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251203.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, December 3, 2025, Vol. 26, No. 241 Headlines A R G E N T I N A ARGENTINA: Cutbacks Sends Buenos Aires' Railways Back to 1990s B R A Z I L AZUL SA: Plan Confirmation Hearing to Commence Dec. 11 BANCO DE BRASILIA: Moody's Cuts LT Bank Deposit Ratings to B3 RAIZEN SA: Moody's Puts Ba1 CFR, Cuts Sr. Unsec Notes Rating to Ba1 C H I L E CAP S.A.: S&P Cuts ICR to 'BB' on Elevated Leverage, Outlook Neg. CHILE: Edges Into Final Quarter With Modest Growth J A M A I C A JAMAICA: Trade Deficit Widens for January to July 2025 JAMAICA: Trade Deficit with CARICOM Partners Widens Slightly M E X I C O IH 35 TRUCKING: Unsecureds Owed $1.5M Will Get 60.5% in 60 Months P E R U ALICORP SAA: Moody's Affirms 'Ba1' CFR, Alters Outlook to Positive U R U G U A Y URUGUAY: IDB OKs $500M Loan for Montevideo's Metro Transport System - - - - - ================= A R G E N T I N A ================= ARGENTINA: Cutbacks Sends Buenos Aires' Railways Back to 1990s -------------------------------------------------------------- Buenos Aires Times reports that ever since President Javier Milei arrived at the Casa Rosada, the railway system of the Buenos Aires Metropolitan Area has become a postcard of fiscal adjustment and institutional uncertainty. In today's Argentina, modernisation promises live side-by-side with slower trains, run-down stations and a union atmosphere reminiscent of the darkest days of 1990s privatisation era, according to Buenos Aires Times. In mid-2024, the Milei government declared a public railway emergency for three years, coupling it with the promise to invest some US$2.2 billion in signalling, automatic braking and renovation of tracks and stations, the report notes. Yet according to reports compiled by the Transport Secretariat itself, only 20 percent of the allocated budget was used last year, the report relays. During the same period, Trenes Argentinos Operaciones – the state company which manages the urban system – was left leaderless for months. Political vagueness halted key decisions on purchases, tenders and maintenance, the report says. In the meantime, the service suffers: trains are running at low speeds of 30 km/h, disruptions are now daily and cancellations on lines such as Sarmiento, San Martín and Mitre are common. La Fraternidad, the drivers' union, warns that "security conditions are getting worse by the day" and denounced the lack of investment in preventive maintenance, the report discloses. Milei's chainsaw has also reached the rails, the report notes. The closing of Trenes Argentinos Capital Humano (DECAHF) led to 1,400 dismissals and was interpreted by unions as the first step in a major scrapping plan, the report says. Within the state railway holding, 3,000 more dismissals are projected, the report relays. Some ticket offices and workshops in Greater Buenos Aires are already operating with reduced staff or are closed, the report notes. The Executive Branch holds that it wants to "reorganise inefficient structures" and reduce subsidies, the report discloses. However, the metropolitan system continues to depend – by around 90 percent – on state contributions, while fares have remained frozen since September 2024, at around 280 pesos for the first section of lines, the report notes. In the Buenos Aires Metropolitan Area, millions of people depend on the train to get to work, the report says. The combination of an adjustment and lack of maintenance leads to a vicious circle: longer journeys, less frequency and more congestion, not to mention late arrivals at the workplace, the report relays. The Roca and Mitre lines maintain an acceptable level of service due to the investment inherited from the previous administration but the Belgrano Sur and San Martin lines are suffering, with trains often running behind schedule, the report relates. Sources in the sector explain that the network is not "collapsed" but "is hanging on by a thread." Chinese trains purchased between 2014 and 2019 are still the only technological relief, although the rolling stock shows wear and tear, without any new spare parts, the report discloses. The similarities with Menem's decade are hard to ignore, the report notes. A lack of political leadership, disinvestment, dismissals and rumours of privatisation rekindle the memory of railway dismantling in the 1990s, when thousands of kilometres of tracks were closed and over 70,000 workers were sacked or laid-off, the report says. Unlike then, today's system maintains a solid state base and some modernisation but analysts warn that the current path might revert two decades of partial recovery, the report notes. "We're on the brink of repeating the mistakes of the past: defunding first to justify a concession later," a source from the railway union stated, the report discloses. The Milei government's dilemma is clear: reducing the deficit without dismantling an essential service. So far, decisions seem to prioritise fiscal saving above technical planning, the report relays. Without any sustained investment or professional management, the metropolitan railway system nears a critical point, the report says. Trains in the Buenos Aires Metropolitan Area are not as bad as they were in the 1990s, but the sector is now at its worst time then, the report notes. If the railway emergency does not translate into actual improvements, the country could go back to a scenario which was thought to have been overcome: that of slow, run-down and forgotten trains, the report adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Moody's Ratings on July 17, 2025, upgraded Argentina's long-term foreign currency and local currency issuer ratings to Caa1 from Caa3 and changed the outlook to stable from positive. The upgrade reflects Moody's views that the extensive liberalization of exchange and (to a lesser extent) capital controls, alongside a new International Monetary Fund (IMF) program, support the availability of hard currency liquidity and ease pressure on external finances. This reduces the likelihood of a credit event. In January 2025, Moody's raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. 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+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. =========== B R A Z I L =========== AZUL SA: Plan Confirmation Hearing to Commence Dec. 11 ------------------------------------------------------ The hearing at which Judge Sean H. Lane of the U.S. Bankruptcy Court for the Southern District of New York will consider confirmation of the Chapter 11 Plan of Reorganization of Azul S.A. and its debtor affiliates will commence on December 11, 2025, at 11:00 a.m. The deadline for filing objections to the Plan and for ballots accepting or rejecting the Plan was December 2, 2025, at 4:00 p.m. A copy of the Disclosure Statement is available at https://urlcurt.com/u?l=sewGUC from PacerMonitor.com. A copy of the Solicitation and Voting Procedures and the Court's Order dated November 5, 2025, are available at https://urlcurt.com/u?l=jrHWQ0 from PacerMonitor.com. About Azul S.A. Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of flight departures and cities served, offers 900 daily flights to over 150 destinations. With an operating fleet of over 200 aircrafts and more than 15,000 Crewmembers, the Company has a network of 300 non-stop routes. Azul was named by Cirium (leading aviation data analysis company) as the most on-time airline in the world in 2023. In 2020, Azul was awarded best airline in the world by TripAdvisor, the first time a Brazilian flag carrier earned the number one ranking in the Traveler's Choice Awards. On the Web: http://www.voeazul.com.br/imprensa On May 28, 2025, Azul S.A. and 19 affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 25-11176). The cases are pending before Judge Sean H. Lane. The Company is supported by Davis Polk & Wardwell LLP, White & Case LLP, and Pinheiro Neto Advogados as legal counsel; FTI Consulting as financial advisor; Guggenheim Securities, LLC as investment banker; SkyWorks Capital LLC as fleet advisor; and FTI Consulting, C Street Advisory Group, and MassMedia as strategic communications advisors. Stretto is the claims agent. The Participating Lenders are supported by Cleary Gottlieb Steen & Hamilton LLP and Mattos Filho as legal counsel and PJT Partners as investment banker. United Airlines is supported by Hughes Hubbard & Reed LLP and Sidley Austin LLP as legal counsel and Barclays Investment Bank as investment banker. American Airlines is supported by Latham & Watkins LLP as legal counsel. AerCap is supported by Pillsbury Winthrop Shaw Pittman LLP as legal counsel. The U.S. Trustee for Region 2 appointed an official committee to represent unsecured creditors in the Chapter 11 cases. The Committee retained Willkie Farr & Gallagher LLP as its counsel, Alvarez & Marsal North America, LLC, as its financial advisor, Houlihan Lokey Capital, Inc., as its investment banker. The Backstop Commitment Parties are represented by Cleary Gottlieb Steen & Hamilton and Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados. The Subscription Agent is Stretto. BANCO DE BRASILIA: Moody's Cuts LT Bank Deposit Ratings to B3 ------------------------------------------------------------- Moody's Ratings has downgraded BRB-Banco de Brasilia S.A. (BRB)'s long-term local and foreign currency bank deposit ratings to B3 from B1. Concurrently, Moody's also downgraded the bank's Baseline Credit Assessment (BCA) and adjusted BCA to b3 from b1, as well as the long-term local and foreign currency Counterparty Risk Ratings to B2 from Ba3. The long-term counterparty risk assessments (CRs) were also downgraded to B2(cr) from Ba3(cr). All of these ratings and assessments were placed on review for further downgrade. The outlook was previously stable. At the same time, the Not Prime (NP) short-term local and foreign currency deposit and counterparty risk ratings, and the Not Prime(cr) counterparty risk assessment were affirmed. RATINGS RATIONALE The downgrade of BRB's BCA to b3 from b1 reflects heightened concerns over the bank's risk management guidelines and controls following alleged fraud in sizable acquisitions of loan portfolios from Banco Master S.A. (Master), currently under investigation. As part of Moody's review, Moody's will evaluate the findings of the investigations and will assess potential implications on BRB's asset quality, capitalization and earnings, the ability of the bank to protect its funding and liquidity position during a period of negative publicity, as well as the strategic changes the bank will need to implement. While BRB's chief executive and financial officers were removed by the bank's board, the bank is also conducting an independent internal review to identify potential deficiencies and strengthen its governance structure. Through its agreement with Master, BRB acquired the majority of the total BRL12.3 billion in payroll loans purchased during the first half of 2025, representing 21.4% of its credit book as of June 2025. After identifying breaches of contractual terms in payroll loan sales, BRB requested Master to replace approximately BRL10 billion of these loans with other assets, including corporate loans and investment funds. Although details of these assets are not available, based on Master's asset composition, Moody's expect the replacements could add concentration risk to BRB's asset quality profile, which is otherwise largely composed of granular loans and secured products. At the same time, BRB's weak capitalization, as evidenced by its regulatory CET1 ratio of 8.1% as of June 2025, and low recurring profitability limit its loss-absorption capacity. Moody's review will conclude once there is greater clarity on the impact of the investigation, as well as on the composition and quality of the assets absorbed from Master following the substitution of the original loans. Environmental, social and governance (ESG) considerations are a key driver of the rating action. BRB's governance and credit impact scores were lowered to G-4 from G-3, and to CIS-4 from CIS-3, respectively. The bank has pursued an aggressive growth strategy while showing signs of insufficient commensurate strengthening of its risk infrastructure, oversight, and capital buffers to mitigate associated risks. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's review for downgrade of ratings and assessments assigned to BRB will focus on whether material losses are likely to crystallize from alleged fraudulent loans and asset substitutions, as well as the bank's ability to absorb such losses and the broader implications for its funding profile. A material deterioration in the funding or liquidity will be credit negative for the ratings. Given the direction of the ratings review, rating upgrades are unlikely upon completion of the review. BRB's BCA and ratings could be confirmed at the conclusion of the review if we determine that potential losses are unlikely to erode the bank's capitalization and that reallocated assets will not materially weaken its asset quality or liquidity fundamentals. Stabilization of the BCA will also hinge on the bank implementing effective measures to strengthen its risk and governance framework. The principal methodology used in these ratings was Banks published in November 2025. BRB-Banco de Brasilia S.A.'s "Assigned BCA" score of b3 is set three notches below the "Financial Profile" initial score of ba3 to reflect for the issuer's high risk appetite for asset growth, expected near-term pressures on profitability and capitalization, and concerns over bank's risk management and governance. RAIZEN SA: Moody's Puts Ba1 CFR, Cuts Sr. Unsec Notes Rating to Ba1 ------------------------------------------------------------------- Moody's Ratings assigned a Ba1 Corporate Family Rating to Raizen S.A. (Raizen) and withdrew the Baa3 long term issuer ratings of Raizen S.A. and Raizen Energia S.A. Concurrently, Moody's downgraded to Ba1 from Baa3 the $187 million senior unsecured notes rating due 2027 issued by Raizen Fuels Finance S.A. and guaranteed by Raizen S.A. and Raizen Energia S.A. The ratings remain under review for downgrade. RATINGS RATIONALE The downgrade to Ba1 reflects the deterioration of Raízen's credit metrics, high leverage and sustained negative cash flow generation. The current debt level continues to impose significant constraints on the business, challenging Raizen's ability to sustain positive cash generation. Moody's do not foresee a significant recovery in the near term where the company would return to credit metrics that are more adequate to the investment grade level, including Debt/EBITDA below 3.0x, and a positive free cash flow generation. In Moody's view, these metrics along with a solid liquidity are necessary to mitigate the inherent volatility of the commodity markets to which the company is exposed in sugar-ethanol business. The sugar-ethanol business in particular requires relatively large capex to support the quality of plantations and agricultural productivity, while being exposed to considerable event risk including weather conditions. Moreover, in the 2025-26 and 2026-27 harvest Moody's expect sugar prices to remain weak and higher downside pressures on ethanol with corn ethanol increasing total ethanol supply during the off-harvest season. The review down continues to focus on initiatives that could improve substantially the company's capital structure such as a potential equity increase, currently under discussion among controlling shareholders Shell Plc (Shell, Aa2 stable) and Cosan S.A. (Ba2 negative), and further asset sales. In Q3 2025 Raizen received BRL900 million from divestments and it has another BRL3.9 billion to receive from sales which have already been announced. Raízen has advanced, since 2024, in a plan aimed at improving its operational efficiency and its capital structure, with the goal of allowing for a gradual improvement in cash flow generation. The company has already shown a reduction in general and administrative expenses; executed divestments; reduced opex, capex and dividends; conducted liability management to extend debt maturities; measures Moody's believe the company will sustain. Still, debt balances (including leases) closed September 2025 at BRL76.8 billion, even considering BRL4 billion assets sales and an EBITDA of BRL13.3 billion, gross leverage would end the 2025-26 harvest, in March 2026, at 5.4x. Governance is a key factor in the rating assessment and the present situation is a direct outcome of the strategies pursued during the pre-turnaround cycle, which focused on an aggressive, debt-driven growth strategy that pushed leverage up. Notwithstanding the ratings under review down, Raízen's Ba1 ratings reflect its solid position in the sugar cane and fuel distribution businesses in Brazil. Raízen is a joint venture between Cosan S.A. and Shell Plc. In addition, the rating is supported by the affiliation with and implicit support from Shell Brazil Holdings BV, a 100% subsidiary of Shell, given the benefit derived from Shell's brand and managerial expertise, and Cosan, given its local expertise and execution track record. The ratings also consider the existence of cross guarantees between Raízen Energia and Raízen S.A. in most debt instruments. The rating is constrained by the volatile nature of its upstream business, which represents roughly 60% of the consolidated EBITDA. In the downstream business, in the last two years the fuel distribution business has exhibited unexpected volatility, including losses related to trading operations which weakened consolidated operating performance. In 2025 and 2026 Moody's expect favorable dynamics in the fuel distribution business to help sustain the segment results with market share gains, margin gains, and an unitary EBITDA of around BRL170/m3. For the upstream business, Raízen's hedging strategy and financial flexibility, and the relatively lower percentage of owned sugar cane compared with that of peers, allows for less margin volatility during market turndowns. The sugar-ethanol industry is highly dependent on external factors, such as weather conditions, government's incentives and policies, international oil prices which can significantly affect prices and Raízen's financial performance. Additionally, the high investment needs are a constraint because of the maintenance required to maintain sugarcane productivity and capacity expansion. In the recent past, these investments, coupled with large 2G ethanol investments, have led to a persistent negative cash flow generation causing a deterioration of the company's capital structure. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ratings are under review down, an upgrade of Raizen is unlikely in the near term and it would require a sharp reduction in its debt balance, the expectation of positive free cash flow generation and the maintenance of sound liquidity. Quantitatively, an upgrade would require: total Moody's-adjusted Debt/EBITDA to remain below 3.0x; RCF (Retained Cash flow)/Net Debt above 25% on a sustained basis; and sustained positive free cash flow (FCF) generation or stronger support from Shell. A downgrade could result if Raizen is unable to timely execute an equity raise to cut down its debt balance or if liquidity deteriorates. Quantitatively, negative pressure on the rating could arise if: Debt/EBITDA is expected to remain above 3.5x, and RCF/Net Debt remains below 20% on a sustained basis. The principal methodology used in these ratings was Protein and Agriculture published in October 2025. Raizen's Ba1 rating is two notches above the Ba3 scorecard-indicated outcome by https://urlcurt.com/u?l=ZGH6p6 Protein and Agriculture methodology in the twelve months ended in September 2025. The mapping reflects an increase in the company's debt balance and weak trailing results as of Q2 2026 (September 2025). Headquartered in Sao Paulo and created in 2011, Raizen was formed by a joint venture controlled by both Cosan S.A. (Ba2 negative) and Shell Plc (Shell, Aa2 stable). Raizen is the largest company in the fragmented sugarcane business in Brazil producing mainly sugar and ethanol, after recent divestments the company will operate with a crushing capacity of about 73 million tons across its 24 sugar-ethanol mills and three 2G ethanol plants in operation. It also operates in the fuel distribution segment under the Shell brand and is the second-largest company in the country. In the 2024-25 harvest, ended March 2025, Raizen generated BRL255.3 billion in revenues ($45.6 billion) and EBITDA of BRL12.2 billion, including Moody's adjustments. Moody's estimate revenues of BRL215.2 billion and EBITDA of BRL13.2 billion for the 2025-26 harvest, March 2026. ========= C H I L E ========= CAP S.A.: S&P Cuts ICR to 'BB' on Elevated Leverage, Outlook Neg. ----------------------------------------------------------------- S&P Global Ratings lowered its global scale issuer credit rating on the Chilean iron ore producer CAP S.A. to 'BB' from 'BB+'. At the same time, S&P downgraded its 2036 senior bonds to 'BB' from 'BB+' and its 2031 senior notes to 'BB-' from 'BB'. The negative outlook reflects the possibility of another downgrade in the next 12-18 months if CAP is unable to improve and maintain leverage below 3.0x and if negative free operating cash flow pressures liquidity and the ability to reduce leverage. CAP S.A. has maintained leverage much higher than historical levels after recently missing EBITDA expectations due to operational issues at Los Colorados mine and lower-than-expected premiums for pellets. Moreover, its nominal debt almost doubled in three years as a result of higher capital expenditure, interest payments, and dividend distributions. S&P said, "The downgrade of CAP S.A. reflects our expectation that adjusted leverage will remain above historical levels at around 3.0x-3.5x in the next two years. We also now forecast EBITDA of $445 million in 2025, down from our previous forecast of $507 million, mainly due to lower pellet premiums, which we forecast at $35-$38 per ton in 2025, compared with $42.5 in 2024. Meanwhile, volumes should remain overall stable in 2025, leading to debt to EBITDA at 3.6x by year-end 2025, compared with our previous expectation of 3.1x." For 2026, CAP's guidance for volumes is now 15.1-15.6 metric tons, slightly above 2025 and aligned with third-quarter results. However, lower prices will counterbalance the better volumes. S&P Global Ratings' price forecast for iron ore is $90 per ton in 2026 (from an average of around $101.5 so far in 2025), and expected stable premiums for pellets next year will limit upside for EBITDA and leverage, which S&P forecasts at $470 million and 3.4x, respectively, in 2026. S&P said, "Our leverage metrics differ from the ones reported by the company because we add leases, asset retirement and pension obligations to its total net debt. Those adjustments added $ 305 million to the adjusted debt on Sept. 30, 2025. "Recent EBITDA misses relative to our base case and lower business diversification have weighed on profitability. CAP has faced ongoing operational issues since the port accident that temporarily suspended operations in 2021, the full suspension of the steel operations under Compañía Siderúrgica Huachipato S.A. in 2024, and the drop in higher-quality output, with pellets now representing close to 6% of its sales mix, compared with 15% in 2020. Those factors, combined with the inherent price volatility of its products, have resulted in volatile nominal EBITDA and overall profitability, which could weigh on our view of the company's business risk. "High investments to support growth will limit free operating cash flow (FOCF). We forecast annual capital expenditure (capex) of $275 million in 2025, $300 million in 2026, and $350 million in 2027. CAP's main projects focus on production growth, portfolio diversification into critical minerals, and increasing cost efficiency through operational improvements. These projects include: -- Los Colorados mine's Phase 6 development to restore iron ore production above 16 metric tons by 2027, -- The transition to underground mining at Romeral, and -- The Cerro Negro Norte optimization project, aiming for a 5.7-metric-ton output increase by 2031. Also, a strategic investment in Aclara Resources expands exposure to rare earth deposits, positioning the company to benefit from the growth in the decarbonization market. In S&P's base case, the company won't distribute dividends and will continue to improve working capital through accelerating receivables, inventory prepayments, and negotiations to improve payables' tenors. Still, such high investments will keep FOCF pressured in the next two years, with only marginal generation in 2025 and close to $50 million in 2026. This will continue to limit CAP's flexibility to reduce nominal debt, absent other nonrecurrent cash inflows. Asset sales could accelerate deleveraging, but they could also reduce the company's diversification. Management has stated that it could pursue sales of real estate and nonoperational assets under Cintac, the subsidiary responsible for the industrial segment, with proceeds potentially contributing to reducing debt. Still, given no clarity in the timing and final value of those sales, S&P does not include them in our base-case scenario. Nevertheless, if and once any asset sale is announced, we would also need to account for any potential impact on CAP's EBITDA contribution, particularly if we perceived any material impact that would reduce its scale and diversification. Mining represents the bulk of EBITDA at close to 85%, which increases exposure to volatility in that industry. But CAP's plan to increase its exposure to infrastructure, industrial solutions, and rare earth could increase diversification and be key to maintaining its competitive position. The negative outlook reflects a 1-in-3 chance of a downgrade in the next 12-18 months. S&P could downgrade CAP if it is unable to reduce its adjusted leverage to close to 3.0x in 2026 and below that in 2027, whether because of further operational issues, weaker iron ore prices and premiums, or a more aggressive approach toward investments. A downgrade could also reflect mounting strains on liquidity, given lower-than-expected cash generation, persistently high cash outflows, or an inability to renew with anticipation its revolving facility. S&P said, "We could downgrade CAP in the next 12 months if operating performance further deteriorates or if ongoing volume and EBITDA projection misses lead us to revise our view of its business risk. Production disruptions or delays in the ramp-up of expansion projects, along with price pressures, could accelerate this revision. In that scenario, we would expect debt to EBITDA above 3.5x and negative FOCF on a consistent basis. We could also lower the ratings if liquidity becomes strained. "We could revise the outlook to stable over the next 12 months if CAP improves its operations and if profitability recovers amid less volatile cash flows. In this scenario, we would expect debt to EBITDA consistently below 3.0x and positive FOCF, coupled with the maintenance of adequate liquidity cushion." CHILE: Edges Into Final Quarter With Modest Growth -------------------------------------------------- Sofia Gabriela Martinez at Rio Times Online reports that Chile is stepping out of its post-crisis hangover with an economy that works, but no longer dazzles. In October, overall activity is expected to have grown a little above 2 percent versus a year earlier, according to Rio Times Online. That is enough to show the patient is out of intensive care, the report relays. It is not enough to feel like a boom for families or businesses, the report discloses. The headline number hides a sharp split, the report says. On one side stand trade and services, crowded streets, full restaurants, and busy supermarkets. On the other stand the big machines that once defined Chile's success story: copper mines, pulp mills and factories. Those are still losing steam, the report says. Industrial production fell 0.4 percent in October compared with the same month in 2024. Mining output dropped 0.8 percent, the report notes. Manufacturing also slipped 0.4 percent, hurt by weaker paper and pulp production and maintenance shutdowns, the report says. The report relays copper, the country's emblematic export, had a rough month after earlier accidents and ongoing problems with lower ore quality. Consumers tell a very different story. The trade activity index jumped 7.1 percent in October, the report relays. Supermarkets sold more. Electronics and household goods moved faster. A big online discount campaign, shifted fully into October, helped, the report says. Yet analysts say underlying demand looks healthier even after you strip out that effect. Services now carry Chile on their shoulders, the report discloses. Seven of eight service categories grew. Hotels and restaurants posted double digit gains, the report notes. Professional, scientific and technical services also advanced strongly, the report notes. In plain language, more people are traveling, eating out, and paying consultants instead of relying only on raw materials, the report discloses. For expats and foreign investors, the story behind the story is about model fatigue, the report says. Chile still looks like one of Latin America's more disciplined, rules-based economies, the report relays. At the same time, growth near 2 to 2.4 percent for 2025 will not close social gaps or lift productivity on its own, the report notes. The next chapter will depend on whether the political class can give companies clear, stable rules and space to invest again, the report says. Without that, Chile may remain a country that survives comfortably on services, but stops surprising the world, the report adds. ============= J A M A I C A ============= JAMAICA: Trade Deficit Widens for January to July 2025 ------------------------------------------------------ RJR News reports that Jamaica's trade deficit widened in the first seven months of 2025 as import spending increased while export earnings declined. According to new data from the Statistical Institute of Jamaica (STATIN), imports for the period January to July 2025 totalled US$4.516 billion while earnings from exports amounted to US$1.06 billion, the report notes. The value of imports rose by 3.8 per cent compared to US$4.352 billion in the same period of 2024, according to RJR News. STATIN says this was driven mainly by higher spending in raw materials, intermediate goods, which increased by 13 per cent, and consumer goods, which climbed by 9.5 per cent, the report relays. At the same time, export earnings fell by 2.9 per cent, down from US$1.092 billion recorded between January and July last year, the report says. STATIN notes that this decline was largely due to a 17.6 per cent drop in the value of mineral fuels exports, which weighed heavily on the overall export performance, 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. JAMAICA: Trade Deficit with CARICOM Partners Widens Slightly ------------------------------------------------------------ RJR News reports that Jamaica's trade deficit with its CARICOM partners widened slightly in the first seven months of this year, driven by higher imports from the region. According to data released by the Statistical Institute of Jamaica, the country recorded a CARICOM trade deficit of US$163.9 million from January to July 2025, the report relays. This was based on imports of US$269.9 million and exports of US$106.2 million, the report discloses. For the corresponding period in 2024, the deficit stood at US$159.5 million, with imports of US$242.5 million and exports of US$83.9 million, according to RJR News. STATIN's figures show that exports to CARICOM accounted for only 10 per cent of Jamaica's total exports during the seven-month period, while imports from CARICOM made up just six per cent of total imports, 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. =========== M E X I C O =========== IH 35 TRUCKING: Unsecureds Owed $1.5M Will Get 60.5% in 60 Months ----------------------------------------------------------------- IH 35 Trucking, LLC and IH 35 Transportation, LLC filed with the U.S. Bankruptcy Court for the Southern District of Texas a Combined Disclosure Statement describing their Plan of Reorganization dated November 20, 2025. The Debtors are for profit limited liability companies organized under the laws of the State of Texas. IH 35 Trucking LLC ("Trucking") was formed on May 26, 2015 by Jorge Pablo Munoz. It was initially formed to purchase commercial trucks and trailers on credit to haul freight in interstate and intrastate commerce. IH 35 Transportation, LLC ("Transportation") was formed on January 3, 2017 by Jorge Pablo Munoz. Both companies were originally formed to haul freight, with one of them carrying refrigerated goods and the other carrying flatbed loads. The companies eventually evolved so that Transportation hauls both types of freight, while Trucking became an entity whose primary business is leasing its equipment to the related limited liability company, IH 35 Transportation, LLC. Trucking's principal creditor Commercial Credit Group, Inc ("CCG") threatened to foreclose on the sixteen trucks and twenty-three trailers it had financed and has liens on. Mr. Munoz was worried that such a foreclosure would put both companies out of business. In an effort to save the companies, Mr. Munoz agreed to a refinancing arrangement (the "Refi") with CCG in December of 2024. The Refi shortened the repayment term to 121 weeks on loans who original terms would have continued to run over thirty and is some cases forty-eight months. Both companies are recovering but have struggled to make all of the payments on the trucks and trailers eventually resulting in a threat of and actual attempts to prepossess trucks and trailers. The Chapter 11 case was filed to stop the repossessions and to reorganize the debts. Class 21 Unsecured Claims for IH 35 Trucking, LLC consists of 19 claims. This Class will receive a monthly payment amount of $15,000 shared prorata for 60 months. Payments will begin 30 days after the effective date. The allowed unsecured claims total $1,485,979.91. This Class will receive a distribution of 60.5% of their allowed claims. This Class is impaired. Class 3 claims for IH 35 Transportation, LLC consists of 113 unsecured claims. This Class will receive a monthly payment amount of $3,350.00 shared pro-rata for 60 months. Payments will begin 30 days after the effective date. The allowed unsecured claims total $309,437.93. This Class will receive a distribution of 64.9% of their allowed claims. This Class is impaired. Payments from IH 35 Transportation, LLC in the amount of $167,000 per month for the lease of Trucking's equipment. In January of 2026 this annual lease is going to be reduced to $135,000.00 per month to take into consideration the older condition of the equipment and the increased cost of maintaining same. Debtor's projected cash flow Exhibit E-1 indicates that these amounts will be sufficient to fund the Plan and pay the Debtor's operating expenses. Payments and distributions under the IH 35 Transportation Plan will be funded by income the company receives for hauling freight; IH 35 Transportation, LLC's projected cash flow Exhibit E-2 indicates that this amount will be sufficient to fund the Plan and pay the Debtor's operating expenses. A full-text copy of the Combined Disclosure Statement and Plan dated November 20, 2025 is available at https://urlcurt.com/u?l=CSomUW from PacerMonitor.com at no charge. Counsel to the Debtors: Carl M. Barto, Esq. Law Offices of Carl M. Barto 817 Guadalupe Laredo, TX 78040 Telephone: (956) 725-7500 Facsimile: (956) 722-7639 Email: cmblaw@netscorp.net About IH 35 Trucking IH 35 Trucking, LLC is a family-owned logistics provider based in Laredo, Texas, offering temperature-controlled and flatbed freight services across North America. It specializes in full truckload, intermodal, and cross-border transportation, with operations extending into Mexico and Canada. Leveraging satellite tracking, Qualcomm communications, and route optimization systems, it delivers tailored long-haul and short-haul logistics solutions for temperature-sensitive goods. IH 35 Trucking sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 25-50057) on June 6, 2025, with $1 million to $10 million in assets and liabilities. Jorge Pablo Munoz, managing member, signed the petition. Judge Jeffrey P. Norman presides over the case. Carl M. Barto, Esq., at the Law Office of Carl M. Barto represents the Debtor as bankruptcy counsel. TBK Bank, SSB, as lender, is represented by: Michael S. Held, Esq. J. Machir Stull. Esq. Aaron E. Lozano, Esq. JACKSON WALKER L.L.P. 2323 Ross Avenue, Suite 600 Dallas, Texas 75201 Telephone: (214) 953-6000 Fax: (214) 661-6859 Email: mheld@jw.com mstull@jw.com alozano@jw.com ======= P E R U ======= ALICORP SAA: Moody's Affirms 'Ba1' CFR, Alters Outlook to Positive ------------------------------------------------------------------ Moody's Ratings has affirmed Alicorp S.A.A. (Alicorp)'s Ba1 Senior Unsecured Global Notes and the Ba1 Corporate Family Rating. The outlook was changed to positive from stable. The change in outlook incorporates the company's strong credit metrics and liquidity driven by productivity initiatives and recent M&A. The positive outlook also incorporates Moody's expectation of a material reduction in credit metrics volatility and working capital needs, following Alicorp's divestiture of its Crushing business in late 2024. RATINGS RATIONALE The affirmation of Alicorp's Ba1 ratings reflect a sustained improvement of the company's credit metrics. The EBITA margin increased to 12.5% in 2024 and 13.2% for the last twelve months ended in September 2025. This margin is materially higher than the average 8.4% in 2022 and 2023; and above Moody's expectation of 6.8% back in February 2024, when Moody's downgraded the company to Ba1. Since 2023, the company embarked in a series of efficiency initiatives that have yielded results reflected not only in savings, but also in a more robust and profitable portfolio mix. The company also divested its Crushing business, which had very low margins since late 2022 and created higher than expected volatility in the company's credit profile. In this scenario, Moody's expect Alicorp's EBITA margin to be around 12% in the 2026-2028 period. Alicorp will benefit from positive free cash flow (FCF) through 2028, reflecting a focus on profitability and prudent liquidity management. Furthermore, some debt reduction should support the maintenance of leverage at around 2.5x. Alicorp's Ba1 ratings are supported by its leading market position in Peru in key product categories, its extensive and hard-to-replicate distribution network. The ratings also reflect its broad product portfolio, and its experienced management team with a successful track record of completing acquisitions and product innovation. The ratings consider the company's relative small size compared to global industry peers and its exposure to commodity price volatility. Alicorp's Ba1 also reflects its limited geographic diversification, with concentration in Peru and its exposure to markets with weak economies. Since 2023, there's been a relative political calm in Peru that supported a steady rebound in private sector confidence, with all key indicators staying in optimistic territory. Despite the impeachment that the Peruvian Congress approved in October 2025, Peru's macroeconomic fundamentals remain solid, providing a sluggish, yet favorable operating environment in 2026 as presidential elections take place. Alicorp acquired Refineria del Espino in September 2024, and Jaboneria Wilson in October 2025. Both acquisitions (the first funded with debt and the later with a combination of its own cash and debt) are extracting synergies, on top of improving working capital management, fiscal benefits and the expansion of the company's distribution network in the western region of Peru and in Ecuador. More recently, on November 17, 2025, the company announced the potential acquisition of Inka Crops, that will expand Alicorp's Food portfolio to the snacks category, with Peruvian flagship brands. Management has a track record of acquiring and integrating smaller companies in its core competency, based on conservative funding decisions. Going forward, Moody's expect any acquisition to be carried out in a manner that preserves the company's leverage in line with its current rating. Alicorp has a good liquidity which as of September 2025 included PEN1,484 million and a $120 million committed facility available until 2027 as well as Moody's expectation of positive free cash flow (FCF) in the next two to three years. Moody's assume that excess cash flow generated in 2025 will be directed towards debt reduction and that the company will pay a dividend amount of around PEN400 million. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade of Alicorp's ratings would require a sustained growth in organic volumes, revenue and EBITDA along with consistently strong liquidity, including positive FCF. An upgrade would also require Alicorp to maintain its Moody's-adjusted debt/EBITDA below 3.0x; Moody's-adjusted EBIT/interest above 3.5x, and RCF / Net Debt above 20%; all in a sustained basis. Conversely, the outlook could be revised back to stable if Alicorp's operational performance weakens, resulting in lower-than-expected growth or profitability. The rating could be downgraded if the company's Moody's-adjusted debt/EBITDA approaches 3.5x with no prospects of recovery; Moody's-adjusted RCF / Net Debt falls below 18%, or if the company undertakes aggressive debt-funded capital spending that introduces substantially higher execution risks or if liquidity deteriorates. The principal methodology used in these ratings was Consumer Packaged Goods published in June 2022. 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. Alicorp S.A.A. is a Peruvian manufacturer and distributor of consumer goods (food, home & personal care products), business-to-business (B2B) branded products (bakeries, industrial products and food service) and aquafeed (shrimp and fish feed). Alicorp's revenue mainly comes from Peru, where it generated 79.4% of its consolidated revenue in 2024, followed by Ecuador (Caa3 stable), Chile (A2 stable) and Bolivia (Ca stable). The company is majority-owned by Grupo Romero (73.1% share). Alicorp reported revenue of PEN11,590 million for the 12 months that ended September 2025. ============= U R U G U A Y ============= URUGUAY: IDB OKs $500M Loan for Montevideo's Metro Transport System ------------------------------------------------------------------- The Inter-American Development Bank (IDB) Board of Executive Directors has approved a Conditional Credit Line for Investment Projects (CCLIP) of $500 million to support the transformation of Montevideo's metropolitan transport system in Uruguay. This CCLIP will directly benefit 1,3 million residents in the corridor's area of influence, providing new transportation services and renovated public spaces. The program will finance the implementation of an electric, high-capacity Bus Rapid Transit (BRT) system along two main corridors: Avenida 8 de Octubre and Avenida Italia. The system will include stations, segregated exclusive lanes, grade-separated crossings at major intersections, an underground section on Avenida 18 de Julio, and an interchange terminal at "Tres Cruces," the connection point between both corridors. The overall objective of the CCLIP is to fund a program that improves mobility in the Metropolitan Area of Montevideo. As part of this new credit line, the Board also approved an initial individual operation of $10 million aimed at strengthening the procurement of infrastructure and transportation services, as well as improving inter-institutional coordination and the technical capacities of the responsible institutions. This first operation will support the preparation of the projects required to tender the planned works and interventions, with the goal of having documentation at the appropriate level of detail to structure high-quality bids, reduce contractual risks, and ensure efficient and sustainable execution and operation. This initial individual operation, for $10 million under the CCLIP, has a repayment term of 25 years, a grace period of 5,5 years, and an interest rate based on SOFR. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. 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