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260114.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, January 14, 2026, Vol. 27, No. 10 Headlines A R G E N T I N A ARGENTINA: Construction Posts Largest Monthly Drop of 2025 BANCO MACRO: Moody's Rates New Senior Unsecured Notes 'Caa1' TELECOM ARGENTINA: Moody's Rates New Senior Unsecured Notes 'B2' B R A Z I L BRAZIL: In the Crosshairs Over Trump's 25% Iran-Trade Tariff Threat GOL LINHAS: Appeals Ruling Voiding Liability Releases in Ch 11 Plan C A Y M A N I S L A N D S BANCO BRADESCO: Moody's Rates New Senior Unsecured Notes 'Ba1' BANCO BRADESCO: S&P Assigns 'BB' Rating to Senior Unsecured Notes D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Not Facing Economic Crisis, Minister Says P E R U MARCOBRE SAC: S&P Assigns 'BB+' Long-Term ICR, Outlook Stable PETROLEOS DEL PERU: Fitch Withdraws 'CCC+' IRDs V E N E Z U E L A VENEZUELA: Owes Oil Firms Billions Over Earlier Investments VENEZUELA: Trump says U.S. Could Run Country and its Oil for Years - - - - - ================= A R G E N T I N A ================= ARGENTINA: Construction Posts Largest Monthly Drop of 2025 ---------------------------------------------------------- Patrick Gillespie & Manuela Tobias at Bloomberg News report that Argentina's construction sector posted its largest monthly decline of last year after crucial midterm elections, while the country's manufacturing industry also saw activity slow. Construction activity fell 4.1 percent in November compared to October, and industrial production dropped 0.6 percent on the same basis, according to Bloomberg News. Both sectors also declined annually in November, according to government data published by the INDEC national statistics bureau, the report relays. November economic activity has yet to be posted by the statistics agency, Bloomberg News says. Argentina was rocked by a currency sell-off in the weeks leading up to the October 26 midterm vote as investors braced for a possible return of Milei's leftist rivals, the report discloses. The tumult calmed after Milei won the election by a landslide, Bloomberg News notes. While the steep fall in construction may have been a direct response to the election, manufacturing responds to deeper-seated paradigm shift under President Javier Milei that favoirs imports over local production in less competitive areas, according to Sebastian Menescaldi, director of EcoGo economic consultancy, Bloomberg News relays. "Everyone expected a change in the currency policy, so construction companies likely bought material ahead of time, expecting a price jump in the future, so in November they already had the materials they needed," Menescaldi said, notes the report. "Manufacturing is being more seriously affected by the paradigm shift where certain industries can no longer compete and will have to reconvert," he added. Bloomberg News notes that manufacturing, which includes everything from oil refinery and foods to textiles, fell month-on-month in five of the last six months. Construction has been one of the hardest hit by Milei's rise to power because the libertarian halted all public works. Manufacturing and construction have led job losses among industries under Milei, adds the report. 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. S&P Global Ratings on Dec. 17, 2025, raised its local currency sovereign credit ratings on Argentina to 'CCC+/C' from 'SD/SD'. S&P also raised its long-term foreign currency sovereign credit rating to 'CCC+' from 'CCC' and affirmed its 'C' short-term foreign currency rating. The outlook on the long-term ratings is stable. In addition, S&P raised its issue ratings on local currency bonds to 'CCC+' from 'CCC'. S&P's 'B-' transfer and convertibility assessment is unchanged. 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. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. BANCO MACRO: Moody's Rates New Senior Unsecured Notes 'Caa1' ------------------------------------------------------------ Moody's Ratings has assigned a Caa1 long-term foreign currency senior unsecured debt rating to the proposed senior unsecured notes to be issued by Banco Macro S.A. (Macro). The proposed notes, which will be issued under its $1.5 billion senior unsecured Global MTN Program, for which Moody's have assigned a (P)Caa1 rating, will be denominated and settled in US dollars, and are expected to an amount of up to $400 million, with a maximum five-year maturity. The outlook on the senior unsecured debt rating is stable. RATINGS RATIONALE The Caa1 rating on the notes is in line with Macro's caa1 baseline credit assessment (BCA) and the bank's foreign-currency long-term deposit rating. The notes will constitute unsubordinated and unsecured obligations of Macro, and will rank pari passu among themselves and with all other present and future unsecured and unsubordinated obligations of the bank. The caa1 BCA assigned to Macro is influenced by the persistently challenging operating conditions in Argentina, marked by ongoing macroeconomic imbalances, although with significant improvements since 2024. Similar to other banks in the system, Macro remains exposed to Argentinean sovereign risk given its substantial holdings of government debt and the broader impact of sovereign conditions on the operating environment. Macro's ratings also take into account its strong financial fundamentals, including robust and above peer capitalization, with tangible common equity (TCE) at 30.12% of risk-weighted assets as of September 2025, ample liquidity buffers, and inexpensive and highly granular deposit base that benefits from the bank's role as a financial agent for many Argentine provinces. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING Upward movement on Macro's ratings and BCA would be dependent on an upgrade of the Government of Argentina's Caa1 sovereign rating, provided that the entity's main credit metrics remain stable or improve. Conversely, negative pressures on the bank's ratings could arise from a downgrade of the Argentinean sovereign rating, by an unexpected deterioration in the country's operating environment for banks, or a deterioration of the bank's financial fundamentals. The principal methodology used in this rating was Banks published in November 2025. TELECOM ARGENTINA: Moody's Rates New Senior Unsecured Notes 'B2' ---------------------------------------------------------------- Moody's Ratings has affirmed Telecom Argentina S.A.'s (Telecom Argentina) B2 corporate family rating and assigned a B2 rating to the proposed senior unsecured notes (benchmark size). The outlook remains stable. The main purpose of the proposed transaction is to use net proceeds to extend the company's debt maturity profile, without increasing its overall indebtedness or leverage. Any residual funds will be used for general corporate purposes. The rating of the proposed notes assumes that the final transaction documents will not be materially different from draft legal documentation reviewed by us to date and assume that these agreements are legally valid, binding and enforceable. RATINGS RATIONALE Telecom Argentina's credit profile is supported by the company's position as the leading telecommunications service provider in Argentina and its solid financial metrics for its rating category. Telecom Argentina is also the second largest mobile player in Paraguay and Pay TV player in Uruguay. The company's robust financial indicators, underscored by a strong cash flow, conservative financial strategy, and sufficient liquidity, further support the ratings. The company's credit profile is mainly constrained by the concentration of the company's operations in Argentina, a highly competitive telecom market, and moderate exposure to foreign-currency financing risk, partially balanced by balance sheet hedging. It is important to note that the longstanding regulatory oversight of Argentina's telecom industry has been significantly reduced since 2024. Moody's expects the financial profile of Telecom Argentina to remain robust during 2026, bolstered by its low leverage and robust cash generation. The demand for telecom and pay-TV services for the company will stay relatively steady through 2026, aided by Telecom Argentina's sound business model and convergent telecom services, as well as consumers' efforts to maintain their living standards. Moody's expects the company's EBITDA margin, as measured in US dollar terms, will be around 31.5% - 32.5% in 2025-2026, a relevant increase from 28.1% in 2024, aided by the incorporation of the recently acquired Telefónica Móviles Argentina S.A. (TMA), which will in turn aid boost revenue to around $5.3 billion in fiscal year 2025, from $4.0 billion in 2024. Leverage, as measured by Moody's adjusted gross debt to EBITDA, will remain in the 2.0x-2.5x range during 2026, from 2.2x in LTM Sep-2025 and below 2.9x in 2024. Telecom Argentina has adequate liquidity and a good track record of access to funding, proven by the ability to raise around $2.7 billion in 2025. As of September 30, 2025, the company had AR$397 billion in cash ($498 million) and Moody's expects the company will continue generating positive free cash flow in 2025-2026. Net proceeds from the proposed notes issuance will be used to refinance debt. As of September 2025, the company faced $717 million in debt maturities in 2026, $163 million of which correspond to the 2026 senior unsecured global notes. The remaining balance of 2026 maturities correspond to local debt (63.7%) and liabilities related to vendors, multilateral and export credit agencies (13.5%). Around 86.6% of its total debt was denominated in foreign currencies as of September 2025, mainly US dollar (78.1%) and Renminbi (8.5%), and most of the company's revenue is generated in local currency. The company generates foreign currency revenue mainly through its operations in Paraguay and certain data services with tariffs linked to the US dollar, which typically represent around 12-15% of total revenue. The stable outlook reflects the company's good credit metrics for its rating category and adequate liquidity. However, the company´s creditworthiness cannot be completely de-linked from the credit quality of Argentina, where it generates the bulk of its revenue, and thus its ratings and outlook also incorporate the risks that it shares with the sovereign, in line with Moody's cross-sector rating methodology, Assessing the Impact of Sovereign Credit Quality on Other Ratings, published in June 2019. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Given Telecom's strong dependence on the Argentinean market, an upward rating movement would be subject to the ratings' relative position to the Government of Argentina's ratings. Additionally, an upgrade would depend on the company maintaining a leading market position, prudent financial policies, and a balanced, manageable debt maturity profile. Conversely, the ratings could be downgraded (1) if the government of Argentina's rating is downgraded; (2) if its operating margin or market position weakens significantly; (3) if there is an excessive increase in leverage and/or a deterioration in liquidity. The principal methodology used in these ratings was Telecommunications Service Providers published in December 2025. The difference between the scorecard-indicated outcome, both historical and projected, and the actual B1 rating assigned to the company exceeds two notches. This difference results from applying the cross-sector rating methodology due to the company's asset base concentration in Argentina. Headquartered in Buenos Aires, Argentina, Telecom Argentina S.A. is a leading telecommunications service provider that provides a comprehensive range of services including mobile, broadband, fixed line, and pay-TV. These services cater to a wide customer base spanning residential, corporate, and government sectors, making it one of Argentina's largest private companies. As of September 2025, the company's reported nine-months revenue of $3.9 billion. As of September 2025, Telecom Argentina boasted a substantial subscriber base, with 20.3 million mobile clients in Argentina (+19.1 million at TMA) and 2.7 million in Paraguay; 4.1 million broadband clients (+1.6 million TMA), and 3.4 million Pay TV users across Argentina, Paraguay, and Uruguay (+0.4 million TMA). =========== B R A Z I L =========== BRAZIL: In the Crosshairs Over Trump's 25% Iran-Trade Tariff Threat ------------------------------------------------------------------- Iolanda Fonseca at Rio Times Online reports that in a Truth Social post, he said any country that "does business" with Iran will pay a 25% tariff on "any and all business" it conducts with the United States, "effective immediately," and called the order "final and conclusive." The political timing is not subtle, according to Rio Times Online. The warning comes as Iran faces its most acute domestic unrest in years, after protests that began in late December spread nationwide, according to Rio Times Online. Reports of mass arrests, hundreds of deaths, and heavy communications restrictions have fueled international scrutiny, the report notes. Trump has publicly floated talks with Iranian officials while also threatening military action if the crackdown continues, the report says. The tariff threat adds a second lever: isolate Tehran economically by forcing partners to calculate the U.S. cost of staying engaged, the report notes. Who could be hit hardest depends on how Washington defines "doing business," the report notes. Iran's trade web runs through major buyers and hubs, including China and India, and key regional conduits such as Turkey, the UAE, and Iraq, the report says. Sanctions Threat Reshapes Brazil's Trade Calculus Beijing has already criticized the idea and signaled it will defend its interests, setting up a test of whether the tariff becomes policy or stays a warning shot, the report relays. For Brazil, the exposure is real but uneven. In 2025, Brazil imported about $84.5 million from Iran, with urea, pistachios, and raisins highlighted. Brazilian exports to Iran were far larger, around $2.9 billion, concentrated in corn, soy, and sugar, the report discloses. Yet Brazil's trade with the United States dwarfs that: through October 2025, U.S. exports to Brazil totaled about $45.3 billion, while U.S. imports from Brazil were about $34.7 billion, the report notes. That gap explains why the threat matters, the report says. Even before any formal rule appears, banks, insurers, and shippers may tighten compliance, raising friction for commodity flows, the report notes. If Washington moves from rhetoric to enforcement, Brazilian firms could face a blunt choice: keep Iranian sales, or protect access to the U.S. market, the report adds. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian general election. He was sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. In October 2024, Moody's Ratings upgraded the Government of Brazil's long-term issuer and senior unsecured bond ratings to Ba1 from Ba2, the senior unsecured shelf rating to (P)Ba1 from (P)Ba2; and maintained the positive outlook. S&P Global Ratings raised on Dec. 19, 2023, its long-term global scale ratings on Brazil to 'BB' from 'BB-'. Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable Outlook. DBRS' credit rating for Brazil was last reported at BB with stable outlook at July 2023. GOL LINHAS: Appeals Ruling Voiding Liability Releases in Ch 11 Plan ------------------------------------------------------------------- Angelica Serrano-Roman of Bloomberg Law reports that Brazilian carrier Gol Linhas Aereas Inteligentes SA on Wednesday, January 7, 2026, appealed a federal court ruling that removed third-party liability releases from its Chapter 11 plan. The appeal challenges a December 1 decision by U.S. District Judge Denise Cote in the Southern District of New York, which relied on the Supreme Court's 2024 ruling in Harrington v. Purdue Pharma LP. Judge Cote said Gol's plan did not provide creditors with a meaningful opt-out mechanism and that consent to the releases could not be inferred. About Gol Linhas GOL Linhas Aereas Inteligentes S.A. provides scheduled and non-scheduled air transportation services for passengers and cargo; and maintenance services for aircraft and components in Brazil and internationally. The company offers Smiles, a frequent flyer program to approximately 20.5 million members, allowing clients to accumulate and redeem miles. It operates a fleet of 146 Boeing 737 aircraft with 674 daily flights. The company was founded in 2000 and is headquartered in Sao Paulo, Brazil. GOL Linhas Aereas Inteligentes S.A. and its affiliates and its subsidiaries voluntarily filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 24-10118) on Jan. 25, 2024. GOL Linhas estimated $1 billion to $10 billion in assets as of the bankruptcy filing. The Debtors tapped Milbank LLP as counsel, Seabury Securities LLC as restructuring advisor, financial advisor and investment banker, Alixpartners, LLP, as financial advisor, and Hughes Hubbard & Reed LLP as aviation related counsel. Kroll Restructuring Administration LLC is the Debtors' claims agent. =========================== C A Y M A N I S L A N D S =========================== BANCO BRADESCO: Moody's Rates New Senior Unsecured Notes 'Ba1' -------------------------------------------------------------- Moody's Ratings has assigned a Ba1 long-term foreign currency senior unsecured debt rating to the proposed senior unsecured notes to be issued by Banco Bradesco S.A. (Bradesco) through its Grand Cayman Branch. The proposed notes, to be issued under its existing $10 billion senior unsecured Global MTN Program, rated (P)Ba1, will be denominated and settled in US dollars, and will mature in five years. The outlook on the senior unsecured debt rating is stable. RATINGS RATIONALE The Ba1 rating on the notes aligns with Bradesco's ba1 baseline credit assessment (BCA), which reflects the bank's sound liquidity, as well as robust retail franchise and earnings diversification that support recurring capital replenishment. The bank's capital position is adequate but remains below that of global peers according to Moody's metrics, with a tangible common equity-to-risk-weighted assets ratio of 8.6% as of September 2025. Bradesco's asset quality has continued to improve following a more cautious approach toward riskier segments and a focus on secured products over the past three years. As of September 2025, loans overdue by more than 90 days marginally declined to 4.1% of gross loans from 4.2% a year earlier, while stage 3 loans accounted for 7.5%. The bank's net income-to-tangible assets ratio rose to 1.1% in the nine months ended September 2025 from 0.9% a year earlier, supported mainly by an improved net interest margin (NIM), stronger results from its insurance and pension businesses, and a 9.2% increase in fee income. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING Currently, there is no upward pressure on Bradesco's ratings because its BCA of ba1 and deposit ratings of Ba1 are at the same level as the Government of Brazil's (Brazil) Ba1 sovereign rating. Brazil carries a stable outlook. Downward pressure on Bradesco's BCA and ratings could stem from sizable and consistent deterioration in asset risk, or a substantial weakening of the bank's internal capital generation and risk absorption capacity due to subdued profitability. A downgrade of Brazil's sovereign rating could also result in a downgrade of Bradesco's BCA and ratings. The principal methodology used in this rating was Banks published in November 2025. BANCO BRADESCO: S&P Assigns 'BB' Rating to Senior Unsecured Notes ----------------------------------------------------------------- S&P Global Ratings assigned its 'BB' issue rating to Banco Bradesco S.A.'s senior unsecured notes due in 2031. Bradesco's Cayman branch will issue the notes. The rating on the senior unsecured notes is at the same level as the issuer credit rating on Banco Bradesco (BB/Stable/B) because of the notes' seniority. The ratings on the Brazilian sovereign limit those on Bradesco because, like other banks operating in Brazil, it has significant asset exposure in the domestic market and to the sovereign. Moreover, it invests most of its liquid assets in domestic government bonds. As such, our stable outlook on Bradesco reflects the outlook on Brazil, and we expect the ratings on the bank to continue to move in tandem with the sovereign ratings. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Not Facing Economic Crisis, Minister Says ------------------------------------------------------------- Dominican Today reports that the Minister of Finance and Economy, Magin Diaz, stated that the Dominican Republic is not facing an economic crisis and that the likelihood of a macroeconomic crisis is very low, citing the strength of the financial system and a favorable outlook for economic recovery this year. Diaz projected that the economy could rebound after a period of slower growth, reaching an estimated expansion of between 4.5% and 5%, supported by stable financial conditions, according to Dominican Today. He made these remarks during an interview on the morning program Uno Mas Uno, aired on Teleantillas, the report notes. The minister emphasized that public investment remains a priority, although he acknowledged delays and adjustments in major infrastructure projects, the report relays. Among those mentioned were the tourism development of Pedernales, the Oviedo–Pedernales highway, the local airport, and upcoming tenders such as the Amber Highway and mass transit projects, including the monorail, the report notes. He noted that several initiatives are already underway, while others are nearing completion under stricter oversight, the report relays. Diaz highlighted that the current administration has had to navigate multiple external shocks, including the COVID-19 pandemic, global inflation, international economic slowdown, and rising U.S. interest rates, the report says. Despite these challenges, he said key sectors such as tourism and free trade zones remain resilient, while mining has once again contributed more than US$600 million to public finances, the report notes. However, he acknowledged that the quality of public spending, particularly in the health sector, remains a major challenge, the report says. Diaz pointed to budget constraints and inequalities in access to services, stressing the need for greater efficiency and better allocation of limited resources, especially for lower-income populations, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCR-LA reported in April 2019 that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, â€œwe'll face difficulties in meeting international commitments. An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Standard & Poor's credit rating for Dominican Republic was raised to 'BB' in December 2022 with stable outlook. Moody's credit rating for Dominican Republic was last set at Ba3 in August 2023 with the outlook changed to positive. Fitch, in December 2023, affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' and revised the outlook to positive. ======= P E R U ======= MARCOBRE SAC: S&P Assigns 'BB+' Long-Term ICR, Outlook Stable ------------------------------------------------------------- S&P Global Ratings assigned its 'BB+' long-term issuer credit and issue-level ratings to Peru-based copper producer Marcobre S.A.C. and its proposed senior unsecured notes for up to $400 million. S&P said, "Our stable outlook on Marcobre reflects that on its parent company, as the ratings on the former will move in tandem with those on Minsur. We expect Marcobre to deliver steady operating performance and to maintain S&P Global Ratings-adjusted debt to EBITDA near 1.0x over the next 12-18 months, while complying with minimum cash policy of at least $70 million. "Marcobre is, in our view, a core subsidiary of Minsur S.A. (BB+/Stable/--), given the former's strategic importance and financial support from its parent. Despite its smaller size than those of global copper producers and its operation of a single open pit mine, we expect Marcobre to keep posting above-average-industry EBITDA margin and to maintain its prudent financial policy with S&P Global Ratings-adjusted debt to EBITDA below 1.5x at all times." Marcobre intends to raise up to $400 million in a proposed senior unsecured fixed-rate notes with a seven- to 10-year tenor to refinance outstanding near-term debt maturities and to a lesser extent, for general corporate purposes, improving its amortization profile and liquidity position. Marcobre lacks size and diversification, but profitability margins set it apart from other copper producers globally. Marcobre, as a stand-alone subsidiary of Minsur, does not have product, geographic, or asset diversification, as it operates only one copper mine in Peru. In 2024, Mina Justa produced 123,765 tons of copper, which represents about 30% of the company's closest rated industry peer in terms of production (Antofagasta plc [BBB/Stable/--] with 449,000 tons of copper). Nevertheless, Marcobre's integrated mine ensures consistent operations and production, as well as a better cost structure than those of most peers. Historically, the company has reported the cash cost of $1.5 per pound and above-average EBITDA margins of about 70%. S&P also expects the Justa underground project to increase reserves by about 30%, which would enable the company to become the sixth-largest Peruvian copper producer. S&P said, "In our opinion, the focus on copper reduces the company's business and financial volatility because of its global importance. During 2024, Peru produced 2.7 million tons of copper and was the second-largest global producer (Marcobre represented 4.5% of total), underscoring the country's importance in meeting global demand for copper. Therefore, we believe Marcobre's sale of its output should remain smooth to markets with high deficits like China, the U.S., and Japan, thereby reducing volatility in sales. Furthermore, the relatively low volatility in our assumed copper prices stems from the end-markets, mainly because of the focus on renewable energy projects and electronic conduction components. "Leverage metrics should remain steady in the next two years, although we do not expect much net cash generation. Since we do not expect additional debt, Marcobre's adjusted debt to EBITDA should remain near 1.0x for the next two years. However, unlike Minsur, we expect Marcobre to face periods of dividends surpassing its net income and/or its cash generation. Therefore, in addition to traditional leverage metrics, our assessment of the company's financial risk profile incorporates cash flow after capex and dividends (DCF) to further monitor its cash cushion against stressed scenarios. DCF to debt is expected to remain below 2.0% for the next two years. "We think that Marcobre will continue to follow financial policies similar to those of Minsur. We believe the parent company sets prudent and conservative financial policies to reduce the likelihood of an event risk and maintain similar financial policies across its subsidiaries. More specifically, Marcobre has a leverage tolerance of below 2.5x (also included as a financial covenant in debt contracts), debt only for expansion or growth, and optimal minimum operating cash of $70 million. For the next two years, we don't expect the company to deviate from our expectations." The 'bb+' stand-alone credit profile (SACP) mainly reflects improved liquidity after debt refinancing and upcoming issuance. To manage its debt profile, Marcobre refinanced $300 million of its syndicated loan, originally due in 2027, in December 2025. The new syndicated loan, with similar terms, extends the maturity to 2030. This proactive step reduced Marcobre's short-term debt obligations to $100 million (from $400 million as of September 30, 2025), significantly alleviating its liquidity. Furthermore, S&P expects Marcobre to refinance the remaining $300 million outstanding debt. To repay it, the company intends to issue a 7 to 10-year tenor U.S. dollar-denominated bond for up to $400 million. The complete liability management will lengthen Marcobre's weighted average debt maturity profile to more than 6.5 years and strengthen its liquidity position. S&P views Marcobre as a core subsidiary of Minsur. Its rating reflects that Marcobre will receive timely operating and financial support from Minsur under pressured conditions. Among other factors, the following account for Marcobre's relevance to the group: -- The company produces 100% of the group's copper; -- Through Cumbres Andinas, S.A.C., Marcobre is fully consolidated in Minsur's corporate structure, and it represents about 50% of consolidated revenue, 60% of total adjusted EBITDA, and about 68% of Minsur's average dividend payments to shareholders. -- The group's near-term growth should come from Mina Justa's underground activities; and -- Cross-default clause in Minsur's 4.5% senior notes due 2031 with any subsidiary, including Marcobre. S&P said, "The stable outlook on Marcobre reflects that on Minsur, because we view the former as a core entity for the group. We expect that Marcobre will continue generating about 60% of the group's adjusted EBITDA, and Mina Justa will continue driving the group's near-term copper production growth. Therefore, our ratings on Marcobre will most likely move in tandem with those on Minsur. "On a stand-alone basis, we expect Marcobre's adjusted debt to EBITDA will remain near 1.0x, and DCF to debt below 2.0% for the next 12-18 months. "We could lower the ratings on Marcobre in the next 12-18 months if we downgrade Minsur or if we no longer view the company as a core subsidiary." S&P could revise down its SACP in the next 12 months if: -- EBITDA margins decrease closer to 50%, which will no longer be considered as above industry average; -- Marcobre faces liquidity shortfalls and sources no longer cover more than 1.2x its expected uses; -- S&P perceives higher concentration risk due to operating or social/political implications on its production rate, depressing volumes sold, revenue, and cash flow. S&P said, "The operating performance deteriorates beyond our expectation or if its financial policy turns more aggressive than expected, with the higher use of debt to fund investments and/or shareholder returns, such that its adjusted debt to EBITDA is consistently above 1.5x. "Although unlikely in the next 12-24 months, we could upgrade Marcobre if we were to take a similar action on its parent company as its ratings are capped by Minsur." S&P doesn't expect to revise the SACP upward over the near term. Over the longer term, it could raise it to 'bbb-' if: -- The company's product, geographic, and asset diversification significantly widens, reducing concentration risk; and -- Marcobre demonstrates a track record of a more balanced financial policy that would enable DCF to debt to remain meaningfully above 25% and adjusted debt to EBITDA below 1.5x. PETROLEOS DEL PERU: Fitch Withdraws 'CCC+' IRDs ----------------------------------------------- Fitch Ratings has withdrawn all ratings for Petroleos del Peru - Petroperu S.A. Fitch lacks sufficient information to make a rating decision for the issuer or its debt instruments, so it withdrew the ratings without a rating action. The company's liquidity position is weak, and discussions with the government are ongoing. Fitch will no longer provide ratings or analytical coverage of Petroperu. Fitch lacks sufficient information to make a rating decision for the issuer or its debt instruments, so it withdrew the ratings without a rating action. Key Rating Drivers Key Rating Drivers are no longer relevant as the ratings have been withdrawn. RATING SENSITIVITIES Not applicable, as the rating has been withdrawn. Issuer Profile Petroleos del Peru - Petroperu S.A. is a Peruvian state-owned petroleum company under private law and dedicated to oil production, transportation, refining, distribution and marketing of fuels and other petroleum-derived products. Refineries are located at Talara, Iquitos and Conchan. RATING ACTIONS Rating Prior ------ ----- Petroleos del Peru - Petroperu S.A. LT IDR WD Withdrawn CCC+ LC LT IDR WD Withdrawn CCC+ senior unsecured LT WD Withdrawn CCC+ ================= V E N E Z U E L A ================= VENEZUELA: Owes Oil Firms Billions Over Earlier Investments ----------------------------------------------------------- Ivan Penn, writing for The New York Times, reports that Western oil companies have been fighting to recoup tens of billions of dollars that they say Venezuela owes them -- debts that could play a prominent role in efforts by President Trump to compel U.S. businesses to produce more oil in the country. Exxon Mobil and ConocoPhillips top the list of oil companies with big financial claims against Venezuela, whose president, Nicolas Maduro, was captured by U.S. forces in Caracas, according to the report. American and European oil companies once had significant operations in Venezuela, ranked as having the world's largest proven oil reserves, recounts the report. But most Western energy businesses abandoned the country after disputes with its leftist government, and since then corruption, mismanagement and neglect have greatly eroded oil production. The foreign oil companies have been fighting for two decades to be compensated for being forced out of the country under Mr. Maduro's predecessor, Hugo Chavez, notes the NY Times. Oil executives and experts have said that until those debts are resolved these companies will be very reluctant to invest more in the country -- something Mr. Trump has made one of his key aims for reviving Venezuela's economy. Mr. Trump said he would defend the interests of U.S. oil companies, including their claims against Venezuela. "We built Venezuela's oil industry with American talent, drive and skill, and the socialist regime stole it from us during those previous administrations, and they stole it through force," he said, notes the report. He added that the United States would "never allow foreign powers to rob our people." ConocoPhillips's claims against Venezuela add up to $12 billion, the report relays. Exxon Mobil has filed claims in multiple legal venues that total roughly $20 billion, aiming to collect compensation of $12 billion. Chevron is the only U.S. oil company that stayed in Venezuela, NY Times relates. That gambit has put it in a potential position to reap a significant reward as the Trump administration presses the country to accept greater U.S. investment. Exxon Mobil, ConocoPhillips and other companies have spent years trying to make Venezuela pay through international arbitration and cases in U.S. courts, adds the report. "It's a stigmatizing action against a country," the report quotes Shon Hiatt, director of the Zage Business of Energy Initiative at the Marshall School of Business at the University of Southern California, as saying. "It's basically telling everybody that they're never going back in to the country." European energy companies, including Italy's Eni, France's TotalEnergies and Spain's Repsol, also invested billions of dollars in Venezuela, though their operations were much smaller than those of Exxon Mobil and ConocoPhillips, said Mr. Hiatt, who has long tracked the oil industry in Venezuela, relays the report. While oil companies have categorized those debts as unlikely to be repaid, they are highly unlikely to give up on their claims, the report says. ConocoPhillips may end up recouping some of its losses as part of a U.S. Bankruptcy Court's auction of Citgo, an American subsidiary of Venezuela's state-owned oil company, Petroleos de Venezuela, its adds. ConocoPhillips declined to comment beyond what it has said in regulatory filings, notes the NY Times. The company had substantial investments in oil projects in central and eastern Venezuela as well as off the country's coast, recalls the report. International arbitration bodies have repeatedly ruled in Conoco's favor, but turning those decisions into cash has been very difficult. Exxon Mobil has said in regulatory filings that it collected awards of $908 million related to its investment in the Cerro Negro Project in eastern Venezuela, and $260 million in compensation related to the La Ceiba Project on a port in the nation's central region, the NY Times notes. But another $1.4 billion arbitration award was annulled in the International Center for Settlement of Investment Disputes, the report states. Exxon filed a new claim to restore the award, but that and the large majority of Exxon’s claims have gone unpaid. Venezuela has contested many foreign oil company claims, and said it owes much less or nothing at all, says the NY Times. According to the report, U.S. and European oil companies have been speaking with the Trump administration about their next steps in Venezuela. But new investments pose significant challenges because of the political instability created by Mr. Maduro's capture. Trump administration officials said that the U.S. government would take control of sales of Venezuelan oil indefinitely under a deal being negotiated with the country, relates the report. Money from those sales will be used to "stabilize the economy in Venezuela," the U.S. energy secretary, Chris Wright, told C-SPAN. Only later would the revenue be used to compensate U.S. oil companies for their claims against Venezuela, he said. But investors remain wary, NY Time notes. So far last week, shares of Exxon Mobil and Chevron have fallen more than 5 percent, while ConocoPhillips's stock price has slipped more than 7 percent. Even before the Trump administration seized Mr. Maduro, the cost of restoring Venezuela's oil production would have been substantial, the report relates. The Inter-American Development Bank, the primary source of development financing in South America and the Caribbean, estimated in 2020 that it would cost $10 billion a year over a decade to restore Venezuela's oil production, notes the report. The Center for Energy Studies at the Rice University's Baker Institute for Public Policy estimated that Venezuela's production peaked in 1998 at 3.4 million barrels of oil a day and dropped to 1.3 million barrels a day by 2018. In a 2020 report, the center noted that the failure to attract more investment into its oil industry has been "one of the key drivers of the economic catastrophe facing the country," relate the NY Times. About Venezuela Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South America, consisting of a continental landmass and a large number of small islands and islets in the Caribbean sea. The capital is the city of Caracas. Hugo Chavez was president to Venezuela from 1999 to 2013. The Chavez presidency was plagued with challenges, which included a 2002 coup d'etat, a 2002 national strike and a 2004 recall referendum. Nicolas Maduro was elected president in 2013 after the death of Chavez. Maduro won a second term at the May 2018 Venezuela elections, but this result has been challenged by countries including Argentina, Chile, Colombia, Brazil, Canada, Germany, France and the United States who deemed it fraudulent and moved to recognize Juan Guaido as president. The presidencies of Chavez and Maduro have challenged Venezuela with a socioeconomic and political crisis. It is marked by hyperinflation, climbing hunger, poverty, disease, crime and death rates, social unrest, corruption and emigration from the country. Moody's has withdrawn its 'C' local currency and foreign currency ceilings for Venezuela in September 2022. Standard & Poors has also withdrawn its 'SD/D' foreign currency sovereign credit ratings and 'CCC-/C' local currency ratings on Venezuela in September 2021 due to lack of sufficient information. Fitch withdrew its own 'RD/C' Issuer Default Ratings on Venezuela in June 2019 due to the imposition of U.S. sanctions on the country's government. VENEZUELA: Trump says U.S. Could Run Country and its Oil for Years ------------------------------------------------------------------ AFP News reports that the United States could run Venezuela and tap into its oil reserves for years, US President Donald Trump said in an interview published after toppling its leader Nicolas Maduro. "Only time will tell" how long Washington would demand direct oversight of the South American country, Trump told The New York Times. But when asked whether that meant three months, six months or a year, he replied: "I would say much longer," he added, according to AFP News. The 79-year-old US leader also said he wanted to travel to Venezuela eventually, the report notes. "I think at some point it'll be safe," he said. US special forces snatched president Maduro and his wife in a lightning raid and whisked them to New York to face trial on drug and weapons charges, underscoring what Trump has called the "Donroe Doctrine" of US hegemony over its backyard, the report relays. Since then Trump has repeatedly asserted that the United States will "run" Venezuela, despite the fact that it has no boots on the ground, the report says. Venezuela's interim leader Delcy Rodríguez insisted that no foreign power was governing her country, the report relays. "There is a stain on our relations such as had never occurred in our history," the former vice-president said of the US attack, the report says. But she added it was "not unusual or irregular" to trade with the United States now, following an announcement by state oil firm PDVSA that it was in negotiations to sell crude to the United States, the report says. US Lawmakers Push Back AFP News says that the US Senate took a major step toward passing a resolution to rein in Trump's military actions in Venezuela -- a rare bipartisan rebuke following alarm over the secretive capture of leader Nicolas Maduro, the report discloses. The Democratic-led legislation, which bars further US hostilities against Venezuela without explicit congressional authorization, got through a key procedural vote with support from five Republicans, the report relays. The vote on final passage, expected, is now seen as little more than a formality, and would mark one of Congress' most forceful assertions of its war-making authority in decades, the report says. The effort is seen as largely symbolic however, as the resolution faces a steep climb in the US House and almost no prospect of surviving a likely veto by Trump, the report notes. 'Tangled Mess' Oil has emerged as the key to US control over Venezuela, which has the world's largest proven reserves, the report relays. Trump announced a plan earlier for the United States to sell between 30 million and 50 million barrels of Venezuelan crude, with Caracas then using the money to buy US-made products, the report notes. On the streets of Caracas, opinions remain mixed about the oil plan. "I feel we'll have more opportunities if the oil is in the hands of the United States than in the hands of the government," said Jose Antonio Blanco, 26, the report relays. "The decisions they'll make are better." Teresa Gonzalez, 52, said she didn't know if the oil sales plan was good or bad, the report notes. "It's a tangled mess. What we do is try to survive, if we don't work, we don't eat," she added. Trump, who met oil executives, is also considering a plan for the US to exert some control over Venezuela's PDVSA, The Wall Street Journal reported, the report notes. The US would then have a hand in controlling most of the oil reserves in the Western Hemisphere, as Trump aims to drive oil prices down to US$50 a barrel, the paper reported, the report says. US Vice-President JD Vance underscored that "the way that we control Venezuela is we control the purse strings," the report relays. "We tell the regime, 'You're allowed to sell the oil so long as you serve America's national interest," he told Fox News, the report notes. Loss of Life Vance, an Iraq veteran who is himself a sceptic of US military adventures, also addressed concerns from Trump's "Make America Great Again," saying the plan would exert pressure "without wasting a single American life," the report discloses. Caracas announced that at least 100 people had been killed in the US attack and a similar number wounded, the report relays. Havana says 32 Cuban soldiers were among them, the report says. The US operation in Venezuela -- and Trump's hints that other countries could be next -- spread shockwaves through the Americas, but but he has since dialled down tensions with Colombia, the report says. A day after Colombia's leftist President Gustavo Petro spoke with Trump, Bogota said it had agreed to take "joint action" against cocaine-smuggling guerrillas on the border with Venezuela, the report adds. About Venezuela Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South America, consisting of a continental landmass and a large number of small islands and islets in the Caribbean sea. The capital is the city of Caracas. Hugo Chavez was president to Venezuela from 1999 to 2013. The Chavez presidency was plagued with challenges, which included a 2002 coup d'etat, a 2002 national strike and a 2004 recall referendum. Nicolas Maduro was elected president in 2013 after the death of Chavez. Maduro won a second term at the May 2018 Venezuela elections, but this result has been challenged by countries including Argentina, Chile, Colombia, Brazil, Canada, Germany, France and the United States who deemed it fraudulent and moved to recognize Juan Guaido as president. The presidencies of Chavez and Maduro have challenged Venezuela with a socioeconomic and political crisis. It is marked by hyperinflation, climbing hunger, poverty, disease, crime and death rates, social unrest, corruption and emigration from the country. Moody's has withdrawn its 'C' local currency and foreign currency ceilings for Venezuela in September 2022. Standard & Poors has also withdrawn its 'SD/D' foreign currency sovereign credit ratings and 'CCC-/C' local currency ratings on Venezuela in September 2021 due to lack of sufficient information. Fitch withdrew its own 'RD/C' Issuer Default Ratings on Venezuela in June 2019 due to the imposition of U.S. sanctions on the country's government. ********* 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 2026. 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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