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251022.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 22, 2025, Vol. 26, No. 211 Headlines A R G E N T I N A ARGENTINA: Gov't. Formalizes $20BB Swap Currency Deal With U.S. ARGENTINA: Local Factories Shutter Amid Milei's Economic Policies C A Y M A N I S L A N D S SVB FINANCIAL: Cayman Liquidators Lack Standing to Pursue Claims D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Int'l. Reserves Drop by US$592MM in September J A M A I C A JAMAICA: High Liquidity May Lower Bank Profits or Raise Fees P E R U PERU LNG: Moody's Affirms 'B2' CFR & Alters Outlook to Stable P U E R T O R I C O ECGPR LLC: Seeks to Hire CPA Rodriguez as Accountant T R I N I D A D A N D T O B A G O HERITAGE PETROLEUM: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable TRINIDAD & TOBAGO: September Inflation Drops to 1% - - - - - ================= A R G E N T I N A ================= ARGENTINA: Gov't. Formalizes $20BB Swap Currency Deal With U.S. --------------------------------------------------------------- Sarah Morland and Dave Graham of Reuters reports that Argentina's central bank said on Monday, Oct. 20, it signed a $20 billion exchange rate stabilization agreement with the U.S. Treasury Department, six days ahead of a key midterm election. The central bank's statement said the agreement sets forth terms for bilateral currency swap operations between the U.S. and Argentina, but it provided no technical details, Reuters notes. The central bank, the BCRA, said: "Such operations will allow the BCRA to expand its set of monetary and exchange rate policy instruments, including the liquidity of its international reserves." The Argentine peso closed at a record low, down 1.7% on the day to end at 1,475 per dollar, Reuters cites. U.S. Treasury Secretary Scott Bessent said last week the arrangement with banks and investment funds would be backed by International Monetary Fund Special Drawing Rights held in the Treasury's Exchange Stabilization Fund that will be converted to dollars, Reuters cites. Bessent has said the U.S. would not put additional conditions on Argentina beyond President Javier Milei's government continuing to pursue its fiscal austerity and economic reform programs to foster more private-sector growth, Reuters adds. Bessent has announced several U.S. purchases of pesos in recent weeks, but has declined to disclose details, the report says. The Wall Street Journal has reported that a group of U.S. banks, including JPMorgan Chase, Bank of America, and Goldman Sachs was hesitant to lend $20 billion to Argentina without guarantees or collateral. The banks did not immediately respond to Reuters' requests for comment. Argentine Economy Minister Luis Caputo said last week he hoped the swap deal framework would be finalized before the October 26 midterm parliamentary vote, in which Milei's party will seek to grow its minority presence in the legislature, Reuters recounts. 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: Local Factories Shutter Amid Milei's Economic Policies ----------------------------------------------------------------- Nicolas Misculin of Reuters reports that "Made in Argentina" factories are shutting down amid President Milei's program for a radical economic overhaul. Reuters notes that manufacturing has suffered as deregulation has spurred growing competition from cheaper imports that have also benefited from a peso widely viewed as overvalued, as well as reduced consumer purchasing power. Among others, Reuters cites, the over 80-year-old family business Lumilagro has cut back on its thermos manufacturing business and now imports most of the thermoses it offers, at prices up to 30% lower than the cost of producing locally, commercial manager Carlos told Reuters. Lumilagro achieved business success on the popularity of its signature "Made in Argentina" steel or glass thermoses Argentines use to carry hot water to make the local herbal tea, mate. But now, the company has shut down its furnace more than a year ago, operates on only one of its four assembly lines and has cut its workforce from 160 to 60, Bender told Reuters. All of these due to cheapter imports, rising production costs and declining sales, the report relays. In August alone, industrial production fell 4.4% year-over-year. Unemployment in the factory-heavy suburbs of Buenos Aires spiked to 9.8% in the second quarter from 9.1% a year ago, according to the Indec statistics agency, Reuters adds. Similar dynamics have forced ceramics company Ilva to close its factory in the Buenos Aires suburb of Pilar, leaving 300 of its former workers camped out in front demanding some form of indemnization, Reuters avers. After taking office, Milei relied on an inflated local currency, public spending cuts and high interest rates to reduce annual inflation that hovered around 200%, Reuters recounts. But those policies, especially the overvalued peso, helped trigger an increase in imports, economists say, the report says. Milei's policies has proven to be challenging for the local Argentine manufacturing sector. "People blame Milei for the fact that the macroeconomic stability that he's achieved doesn't help on the microeconomic level," said Marina Acosta, director of consulting firm Analogias, the report discloses. 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. =========================== C A Y M A N I S L A N D S =========================== SVB FINANCIAL: Cayman Liquidators Lack Standing to Pursue Claims ---------------------------------------------------------------- Chief Judge Martin Glenn of the United States Bankruptcy Court for the Southern District of New York finds that the Joint Official Liquidators of Silicon Valley Bank lacked standing to sue on any of the claims asserted in the adversary proceeding captioned as JOINT OFFICIAL LIQUIDATORS OF SILICON VALLEY BANK (IN OFFICIAL CAYMAN ISLANDS LIQUIDATION), Plaintiff, v. SVB FINANCIAL GROUP, Defendant, Adv. Proc. No. 24-04014 (S.D.N.Y.). The present dispute concerns the standing of the JOLs of Silicon Valley Bank's Cayman Islands branch to pursue their proofs of claim -- Nos. 1247 ("Initial POC"), 1450 ("Amended POC"), 1489 ("Second Amended POC"), case no. 23-10367 -- and their complaints in this adversary proceeding. Silicon Valley Bank Financial Group filed a standing objection in the Chapter 11 Case to the JOLs' original proof of claim (claim no. 1247) (case no. 23-10367). In the fourth quarter of 2022, in the months prior to the SVB collapse, SVB distributed a $294 million dividend to SVBFG -- Upstream Distribution or Upstream Dividend -- at what the JOLs describe as a time when SVBFG's mismanagement of SVB would result in the certain insolvency and collapse of SVB. On March 10, 2023, the California Department of Financial Protection and Innovation determined that SVB's liquidity position was inadequate, SVB was insolvent, and it was conducting its business in an unsafe manner. It therefore ordered that SVB's property and business be placed in receivership with the FDIC ("FDIC-R1"). The day SVB was closed (March 10, 2023), the FDIC in its corporate capacity ("FDIC-C") created the Deposit Insurance National Bank of Santa Clara and transferred all deposits of SVB to this bank. When attempts to find a purchaser for this bank were unsuccessful, the FDIC-C rescinded the agreement transferring all of SVB's deposits into the DINB and moved the deposits instead into the newly created Silicon Valley Bridge Bank, operated by FDIC in its role as receiver. These transferred deposits included SVB Cayman's deposits with SVB, i.e., included assets deposited by SVB Cayman's creditors. The JOLs claim that FDIC-R1 has no authority to deal with the SVB Cayman creditors' assets because the FDIC had not sought recognition of the SVB Receivership in the Cayman Islands. First Proof of Claim (Claim No. 1247) The JOLs filed their Initial POC on the August 11, 2023 bar date. As their basis for the claim, they stated that they filed this Claim to assert any and all of their rights against the Debtor, at law or in equity, arising out of or related to the transfer of the Cayman Deposits. SVBFG argued that the JOLs lack standing to assert any claim against the Debtor because SVB Cayman is not and was never a separate legal entity from the rest of the Bank, and so all the JOLs' claims asserted in the First POC can only be asserted by the FDIC as receiver for SVB. The Debtor also objected to the Initial POC on the basis that the JOLs provided no supporting documentation and, more simply, failed to articulate any actual claims or factual basis to verify the unidentified potential claims (or even the amount claimed). First Amended Proof of Claim (Claim No. 1450) The JOLs filed an amended proof of claim on June 28, 2024, seeking $476,612,862. In the addendum to the amended proof of claim, the JOLs claim that they are acting on behalf of the SVB Cayman estate and as the exclusive agent of SVB Cayman's creditors-depositors and as such, hold various substantial claims against SVBFG" for a total amount of $476,612,862, equal to the amount of SVB Cayman's deemed uninsured depositor-creditor base which will receive no distribution from the SVB Receivership. Initial Complaint On July 24, 2024, the JOLs commenced an adversary proceeding against SVBFG. The JOLs assert three causes of action, seeking: (1) a declaratory judgment that the Upstream Distribution was void under California law, (2) a declaratory judgment that the Upstream Distribution was void under Cayman law, and (3) the imposition of a constructive trust on the money in SVBFG's possession. Second Amended Proof of Claim (Claim No. 1489) The JOLs filed their Second Amended POC on November 22, 2024, along with their First Amended Complaint. They increased the claim amount to "not less than $944,000,000.00." First Amended Complaint The JOLs filed their Amended Complaint on November 22, 2024 as well. The factual allegations in that complaint are nearly identical to those in the Second Amended POC. The JOLs assert a single count in their Amended Complaint, based on the Upstream Dividend: they seek a declaratory judgment that the Upstream Distribution is void under various Cayman laws, including but not limited to: (i) Section 145 of the Companies Act (voidable preference); (ii) Section 146 of the Companies Act (disposition of property made at an undervalue); (iii) Section 4(1) of the Cayman Islands Fraudulent Dispositions Law; (iv) Section 147 of the Companies Act (liability for carrying out business of SVB with intent to defraud the company's creditors); and (v) Section 34(2) of the Companies Act and Cayman common law (pertaining to unlawful distributions)." They also seek the imposition of a constructive trust. The JOLs assert that they have standing to bring this cause of action directly in their role as joint official liquidators and as exclusive agents of the depositors-creditors of SVB Cayman. SVBFG divvies up the JOLs' claims in their Second Amended POC and Amended Complaint into three buckets, in accordance with how both sides' Cayman law experts approach them: (1) Officeholder Claims: Claims to avoid the $294 million dividend under sections 145, 146, and 147 of the Cayman Companies Act which are asserted in Counts I of the Second Amended POC and the Amended Complaint. Both experts agree that these claims are vested in the JOLs as Cayman "officeholders" and do not constitute assets of SVB. (2) Creditor Claims: These include (i) the negligence claims asserted in Counts II, III, and IV of the Second Amended POC (to the extent they allege harm specific to SVB's Cayman depositors); and (ii) claims under the Cayman Fraudulent Dispositions Act ("FDA") in connection with the $294 million dividend, which are asserted in Counts I of the Second Amended POC and Amended Complaint. Both experts agree that these claims are vested in SVB's creditors. (3) Company Claims: These include (i) claims for unlawful dividend under section 34(2) of the Companies Act, which are asserted in Counts I of the Second Amended POC and Amended Complaint; and (ii) the negligence claims asserted in Counts II, III, and IV of the Second Amended POC to the extent they do not allege harm specific to Cayman depositors. The experts do not dispute that these claims are vested in SVB. The Court agrees that these buckets reflect the experts' categorizations of the claims. SVBFG argues that under either U.S. or Cayman law, the JOLs lack standing to pursue all three kinds of claims, on three primary grounds: (1) having lost their bid for chapter 15 recognition, the JOLs have "no capacity to sue and be sued in a court" in the U.S. pursuant to 11 U.S.C. Sec. 1509(b); (2) 12 U.S.C. Sec. 1821(d)(2)(A)(i) mandates that the FDIC succeed to the Company and Creditor Claims; and (3) Cayman law provides the same result. The Court finds that the Initial Complaint, the Amended Complaint, and the Second Amended POC are untimely, and that the JOLs abandoned the claim or set of claims asserted in their Initial POC. SVBFG argues that the claims the JOLs asserted in both its Second Amended POC and its Amended Complaint should be dismissed because they do not relate back to the first POC and allowing the JOLs to assert them now would be inequitable. As for the JOLs' claims based on the Upstream Dividend and SVBFG's risk management, the Debtor argues that those also do not relate back. They contend the claims about the transfer of the Cayman deposits are premised on entirely different allegations than the claims about the Upstream Dividend and risk management at SVB, so the commonality required to allow relation back of an amended claim is lacking. Even if their claims relate back, SVBFG argues it would be inequitable to let the JOLs proceed with their new theories because they have not established excusable neglect for their failure to assert their claims in the first instance: the Upstream Dividend was disclosed to the public nearly six months before the bar date, the Winding-Up Order which the JOLs claim "envisioned" the Creditor Claims was issued before the bar date, and there was a substantial delay in filing the claim with the new theory (15 months between the bar date and the filing of the Second Amended POC). SVBFG also claims it would be prejudiced by the late claims and that the JOLs have not acted in good faith. The Court finds the Initial Complaint is untimely. The Initial Complaint plainly does not relate back to the Initial POC, as it features claims based on facts which do not appear in the Initial POC. The JOLs have not demonstrated excusable neglect. They do not provide an explanation for their delay in asserting Creditor Claims or claims based on the Upstream Dividend, the Court recounts. For these reasons, the Complaints are barred because they are untimely. Judge Glenn explains, "The Initial POC only contained claims held by the JOLs (i.e., Officeholder Claims) which related to the alleged movement of Cayman deposit credits outside of the Cayman Islands. The Initial Complaint, by contrast, contains both Officeholder and Creditor Claims, all of which concern the Upstream Distribution and none of which touch on the movement of the Cayman account credits. The Amended Complaint does the same. The JOLs cannot assert claims on behalf of new claimants (the Cayman creditors) in post-bar-date filings and expect them to relate back to the Initial POC." The Court finds the Second Amended POC is also barred because it is untimely, for the same reasons as the Complaints are barred. The Creditor Claims asserted in the Second Amended POC are untimely, just like the ones in the Complaint and Amended Complaint. The Company Claims are untimely for the same reason as the Creditor Claims are -- the JOLs did not purport to bring any claims not on their own behalf in their Initial POC. So are all their claims arising from the Upstream Distribution. According to the Court, even if the Second Amended POC and the Amended Complaint were timely, the JOLs would lose on standing grounds. Section 1509 itself does not bar the JOLs from bringing all but the Company Claims. However, the JOLs still lack standing to bring the rest of their claims. SVBFG argues that the Financial Institutions Reform, Recovery, and Enforcement Act ("FIRREA") bars the JOLs from asserting the Company and Creditor Claims by operation of 12 U.S.C. Sec. 1821(d)(2)(A)(i) (the "Succession Clause"), and that the JOLs have no standing to bring the Officeholder Claims by operation of 12 U.S.C. Sec. 1821(j) The Court finds that the JOLs did not bear their burden of proof in establishing that they have standing under Cayman law to bring claims on behalf of the Cayman creditors. But even if they were the creditors' agents, FIRREA bars the Creditor Claims. The Court also finds the JOLs lack standing to bring the Officeholder Claims for two distinct reasons. First, FIRREA bars them. Second, the JOLs have not shown that Cayman law would permit them to bring the Cayman law-governed Officeholder Claims extraterritorially. A copy of the Court's Opinion and Order is available at https://urlcurt.com/u?l=81oHVm from PacerMonitor.com About SVB Financial Group SVB Financial Group (Pink Sheets: SIVBQ) is a financial services company focusing on the innovation economy, offering financial products and services to clients across the United States and in key international markets. Prior to March 10, 2023, SVB Financial Group owned and operated Silicon Valley Bank, a state chartered bank. During the week of March 6, 2023, Silicon Valley Bank, Santa Clara, CA, experienced a severe "run-on-the-bank." On the morning of March 10, the California Department of Financial Protection and Innovation seized SVB and placed it under the receivership of the Federal Deposit Insurance Corporation. SVB was the nation's 16th largest bank and the biggest to fail since the 2008 financial meltdown. On March 17, 2023, SVB Financial Group sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 23-10367). The Debtor had assets of $19,679,000,000 and liabilities of $3,675,000,000 as of Dec. 31, 2022. The Hon. Martin Glenn is the bankruptcy judge. The Debtor tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Centerview Partners, LLC as investment banker; and Alvarez & Marsal North America, LLC as restructuring advisor. William Kosturos, a partner at Alvarez & Marsal, serves as the Debtor's chief restructuring officer. Kroll Restructuring Administration, LLC, is the claims and noticing agent and administrative advisor. The U.S. Trustee for Region 2 appointed an official committee to represent unsecured creditors in the Debtor's Chapter 11 case. The committee tapped Akin Gump Strauss Hauer & Feld, LLP as bankruptcy counsel; Cole Schotz P.C. as conflict counsel; Lazard Freres & Co. LLC as investment banker; and Berkeley Research Group, LLC as financial advisor. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Int'l. Reserves Drop by US$592MM in September ----------------------------------------------------------------- Dominican Today reports that the international reserves of the Central Bank of the Dominican Republic (BCRD) fell by US$592.8 million between August and September 2025, declining from US$13,887.6 million to US$13,294.8 million, a 4.3% decrease, according to official data. This drop occurred amid a global environment marked by dollar appreciation and rising external account pressures, according to Dominican Today. As a result, reserve coverage fell from 5.1 months to 4.9 months of imports, though this remains within the IMF's recommended range, the report notes. Analysts suggest that the decline could be linked to public debt payments, higher imports, foreign exchange interventions, or reduced inflows from exports and tourism, the report relays. Despite the fall, reserves remain above the adequate level equivalent to three months of imports, but experts caution that continued decreases could pressure the exchange rate stability, the report says. Meanwhile, remittances continued to show strong performance. Between January and September 2025, the country received US$8,912.8 million, up US$914.1 million (11.4%) from the same period in 2024, the report notes. In September alone, remittances totaled US$991.8 million, an 11.9% increase year-over-year, the report discloses. The United States remained the primary source, contributing 80.5% (US$729 million) of the total, the report relays. The BCRD highlighted that these funds play a crucial role in boosting consumption, investment, and social support, especially for vulnerable sectors, 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. ============= J A M A I C A ============= JAMAICA: High Liquidity May Lower Bank Profits or Raise Fees ------------------------------------------------------------ RJR News reports that Chief Executive Officer of JMMB Group, Senator Keith Duncan, says the proposed adjustments of the liquidity ratio for financial holding companies by the Bank of Jamaica to 120 per cent from the current 100 per cent will force some commercial banks, building societies and merchant banks to adjust their internal operations. Duncan also warned that this could result in lower profits for these institutions or higher fees to the public, according to RJR News. The liquidity coverage ratio is a measure of a bank's high liquidity assets such as cash and marketable securities and short-term government debt, the report notes. The BOJ says the value of these securities must amount to 120 per cent of the cash paid out minus the cash deposited into any one of these deposit-taking institutions during a 30-day period, the report relays. For instance, if the amount of cash paid out by any one of these institutions minus the amount deposited during a 30-day period is a billion dollars, the institution must have $1.2 billion in cash, marketable securities as well as treasury bills, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. ======= P E R U ======= PERU LNG: Moody's Affirms 'B2' CFR & Alters Outlook to Stable ------------------------------------------------------------- Moody's Ratings affirmed PERU LNG S.R.L.'s (PLNG) B2 corporate family rating and senior unsecured rating on the company's existing notes. At the same time, Moody's changed the outlook to stable from negative. RATINGS RATIONALE The action on PLNG's ratings and outlook was based in Moody's expectations that PLNG's shareholders will continue to provide support to the company if needed and that the company will maintain a more conservative financial policy, including no dividend distribution while facing operational challenges. As such, governance remains a relevant consideration in the rating action. PLNG's B2 ratings are also based on its exposure to natural gas market price volatility, high operating risk, fluctuating leverage given volatile cash flow that is expected to decrease as amortizations started in 2024, and a small, single operational asset base. These risks are somewhat counterbalanced by PLNG's low supply risk, high capacity utilization rates, limited competition risk, minimum foreign-exchange risk, and its high relevance to Peru's trade balance and energy industry. According to last twelve months results, the company generated positive free cash flow. EBITDA for the first half of 2025 was higher than in 2024, supported by stronger global gas prices. However, during Q2-2025, PLNG faced operational challenges that resulted in lower EBITDA and cash generation. Production was 13% lower compared to the same period in 2024 due to maintenance works performed within Transportadora de Gas del Perú (TGP) pipeline and repair works at PLNG's plant in April. Additionally, during Q2, the Truck Loading Facility delivered 5% less trucks than in Q2 2024, reflecting reduced local demand. As operations have resumed, Moody's expects production to recover in the second half of the year, but these developments continue to evidence the company's high operating risk. Moody's expects leverage to decrease going forward as debt amortization continues from an expected gross debt to Moody's adjusted EBITDA of 5.0x by the end of 2025 to 4.1x in 2026. Moody's also expects that interest coverage measured as EBITDA to interest expense will remain above 3x in both 2025 and 2026. Shareholder support has been demonstrated in previous years through capital contributions and the execution of a subordinated loan, reinforcing Moody's expectations of continued support. PLNG has adequate liquidity, with cash on hand of $23 million as of June 2025. Additionally, PLNG has fully drawn the $70 million revolving credit facility and the line for working capital of $10 million acquired in February 2025. PLNG's debt maturities will continue to put pressure on its liquidity. As of September 2025, PLNG completed the payment of the two semiannual bond coupon amortizations for a total of $156.6 million. The available cash, together with the up to $60 million sale and purchase agreement, help protect it against volatility in prices or volumes. Moody's expects PLNG's shareholders to support the company in case of need, similar to previous years when shareholders shored up PLNG's capital and executed a subordinated loan. The stable rating outlook reflects Moody's expectations that, despite potential operational disruptions and commodity price volatility that may pressure EBITDA and constrain cash flow generation, Moody's anticipates shareholder backing, which Moody's views as key to maintain financial flexibility and credit stability over the next 12–18 months. Additionally, the outlook incorporates Moody's assumptions that the company will continue to adopt prudent financial policies—such as refraining from dividend distributions while debt amortizations remain in place and operational challenges persist. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS PLNG's B2 ratings could be upgraded if it manages to balance its high operating risk and vulnerability to volatile commodities prices with lower leverage, as per gross debt to EBITDA below 3 times and if the company maintains interest coverage above 4.5 times measured as EBITDA to interest expense, on a sustainable basis. In addition, free cash flow should remain positive, also on a sustainable basis. For an upgrade to occur, the company would have to demonstrate ability to maintain operating activity stable, with minimum unexpected plant stoppages. In contrast, PLNG's B2 ratings could be downgraded if plant stoppages are significant to the point of hurting its liquidity position, if interest coverage falls to below 2.5 times, or if leverage is above 5 times with limited prospects of a quick turnaround, with a change in expected shareholders' support. PROFILE Founded in 2003, PLNG operates a 4.45-million tons per annum (mmtpa) liquefaction plant in Pampa Melchorita (Cañete), a marine terminal, and a 408-kilometer (km) pipeline that transports natural gas from the Camisea fields (Cusco, Peru). The natural gas for PLNG is supplied from the Camisea gas fields, located 431 km east of Lima, pursuant to two separate gas supply agreements (GSAs) with Block 56 and Block 88 for a total of 4.2 trillion cubic feet (Tcf). PLNG is committed to selling 218 trillion British thermal units (TBtu) of LNG per year to SITME, a subsidiary of Shell Plc (Shell,Aa2 stable), which is committed to take or pay this annual volume (95% of total capacity) until 2028. The principal methodology used in these ratings was Midstream Energy published in October 2025. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. ===================== P U E R T O R I C O ===================== ECGPR LLC: Seeks to Hire CPA Rodriguez as Accountant ---------------------------------------------------- ECGPR LLC seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire Catherine Rodriguez Roman, CPA and her firm, CPA Rodriguez, as accountant. The firm will provide strategic counseling and advice, assist the Debtor in the preparation of pro forma reports, and provide financial/business documentation as requested for and during the Debtor's Chapter 11, specifically as it is related to and as an effect of the Debtor, as well as recommendations and financial/business assessments regarding issues specifically related to the Debtor and/or other assistance in accounting, taxes and/or business operational matters. The firm will be paid at these hourly rates: Catherine Rodriguez Roman, CPA $225 Associates $150 Junior Staff $75 Administrative Assistants $45 The firm received a retainer in the amount of $10,000. As disclosed in the court filings, CPA Rodriguez is a "disinterested person" as the term is defined in 11 U.S.C. 101(14). The accountant can be reached through: Catherine Rodriguez Roman, CPA CPA Rodriguez Calle San Jose 252, Suite 1-B San Juan PR 00901 About ECGPR LLC ECGPR LLC holds fee simple ownership of a property at AA 62 Angel Maldonado Street in the Coco Margarita sector of Barrio Playa, Salinas, Puerto Rico, valued at about $117,000. ECGPR LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 25-04341) on September 27, 2025, listing $121,000 in assets and $1,122,000 in liabilities. The petition was signed by Edgardo Fernandez Laborde as president. Judge Enrique S Lamoutte Inclan presides over the case. Jacqueline Hernandez Santiago, Esq. at HERNANDEZ AND ASSOCIATES LAW FIRM represents the Debtor as counsel. ===================================== T R I N I D A D A N D T O B A G O ===================================== HERITAGE PETROLEUM: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed Heritage Petroleum Company Limited's (Heritage) Long-Term Foreign and Local Currency Issuer Default Ratings at 'BB' and assessed the Standalone Credit Profile at 'b+'. The Rating Outlook is Stable. Fitch has also affirmed the senior secured notes of $500 million due 2029 at 'BB'. Heritage's rating reflects its strategic importance to Trinidad and Tobago. Heritage and its guarantors, Trinidad Petroleum Holdings Limited (TPHL) and Paria Fuel Trading Company Limited, play a key role in the government's oil and gas development plan, and are a material source of government revenue and economic development in the country. Key Rating Drivers Precedents of Government Support: Heritage's ratings reflect its strategic importance to Trinidad and Tobago's oil sector, accounting for more than half of national crude production in 2024. Fitch expects total production to increase from 43,000 boed in 2024 to 48,000 boed by 2028. Royalties, taxes and dividends are estimated to average USD23.41/boe through 2028, underscoring the importance of Heritage's cash flows to the government of Trinidad and Tobago and the resulting linkage between the sovereign's credit profile and that of the company. Government tax revenues from Heritage are projected to exceed USD1 billion over the rating horizon. These factors highlight Heritage's importance to the sovereign and the broader economy. As a result, the state has historically provided support, including waivers of the supplemental petroleum tax in certain years. Limited Operational Scale: Heritage's production is expected to average 46,600 boed through the rating horizon, which places the company firmly in the 'b' category. Production in 2024 was estimated to average 43,100 boed, reflecting production figures are a rating constriction. 1P reserves are forecast to remain flat at 124.7 million boe, also consistent with the lower range of the 'b' category, and 1P reserve life of 7.9 years is strong and consistent with the rating category. Fitch assumes the company will be able to continue to replace reserves at an average rate of 100% through the rating horizon given the aggressive growth campaigns in the past few years expected to continue through at least 2028. Manageable Leverage Profile: Fitch estimated Heritage's gross leverage, defined as total debt to EBITDA, to be 1.9x in 2024. The estimated net leverage was 1.8x in 2024 and Fitch estimates this metric to average 2.7x over the rated horizon. Total debt to 1P is estimated to be $6.65/boe and total debt to PDP at $7.73/boe for 2024, which is average for the peer group. On average, EBITDA will cover interest expense by 3.3x between 2025 and 2028. Peer Analysis Heritage is most comparable to regional GREs such as Ecopetrol, PEMEX, Petrobras, and YPF, comparing favorably in cost structure. In 2024, Fitch estimated Heritage's half-cycle cost at USD 19.89/boe, below Ecopetrol (USD 29.44), PEMEX (USD 31.55), and YPF (USD 30.68). Production is concentrated in oil, with Heritage accounting for 67% of Trinidad and Tobago's output, versus roughly 70% for PEMEX, 85% for Ecopetrol, 90% for Petrobras, and 25% for YPF in their respective markets. Heritage's government take is the highest among peers at USD 19.74/boe, compared with Ecopetrol (USD 10.01), PEMEX (USD 10.77), Petrobras (USD 13.25), and YPF (USD 5.55). Reserves are stable: 1P reserve life was 7.9 years, above YPF (6.1) and Ecopetrol (7.0), broadly in line with PEMEX (8.2), and below Petrobras (11.7). Leverage is moderate, with total debt/EBITDA of 2.0x and debt per 1P reserves of USD 6.65/boe, which compares favorably with PEMEX (9.0x; USD 13.1/boe) and Ecopetrol (2.1x; USD 14.4/boe), while Petrobras (0.6x; USD 2.0/boe) and YPF (1.9x; USD 8.2/boe) are lower. Given the absence of downstream integration, Heritage is also benchmarked against independent producers. In 2024 it produced 43,000 boed, above GeoPark (34,000), Frontera (40,000), and Gran Tierra (35,000), and in line with SierraCol (45,000). Its 1P reserve life of 7.9 years exceeded GeoPark, Frontera, and SierraCol, though trailed Gran Tierra (13.2), and its 2.0x leverage was similar to Gran Tierra but higher than GeoPark, Frontera, and SierraCol. Key Assumptions - Fitch's price deck for Brent of $70 bbl in 2025, $65 bbl in 2026, $65 bbl in 2027 and $60 bbl for midcycle prices; - Discount of $2.0 bbl to Fitch's Brent price deck; - Average oil production of 46,600 bbld between 2025 and 2028; - Production cost of $11.0 bbl between 2025 and 2028; - Royalties of 8% per bbl over the rated horizon; - Supplemental petroleum tax of 12.5% per bbl over the rated horizon; - Production tax of $2.20 bbl over the rated horizon; - SG&A of $2.30 bbl over the rated horizon; - D&A of 4.5% of revenue over the rated horizon; - Royalty income of 3.9% to oil crude and natural gas sales over the rated horizon; - Natural gas liquids sales of 0.1% to oil crude and natural gas sales over the rated horizon; - Corporate tax rate of 40% over the rated horizon; - Purchases of TTD1,792 in 2025 and TTD1,370 in 2026, decreasing by 20% yoy through 2028; - Capex budget of USD800 million over the rated horizon, an average of USD200 million per annum; - Reserve replacement ratio of 100%; - Dividends payment of TTD400 million in 2025 and TTD259 million in 2026, with no dividends going forward. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A deterioration of Heritage's financial flexibility, coupled with government inaction to support liquidity, potentially resulting from continued negative FCF or a material reduction of the company's cash on hand, credit facilities and restricted capital markets access; - Sustained net production falls below 35,000 boed; - Reserve life declines to below seven years on a sustained basis; - A significant deterioration of EBITDA leverage to 4.5x or more. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Material improvement in the country's overall economic condition. Liquidity and Debt Structure Heritage reported USD74 million in cash as of YE 2024 (USD 85 million including restricted cash) and USD66 million as of June 2025 (USD 97 million including restricted cash). Fitch expects a manageable debt maturity profile, with approximately USD62 million of short-term debt as of June 30, 2025, annual amortizations of roughly USD62 million-USD114 million on its USD475 million term loan from YE 2025 through YE 2029, and the USD500 million bond maturing in August 2029. Over the rated horizon, the company is expected to be FCF neutral. Issuer Profile Heritage is the largest crude oil producer in Trinidad and Tobago, accounting for 64% of the country's total crude output. It is a state-owned enterprise that is controlled by the government through TPHL. 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 Heritage Petroleum Company Limited has an ESG Relevance Score of '4' for Governance Structure due to its nature as a majority government-owned entity and the inherent governance risk that arises with a dominant state shareholder, 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 ----------- ------ ----- Heritage Petroleum Company Limited LT IDR BB Affirmed BB LC LT IDR BB Affirmed BB senior secured LT BB Affirmed BB TRINIDAD & TOBAGO: September Inflation Drops to 1% -------------------------------------------------- Roberto Codallo at Trinidad and Tobago Guardian reports that consumers caught a small break at the grocery in September, as food prices dipped and overall inflation slowed to 1.0 per cent, according to new data released by the Central Statistical Office (CSO). The latest Consumer Price Index (CPI) shows that the inflation rate for September 2025, which measures the percentage change in the All-Items Index compared to the same month last year, fell from 1.4 per cent in August to 1.0 per cent, signalling a modest easing in price pressures, according to Trinidad and Tobago Guardian. For comparison, inflation during September 2024 stood at 0.4 per cent, the report relays. The All Items Index slipped slightly from 125.6 in August to 125.4 in September, representing a 0.2 per cent month-on-month decline, as food costs retreated after several months of steady increases, the report discloses. The CSO report pointed to a 0.8 per cent drop in the food and non-alcoholic beverages index, which moved from 153.6 in August to 152.4 in September, the report relays. This was driven mainly by falling prices for tomatoes, fresh and frozen whole chickens, melongene, melon, pimento, fresh carite, garlic, hot peppers and eddoes, the report relates. However, not everything on the shopping list got cheaper, the report notes. The CSO noted that these declines were partly offset by higher prices for cucumber, Irish potatoes, cabbage, bottled water, frozen turkey parts, soybean oil, pork ham, fresh shrimp, split peas and other fruit drinks, the report discloses. Outside the food basket, small price shifts were also recorded across other consumer categories, the report notes. The index for clothing and footwear slipped by 0.3 per cent, while health declined by 0.1 per cent, the report discloses. Meanwhile, the Alcoholic Beverages and Tobacco sub-index rose marginally by 0.1 per cent, reflecting higher retail prices for some products in that category, the report relates. All other sections of the CPI remained unchanged, the report says. The CSO said it will continue to monitor trends closely as global energy and commodity prices remain unpredictable heading into 2026, the report adds. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN 1529-2746. 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