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251231.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 31, 2025, Vol. 26, No. 261 Headlines A R G E N T I N A ADECOAGRO SA: Moody's Lowers CFR to B2, Alters Outlook to Stable YPF SA: Fitch Affirms 'CCC+' LongTerm IDRs B R A Z I L BRADSEQ PARTICIPACOES: Fitch Affirms BB+ IDR, Outlook Now Stable SI GROUP: Completes Recapitalization, Cuts Debt by $1.7 Billion E L S A L V A D O R EL SALVADOR: Economy Expanding Faster Than Anticipated Pace J A M A I C A JAMAICA: BOJ Sold US$1.1B to F/X Market From Nov. '24 to Nov. '25 JAMAICA: Imports Continue to Outpace Exports for January-August M E X I C O ASCEND PERFORMANCE: Emerges from Ch.11 With $1.3B Debt Cut P A N A M A ELEKTRA NORESTE: Fitch Affirms Then Withdraws 'BB+' LongTerm IDRs P A R A G U A Y BANCO BASA: Moody's Affirms 'Ba2' Deposit Ratings, Outlook Stable - - - - - ================= A R G E N T I N A ================= ADECOAGRO SA: Moody's Lowers CFR to B2, Alters Outlook to Stable ---------------------------------------------------------------- Moody's Ratings downgrades to B2 from Ba2 Adecoagro S.A.'s corporate family rating and senior unsecured ratings. The outlook changed to stable from ratings under review. The rating action concludes the ratings under review for downgrade process which started when Adecoagro announced the acquisition of Profertil S.A., Argentina based fertilizer producer. The acquisition will increase Adecoagro's EBITDA generated in Argentina (Government of Argentina Caa1, stable) to, on average, 51% going forward, and a concentration in main assets (property, plant and equipment; investment properties; and goodwill) to over 70%. With Profertil's assets based in Argentina, despite the larger scale and diversification, the acquisition will make Adecoagro subject to the creditworthiness of the country and its foreign currency country ceiling of B2, and thus Adecoagro's ratings would need to reflect the risk that they share with the sovereign. After the conclusion of the deal Moody's expects Adecoagro's debt to approach $1.9 billion, from $1.3 billion as of June 2025, before the announcement of the deal. RATINGS RATIONALE Adecoagro together with ACA – Asociacion de Cooperativas Argentinas announced their interest to acquire a 50% share of Profertil (40% Adecoagro and 10% ACA) from Nutrien Ltd. (Baa2 stable) on September 8th, 2025. At the time YPF Sociedad Anonima (B2 stable), owner of another 50% in Profertil, had 90 days to indicate its right of first refusal. Since then Adecoagro announced it entered a deal to also buy the remaining stake in Profertil from YPF and on December 18th YPF's board announced it had completed the sale of their stake. Adecoagro now holds 90% of Profertil and ACA the remaining 10%. The deal will be funded with up to $600 million in debt, $300 million in equity, and cash for a total acquisition value of $1.1 billion. Even with the addition of new debt to fund the deal, when considering a full year of EBITDA from Profertil, gross leverage for Adecoagro should improve by the end of 2026 to 2.8x, compared to 3.9x in the last twelve months September 2025. But, in the meantime, after raising the new debt Moody's will observe a peak in leverage by Q4 2025 and Q1 2026, also influenced by weaker EBITDA year-over-year on Adecoagro's current portfolio, including sugar-ethanol in Brazil and the farming business in Argentina. The deal signals a more aggressive appetite for inorganic growth following the change in control to Tether Investments S.A. de C.V. To mitigate effects of the acquisition in Adecoagro's credit metrics, the company raised $300 million in equity including a contribution of $220 from Tether, demonstrating the support the new controlling shareholder has been indicating since it acquired control of Adecoagro. Profertil has a dominant position providing 60% of the granular urea needs of the Argentinean market with a production capacity of 1.3 million tons of granular urea per year and 790 thousand tons of ammonia. The production is in a single plant in the petrochemical region of Bahia Blanca, located in a port region and it has competitive access to productive inputs such as natural gas, which it buys mainly from YPF, and electricity. The acquisition of Profertil will increase business diversification with exposure to the fertilizer segment adding to the current portfolio of farming in Argentina and Uruguay (crops, rice, dairy) and sugar-ethanol in Brazil. Moody's believes Adecoagro revenues will increase to over $2 billion in 2026 from $1.4 billion in the last twelve months ended September 2025, and EBITDA to $681 million from $391 million in the same period. The stable rating outlook reflects Moody's expectations that Adecoagro will continue to benefit from its consistent sugarcane crushing capacity, consistent cash generation from the recently acquired fertilizer business in Argentina, which provide diversification to the farming business. The outlook also incorporates Moody's expectations that dividend payments and expansion investments will not jeopardize its adequate liquidity and leverage. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ratings could be downgraded with a deterioration in the company's liquidity, profitability or credit metrics. Quantitatively, a downgrade could occur if its: Debt/EBITDA remains above 5.5x, EBITDA/interest expense remains below 2.5x, and Retained cash flow/net debt stays below 10%. The ratings could also be downgraded if the Government of Argentina's rating is downgraded. Adecoagro S.A., the group's ultimate parent company, is headquartered in Luxembourg. The Adecoagro group is primarily engaged in agricultural and agro-industrial activities through its operating subsidiaries in Brazil, Argentina and Uruguay. Adecoagro produces and commercializes sugar, ethanol and energy; and farming products such as soy, corn, wheat, rice, dairy and others. The principal methodology used in these ratings was Protein and Agriculture published in October 2025. Adecoagro's B2 rating is three notches below the Ba2 scorecard-indicated outcome by Moody's Protein and Agriculture methodology in the twelve months ended in September 2025. This considers the integration of Profertil increasing concentration of over 51% of EBITDA in Argentina and over 70% of main assets (property, plant and equipment; investment properties; and goodwill). Adecoagro's rating is limited at the level of Argentina's foreign currency country ceiling of B2, and it presents two notches above the Government of Argentina's bond rating of Caa1. YPF SA: Fitch Affirms 'CCC+' LongTerm IDRs ------------------------------------------ Fitch Ratings has affirmed YPF S.A.'s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'CCC+'. Fitch has also affirmed YPF's outstanding senior unsecured notes at 'CCC+' with a Recovery Rating of 'RR4'. The company's Standalone Credit Profile (SCP) is 'b', and its ratings are aligned with Fitch's "Government Related Entities (GRE) Criteria," reflecting its government ownership and strategic importance. The company is majority owned by the government of Argentina and strategically important to the country. YPF's dominant market share in the supply of liquid fuels in Argentina, coupled with its large hydrocarbon production footprint in the country, could expose the company to government intervention through pricing policies or investment strategies. Key Rating Drivers Links to Sovereign: YPF linkage to Argentina reflects its ownership structure, government oversight and significance of the company in executing government policy role. The government of Argentina is a significant stakeholder due to its 51% ownership, and provincial government officials serve on the company's board of directors. According to Fitch's assessment of the GRE Criteria, incentives to support and contagion risks are high. YPF's SCP is in the 'b' category, reflecting the issuer's scale, production cost profile, which is above average compared with peers in the region, and its restricted geographic diversification. As YPF's SCP is higher than the sovereign Issuer Default Rating (IDR) of 'CCC+', the GRE criteria prescribe equalizing YPF's rating to that of the sovereign, reflecting the absence of legal ring-fencing that isolates the company's cash flows. Key Producer in Volatile Operating Environment: YPF is the market leader in the country with 56% of market share for refined products. The company's strong market position and branding give it the ability to adapt to market volatility. Convergence of local and international prices have proven positive. YPF's dominant fuel value-chain role and largest licensed acreage for crude and gas position it to benefit from Argentina's shift from net importer to net exporter of hydrocarbons, despite a challenging macroeconomic environment. Stable Production and High-Cost Profile: Fitch's rating case assumes average production of 550,000 barrels of oil equivalent per day (boed) over the rating horizon. Fitch estimates YPF's 2024 half-cycle and full-cycle costs at USD30.68 of USD54.60 per boe, above the regional average. Costs fell from 2023, and Fitch expects further declines for the next three years as the company divests high-cost mature fields. High costs mainly reflect higher-than-average lifting cost of USD15.60/boe (USD9/boe excluding mature fields and USD4.5/boe for shale oil production). Financial Metrics Strengthen: YPF has maintained a moderate leverage profile. Fitch estimates YPF's total debt/EBITDA will be 2.1x in 2025, compared with 2.6x in 2024, and will average 2.2x over the rating horizon. YPF reported 1,096 mmboe of proven (1P) reserves in 2024, translating into total debt to 1P of reserves of USD8.16/boed. Fitch estimates USD6.0/boe for 2025, based on 2024 1P reserves. The company's leverage profile has been stable but constrained by a limited pool and high cost of capital given the macroeconomic environment in Argentina, partly offset by strong access to local markets and improving access to international lenders. Peer Analysis YPF's linkage to the sovereign is similar to other Latin American national oil peers like Petroleos Mexicanos (PEMEX; BB+/Stable), Petroleo Brasileiro S.A. (Petrobras; BB/Stable), Ecopetrol S.A. (BB+/Negative), Empresa Nacional del Petroleo (ENAP; A-/Stable), and Petroleos del Peru - Petroperu S.A. (Petroperu; CCC+), due to their strategic importance and the significant implications of a default. YPF's closest upstream business peers are PEMEX, Petrobras, and Ecopetrol. In 2024, YPF's production averaged 536,000 boed with a reserve life of 5.6 years, lower than Ecopetrol's 746,000 boed and 7.0 years, and Petrobras' 2.7 million boed and 11.7 years, and PEMEX's 2.5 million boed and 8.2 years. YPF's capital structure is adequate. Fitch calculated a gross leverage ratio of 2.6x in 2024 and total debt/1P of USD7.6/boe, compared to Ecopetrol's 2,1x and USD14.4/boe, Petrobras' 0.6x and USD2.6/boe, and PEMEX's 10.9x and USD13.1/boe. Unlike ENAP, Petrobras, PEMEX, and Petroperu, YPF is not the sole refined fuels provider in its country, with a 56% market share in 2024. YPF, like Petrobras and PEMEX, is an integrated energy company, offering more financial flexibility, while ENAP is primarily a refiner. YPF has historically operated autonomously with periodic control over fuel prices and crude, implementing import parity pricing and price controls similar to PEMEX and Petrobras. Compared to downstream-focused ENAP and Petroperu, YPF's leverage in 2024 was 2.6x (1.9x in U.S. dollars), ENAP's was 3.4x, and Petroperu's was negative 17.9x due to operational issues. ENAP's higher leverage is balanced by its strategic importance to Chile, aligning its rating with the sovereign. Fitch's Key Rating-Case Assumptions -- Average gross production of 550,000boe from 2025-2028; -- Realized oil price of USD60/bbl in 2025 and an average of USD51/bbl thereafter; -- Natural gas prices rise to USD4.3/MMBTU in 2025 and settle at USD3.75/MMBTU thereafter; -- Average annual capex of roughly USD5.0 billion per year from 2025 to 2028; -- Downstream sales volume follows Real GDP forecasts and YPF is a net purchaser of crude; -- Effective tax rate of 35%; -- No dividend payments over the rating horizon; -- Rollover of short-term maturities. -- Proceeds from asset sales of USD850 million in 2026. Recovery Analysis The recovery analysis assumes that YPF would be a going concern (GC) in bankruptcy and that it would be reorganized rather than liquidated. GC Approach: -- A 10% administrative claim. -- The GC EBITDA is estimated at USD4,089 million. The GC EBITDA reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the valuation of YPF. -- Enterprise value multiple of 5.0x. With these assumptions, Fitch's waterfall generated recovery computation (WGRC) for the senior secured notes is in the 'RR1' band and the senior unsecured notes are in the 'RR2' band. However, according to Fitch's Country-Specific Treatment of Recovery Ratings Criteria, the Recovery Rating for corporate issuers in Argentina is capped at 'RR4'. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade -- The Foreign-Currency IDR is linked to Argentina's sovereign rating, and a downgrade can occur with a downgrade of Argentina's sovereign rating. Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade -- The Foreign-Currency IDR is linked to Argentina's sovereign rating, and an upgrade can only occur with an upgrade of Argentina's sovereign rating. Liquidity and Debt Structure YPF reported USD779 million in cash and cash equivalents in 3Q25. Despite easing of capital controls, the company still faces material refinancing risk, with USD2.4 billion in debt maturing in 2026 (as of September 2024), followed by USD1,98 billion in 2027. As of December 2025, YPF has already secured USD1.8 billion in funding to manage the 1H26 maturities, in a mix of a bond re-tapping, $1.3 billion in local markets. Fitch expects YPF will continue to roll over short-term bank and trade financing debt over the rated horizon. Issuer Profile YPF, S.A is the largest fully integrated energy company in Argentina. YPF participates in three segments: Upstream, Downstream and Gas and Power. YPF has been controlled by the Argentine government through its majority stake of 51% since 2012. RATINGS ACTION Rating Prior ------ ----- YPF S.A. LT IDR CCC+ Affirmed CCC+ LC LT IDR CCC+ Affirmed CCC+ senior unsecured LT CCC+ Affirmed RR4 CCC+ =========== B R A Z I L =========== BRADSEQ PARTICIPACOES: Fitch Affirms BB+ IDR, Outlook Now Stable ---------------------------------------------------------------- Fitch Ratings has revised the Rating Outlook for Bradseg Participacoes S.A.'s Long-Term Local Currency Issuer Default Rating (IDR) to Stable from Negative and affirmed the IDR at 'BB+'. Fitch also affirmed Bradseg's National Long-Term Rating at 'AAA(bra)'. The Outlook remains Stable. These rating actions follow the Outlook revision of parent, Banco Bradesco, of which Bradseg is a core subsidiary. Key Rating Drivers Support-Driven Ratings: Bradseg's IDR aligns with parent Banco Bradesco S.A. (BB+/Stable), one notch above Brazil's sovereign ratings (BB/Stable). Bradseg's Stable Outlook mirrors Bradesco's, reflecting sustained improvement in its profitability and asset quality ratios, while capitalization, liquidity and funding remain solid. Evidence of this includes lower Stage 3 exposures, fewer non-performing loans over 90 days, stronger collateralization profile across the credit portfolio, a significant decline in restructured loans and solid coverage ratios for impaired loans. In applying Fitch's Insurance Criteria on ownership's impact on Bradseg's ratings, Fitch considered the theoretical effect under its Bank Support Criteria. The Insurance Criteria are principles based for ownership, and the referenced bank criteria informed Fitch's analysis. Core Subsidiary: Fitch views Bradseg as a 'core subsidiary' of Bradesco, and therefore its ratings are equalized with the parent's. This assessment is based on Bradseg's insurance operations strategic importance, which complement the main retail banking activities, common branding and Bradseg's large contribution to group profits. Historically, the insurance holding company has consistently contributed to the bank's consolidated earnings. Robust Market Position: The rating also reflects the company's leading position, consistent performance and diversified revenue base. Bradseg had a leading position and overall market share of approximately 23.1% as of June 2025. The rating also considers the company's strong distribution capacity, underpinned by the wide branch network of its parent, good performance and comfortable capitalization ratios. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade -- Bradseg's ratings are linked to those of Bradesco. Therefore, any negative change in the bank's ratings would affect Bradseg's ratings, as would a change in its willingness to provide support, which Fitch considers highly unlikely; -- Bradseg's National Ratings are sensitive to changes in creditworthiness relative to other Brazilian issuers. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade -- Bradseg's IDR has limited upside potential, as it is equalized with that of Bradesco, whose ratings are constrained by its operating environment. Over the medium term, the ratings could benefit from the stabilization and eventual improvement of Fitch's assessment of the operating environment for Brazilian banks; -- For the national scale rating, this sensitivity is not applicable, given that Bradseg's National Long-Term Rating was affirmed at 'AAA(bra)', the highest level on the scale. Public Ratings with Credit Linkage to other ratings Bradseg's rating is directly linked to the IDR of Banco Bradesco, the company's ultimate parent. RATING ACTIONS Rating Prior ------ ----- Bradseg Participacoes S.A. LC LT IDR BB+ Affirmed BB+ Natl LT AAA(bra) Affirmed SI GROUP: Completes Recapitalization, Cuts Debt by $1.7 Billion --------------------------------------------------------------- SI Group, a global developer and manufacturer of performance additives, process solutions, and chemical intermediates, on Dec. 23, 2025, announced the successful completion of a comprehensive recapitalization transaction supported by its lenders and equity partners. Through this transaction, SI Group has reduced its outstanding net indebtedness by approximately $1.7 billion (an over 80% reduction) and made amendments to its revolving credit facility, both of which materially enhance SI Group's financial and operational flexibility going forward. In addition, a new institutional ownership group has injected $150 million of junior capital, demonstrating their confidence in the company's long-term outlook. This investment will enable SI Group to fund the company's working capital needs, invest in key operational initiatives, and accelerate growth to serve the needs of its customers and business partners. "This recapitalization represents an important step for SI Group," said David Bradley, President and CEO of SI Group. "By reducing our debt and securing new investment, we have strengthened our financial foundation, allowing us to continue investing in growth, improving operational capabilities, and supporting our customers worldwide. We appreciate the partnership of our new institutional investors, whose commitment reflects confidence in our strategy and positions us for long-term success." SK Capital Partners, a private investment firm, acquired SI Group in October 2018 from the descendants of W. Howard Wright, who founded the company in 1906. Advisors Latham & Watkins LLP served as legal advisor, PJT Partners served as investment banker, AlixPartners LLP served as financial advisor to SI Group. Akin Gump Strauss Hauer & Feld LLP served as legal advisor and Lazard served as investment banker to an ad hoc group of the company's second-out term loan lenders. Baker Botts L.L.P. served as legal advisor to the company's pre-transaction equity holders. About SI Group SI Group is a global developer and manufacturer of performance additives, process solutions and chemical intermediates. SI Group solutions are essential to enhancing the quality and performance of countless industrial and consumer goods within plastics, rubber & adhesives, fuels & lubricants, oilfield, and pharmaceutical industries. SI Group's global manufacturing footprint includes 18 facilities on three continents, serving customers in 80 countries with 1,600 employees worldwide. On the Web: http://www.siigroup.com/ ===================== E L S A L V A D O R ===================== EL SALVADOR: Economy Expanding Faster Than Anticipated Pace ----------------------------------------------------------- Torres, Mission Chief for El Salvador, issued a statement following in person and virtual discussions over the past months with the Salvadoran authorities on the second review of the 40-month Extended Fund Facility (EFF) Arrangement. "Progress continues in the negotiations toward a staff level agreement on the second review of the EFF program. "The economy is expanding at a faster than anticipated pace on the back of improved confidence, record remittances, and buoyant investment. Real GDP growth is projected to reach around 4 percent this year and with very good prospects for next year. "The authorities' commitment to fiscal consolidation remains strong—the end-2025 primary balance target is well on track to be met, and the recently approved 2026 Budget is consistent with a further reduction in the deficit along with an expansion in social spending. These efforts are supporting reserve accumulation and a reduction in domestic borrowing in line with program targets. "The structural agenda is advancing. To help underpin the projected consolidation, an actuarial pension study has been recently published, along with a Medium-Term Fiscal Framework. Financial stability reforms have been approved to strengthen the legal framework for bank resolution, crisis management, and deposit insurance schemes, and Basel III regulations have been recently adopted to enhance liquidity coverage and net stable funding. Meanwhile, a new AML/CFT law has been approved by the Legislative Assembly, better aligning the legal framework with international best practices. "Finally, negotiations for the sale of the government e-wallet Chivo are well advanced, and discussions with regards to the Bitcoin project continue, centered on enhancing transparency, safeguarding public resources, and mitigating risks. "Close engagement with the Salvadoran authorities is expected to continue in the period ahead with the objective of reaching a staff level agreement on all policies and reforms needed to complete the second review of the EFF program. ============= J A M A I C A ============= JAMAICA: BOJ Sold US$1.1B to F/X Market From Nov. '24 to Nov. '25 ----------------------------------------------------------------- RJR News reports that the Bank of Jamaica has revealed that it sold about US$1.1 billion to the foreign exchange market between November last year and November this year -- the same amount sold during the previous twelve-month period. Despite those sales, the central bank says it still purchased roughly one billion US dollars more than it sold over the same period, according to RJR News. The Bank of Jamaica adds that it will continue to act proactively to maintain stability in the foreign exchange market, warning that instability and speculative activity can drive higher prices across the wider economy, 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: Imports Continue to Outpace Exports for January-August --------------------------------------------------------------- RJR News reports that Jamaica's import bill continue to outpace export earnings during the first eight months of the year. New data released by the Statistical Institute of Jamaica (STATIN) indicate that total spending on imports for the period January to August amounted to just over US$5.1 billion, according to RJR News. This represents a 3.7 per cent increase compared to the same period last year, driven mainly by higher imports of raw materials and intermediate goods as well as consumer goods, the report notes. Imports of raw materials and intermediate goods rose by nearly 12 per cent while consumer goods imports increased by just over nine per cent, the report relays. Earnings from total exports over the period stood at about US$1.2 billion, the report notes. A marginal increase of one per cent compared to the corresponding period in 2024, the report recalls. STATIN says the improvement was largely due to higher exports of crude materials excluding fuels, the report notes. The United States remained Jamaica's main trading partner, 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 =========== ASCEND PERFORMANCE: Emerges from Ch.11 With $1.3B Debt Cut ---------------------------------------------------------- Ascend Performance Materials, a leading producer of high-performance and durable engineered materials for everyday essentials and new technologies, announced on Dec. 19, 2025, the completion of its financial restructuring process and emergence from Chapter 11 bankruptcy protection. The Company's Plan of Reorganization, confirmed by the U.S. Bankruptcy Court on December 9, 2025, is now effective. Ascend achieved the objectives it set for this process, including reducing its total long-term debt by approximately $1.3 billion, securing access to a $350 million asset-based credit facility, strengthening its liquidity position through more than $600 million of new capital provided by its new shareholders, and materially lowering its debt service costs, which will enable Ascend to reinvest in reliability, efficiency, and long-term growth. "Today marks the final milestone in Ascend's restructuring process, and we are thrilled to be emerging from Chapter 11 with significantly less debt and a much stronger capital structure," said Patrick Schumacher, Ascend's newly appointed CEO. "Thanks to the incredible efforts of our people and the support of our new ownership group, we have strengthened the business and positioned Ascend for future growth. As we move forward, we will increase our investments in reliability and advance our leadership position in nylon resins and engineering thermoplastics." Ascend's emergence from Chapter 11 marks a pivotal moment in its ongoing transformation. Ascend remains steadfast in its mission to deliver high-performance materials that improve the quality of life today and inspire a better tomorrow. Additional Information Additional information on the Company's Chapter 11 case can be found at https://dm.epiq11.com/Ascend or by contacting Epiq, the Company's noticing and claims agent, at (888) 890-9917 (for toll-free U.S. calls) or +1 (971) 385-8728 (for tolled international calls). Ascend is advised in this matter by Kirkland & Ellis LLP as legal counsel, FTI Consulting as financial advisor, and PJT Partners as investment banker. The ad hoc group of term loan lenders to the Company is advised by Gibson, Dunn & Crutcher LLP as legal counsel, and Evercore Group L.L.C. as investment banker. About Ascend Performance Materials Holdings The Debtors, together with their non-Debtor affiliates, are one of the largest, fully-integrated producers of nylon, a plastic that is used in everyday essentials, like apparel, carpets, and tires, as well as new technologies, like electric vehicles and solar energy systems. Ascend's business primarily revolves around the production and sale of nylon 6,6 (PA66), along with the chemical intermediates and downstream products derived from it. Common applications of PA66 include heating and cooling systems, air bags, batteries, and athletic apparel. Headquartered in Houston, Texas, Ascend has a global workforce of approximately 2,200 employees and operates eleven manufacturing facilities that span the United States, Mexico, Europe, and Asia. Ascend Performance Materials Holdings Inc. and its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 25-90127) on April 21, 2025. In the petitions signed by Robert Del Genio, chief restructuring officer, the Debtors disclosed $1 billion to $10 billion in both estimated assets and liabilities. Judge Christopher M. Lopez oversees the cases. The Debtors tapped Bracewell LLP and Kirkland & Ellis LLP as counsel; PJT Partners, Inc. as investment banker; FTI Consulting, Inc. as restructuring advisor; and Deloitte LLP as tax advisor. Epiq Corporate Restructuring LLC is the Debtors' claims, noticing, and solicitation agent. =========== P A N A M A =========== ELEKTRA NORESTE: Fitch Affirms Then Withdraws 'BB+' LongTerm IDRs ----------------------------------------------------------------- Fitch Ratings has affirmed Elektra Noreste S.A.'s (ENSA) Long-Term Local- and Foreign-Currency Long-Term Issuer Default Ratings (IDRs) and its unsecured notes due 2036 at 'BB+'. Fitch has also affirmed ENSA's Long- and Short-Term National Scale ratings at 'AAA(pan)' and 'F1+(pan)', The Rating Outlook is Stable. Fitch has simultaneously withdrawn the ratings for commercial reasons. ENSA`s ratings reflect a strong financial position and stable cash flows, driven by a regulated tariff program with an adequate return on investment. Fitch rates ENSA on a standalone basis separately from its controlling parent, Empresas Publicas de Medellin E.S.P. (EPM; BB+/Rating Outlook Negative). ENSA is financially and operationally independent, and legal ring-fencing insulates it from parent access due to limited dividend distributions. the Panamanian government holds a 49% minority stake. Fitch has withdrawn the ratings for commercial reasons. Issuer Profile Elektra Noreste S.A.'s (ENSA) is one of Panama's three electricity distribution companies. Its concession area includes 39% of the country, spanning parts of Panama City and the provinces north and east of the capital. RATING ACTIONS Rating Prior ------ ----- Elektra Noreste, S.A. LT IDR BB+ Affirmed BB+ LT IDR WD Withdrawn LC LT IDR BB+ Affirmed BB+ LC LT IDR WD Withdrawn Natl LT AAA(pan) Affirmed AAA(pan) Natl LT WD(pan) Withdrawn Natl ST F1+(pan) Affirmed F1+(pan) Natl ST WD(pan) Withdrawn senior unsecured LT BB+ Affirmed BB+ senior unsecured LT WD Withdrawn =============== P A R A G U A Y =============== BANCO BASA: Moody's Affirms 'Ba2' Deposit Ratings, Outlook Stable ----------------------------------------------------------------- Moody's Ratings has affirmed all ratings and assessments assigned to Banco Basa S.A. (Banco Basa), including its long- and short-term local and foreign currency bank deposit ratings of Ba2 and Not Prime, respectively, as well as its long- and short-term local and foreign currency counterparty risk ratings of Ba1 and Not Prime, respectively. The bank's ba3 baseline credit assessment (BCA) and ba3 adjusted baseline credit assessment were also affirmed, along with its long- and short-term counterparty risk assessments of Ba1(cr) and Not Prime(cr), respectively. The outlook on the bank's long-term bank deposit rating remains stable. RATINGS RATIONALE In affirming Banco Basa's ba3 BCA and Ba2 deposit ratings, Moody's recognizes the bank's adequate capitalization and track record of disciplined underwriting and collateralization standards, which help mitigate risks stemming from elevated single-borrower concentrations intrinsic to its business model. Moody's assessments also reflects the challenges posed by intense competition in Banco Basa's core markets, and the bank's strategy to counterbalance these pressures by expanding into retail banking, a move that inherently entails asset and execution risks. Banco Basa's Ba2 long-term deposit ratings include a one-notch uplift from its ba3 BCA, based on Moody's assessments of a moderate probability of government support for the bank in a stress scenario. As of June 2025, Banco Basa's asset quality metrics were broadly in line with industry averages, with problem loans at 2.5% of gross loans and restructured and refinanced loans at 2.2%. While the ten largest exposures represent a high 115% of tangible common equity (TCE), collateralization and favorable economic prospects in Paraguay help mitigate potential volatility. Additionally, the bank's TCE to risk-weighted assets at 12.6% as of June 2025 provides a buffer against unexpected losses. Banco Basa's loan growth of 8.2% in the twelve months ended June 2025 lagged the industry average of 19.9%, reflecting fierce competition in corporate banking. Aiming to improve margins and future earnings recurrence, Banco Basa is gradually diversifying its business toward retail customers resulting in 28% year-over-year growth in mortgage and consumer loans as of June 2025, compared with 7% growth in the remaining corporate portfolio. Nevertheless, Moody's expects this strategy and the resulting shift in portfolio mix to unfold slowly, as the bank enters a segment characterized by higher asset risk and intense competition from the largest players. Over the next twelve months, Moody's expects Banco Basa to continue reporting profitability below the industry average, with net income to tangible assets remaining close to 1.2%, a level the bank has maintained since 2022. The bank's ba3 BCA also factors the relatively concentrated and more price-sensitive nature of its predominantly wholesale depositor base, partially offset by its longer tenor profile relative to peers. The stable outlook on Banco Basa's ratings is based on Moody's expectations that the bank's capitalization and highly collateralized portfolio will continue to offset risks arising from the bank's elevated concentrations, while its riskier retail loan portfolio will grow only gradually. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Upward pressure on Banco Basa's BCA could arise if the bank is successful in strengthening and diversifying both profitability and funding profiles, while maintaining good corporate governance despite its concentrated ownership. An enhanced competitive position in Paraguay would lend support to its future earnings generation and capital replenishment capacity. Conversely, the BCA could face downward pressure in case of a sharp asset quality deterioration over the outlook horizon as the bank strives towards retail banking. A sustained reduction in capitalization, weaker competitive position, or a significant decline in liquid resources and funding quality could also weigh on the BCA. The principal methodology used in these ratings was Banks published in November 2025. Banco Basa S.A.'s "Assigned BCA" score of ba3 is set two notches below the "Financial Profile" initial score of ba1 to reflect for the issuer's elevated borrower and depositor concentrations. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN 1529-2746. 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