, debt and equity contributions. The ratings incorporate AXO's ability to quickly anticipate and adapt to consumer trends and its diversified portfolio of well-known brands, store formats and retail channels. These factors have supported operating cash flow and improved deleveraging capacity. Fitch expects EBITDAR margins around 19% and EBITDAR leverage below 3.0x over the next two to three years. Key Rating Drivers Improved Operating Trajectory: AXO's operating performance has improved meaningfully over the past decade, with revenue increasing tenfold. The company has taken market opportunities by incorporating new brands, adding new product categories, refreshing traditional brands and expanding its store base. EBITDAR margins have been steady at around 18%-20% and are expected to remain at those levels. AXO is also focused on cost efficiencies alongside expansion, which could strengthen profitability in the medium term. Balanced Diversification: AXO sells across multiple product categories and operates varied store formats and retail channels, which strengthens its business profile and reduces reliance on any single brand, category or store format. The company divides its product portfolio into four segments: lifestyle, off-price, athletics and beauty. Fitch estimates lifestyle will account for about 48% of 2025 consolidated revenue, off-price around 25%, and athletics and beauty the remaining portion. Fitch expects AXO to further diversify its portfolio and expand into less-penetrated categories in Latin America. Strategic Growth Initiatives: AXO is focused on developing its beauty segment in Mexico with the entry of Ulta Beauty and on transforming its off-price segment in Mexico, alongside organic grow in South America. Capital expenditure (capex) in 2025-2026 is projected to average about MXN2.7 billion, with a large share directed to beauty and off-price. Cash flow from operations (CFFO) above MXN1.5 billion from 2026, together with cash on hand, should cover capex and dividends. Free cash flow (FCF) is expected to be neutral to positive in 2026 and thereafter. Strong Brand Portfolio: AXO is one of the main apparel, accessories and personal care product retailers in Mexico, Chile, Peru and Uruguay, operating about 45 brands. It holds exclusive rights to distribute internationally recognized brands in these countries. Its broad brand portfolio supports economies of scale in logistics and offers an advantage with shopping mall developers compared to its peers. AXO has diversified revenue by brands and product category. During the last 12 months (LTM) ended June 30, 2025, no single brand accounted for more than 10% of consolidated revenue. Leverage Metrics to Strengthen: AXO's EBITDAR leverage is expected to be around 3.0x by the end of 2025, trending toward 2.5x thereafter, driven by stronger EBITDAR and no major investments or debt-funded acquisitions. Fitch believes AXO's financial profile has headroom in case of a material acquisition. The company's funding sources include internal cash flow generation and potential equity increases. Acquisitions Have Been Neutral to Financial Profile: AXO's ratings incorporate its growth strategy through acquisitions funded with a combination of debt and equity contributions. The company's portfolio has evolved via acquisitions and strategic partnerships, strengthening the business and diversifying operating cash flows by accessing markets with significant growth potential. Fitch expects future transactions to align with AXO's core strategy and views integration risk as manageable because of its record of successful transactions. Peer Analysis AXO is one of the most important apparel retailers in Mexico, with a diversified portfolio of recognized brands and store formats. AXO has a lower scale and is less geographically diversified than peers such as Capri Holdings Ltd. (BB/Negative) and Levi Strauss & Co. (BBB-/Stable). However, the company's revenue is more diversified in brands, product categories and store formats than these peers. Like Capri, AXO has grown through acquisitions, seeking to reduce its reliance on a few brands and diversify into additional product categories and store formats. Fitch expects AXO's EBITDAR leverage to trend toward 2.5x in the next two to three years while Levi Strauss' reaches the high-1x range. Capri is currently on Negative Outlook due to Fitch's expectations of EBITDAR leverage potentially above 3.0x. Key Assumptions - Revenue growth of 11% for 2025 and 14.3% on average per year during 2026 to 2027; - EBITDAR margin close to 19% during 2025 and around 19.5% during 2026 and 2027; - CFFO above MXN1.0 billion per year during 2025 to 2027; - Capex of MXN2.4 billion per year in average for 2025 to 2027; - Dividend payments of 40% of previous year's net income from 2026 to 2027; - Due to the company's track record and strategy, a hypothetical acquisition in 2027. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Adjusted leverage consistently higher than 3.5x; - A significant decline in market share; - Mergers and acquisitions (M&A) funded entirely with debt and not performing as expected; - Sustained negative FCF (considering equity injections); - Weakened liquidity and financial flexibility. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Consistently positive FCF; - Total adjusted debt to EBITDAR close to 2.5x on a sustained basis; - EBITDAR fixed charge coverage consistently above 2.5x; - A strong liquidity profile. Liquidity and Debt Structure Fitch expects AXO to maintain comfortable liquidity. As of June 30, 2025, AXO had available cash of MXN2.5 billion and short-term debt of MXN0.5 billion. The company holds available committed credit lines for MXN950 million and has no relevant debt maturities before 2027. Issuer Profile Grupo AXO is the largest multi-brand fashion retailer and wholesaler in Mexico, with presence in four business segments: full price, off price, athletics, and beauty. The company has also operations in Chile, Peru and Uruguay. Summary of Financial Adjustments Fitch computes AXO's lease liability by multiplying Fitch-defined lease expense by a 4x multiple, based on the median of implied lease multiples from similar apparel store peers in Latin America. 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 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 ----------- ------ ----- Grupo AXO, S.A.P.I. de C.V. LT IDR BB+ Upgrade BB LC LT IDR BB+ Upgrade BB Natl LT AA-(mex) Upgrade A+(mex) ===================== P U E R T O R I C O ===================== BED BATH: Secures Final Court OK for $1.95MM ERISA Deal ------------------------------------------------------- Clara Baranaukas of Law360 reports that a New Jersey federal judge has granted final approval to a $1.95 million class action settlement resolving claims that Bed Bath & Beyond Inc.'s 401(k) plan administrators shortchanged workers after the retailer's bankruptcy led to the plan's termination. U.S. District Judge Claire C. Cecchi approved the unopposed motion, which was first reached earlier this 2025, ending months of negotiations between the parties. The case centered on allegations that plan fiduciaries mishandled employee investments during the company's wind-down, according to report. With the court's approval, roughly 2,100 former employees and their beneficiaries are set to receive compensation under the deal, closing the chapter on one of the many legal disputes following Bed Bath & Beyond's collapse, the report states. About Bed Bath & Beyond Bed Bath & Beyond Inc., together with its subsidiaries, is an omnichannel retailer selling a wide assortment of merchandise in the Home, Baby, Beauty & Wellness markets and operates under the names Bed Bath & Beyond, buybuy BABY, and Harmon, Harmon Face Values. The Company also operates Decorist, an online interior design platform that provides personalized home design services. At its peak, Bed Bath & Beyond operated the largest home furnishing retailer in the United States with over 970 stores across all 50 states, consistently at the forefront of major home and bath trends. Operating stores spanning the United States, Canada, Mexico, and Puerto Rico, Bed Bath & Beyond offers everything from bed linens to cookware to electric appliances, home organization, baby care, and more. Bed Bath & Beyond closed over 430 locations across the United States and Canada before filing Chapter 11 cases, implementing full-scale wind-downs of their Canadian business and the Harmon branded stores. Left with 360 Bed Bath & Beyond, and 120 buybuy BABY stores, Bed Bath & Beyond Inc. and 73 affiliated debtors on April 23, 2023, each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code to pursue a wind-down of operations. The cases are pending before the Honorable Vincent F. Papalia and requested joint administration of the cases under Bankr. D.N.J. Lead Case No. 23-13359. Kirkland & Ellis LLP and Cole Schotz P.C. are serving as legal counsel, Lazard Frares & Co. LLC is serving as investment banker, and AlixPartners LLP is serving as financial advisor. Bed Bath & Beyond Inc. has retained Hilco Merchant Resources LLC to assist with inventory sales. Kroll LLC is the claims agent. CABALLITO LLC: Seeks Chapter 11 Bankruptcy in Puerto Rico --------------------------------------------------------- Caballito LLC, on October 9, 2025, voluntarily sought Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Puerto Rico. In its petition, the company disclosed liabilities ranging from $100,001 to $1 million. The filing also indicates that the company has an estimated one to forty-nine creditors. About Caballito LLC Caballito LLC is a limited liability company. Caballito LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. P.R. Case No. 25-04578) on October 9, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100,001 and $1 million each. Honorable Bankruptcy Judge Mildred Caban handles the case. The Debtor is represented by Jose M. Prieto Carballo, Esq. of JPC Law Office. ================= V E N E Z U E L A ================= CITGO PETROLEUM: Bidders Envision Starkly Different Futures ----------------------------------------------------------- globalinsolvency.com, citing Reuters, reports that an affiliate of Elliott Investment Management wants to cut costs at Venezuela-owned Citgo Petroleum while a unit of Gold Reserve would largely focus on maintaining the status quo, five sources, as a lengthy auction that will determine the refiner's future nears an end. Details of the two competing visions for Citgo emerged ahead of a U.S. court selecting the winner for an auction of shares in Citgo's parent company, PDV Holding, according to globalinsolvency.com. About Citgo Petroleum Citgo Petroleum Corporation is a United States-based refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. Based in Houston, Texas, Citgo is majority-owned by PDVSA, a state-owned company of the Venezuelan government (although due to U.S. sanctions, in 2019, they no longer economically benefit from Citgo.) As reported in the Troubled Company Reporter-Latin America on September 2025, Fitch Ratings affirmed the Long-Term Issuer Default Rating (IDR) of CITGO Petroleum Corp. (CITGO, or Opco) at 'B' with a Stable Outlook and CITGO Holding, Inc. (Holdco) at 'CCC+'. Fitch also affirmed Opco's existing senior secured notes and industrial revenue bonds at 'BB' with a Recovery Rating of 'RR1'. ********* 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. 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