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251030.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 30, 2025, Vol. 26, No. 217 Headlines A R G E N T I N A ARGENTINA: Milei's Party Wins Midterm Vote in Major Comeback C A Y M A N I S L A N D S AMBIPAR EMERGENCY: Seeks Chapter 11 Bankruptcy with $328.3MM Debt M E X I C O MEXICO: Peso Steadies as Stocks Soar Amid U.S. Shadows NUEVA ELEKTRA: Moody's Puts 'Ba3' CFR Under Review for Downgrade P U E R T O R I C O FERRELLGAS PARTNERS: Prices Offering of $650M of 9.25% Sr. Notes PETCO HEALTH: Moody's Affirms 'B3' CFR & Alters Outlook to Stable V E N E Z U E L A CITGO PETROLEUM: Looks to Pause $3 Billion Bond Ruling PDVSA: Ruling Offers Insight Into Foreign Debt - - - - - ================= A R G E N T I N A ================= ARGENTINA: Milei's Party Wins Midterm Vote in Major Comeback ------------------------------------------------------------ Patrick Gillespie & Manuela Tobias at Bloomberg News report that President Javier Milei's party won Argentina's midterm vote, a result that will give the libertarian leader a strong foothold in Congress to continue pursuing aggressive free-market policies that have won praise and a financial lifeline from Donald Trump. Milei's party, La Libertad Avanza, received 41 percent of votes nationwide with 92 percent of ballots counted, according to data published by the Interior Ministry, according to Bloomberg News. It led in most of Argentina's provinces and finished well ahead of the main opposition party, which in all of its iterations garnered about 32 percent of the vote, local newspaper Clarin said, Bloomberg News notes. Milei said in a victory speech that he'd have the backing of 101 members of the lower house and 20 senators, without specifying if that total included members of other parties his had partnered with in the vote, Bloomberg News relays. The results would push Milei comfortably past the one-third of seats he needs in the 257-member lower house to protect his veto power, as well as a base to pursue legislative priorities like tax, labour and pension reforms as he seeks to overhaul the nation's beleaguered economy, Bloomberg News discloses. "Argentines demonstrated they don't want to return to the model of failure," a jubilant Milei said in Buenos Aires. "This is the most reformist Congress in the history of Argentina," he added. Bloomberg News says that the result came after Milei's party suffered a landslide defeat to the Peronist opposition in a September local vote in the Buenos Aires Province, an outcome that sparked a selloff of the peso amid investor fears over the president's standing with voters, Bloomberg News discloses. The slide led the Trump administration to extend financial support to Argentina in an effort to help both the currency and the government, Bloomberg News relates. It was Buenos Aires Province, a longtime Peronist bastion home to more than a third of the country's voters, that propelled the turnaround, Bloomberg News notes. Bloomberg News discloses that La Libertad Avanza finished one point ahead of former president Cristina Fernandez de Kirchner's party in the province, a sharp reversal from its 14-point defeat last month. Markets will likely rally in response to the news of Milei's resurgence, Bloomberg News relays. His relentless pursuit of deregulatory policies and ambitious budget cuts had won cheers from investors before the election last month, Bloomberg News notes. Argentina bonds were among the best performers in emerging markets last year but had been throttled by volatility amid the Buenos Aires results and US support package, Bloomberg News discloses. Investors, meanwhile, headed into the vote with little conviction to make big bets as they searched for clues on whether Milei's economic overhaul could survive his toughest political test yet, Bloomberg News relays. The result was "a very strong and conclusive performance by Milei's LLA party," said Alberto Ramos, managing director and head of Latin America macroeconomic research at Goldman Sachs Group Inc, Bloomberg News relates. "This should give his administration a fresh endowment of legitimacy and political capital which if well used should strengthen governability. That also bodes well for the continuation of strong US financial support," he added. The peso in the crypto market extended gains after authorities confirmed a strong result for Milei, strengthening to around 1,390 pesos per US dollar, according to crypto exchange Lemon, Bloomberg News notes. US Support Bloomberg News discloses that Milei's win will also vindicate the extraordinary support US Treasury Secretary Scott Bessent offered Argentina. Just before the election, the US signed a US$20-billion currency swap line agreement with Argentina to shore up the beleaguered peso, which is down more than 30 percent so far this year, Bloomberg News says. The US also directly purchased pesos in the run-up to the vote, and is coordinating additional financial support from Wall Street banks for Milei's administration, Bloomberg News relays. Trump met Milei at the White House two weeks ago and the Argentine has emerged as one of the US leader's most ardent supporters abroad, Bloomberg News notes. As the results rolled in, billionaire investor Bill Ackman painted it as a triumph for Trump, Milei and Bessent, and "an important win for democracy, capitalism, and sanity, and a defeat for socialism," Bloomberg News relates. The backing from Washington came on top of Argentina's US$20-billion program with the International Monetary Fund that began in April, Bloomberg News discloses. A victory could also help turn the page politically for Milei. The President and his party have faced three corruption scandals this year, while Argentina's slowing economy and frustration with high unemployment rates helped push Milei's approval to the lowest level of his term ahead of the vote, Bloomberg News relays. Bloomberg News relays that Milei will have to pivot to a more pragmatic political strategy to cut deals with his political foes, whom he needs to push any lasting reforms through Congress. He's already previewed a big cabinet shakeup is in the works, although he had also said the changes would depend on results, Bloomberg News says. Economy Minister Luis Caputo, meanwhile, assured time and again ahead of the vote that there would be no changes to the country's currency policy come, despite pleas from some investors to loosen their grip on the peso to rebuild foreign reserves, Bloomberg News notes. The economic team had attributed the drop in the peso to political risk, Bloomberg News 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. =========================== C A Y M A N I S L A N D S =========================== AMBIPAR EMERGENCY: Seeks Chapter 11 Bankruptcy with $328.3MM Debt ----------------------------------------------------------------- Law360 and Reuters report that global environmental and emergency response firm Ambipar Emergency Response has entered Chapter 11 bankruptcy in Texas, listing more than $1 billion in assets and $328.2 million in liabilities. The Cayman Islands-based company is best known for its work mitigating oil spills, fires, and other large-scale disasters. The filing reflects ongoing financial strain on the company's extensive operations, which span several continents. Court documents indicate Ambipar will use the bankruptcy process to reorganize its finances while maintaining its critical emergency response services, the report states. According to Ambipar, the Chapter 11 filing was prompted by evidence of irregularities in swap operations conducted by the finance department, coupled with the unexpected resignation of former CFO Joao de Arruda. The company disclosed that during Arruda's tenure, swap contracts were moved from Bank of America to Deutsche Bank and later amended to add a rule introducing a speculative feature, according to report. About Ambipar Emergency Response Ambipar Emergency Response is a global environmental and emergency response firm. Ambipar Emergency Response sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-90524) on October 20, 2025. In its petition, the Debtor reports more than $1 billion in assets and $328.2 million in liabilities. Honorable Bankruptcy Judge Alfredo R. Perez handles the case. The Debtor is represented by Jason S. Brookner, Esq. of Gray Reed & Mcgraw LLP. =========== M E X I C O =========== MEXICO: Peso Steadies as Stocks Soar Amid U.S. Shadows ------------------------------------------------------ Rio Times Online reports that in the shadow of the U.S. Federal Reserves looming decision, Mexicos markets are scripting a tale of quiet resilience -- a nation whose economy beats in sync with its northern neighbor, yet carves its own path through global currents. On October 29, the Mexican peso clings to 18.44 per U.S. dollar, a subtle 0.02% uptick that whispers strength after Oct. 28 0.19% dip to 18.39, according to Rio Times Online. Its no accident: remittances from abroad - over $60 billion this year alone - pour in like lifelines, sustaining families and the currency alike, while Banco de Mexicos steady hand on interest rates lures investors seeking safe yields, the report notes. The report discloses that behind the numbers lies a deeper narrative of interdependence and defiance. The U.S. dollar index, at 98.75 after a 0.09% overnight slide, embodies Americas easing grip - down 9% year-to-date as inflation cools and rate cuts loom with 95% certainty, the report relays. For Mexico, this means breathing room: nearshoring factories from Asia have funneled $36 billion in foreign investment, fueling a projected 2.5% GDP growth in Q3, the report relates. Yet, election whispers and trade frictions remind us of the fragility - Oct. 28 range-bound trading (18.36-18.46) mirrored investor jitters over potential tariffs that could unravel supply chains, the report says. Meanwhile, the S&P/BMV IPC index opens flat at 62,795, capping Oct. 28 1.51% surge on record weekly volume of 230 million shares, the report notes. Mexico Rises as Markets Bet on Cross-Border Strength Financials and staples propelled the climb, echoing Wall Streets tech optimism and easing U.S.-China tensions, the report relays. This isn't just numbers; its Mexico betting on its role as a bridge between North and South America, where telecoms and industrials thrive on cross-border dreams, the report says. Spotlighting the action: Grupo Carso A1 leaped 5.39% to 127.77 pesos, riding infrastructure hopes; Genomma Lab B gained 4.99% to 18.50 on consumer bets; G Mexico B rose 3.95% to 154.99; Grupo Televisa CP climbed 3.50% to 9.17; and Banco del Bajio SA advanced 3.47% to 45.56, the report notes. On the flip side, Compartamos fell 1.55% to 47.00 pesos amid lending caution; Grupo Aeroportuario del Pacifico B slipped 0.43% to 398.52; Megacable CPO dipped 0.40% to 52.76; Arca Continental eased 0.20% to 176.87; and Cemex CPO shed 0.17% to 17.18, the report discloses. Technically, the pesos daily channel eyes 18.20 support if the Fed turns dovish, while the IPCs upward arc targets 63,000 - a bullish flag on four-hour charts, the report says. For outsiders peering in, this is Mexicos moment: a economy woven into global threads, resilient yet vulnerable, inviting investment in its unfolding story, the report adds. NUEVA ELEKTRA: Moody's Puts 'Ba3' CFR Under Review for Downgrade ---------------------------------------------------------------- Moody's Ratings has placed the Ba3 Corporate Family Rating of Nueva Elektra del Milenio, SA de CV. (NEM or the Company) under review for downgrade. Previously the outlook was stable. RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING Moody's have placed the ratings of Nueva Elektra del Milenio, S.A. de C.V. under review for downgrade due to a combination of financial and operational pressures that have affected the company's credit profile. The primary concern is the existence of significant tax liabilities and Moody's will closely assess whether NEM can demonstrate full and timely access to resources to cover its obligation. Another factor contributing to the review process is the negative trend in remittance flows in the country, which has adversely affected this business in general and Moody's expects this downward trend to persist, driven by recent and anticipated changes in US migration policies that are likely to reduce remittance volumes to Mexico. This macroeconomic headwind adds to the company's stress and it creates an unpredictability around its ability to keep showing strong results in this segment. In addition, the company has experienced contractions in operating profit and cash flows over the last three quarters, putting pressure over EBIT and EBITDA margins. Adjusted retained cash flow (RCF) to Net Debt levels has been hurting, mainly due to the dividends paid during the first two quarters of the year. As per Moody's credit metrics, these trends highlight structural challenges in the company's ability to generate sufficient cash to cover capital expenditures, debt repayments and interest payments. Interest coverage measured as adjusted EBITDA - CAPEX to Interest Expense has dropped to 0.5x at LTM 2Q'25 numbers, reflecting according to Moody's credit metrics pressure on the company's ability to meet financial obligations once liquid resources are used to pay the tax liability. Furthermore, NEM does not have a definitive dividend policy established, which warrants further scrutiny, especially in light of decreased cash generation. In Moody's views, corporate governance risks are also present, arising from its holding company, Grupo Elektra, S.A.B. de C.V. ("Grupo Elektra"), which possesses a family-based ownership structure and in Moody's views exhibits concentrated decision-making within the Salina's Family. Such concentrated ownership amplify governance risks, potentially undermining the board's effectiveness. Furthermore, Nueva Elektra does not have a definitive dividend policy established. Nueva Elektra del Milenio has demonstrated effective liquidity management over the past three years, maintaining an adequate maturity profile even in the face of challenging economic downturns over the last 30 years, such as the pandemic. The rating is unlikely to be upgraded given the review for downgrade process. The rating could be confirmed if Moody's assesses that there is a high likelihood of NEM will fully and timely address the tax liability and foresee recovering in operating profit and cash generation on the upcoming 12 months. The rating could be downgraded if the rating review process determines that the company will not be able to reverse all the situations mentioned in this press release or if the company is unable to improves its operative profit along with its cash generation in the near term. Nueva Elektra is a wholly-owned subsidiary of Grupo Elektra, that operates within the commercial business unit, specializing primarily in the sale of a diverse range of products including computers, consumer electronics, furniture, household appliances, mobile phones, and transportation equipment. Additionally, it offers a variety of services such as electronic money transfers, extended warranties, and mobile phone airtime through its extensive network of 1,405 stores located across Mexico and Central America. It also functions as an affiliate provider of lending and services. The principal methodology used in this rating was Retail and Apparel published in September 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 ===================== FERRELLGAS PARTNERS: Prices Offering of $650M of 9.25% Sr. Notes ---------------------------------------------------------------- Ferrellgas, L.P. and its wholly-owned subsidiary Ferrellgas Finance Corp. (together with the Company, the "Issuers") announced that the Issuers priced an offering of $650 million aggregate principal amount of 9.250% senior notes due 2031 at an offering price equal to 100% of the principal thereof. The offering of the Notes is expected to close on or about October 27, 2025, subject to customary closing conditions. The Notes will be senior obligations of the Issuers and will be guaranteed on a senior unsecured basis by Ferrellgas, Inc., and each existing and future subsidiary of the Company, subject to certain exceptions. The Issuers intend to use the net proceeds received from the offering of the Notes, together with cash on hand, to redeem all of the Issuers' 5.375% Senior Notes due 2026. The redemption of the 2026 Notes is conditioned upon the completion of the proposed offering of Notes and entry into an amendment to the credit agreement governing the Company's existing revolving credit facility. The Notes have not been and will not be registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. The Notes are being offered and sold only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain non-U.S. persons outside the United States in compliance with Regulation S under the Securities Act. About Ferrellgas Ferrellgas Partners, L.P., through its operating partnership, Ferrellgas, L.P., and subsidiaries, serves propane customers in all 50 states, the District of Columbia, and Puerto Rico. As of July 31, 2025, the Company had $1.42 billion in total assets, $2.45 billion in total liabilities, and $1.03 billion in total deficit. * * * In October 2025, S&P Global Ratings raised its Company credit rating on Ferrellgas Partners L.P. to 'B' from 'CCC'. . . "The stable outlook reflects our expectation that Ferrellgas will maintain S&P Global Ratings-adjusted leverage in the 6.0x-6.5x range over our forecast period." PETCO HEALTH: Moody's Affirms 'B3' CFR & Alters Outlook to Stable ----------------------------------------------------------------- Moody's Ratings affirmed Petco Health and Wellness Company, Inc.'s ("Petco") Corporate Family Rating at B3, its probability of default rating at B3-PD and its senior secured first lien bank credit facility rating due 2028 at B3. Petco's speculative grade liquidity score (SGL) was upgraded to SGL-1 from SGL-2. The outlook is changed to stable from negative. The change in outlook and affirmations reflect Petco's improvement in EBITDA and cash flow metrics which Moody's expects to continue over the next 12-18 months. Petco's return to earnings growth has been supported by its rationalization of promotions and product assortment, enhancements to its in-store experience, a focus on higher margin products and services (such as vet care and grooming), the shut down of unprofitable stores and its execution of cost savings. Moody's expects debt/EBITDA and EBITA/interest to improve from 4.1x and 0.9x, at LTM August 02, 2025 to about 3.7x and 1.1x, respectively over the next 12-18 months. The SGL-1 reflects Moody's expectations for Petco to have very good liquidity, with about $90 million - $100 million of annual free cash flow, full availability on its asset-based-lending (ABL) revolver and ample cash balances (in excess of $200 million) over the next 12-18 months. RATINGS RATIONALE Petco's B3 CFR reflects its weakened credit metrics relative to its 2021 peak. The weakness has been caused by an abatement of the pandemic related pet adoption boom and a further slowing of demand caused by consumers cutting back on discretionary pet supplies purchases and shifting to value assortments for the more essential consumables in response to a strained wallet. These trends were exacerbated by Petco's operational missteps on product assortment, customer experience and promotions. The CFR also reflects governance considerations, particularly Petco's majority private equity ownership which can result in financial strategies that favor shareholders over creditors. The rating is supported by Petco's large scale and its position as the third largest pet focused retailer in the United States in a relatively fragmented industry. The overall pet category's demand has historically been resilient due to the recurring nature of pet needs and the humanization of pets. Moody's projects performance improvement over the next 12-18 months as management executes on its turnaround plans with debt/EBITDA to moderate to below 4.0x and EBITA/Interest in excess of 1.0x. Moody's also expects the company to have very good liquidity through positive free cash flow, ample cash balances and full availability on its ABL. The stable outlook reflects Moody's expectations of improving credit metrics, ample positive free cash flow and very good liquidity over the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Petco's ratings could be upgraded if the company's operating performance improves, while maintaining very good liquidity supported by positive free cash flow, and continued commitment to conservative financial policies. Quantitatively, ratings could be upgraded if the company maintains lease-adjusted debt/EBITDA below 5.75x and EBITA/interest expense over 1.5x. Petco's ratings could be downgraded if operating trends and credit metrics do not recover as expected, financial policies become more aggressive, or if liquidity erodes. Specifically, ratings could be downgraded if operating margins deteriorate, free cash flow becomes negative or if EBITA/interest expense is sustained below 1.0x. Petco Health and Wellness Company, Inc. is a national specialty retailer of premium and value pet consumables, supplies and companion animals and services with over 1,500 retail locations across the US, Mexico and Puerto Rico. Revenue was about $6.0 billion for the LTM period ending August 2, 2025. The company remains majority owned by CVC Capital Partners and Canada Pension Plan Investment Board following its January 2021 IPO. The principal methodology used in these ratings was Retail and Apparel published in September 2025. Petco's B3 CFR is set two notches below its scorecard indicated outcome of B1 which reflects Petco's weak EBITA/interest coverage, risks to the company's turnaround as well as the difficult consumer environment and its impact on Petco's operating performance. ================= V E N E Z U E L A ================= CITGO PETROLEUM: Looks to Pause $3 Billion Bond Ruling ------------------------------------------------------ Caroline Simson at law360.com reports that a subsidiary of Venezuela's state-owned oil company is urging a New York federal judge to pause her ruling enforcing the payment of nearly $3 billion in defaulted bonds during an appeal, saying enforcement could permanently alter its business by taking away its "sole meaningful asset": the oil giant Citgo. 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'. PDVSA: Ruling Offers Insight Into Foreign Debt ---------------------------------------------- law360.com reports that a New York federal court's recent decision denying a request by PDVSA, Venezuela's state-owned oil company, to refuse enforcement of $2 billion in defaulted bonds serves as a guide for the scope of review required in assessing the validity of foreign-issued securities with New York choice-of-law provisions, say attorneys at Cleary. 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. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *