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251023.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 Thursday, October 23, 2025, Vol. 26, No. 212 Headlines C O L O M B I A MINEROS SA: S&P Rates New $400MM Senior Unsecured Notes 'B+' E C U A D O R ECUADOR: IDB OKs $40MM Loan to Strengthen Agricultural Services J A M A I C A PORTLAND JSX: Reports Reduced Losses for August Quarter P E R U BANCO DE CREDITO: Fitch Rates $500MM Sub. Tier 2 Bonds 'BB+' P U E R T O R I C O ECGPR LLC: Hires Jacqueline E. Hernandez Santiago as Counsel V E N E Z U E L A PETROLEOS DE VENEZUELA: Ordered to Pay $2.86BB to Bondholders - - - - - =============== C O L O M B I A =============== MINEROS SA: S&P Rates New $400MM Senior Unsecured Notes 'B+' ------------------------------------------------------------ S&P Global Ratings, on Oct. 20, 2025, assigned its 'B+' long-term issuer credit rating to Mineros S.A. and its 'B+' issue rating to the proposed $400 million senior unsecured notes issued by Mineros Netherlands. S&P said, "The stable outlook reflects our expectation that Mineros will benefit from favorable gold prices, operational improvements, and prudent financial management. We expect the company will maintain healthy credit metrics, with adjusted gross leverage remaining below 2.0x and free operating cash flow (FOCF) to debt of 10-15% for the next 12 months." Mineros S.A. is a mining company with operations in Nicaragua and Colombia with a smaller scale compared to peers, including its reliance on artisanal mining which considerably elevate its cash costs. It is primarily engaged in the exploration and processing of gold and silver with its operations span into two key assets, while positioning for potential growth through ongoing exploration projects like El Porvenir, Luna Roja, and La Pepa. Mineros is planning an up to $400 million issuance through its core subsidiary Mineros Netherlands B.V., for general corporate purposes, with a primary focus on development capital expenditure for organic growth initiatives, such as the ongoing development of the El Porvenir mine, and potential mergers and acquisitions (M&A) transactions. The notes will be held solely by the subsidiary. S&P's 'B+' issuer credit rating on Mineros reflects its smaller operational scale compared to higher-rated global peers, particularly in terms of revenue, production volume, and both metal and geographic diversification. Mineros is a prominent gold producer in Colombia and Nicaragua, with revenues of $539 million as of fiscal year-end 2024 (ended Dec. 31). It has a strategic focus on gold production, which accounts for most of its revenue (98%), with silver contributing a smaller portion. The company maintains a projected average annual gold production of 227,000 ounces, primarily from its Nechí and Hemco mine operations. While Mineros demonstrates some geographic diversification, with 38% of revenue originating from Colombian alluvial operations, it generates a substantial 62% in Nicaragua. This concentration introduces potential jurisdictional risks, especially compared to peers operating in more stable and mining-friendly jurisdictions. Despite this diversification, Mineros' overall scale of operations, indicated by its revenue and production volumes, positions it at the lower end of the spectrum when benchmarked against other gold-focused mining companies in the Americas. The company's smaller asset portfolio and comparatively lower production levels, combined with the revenue concentration in Nicaragua, are less favorable than those of rated peers possessing broader asset portfolios and higher overall production. These factors collectively contribute to a more constrained competitive position within the industry. Despite a historical track record as a mid-cost producer, Mineros' current reliance on artisanal mining significantly elevates cash costs, limiting profitability and somehow placing it at a competitive disadvantage relative to peers. Mineros' significant reliance on artisanal mining represents a structural competitive disadvantage relative to peers with more industrialized operations, as it has to purchase the main product to third parties (artisans), which in comparison limits margin expansion during favorable price cycles. While its high proportion of variable costs provides some flexibility to absorb downside price movements –given that operating costs tend to adjust partially to lower gold prices—its same cost structure has resulted in elevated and currently peaking cash costs, placing the company in the fourth quartile of the cash cost curve amid ongoing high gold prices. This increased cost burden is typical within artisanal mining operations, where cost structures tend to be more exposed to competition for scarce inputs, the processing of lower-grade ore, and local inflationary pressures. Historically, Mineros has operated as a mid-cost mining producer, typically ranking in the third or fourth quartiles among the world's gold producers. However, its dependence on artisanal mining, which accounts for approximately half of its total production, now presents considerable challenges for the company. In recent years, the costs associated with purchasing ore from local miners have consistently represented 30%-40% of total all-in sustaining costs, and these expenses are directly influenced by fluctuations in the gold spot price. This dependence has significantly increased the company's consolidated cash costs in recent months. For the first six months of 2025, Mineros' consolidated cash cost reached $1,554 per ounce of gold, firmly placing it in the fourth quartile of the cash cost curve. While cash costs for mining companies generally have risen over the past couple of years due to factors like inflation, wages, fuel prices, contractor costs, and raw materials, Mineros' costs have spiked higher due to the centrality of the artisanal mining operations to its performance. As of fiscal year 2024, the company's EBITDA margin of 36.4% was notably below those of similarly rated peers, such as Aura Minerals (45.2%), Eldorado Gold (53.6%), and New Gold Inc. (48.8%). Mineros' strategic focus on developing the El Porvenir mine and pursuing targeted mergers and acquisitions (M&A) represents a deliberate effort to achieve greater scale, diversify its metals portfolio, and improve cost efficiency, aiming to strengthen its overall business risk profile. Mineros' capital expenditure (capex) plans are crucial for boosting production and enhancing profitability in the next few years, with the development of the El Porvenir mine central to the company's organic growth strategy, while it also explores M&A opportunities. S&P expects that 2026 and 2027 will be the most investment-intensive years for developing the El Porvenir mine. The company expects El Porvenir to start operating in the second half of 2028, which falls outside the scope of our current analysis. This project's significance extends beyond production volume: It has the potential to slightly diversify the company's metals portfolio by incorporating zinc and additional silver production, while also significantly improving Mineros' cost structure. The project's life of mine (LOM) is currently estimated to be nine years and will extend the reserve life of the Hemco property. Mineros projects that it will produce approximately 57,000 ounces of gold, 39 million pounds of zinc, and 112,000 ounces of silver annually. S&P projects the estimated cash cost (LOM) to be roughly $1,235 per ounce, which is in line with the cash costs of Mineros' other operations--$1,113 per ounce at Nechí and $1,402 per ounce at Hemco as of the end of fiscal year 2024--particularly considering that the project will not rely on the artisanal mining scheme. Finally, the company is actively looking to pursue M&A opportunities in the Americas, targeting mining companies focused on gold with annual production between 50,000 and 120,000 ounces. S&P said, "Driven by favorable gold prices, operational improvements, and prudent financial management, we expect Mineros to maintain healthy credit metrics, with adjusted leverage remaining below 2x and robust free operating cash flow, despite planned capex and potential M&A. We anticipate that Mineros will continue to benefit from favorable gold prices, increased profitability driven by cost-control measures, operational efficiencies, and a more favorable production mix, supported by modestly higher industrial production. In the coming years, we expect stable operations at existing mines, coupled with the expansion of Hemco's processing plant and the completion of La Ideal plant, to slightly increase production while improving cash costs." To support its growth initiatives, Mineros is proposing a $400 million issuance through its Mineros Netherlands subsidiary, intended for general corporate purposes including development capital expenditure and potential M&A transactions. S&P said, "These notes will be held solely by the subsidiary. Based on our expectation of improved operating performance and manageable debt maturities, we forecast that the company's adjusted debt-to-EBITDA ratio will be approximately 1.5x in 2025 and reach 2.0x in 2026. We also consider that the free operating cash flow-to-debt ratio will remain at 10%-15% in the next 12-18 months." S&P said, "Moreover, supported by robust gold prices, a prudent dividend policy, and limited additional debt, we project the EBITDA margin to increase to 40%-44% through ongoing initiatives aimed at enhancing profitability. The impact of artisanal mining costs on margins will remain a key consideration if gold prices decline. "The stable outlook reflects our expectation that across its Nicaraguan and Colombian operations, Mineros will maintain stable gold output. That output, coupled with still favorable international price momentum, should help Mineros post solid EBITDA in the next 12 months. We think this will lead to S&P Global Ratings-adjusted gross leverage below 2.0x and free operating cash flow (FOCF) to debt of 10%-15% for the next 12 months. "Our stable outlook also reflects the view that the company will maintain adequate liquidity due to the expected solid cash flow over the next 12 months. "We could lower the ratings in the next 12 months if the company's leverage rises to consistently above 2x while FOCF to debt remains below 15%." S&P could also lower the ratings if Mineros' liquidity position deteriorates because: -- Gold prices slump, offsetting the expected increase in output and eroding its credit metrics; -- The company doesn't achieve expected production; or -- The company's investments in El Porvenir, its other development projects, or its intended M&A transaction requires increased funding. S&P could raise the ratings if there's material improvement in the company's scale, geographic diversification, and cash-cost profile--which, in turn, could improve its business position within the gold mining industry, making it comparable with its higher-rated peers. This could occur if Mineros increases its gold output sharply and has a clear strategy to expand its portfolio of operating assets so that its scale broadens, and concentration risk diminishes. Additionally, an upgrade would be contingent on Mineros maintaining healthy credit metrics across industry cycles--with weighted average gross debt to EBITDA well below 2.0x and FOCF to debt above 10% consistently--while it also maintains a stable EBITDA margin consistently above 40% and adequate liquidity without material short-term debt obligations in the next 12 months. These factors could also be boosted by: -- Sharply higher volumes, which would raise EBITDA above what S&P projects in S&P's base case; or -- Rising gold prices, which would allow for a significant improvement in leverage metrics even if output doesn't increase above expectations. Moreover, an upgrade would also be contingent on the company passing S&P's sovereign stress test for Nicaragua (B+/Stable/--). ============= E C U A D O R ============= ECUADOR: IDB OKs $40MM Loan to Strengthen Agricultural Services --------------------------------------------------------------- The Inter-American Development Bank (IDB) related in an Oct. 16 press release that it has approved a $40 million investment loan to support the development of Ecuador's agricultural public services. The financing, approved by the IDB's Board of Executive Directors, will help strengthen agricultural research, promote technology transfer, improve information management, and consolidate governance of the agricultural research, development, and innovation system. In addition, the loan will support agricultural health services by enhancing laboratory diagnostic capacity, risk management, and disease and pest surveillance, contributing to food safety. The project includes the construction and upgrading of infrastructure with environmental sustainability and accessibility criteria, the implementation of advanced digital solutions based on artificial intelligence and virtual reality, and the training of technicians and producers in the transfer and adoption of new technologies. It also includes the adoption of good agricultural practices. The program is expected to directly benefit more than 13,000 producers, with a special focus on rural women, indigenous communities, and Afro-Ecuadorians. It will also contribute to strengthening institutional governance, improving climate resilience in the agricultural sector, and enhancing public services related to agricultural health and food safety. The operation will be executed by the National Institute of Agricultural Research (INIAP) and the Agency for Phytosanitary and Zoosanitary Regulation and Control (AGROCALIDAD), both entities under the Ministry of Agriculture, Livestock, and Fishing. The agricultural sector in Ecuador accounts for 7.7% of GDP and nearly 30% of jobs nationwide. The loan has a repayment term of 25 years, a grace period of 5.5 years, and an interest rate based on SOFR. ============= J A M A I C A ============= PORTLAND JSX: Reports Reduced Losses for August Quarter ------------------------------------------------------- RJR News reports that Portland JSX is reporting a smaller loss for its latest quarter ended August 31, 2025, as the company continues to show signs of recovery. For the three-month period, Portland JSX posted a net loss of US$618,000 down from US$1.5 million in the same quarter last year, an improvement of nearly 60%, according to RJR News. The company's performance was helped by reduced investment losses and lower operating expenses, the report notes. Net fair value losses on financial investments fell to US$380,000, compared to $1.3 million a year earlier, while operating expenses edged down to US$219,000 from US$230,000 last year, the report says. Portland JSX, which is part of the Portland Private Equity Group, says it continues to navigate global market headwinds while maintaining focus on long-term investment growth across the region, the report adds. ======= P E R U ======= BANCO DE CREDITO: Fitch Rates $500MM Sub. Tier 2 Bonds 'BB+' ------------------------------------------------------------ Fitch Ratings has assigned a final rating of 'BB+' to Banco de Credito del Peru S.A.'s (BCP) USD500 million subordinated Tier 2 bonds. The bonds have a 11.25-year maturity and a 5.65% fixed rate. The proceeds will be used for general corporate purposes, including debt refinancing. Key Rating Drivers BCP's subordinated Tier 2 bonds are rated two notches below the Viability Rating (VR) of 'bbb' to reflect loss severity only. Fitch did not apply any notching for non-performance risk, as the notes do not have additional loss-absorption features. The notes will rank pari passu in right of payment with all BCP's existing and future parity obligations, senior in right of payment to all of the issuer's existing and future junior obligations and share capital, and junior in right of payment to all of the issuer's existing and future senior obligations. BCP's IDRs are driven by its VR of 'bbb', which is aligned with the implied VR. The bank's ratings are supported by its robust and leading market position, well-diversified business model, consistent funding strategies, and a solid and improving financial profile. However, these ratings are constrained at the sovereign level due to the bank's limited geographical diversification beyond Peru and significant exposure to foreign currency. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - The subordinated debt ratings would mirror any negative action on the bank's VR and would maintain the downward notching from it. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The subordinated debt ratings would mirror any positive action on the bank's VR and would maintain the downward notching from it. Date of Relevant Committee October 3, 2025 ESG Considerations Fitch does not provide ESG relevance scores for Banco de Credito del Peru S.A. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. Entity/Debt Rating Prior ----------- ------ ----- Banco de Credito del Peru S.A. Subordinated LT BB+ New Rating BB+(EXP) ===================== P U E R T O R I C O ===================== ECGPR LLC: Hires Jacqueline E. Hernandez Santiago as Counsel ------------------------------------------------------------ ECGPR LLC seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire Legal Office of Jacqueline E. Hernandez Santiago, Esq. as counsel. The firm will provide these services: a. advise the Debtor with respect to its duties, powers and responsibilities in the bankruptcy case; b. advise the Debtor in connection with the determination, whether reorganization is feasible and, if not, assist in the orderly liquidation of assets; c. assist the Debtors with respect to the negotiations with creditors for arranging the orderly liquidation of assets, and plan of reorganization; d. prepare on behalf of the Debtor legal papers; e. perform the required legal services needed by the Debtors to proceed or in connection with the operation of and involvement with is business; and f. perform necessary services for the benefit of the Debtor and the estate. The firm will be paid at the rate of $375 per hour, and will also be reimbursed for reasonable out-of-pocket expenses incurred. The retainer is $15,000. As disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Jacqueline E. Hernandez Santiago, Esq. LEGAL OFFICE OF JACQUELINE E. HERNANDEZ SANTIAGO, ESQ. 22 Mayaguez Street Hato Rey, PR 00918 Tel: (787) 766-0570 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. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Ordered to Pay $2.86BB to Bondholders ------------------------------------------------------------- Rae Ann Varona at law360.com reports that a New York federal judge ordered Venezuela's state-owned oil firm Petróleos de Venezuela SA to pay $2.86 billion to bondholders, after ruling last month that defaulted Venezuelan bonds were validly issued under the South American country's laws. About PDVSA Founded in 1976, Petroleos de Venezuela, S.A. (PDVSA) is the Venezuelan state-owned oil and natural gas company, which engages in exploration, production, refining and exporting oil as well as exploration and production of natural gas. It employs around 70,000 people and reported $48 billion in revenues in 2016. In May 2019, Moody's Investors Service withdrew all the ratings of Petroleos de Venezuela, S.A. including the senior unsecured and senior secured ratings due to insufficient information. At the time of withdrawal, the ratings were C and the outlook was stable. Citgo Petroleum Corporation (CITGO) is Venezuela's main foreign asset. CITGO is majority-owned by PDVSA. CITGO is a United States-based refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. However, CITGO formally cut ties with PDVSA at about February 2019 after U.S. sanctions were imposed on PDVSA. The sanctions are designed to curb oil revenues to the administration of President Nicolas Maduro and support for the Juan Guaido-headed party. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. 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