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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
Monday, February 9, 2026, Vol. 27, No. 28
Headlines
A R G E N T I N A
ARGENTINA: Eyes Labor Reform as Sessions of Congress Kick Off
ARGENTINA: Shelves Inflation Revamp After Statistics Chief Quits
ARGENTINA: US Senator Asks Bessent to Terminate US$20BB Swap Line
B E R M U D A
BERKING RE: A.M. Best Withdraws 'C+' Financial Strength Rating
B R A Z I L
COMPANHIA SIDERURGICA: Fitch Lowers LongTerm IDRs to 'BB-'
J&F SA: Fitch Assigns 'BB+' LongTerm IDR, Outlook Stable
J&F SA: S&P Assigns 'BB+' Issuer Credit Rating, Outlook Stable
C A Y M A N I S L A N D S
WYNN RESORTS: Fitch Affirms 'BB-' IDR, Outlook Stable
C H I L E
CAP SA: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
C U B A
CUBA: Willing to Hold Talks With Trump Amid U.S. Pressure
P U E R T O R I C O
LINEAS DE PUERTO: Retains Monge Robertin as Restructuring Advisors
PARAMOUNT PROPERTIES: Taps Jose M Prieto Carballo Esq. as Counsel
- - - - -
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A R G E N T I N A
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ARGENTINA: Eyes Labor Reform as Sessions of Congress Kick Off
-------------------------------------------------------------
Buenos Aires Times reports that President Javier Milei's government
opened extraordinary sessions of Congress in Argentina, marking the
start of the parliamentary year.
Decree 24/2026, issued by Milei, establishes that they run until
Friday, February 27, while as from March the period of ordinary
sessions begins, according to Buenos Aires Times.
The ruling party's agenda, laid out by the government, provides for
the discussions of bills of Labour Modernisation, the amendment of
the National Glaciers Law with regard to the preservation of
glacier and their surroundings, the free-trade agreement between
Mercosur and the European Union and the appointment of former
national deputy Fernando Iglesias as ambassador to the European
Union, the report notes.
The report notes that the government broadened the agenda via
Decree 53/2026, incorporating the discussion of the Juvenile Penal
Code seeking to amend Law 22,278 by lowering the age of criminal
responsibility from 16 to 13 or 14 years.
The timetable provided for activity formally to begin, the report
relays. The government hopes that debate on Milei's controversial
labor reform package will begin in the Senate on February 11 or 12,
the report notes. The other bills still have no specific dates for
debate since they will require committees to be formed, the report
discloses.
Senate Support for Labor Reform?
Milei's government opens proceedings with negotiations underway
with a view to passing the Law of Labour Modernisation, which
obtained majority approval in the Budget and the Labour and Social
Welfare Committees of the Senate last December 18, the report
relays.
Since they did not obtain the necessary votes to debate the bill on
the House floor then, debate was postponed until February, the
report says.
Ruling party Senator Patricia Bullrich (La Libertad Avanza-Buenos
Aires City), who is steering the bill as the chair of the Labour
and Social Welfare Committee, has assured that a vote will be taken
on the bill before February 13, the report notes.
The report says that the government can count on the support in
principle of 44 senators from their own and allied caucuses, but
pending changes in the text and responses to provincial demands.
They will need at least 37 votes to reach quorum and open up
debate, the report discloses.
The agreements with governors are conditioned on funds and
compensation, the report relays. From the Casa Rosada, the message
is: "No support, no money." Provincial governors such as Leandro
Zdero (Chaco), Alfredo Cornejo (Mendoza), Marcelo Orrego (San
Juan), Rogelio Frigerio (Entre Rios), Alberto Weretilneck (Río
Negro) and Gustavo Saenz (Salta) back the reform in general, but
Peronists are resisting an article that would cut their received
revenues from income tax.
Interior Minister Diego Santilli, whose focus has been negotiating
support from the governors since he took office, has scheduled
meetings in the near future with Governors Sáenz, Raúl Jalil
(Catamarca) and Osvaldo Jaldo (Tucuman) to review the fiscal
chapter of the bill, the report notes.
Bullrich is seeking consensus by negotiating changes in the text of
the labour reform, the report says. In order to consolidate the
construction of political alliances, she this week scheduled
meetings with the heads of moderate caucuses at the offices of the
Union Civica Radical (UCR), the report notes.
Fragmented
For now, the opposition remains fragmented with infighting
preventing coordination against the bills pushed by the government,
the report relays.
The Conviccion Federal Senate group has voted divided in previous
debates, like the 2026 Budget, the report says. Three of its five
senators – Carolina Moisés ((Jujuy), Guillermo Andrada
(Catamarca) and Sandra Mendoza (Tucumán) – accompanied the
government in that vote, triggering fierce internal clashes and
suspicions from the sector closest to ex-president Cristina
Fernández de Kirchner, the report discloses.
In the debate over amending the Juvenile Criminal Code, in which
the government seeks to lower the age of criminal responsibility
from 16 to 13 or 14 years, there is backing from other caucuses,
the report says.
The report relays that Santa Fe Province Governor Maximiliano
Pullaro is in favour, affirming: "Adult crimes should be tried with
adult punishments" since "it is neither possible nor realistic to
maintain that a person of 14 does not comprehend the gravity of
their actions when they commit a homicide."
The opposition as a whole has not managed to consolidate positions
in common with some sectors demanding profound changes in the texts
of the different bills and others evaluating specific agreements in
return for provincial compensation, thus giving the government with
margin to negotiate and avoid a solid coordination against its
initiatives in this period of extraordinary sessions, the report
notes.
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.
ARGENTINA: Shelves Inflation Revamp After Statistics Chief Quits
----------------------------------------------------------------
Manuela Tobias at Bloomberg News reports that President Javier
Milei's government announced it's holding off on using new
methodology to measure inflation just hours after Argentina's chief
statistician resigned from his post.
Marco Lavagna stepped down as head of the INDEC national statistics
bureau, without giving a reason . Milei's economy czar later said
it was because of a disagreement over the timing of the rollout,
according to Bloomberg News.
"Marco had envisioned the implementation date now. And with the
president we always had the vision that the change should be
implemented once the disinflation process was totally
consolidated," Economy Minister Luis Caputo told a local radio
station, Bloomberg News discloses.
Bloomberg News relates that Caputo said changing the methodology
now could have led to speculation that the statistics were
manipulated, despite some estimates that the next batch of
inflation figures could come in higher as a result of the new
formula.
Argentina is set to publish January consumer price data, and the
Central Bank had warned the new methodology – among other factors
– would create "uncertainty" in the outlook, Bloomberg News says.
The overhaul would have taken into account a revamped index that
was expected to show some consumer price gains running higher than
current monthly readings, Bloomberg News notes. Services, like
utilities and rent, weighed more heavily in the new methodology,
while food had less impact, Bloomberg News discloses.
The government expected the impact of the change to be "very low,"
Caputo said, adding that Lavagna acknowledged as much, Bloomberg
News says. The outgoing statistics chief didn't respond to a
request for comment, but said in a post on X "it was a real
privilege" to lead INDEC and "work alongside a team so committed to
producing public statistics," Bloomberg News relates.
Bloomberg News notes that Caputo didn’t say when the new
methodology would be rolled out. Pedro Lines, one of Lavagna's
deputies at the agency, will take over as INDEC director, the
economy minister added.
Monthly inflation is expected to come in around 2.5 percent, Caputo
said in an earlier interview, Bloomberg News says. The pace of
disinflation faces temporary risks in the first quarter of the
year, the Central Bank warned, citing persistently high beef prices
and increases to utility bills in addition to the now-shelved new
methodology, Bloomberg News discloses.
Price gains accelerated for a fourth consecutive time in December
to 2.8 percent, led by transportation, utilities and food,
Bloomberg News relays. Annual inflation is still expected to drop
to 20 percent this year from about 32 percent currently, according
to economists surveyed by the Central Bank, Bloomberg News says.
In the afternoon interview, Caputo said the government expected
inflation to cool far more than it has so far, blaming market
volatility ahead of October’s midterm election, Bloomberg News
notes.
Lavagna, an economist, took the reins at INDEC in December 2019
during the Peronist Presidency of Alberto Fernandez and stayed on
under Javier Milei, whose main focus has been to tame soaring
inflation, Bloomberg News relays. Like other parts of the public
sector, workers at the statistics agency have complained about poor
salary increases amid Milei’s austerity campaign, Bloomberg News
notes.
When INDEC was led by Guillermo Moreno, who was recently sentenced
for manipulating inflation figures under former president Cristina
Fernández de Kirchner, Lavagna ran a private consulting firm,
Bloomberg News discloses. The firm was fined by Moreno for
publishing price figures that contested the government-reported
numbers, Bloomberg News relays.
Lavagna is the son of Roberto Lavagna, who served as economy
minister from 2002 to 2005 under presidents Eduardo Duhalde and
Nestor Kirchner, Bloomberg News adds.
About Argentina
Argentina is a country located mostly in the southern half of
South America. Its capital is Buenos Aires. Javier Milei is the
current president of Argentina after winning the November 19,
2023 general election. He succeeded Alberto Angel Fernandez
in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal
year 2019, according to the World Bank. Historically, however,
its economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
In March 2022, the International Monetary Fund (IMF) approved a
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota) -- with an approved immediate
disbursement of an equivalent of US$9.65 billion. Argentina's
IMF-supported program sought to improve public finances and start
to reduce persistent high inflation through a multi-pronged
strategy.
On April 11, 2025, the IMF further approved a 48-month Extended
Fund Facility (EFF) arrangement for Argentina totaling US$20
billion (or 479 percent of quota), with an immediate disbursement
of US$12 billion, and a first review planned for June
2025 with an associated disbursement of about US$2 billion. The
program is expected to help catalyze additional official
multilateral and bilateral support, and a timely re-access to
international capital markets.
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.
ARGENTINA: US Senator Asks Bessent to Terminate US$20BB Swap Line
-----------------------------------------------------------------
Daniel Flatley at Bloomberg News reports that US Senator Elizabeth
Warren is requesting that US Treasury Secretary Scott Bessent
terminate its US$20-billion currency swap line with Argentina,
asserting that if the arrangement has run its course, it should be
shut down.
The US extended a line of credit to Argentina before its 2025
midterm elections as President Javier Milei's party was under
pressure after losing a local election in Buenos Aires Province,
according to Bloomberg News. In September, Bessent said the
support was meant to serve as a "bridge" to help Milei get through
the election and continue his economic reforms, Bloomberg News
relays.
The department tapped what is known as the Exchange Stabilisation
Fund, which allowed the Treasury secretary to intervene in
Argentina's financial markets and buy an undisclosed amount of
pesos to stem a run on the currency, Bloomberg News says.
Argentina drew down US$2.5 billion from the swap, but Bessent said
in January that it's been fully repaid, Bloomberg News notes.
Milei's government took out a loan from an unnamed multilateral
lender to repay the Treasury, Bloomberg News says.
Warren is the top Democrat on the Senate Banking Committee. Bessent
is expected to appear before the panel today and the Argentina swap
line could be a subject he's queried on, among other topics,
Bloomberg News relays.
In her letter, a copy of which was reviewed by Bloomberg, Warren
said that it appears the Treasury has left in place an "Exchange
Stabilisation Agreement" with Argentina despite advertising the
intervention as being a short-term arrangement, Bloomberg News
discloses.
"Despite Treasury's assertion that its use of the ESF was for an
'acute, short-term, and urgent' purpose, it appears — by leaving
the ESA in place — to have left open the possibility of continued
use of the ESF in Argentina well after the October 2025 elections,"
she wrote in a letter delivered, Bloomberg News relays.
Bessent appeared before the House Financial Services Committee,
where he clashed with several Democratic lawmakers and declined to
give an opinion on whether US President Donald Trump could remove a
member of the Federal Reserve Board of Governors for a policy
disagreement, Bloomberg News notes.
The ESF has only been used to support foreign governments a few
times in recent history, most notably to help Mexico weather a
crisis in the early 1990s, Bloomberg News recalls.
Warren asked Bessent to provide a copy of the US agreement with
Argentina's Central Bank concerning the use of the ESF as well as
written confirmation that it has been terminated by February 12,
Bloomberg News adds.
About Argentina
Argentina is a country located mostly in the southern half of
South America. Its capital is Buenos Aires. Javier Milei is the
current president of Argentina after winning the November 19,
2023 general election. He succeeded Alberto Angel Fernandez
in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal
year 2019, according to the World Bank. Historically, however,
its economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
In March 2022, the International Monetary Fund (IMF) approved a
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota) -- with an approved immediate
disbursement of an equivalent of US$9.65 billion. Argentina's
IMF-supported program sought to improve public finances and start
to reduce persistent high inflation through a multi-pronged
strategy.
On April 11, 2025, the IMF further approved a 48-month Extended
Fund Facility (EFF) arrangement for Argentina totaling US$20
billion (or 479 percent of quota), with an immediate disbursement
of US$12 billion, and a first review planned for June
2025 with an associated disbursement of about US$2 billion. The
program is expected to help catalyze additional official
multilateral and bilateral support, and a timely re-access to
international capital markets.
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.
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B E R M U D A
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BERKING RE: A.M. Best Withdraws 'C+' Financial Strength Rating
--------------------------------------------------------------
AM Best has withdrawn the Financial Strength Rating of C+
(Marginal) and the Long-Term Issuer Credit Rating of "b-"
(Marginal) of Berking Re Limited (Berking Re) (Bermuda). At the
time of the withdrawal, the Credit Ratings (ratings) were under
review with negative implications status.
The rating withdrawals follow Berking Re's request due to its
strategic decision to discontinue its participation in AM Best's
interactive rating process.
AM Best's procedure is for a final rating opinion to be produced in
conjunction with a rating withdrawal. However, in this case, a
final rating opinion could not be provided due to a lack of
sufficient financial and business information necessary to support
such an assessment.
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B R A Z I L
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COMPANHIA SIDERURGICA: Fitch Lowers LongTerm IDRs to 'BB-'
----------------------------------------------------------
Fitch Ratings has downgraded Companhia Siderurgica Nacional's (CSN)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
to 'BB-' from 'BB' and its National Long-Term ratings to 'AA-(bra)'
from 'AAA(bra)'. Fitch has also downgraded CSN Inova Ventures' and
CSN Resources S.A.'s senior unsecured notes, guaranteed by CSN, to
'BB-' from 'BB', and CSN Mineracao S.A.'s National Long-Term
ratings and senior unsecured notes to 'AA-(bra)' from 'AAA(bra)'.
In addition, Fitch has placed all ratings on Rating Watch Negative
(RWN) and removed them from Under Criteria Observation.
The downgrade reflects CSN's persistently high total and net
leverage, continued negative FCF, and high refinancing risk at the
holding level. Fitch now considers total leverage to be one of the
key rating triggers for CSN.
The RWN reflects the risk of further negative rating action if
measures to reset the capital structure - funded by asset
divestments - are not fully executed.
Key Rating Drivers
RWN Reflects Need to Deleverage: Fitch has placed CSN on RWN to
reflect the event risk around the company's deleveraging plan.
Fitch's current rating case does not assume any cash inflows from
asset sales. However, CSN announced its intention to divest assets,
and timely sales at favorable valuations could materially reduce
leverage. Currently, CSN's leverage profile is consistent with the
'B' category (4.0x total EBITDA leverage midpoint), and its
interest coverage is consistent with the 'CCC' category (1.25x
EBITDA interest coverage) due to high interest expense.
Fitch expects total and net EBITDA leverage to decline to 5.9x and
4.4x, respectively, in 2025 and 5.7x and 4.6x, respectively, in
2026 from 6.7x and 4.2x, respectively, in 2024. Fitch adjusts its
leverage ratio by including customer advances and forfaiting on top
of its regular adjustments in EBITDA by adding received/paid
dividends from non-controlling interests. Excluding the mining
segment, Fitch estimates CSN's ex-mining total and net leverage at
15.5x and 13.7, respectively, in 2025, with total debt around BRL48
billion. Refinancing risks at the holding level are high.
Potential Asset Sales: CSN announced expected sales of a majority
stake in cement and a significant minority position in its
infrastructure business to raise between BRL15 billion to BRL18
billion, with signing targeted to 2H26. If proposed asset sales are
executed, CSN's portfolio would lose business diversification, with
mining and steel representing the bulk of EBITDA generation. For
2025, Fitch forecasts that EBITDA contribution will break down in
mining (53%), steel (16%), cement (13%), logistics (16%) and energy
(2%).
On a hypothetical asset sale scenario of 60% and 49% in the cement
and infrastructure businesses, respectively, CSN could raise around
BRL15.6 billion per agency's estimates (CSN's total debt as of
Sept. 30 2025, was 27%, per Fitch). On a pro forma basis, CSN's
total and net figures would decline to BRL40 billion and BRL14.5
billion, respectively. In December 2025, CSN completed the sale of
its shares in MRS Logistica S.A to its mining division, freeing up
BRL3.35 billion in cash to the holding level.
Governance Assessment Impact: An effective debt reduction strategy
and clearer evidence of shareholders' commitment to a stronger
credit profile are key to mitigating the impact from Fitch's
updated criteria on governance assessment. The new criteria impose
a one-notch discount from the IDR in cases of deficiencies in the
assessment of key person risk and high-risk appetite tolerance
(ownership and decision-making), complex group structure, and
contagion risks. The current assessment of 'Good' acknowledges a
higher priority to debt repayments.
Recurring Negative FCF: Fitch expects reduced 2025 capex and
shareholder returns will not offset weaker EBITDA, high interest
payments and working-capital pressures, keeping FCF negative for
next three years. Investments rise in 2026-2027 as mining
construction intensifies. Fitch forecasts 2025 EBITDA of BRL10.8
billion, capex of BRL5 billion, and only pass-through mining
dividends, resulting in FCF of -BRL0.3 billion. EBITDA is projected
to increase to BRL11.1 billion in 2026 as mining expands and steel
improves.
Favorable Mining Operations: Fitch expects volume growth, cost
reductions, and scale benefits to mitigate price headwinds from
slowing Chinese iron ore demand and growing African supply.
Following production stabilization in 2025, the Pires and B4
tailings recovery projects are expected to contribute approximately
3.5 million tons, with the Itabirito P15 mine adding over 16
million tons from late 2027.
Challenging Steel Market: Despite resilient domestic demand, tariff
and quota measures have been insufficient to stem price pressure,
with steel imports rising materially, particularly from China (61%
of the total). Import penetration in flat steel reached 24.9% in
9M25 versus 20.8% in 2024. Against this backdrop, CSN's enhanced
cost controls lifted EBITDA/ton to USD81 in 9M25 from USD52 in
9M24, and Fitch expects EBITDA/ton to reach approximately USD83 in
2025.
Consolidated Approach: Fitch applies its "Parent and Subsidiary
Rating Linkage Criteria" to CSN Cimentos, CSN Mineracao, and their
parent, CSN. CSN is stronger than the subsidiaries, and legal
incentives for support are assessed as medium: cross-acceleration
clauses at CSN Cimentos and CSN Mineracao mitigate the absence of
CSN corporate guarantees. Strategic incentives are high, as
integration with iron ore and energy bolsters CSN's steel business
cost advantage and cement adds cash flow diversification. The
businesses are synergistic and fully integrated in management and
strategy, with shared reputational risk.
Peer Analysis
CSN's integrated business profile and diversified steel portfolio
are comparable to Usinas Siderurgicas de Minas Gerais S.A.
(Usiminas) (BB/Stable). Both companies are highly exposed to
Brazil's local steel market. However, both have weaker business
positions than Gerdau S.A. (BBB/Stable) which benefits from
international diversification, particularly in the U.S., and a
flexible mini-mill model that helps mitigate market cycles.
United States Steel Corporation (BBB-/Stable) and Cleveland-Cliffs
Inc. (BB-/Stable) are similar to CSN in EBITDA size and blast
furnace operations, but they have a broader geographic presence in
the U.S., additional electric arc furnace facilities, higher
output, and a more value-added product mix. CSN, however, maintains
more diversified business lines.
Among Brazilian steel producers, Gerdau has the strongest balance
sheet, the most manageable debt schedule, and consistently improves
its capital structure. In contrast, CSN's gross debt remains high
relative to peers, and its debt amortization schedule is more
challenging than those of U.S. Steel, Cleveland-Cliffs, Usiminas or
Gerdau.
Corporate Rating Tool Inputs and Scores
Fitch scored the issuer as follows, using its Corporate Rating Tool
(CRT) to produce the Standalone Credit Profile (SCP):
- Business and financial profile factors (assessment, relative
importance): Management (bb, Moderate), Sector Characteristics
(bbb-, Moderate), Market and Competitive Positioning (bbb-,
Moderate), Diversification and Asset Quality (bb+, Lower), Company
Operational Characteristics (bbb, Higher), Profitability (bb-,
Moderate), Financial Structure (b-, Higher), and Financial
Flexibility (b, Moderate).
- The quantitative financial subfactors are based on custom CRT
financial period parameters: 20% weight for the forecast year 2024,
20% weight for the forecast year 2025, 40% for the forecast year
2026 and 20% for the forecast year 2027.
- No weakest link considerations result in no adjustment.
- The Governance assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'bb+ results in no
adjustment.
- The Other Risk Elements assessment results in a +1 adjustment
given the potential effects of asset sales in deleveraging and
increasing financial flexibility.
- The SCP is 'bb-'.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Failure to sell assets and use all proceeds to repay debt;
- Weakening of liquidity position and financial access;
- Lack of progress on gross debt reduction;
- Sustained adjusted total debt/EBITDA and adjusted net debt/EBITDA
ratios consistently above 5.0x and 4.0x, respectively;
- Large debt funded acquisitions;
- Increased pressure from main shareholders on dividend payments;
- Adverse regulatory changes in Brazil's mining industry.
A downgrade of the international rating could lead to a more than
one-notch downgrade in the national scale rating.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade will not be considered until there is further clarity on
the company's ability to sell assets and deleveraging strategy.
Liquidity and Debt Structure
CSN had BRL52.2 billion (USD9.8 billion) of debt to which Fitch
adds customer advances for iron ore and electric energy supply, as
well as forfaiting for an adjusted value of total debt of BRL57.3
billion (USD10.8 billion) as of Sept. 30, 2025. Fitch excludes
lease-related debt from its adjustments. Capital markets represent
54% of the total, while banks account for 35%, customer advances
for 7% and forfaiting for 4%.
Readily available cash and marketable securities reached BRL16.5
billion (USD3.1 billion) as of Sept. 30, 2025. After the cash
transfer from CMIN to CSN holding, pro forma holding cash would be
BRL6.29 billion.
CSN regularly needs market access to refinance medium-term debt;
any liquidity squeeze could pressure ratings. CSN has an annual
average of BRL9.0 billion of debt due in 2026-2028. About 79% of
these maturities are comprised of bank debt. The largest maturity
is expected in 2028 with BRL10.7 billion.
Issuer Profile
CSN is an integrated, high value-added steelmaker with a large
market share in the Brazilian flat steels market and a presence in
Germany, the U.S. and Portugal. CSN is Brazil's second-largest iron
ore exporter.
Entity/Debt Rating
----------- ------
Companhia Siderurgica
Nacional (CSN) LT IDR BB- Downgrade
LC LT IDR BB- Downgrade
Natl LT AA-(bra) Downgrade
senior unsecured Natl LT AA-(bra) Downgrade
CSN Mineracao S.A. Natl LT AA-(bra) Downgrade
senior unsecured Natl LT AA-(bra) Downgrade
CSN Inova Ventures
senior unsecured LT BB- Downgrade
CSN Resources S.A.
senior unsecured LT BB- Downgrade
J&F SA: Fitch Assigns 'BB+' LongTerm IDR, Outlook Stable
--------------------------------------------------------
Fitch Ratings has published J&F S.A. (J&F)'s 'BB+' Long-Term
Foreign and Local Currency Issuer Default Ratings (IDRs) and its
'AAA(bra)' National Long-Term Rating. The Rating Outlook is
Stable.
J&F's ratings reflect its consolidated business profile and the
credit quality of its main subsidiary, JBS S.A. The ratings also
incorporate its 100% ownership of companies in the pulp and energy
sectors that have strong market positions. Adequate dividend
inflows to J&F and growing EBITDA from its subsidiaries should
cover financial expenses amid high-interest rates while maintaining
moderate leverage. Fitch expects J&F to continue showing a high
appetite for new acquisitions and a concentrated debt profile,
which will require frequent refinancing. Asset liquidity supports
its financial flexibility.
Key Rating Drivers
Strategic Asset Portfolio: J&F has a diversified portfolio of
assets in strategic sectors. Its primary asset is JBS S.A. (JBS;
BBB-/AAA(bra)/Stable), the world's largest and most diversified
protein producer. J&F holds controlling and strategic ownership in
JBS. J&F also controls Eldorado Brasil Celulose S.A. (Eldorado;
BB/AA+(bra)/Stable), one of Brazil's largest pulp producers.
Historically, JBS and Eldorado account for more than 95% of the
group's consolidated results and dividends received by J&F.
J&F has an aggressive growth strategy in Brazil's energy sector
through acquisitions and capacity expansion. The strategy still
needs to be tested over a longer period and carries integration and
execution risks. The strategy will also require high cash
disbursements and monetization of new assets. Fitch expects the
group's energy business to double its share of consolidated EBITDA
to about 16% within four years.
Solid EBITDA and Dividend Flow: J&F became an operational holding
after the incorporation of Âmbar Energia Ltda. Fitch's base case
scenario projects EBITDA of BRL3.4 billion in 2025 and BRL5.7
billion in 2026 at the holding level due to the ramp-up of
generation and distribution assets in the energy sector. J&F's
access to cash generated by its fully consolidated businesses is an
important rating consideration, as it will fund the company's M&A
strategy. Fitch expects consolidated EBITDA to approach BRL50
billion within two years. Fitch estimates dividends received would
be about BRL 7.5 billion by the end of 2025 and average about
BRL2.6 billion over the next three years.
Moderate Leverage: Fitch projects moderate holding company leverage
measured as net financial debt (excluding JBS)/EBITDA (excluding
JBS) + dividends. Fitch forecasts an average of 3.0x over the next
three years, peaking at 4.0x in 2026 due to M&As, higher capex and
interest disbursements. Leverage may improve if the group contracts
new plants capacity and generates higher EBITDA. Visibility
regarding new acquisitions is low and could increase debt and
pressure leverage. As of Sept. 30, 2025, Fitch calculates holding's
total adjusted debt at BRL20 billion, including BRL11 billion in
bank debt, BRL6.5 billion in receivables sales, and BRL2.5 billion
from the leniency agreement.
ESG - Governance: J&F is controlled 100% by Wesley and Joesley
Batista. The Batista family plays an active role in managing the
group at both the board and operational levels, as well as in
strategic decision-making. Fitch regards the dual listing of JBS on
the NYSE in the U.S. and B3 in Brazil as positive from a credit
standpoint. It enhances the group's financial flexibility,
including the use of equity as a funding source.
Peer Analysis
J&F's 'BB+' rating is one notch below Intercorp Peru Ltd.'s
(Intercorp) IDR of 'BBB-'. Intercorp's rating reflects a
consolidated profile, diversified businesses, and the credit
quality of subsidiaries in financial, retail, real estate and
education. Intercorp has stronger dividend coverage and less
volatile dividend flows than J&F, supported by Peru's 'BBB'/Stable
operating environment and its business mix. Intercorp is less
reliant on a single subsidiary, while J&F is concentrated in JBS.
J&F's rating is one notch above Cosan S.A.'s IDR of
'BB'/'AAA(bra)'/Negative. Cosan's ratings reflect strong financial
flexibility and broader portfolio diversification, with overall
higher credit quality than J&F. However, Cosan has a more leveraged
capital structure, even after the Vale divestment and equity
injection, and weaker coverage ratios at the holding level. Cosan
needs new divestments to align its capital structure.
Fitch’s Key Rating-Case Assumptions
- Annual dividends received near BRL7.5 billion in 2025 and between
BRL2.0 billion-BRL2.5 billion from 2026 onward;
- Dividend payments of BRL4.3 billion in 2025, and average annual
payments of BRL1.8 billion from 2026 onward;
- Average investments of BRL1.5 billion per year;
- Merge and acquisitions (M&As) payments of BRL15 billion in 2025,
BRL2.5 billion in 2026 and BRL440 million in 2027.
Corporate Rating Tool Inputs and Scores
Fitch scored the issuer as follows, using its Corporate Rating Tool
(CRT) to produce the Standalone Credit Profile (SCP):
- Business and financial profile factors (assessment, relative
importance): Management (bb, Moderate), Sector Characteristics
(bbb, Lower), Market & Competitive Positioning (bbb, Moderate),
Diversification and Asset Quality (bbb-, Higher), Company
Operational Characteristics (bbb, Moderate), Profitability (bbb,
Moderate), Financial Structure (bb-, Moderate), and Financial
Flexibility (bbb-, Moderate).
- The quantitative financial subfactors are based on custom CRT
financial period parameters: 10% weight for the historical year
2024, 30% for the forecast year 2025, 30% for the forecast year
2026 and 30% for the forecast year 2027.
- Assessments of the quantitative financial subfactors also include
bespoke calculations.
- The Governance Impact assessment of 'Some Deficiencies' results
in an adjustment of -1 notch(es).
- The Operating Environment Impact assessment of 'bb' results in no
adjustment.
- The SCP is 'bb+'.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Dividend distribution or value extraction mechanisms that can
deteriorate J&F credit profile;
- Net financial debt (excluding JBS)/EBITDA (excluding JBS) plus
dividends above 3.5x on a recurring basis;
- Interest coverage (excluding JBS) by EBITDA (excluding JBS) and
dividends below 1.5x on a recurring basis
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Consistent improvement in corporate governance practices;
- Net financial debt (excluding JBS)/EBITDA (excluding JBS) plus
dividends below 2.5x on a recurring basis;
- Interest coverage (excluding JBS) by EBITDA (excluding JBS) and
dividends above 2.0x on a recurring basis.
Liquidity and Debt Structure
The value of J&F's stakes in JBS and other companies provides
additional financial flexibility. This is a critical rating support
because the holding company does not maintain significant cash and
equivalents against short-term debt maturities. Holding-company
debt is high relative to expected dividend inflows, and J&F's debt
schedule is relatively concentrated, with BRL3.3 billion maturing
by end-2026 against a cash and equivalents position of BRL1.0
billion. The rating factors in that J&F will refinance its debt,
rolling BRL3 billion-BRL4 billion per year. J&F has good access to
unsecured bank debt with top-tier institutions at moderate cost.
Issuer Profile
J&F S.A. (J&F) is one of Brazil's largest investment holding
companies, with stakes in companies in the protein, energy, pulp,
mining, consumer goods, and financial sectors. Shareholding control
is exclusively held by the Batista family.
Summary of Financial Adjustments
- Obligations with acquisitions were adjusted to the debt;
- Leniency agreement was included in debt;
- Provision reversion and gains in asset sales were excluded from
EBITDA calculation.
Date of Relevant Committee
26-Jan-2026
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Sector Forecasts Monitor
data file which aggregates key data points used in its credit
analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
Climate Vulnerability Signals
The results of its Climate.VS screener did not indicate an elevated
risk for J&F S.A.
ESG Considerations
J&F S.A. has an ESG Relevance Score of '5' for Governance Structure
due to ownership concentration and board independence, which has a
negative impact on the credit profile, and is highly relevant to
the rating, resulting in a lower rating.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating
----------- ------
J&F S.A. LT IDR BB+
LC LT IDR BB+
Natl LT AAA(bra)
J&F SA: S&P Assigns 'BB+' Issuer Credit Rating, Outlook Stable
--------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issuer credit rating to
Brazil-based J&F S.A.
The stable outlook reflects S&P's expectation that J&F will
maintain controlled leverage at 3.0x-3.5x, primarily supported by
JBS's strong operations and cash flow.
J&F benefits from the sound market position and diversification of
its main subsidiary JBS N.V. (BBB-/Stable/--), the world's largest
animal protein processor.
J&F S.A. benefits from the strong market position and
diversification of its primary subsidiary, JBS, the largest animal
protein processor in the world. S&P expects JBS to represent
75%-80% of J&F's consolidated EBITDA over the next few years.
While S&P expects consolidated leverage to remain in the 3.0x-3.5x
range, the group's diversification into businesses with weaker
credit profiles and a history of aggressive acquisitions with no
financial policy currently limit the rating at 'BB+'.
JBS's leading position in the global animal protein market,
combined with its diversified product portfolio, provides a solid
foundation for J&F's business. JBS's strong market position is
driven by its extensive network of production facilities and
distribution channels, which allow it to reach all global meat
consumer markets. The company's diversified product portfolio
includes beef, pork, chicken, lamb, salmon, and eggs, as well as
value-added products such as processed ready-to-eat meats. The
product and geographic diversification help to mitigate risks
associated with fluctuations in demand for specific products or
countries and provide a stable revenue stream for J&F.
JBS's diversification also tends to support sound and relatively
stable profitability through the different protein cycles. For
instance, last year a record performance of poultry operations due
to limited supply, strong demand, and low input costs, as well as
sound margins from the U.S. pork division and in Australia,
mitigated negative EBITDA in the U.S. beef division due to a
pressured cattle cycle. In our base-case forecast, JBS will
represent about 95% of J&F's consolidated revenues and 75%-80% of
consolidated EBITDA in the next three years.
While JBS is the primary driver of J&F's business, the group's
other subsidiaries, including Âmbar Energia and Eldorado, provide
some diversification to the company's operations. However, these
businesses have weaker competitive positions in their respective
industries compared to JBS. Âmbar Energia (not rated) has
significantly expanded its portfolio in recent quarters through
several acquisitions. It currently has an installed capacity
exceeding 6.0 gigawatts (GW) across 57 power generation assets,
mainly thermoelectric power plants but also small hydroelectric and
solar plants. The contracted thermal power plants have total
capacity of about 2.5 GW and should generate about R$4.5 billion
EBITDA in full-year 2026. The company also has other assets
totaling 3.8 GW, which will participate in Brazil's energy reserve
auction this March and should contribute additional cash flow to
the group going forward.
In 2025, J&F entered into agreements to acquire two energy
distribution companies, Amazonas Energia and Roraima Energia, which
are currently in the process of closing. These assets are in a
challenging region to operate in and, once the transactions are
completed, will require operating efficiency measures and
investments to reduce losses over the next few years. S&P expects
Âmbar to represent 12%-14% of consolidated EBITDA in the next
three years.
Eldorado Brasil Celulose S.A. (not rated) has strong operating
efficiency, with a competitive cash cost that should allow for a
sound EBITDA margin of 51%-54%. Still, the risks of relying on a
single asset and a single product and the commodity nature of pulp
could result in more volatile earnings and cash flow than those of
larger and more diversified players. S&P expects Eldorado to
represent about 7% of the group's EBITDA in the next three years.
S&P said, "We expect J&F's leverage to be 3.0x-3.5x over the next
few years, absent any relevant acquisition. The group completed
some notable acquisitions in 2024 and 2025 (mainly Eldorado's
shares previously owned by Paper Excellence and several operating
power plants through Âmbar), and we expect no further relevant
acquisitions in the next 12 months. We expect leverage to gradually
fall over the next several years as a result of an increase in
Âmbar's EBITDA contribution from recently acquired assets,
combined with relatively stable leverage at JBS, assuming organic
growth and no relevant acquisitions.
"We view J&F's internal controls and risk tolerance as weaker than
peers. This is mainly due to the history of the founding family
involvement in wrongdoing and of high volatility due to
acquisitions and derivatives. While we have seen significant
progress at JBS in recent years in terms of its internal controls
and risk management, we believe that JBS and J&F still lag peers in
these areas. This results in our view of moderately negative
management and governance."
The group's diversification into weaker businesses compared with
JBS, and its track record of frequent acquisitions with an untested
financial policy, currently limit the rating at 'BB+'. J&F,
primarily through JBS, has demonstrated a pattern of volatile
credit metrics historically, largely attributable to debt-funded
acquisitions. While the substantial size of JBS generally limits
the impact of new acquisitions on its leverage metric, J&F has had
a more assertive growth strategy in recent quarters, exemplified by
the large debt-funded acquisition of Eldorado and several
acquisitions within the energy sector.
The group recently established a financial policy targeting
reported debt to EBITDA of 2.0x-3.0x, which it considers an optimal
range. The policy stipulates the implementation of a contingency
plan should reported leverage exceed 3.75x for two consecutive
quarters. Although this policy signals a commitment to prudent
leverage management, it remains untested, and our adjusted leverage
metrics consistently trend higher than those reported by the
company, remaining consistent with the 'BB+' rating.
S&P said, "The stable outlook reflects our expectation that J&F
will maintain controlled leverage, with debt to EBITDA around
3.0x-3.5x, benefiting mainly from sound operations and cash flow
generation from JBS. It also incorporates higher EBITDA
contribution from its energy assets through long-term contracts,
which could eventually mitigate the volatility of the commodity
segments of JBS and Eldorado.
"We could lower the ratings if the group adopts a more aggressive
debt-financed expansion strategy, not accompanied by increasing
cash flow generation from acquired assets. In this scenario, we
would see debt to EBITDA above 4.0x on a consistent basis. We could
also lower the ratings if the operational performance of JBS and
other subsidiaries is weaker than our base case, which could happen
amid weak industry cycles, reducing operating cash flow.
"An upgrade is unlikely in the next 12 months due to J&F's active
merger and acquisition (M&A) strategy and no track record of its
financial policy. We could raise the ratings in the longer term if
we see the group's energy and pulp businesses contributing more to
consolidated cash flows, due to better competitive positions or
operating efficiency.
"In this scenario, we would also see consolidated debt to EBITDA
close to or below 3x consistently, thanks to stronger profitability
and lower earnings volatility. We would also need to see a
conservative approach toward debt and M&A to cushion the industry
volatility of its main subsidiary, JBS, as well as Eldorado."
===========================
C A Y M A N I S L A N D S
===========================
WYNN RESORTS: Fitch Affirms 'BB-' IDR, Outlook Stable
-----------------------------------------------------
Fitch Ratings has affirmed Wynn Resorts, Limited's (WRL) and
subsidiaries' (collectively Wynn) Issuer Default Ratings (IDRs) at
'BB-'. The Rating Outlook is Stable. The subsidiaries are Wynn
Resorts Finance, LLC (WRF), Wynn Las Vegas, LLC (WLV), Wynn Macau,
Limited (WML), and WM Cayman Holdings Limited II (WMC). Fitch also
affirmed Wynn's senior secured and unsecured debt at 'BB+' with a
Recovery Rating of 'RR1' and 'BB-'/'RR4', respectively.
Wynn Resorts Limited's ratings reflect its high-quality gaming
portfolio, strong positions in Macau and Las Vegas that target
high-valued customers and robust liquidity to fund near-term
capital projects. These strengths are balanced against modest
diversification and sizable capital needs for current and potential
projects, which could slow credit improvement.
The Stable Outlook reflects Fitch's view that the Macau market will
keep growing, despite potential headwinds in the Chinese economy,
Wynn's strong market position in the Las Vegas market and strong
FCF generation.
Key Rating Drivers
Leverage Modestly High: Fitch projects EBITDAR leverage for 2025 at
5.7x, slightly higher than 5.4x in 2024. This is due to weaker
results in Macau and Las Vegas, with debt relatively unchanged. The
forecast is still within Fitch's prior expectations and the company
is expected to be FCF positive over the forecast horizon.
Management does not have an explicit leverage financial policy, but
the balance sheet has been prudently managed over the years,
despite taking on developments that temporarily increase leverage.
Wynn views its stock repurchase program as opportunistic and
reflects management's view of the intrinsic value of stock versus
the market price.
Strong Liquidity: Wynn holds $1.49 billion in cash and a further
$475 million of short-term investments. Availability on the Wynn
Resorts (WRF) revolver is $1.23 billion and $1.36 billion on the
Wynn Macau revolver (WMC). Fitch anticipates the company to remain
FCF positive through 2026 as it completes several major capital
expansion projects. In 2027, Fitch expects FCF to grow as no major
capital expansion projects are anticipated. Fitch does not expect
material debt reduction, but EBITDA growth from those projects,
including cash flow from Al Marjan through dividends and management
fees, is expected to lead to improved debt metrics.
Macau Should Provide Upside: Fitch expects Wynn's two Macau
properties to come in below 2024, due to a slower than expected
rebound in Macau and more intense competitive pressures. Gross
gaming revenues have shown strong improvement in the second half of
2025, which is expected to continue into 2026 given easier
comparisons. Fitch forecasts modest growth through 2026-2028 for
Wynn's Macau properties due to the continued uncertainty of the
Chinese economy and continued promotional pressure.
Competitive Market Position: Wynn casino and hotel properties are
considered best in class and focus on high-end value customers.
Although the company is not immune to economic downturns, it has a
history of outperforming downturns given its customer base. Fitch
expects EBITDAR at its Las Vegas properties to decline
approximately 5% in 2025, although outperforming other Las Vegas
focused companies that include hotels catering to a lower economic
value customer. Profitability at Wynn's casino portfolio is
expected to be less volatile during cyclical economic periods.
Al Marjan Upside: Wynn has a 40% equity interest in Island 3 AMI
FZ-LLC, which is building an integrated resort called Wynn Al
Marjan Island in Ras Al Khaimah, UAE, expected to open in 2027. The
project's estimated cost is $5.1 billion, with Wynn's contribution,
excluding the Janu project, of about $1.1 billion. Fitch expects
the company to receive cash distributions, management and license
fees of about $260 million a year at steady state in its base case,
consistent with Wynn's guidance. The project is seen as an
attractive opportunity given limited local competition, strong
demographics and high-value customer appeal. Risks include
higher-than-expected costs, delayed opening and
slower-than-expected visitation growth.
Strong Parent and Subsidiary Linkage: Fitch views Wynn on a
consolidated basis because the linkage between the parent and the
operating subsidiaries is strong. As a result, Fitch applied the
strong parent/weak subsidiary approach under its Parent and
Subsidiary Linkage Rating Criteria. The linkage reflects the
perceived high strategic and operational incentive, as the
subsidiaries share brands and customers across the system. Of note,
there are no material ring-fencing mechanisms to block cash
movement from the subsidiaries. WRF's bonds are cross-defaulted
with WLV's bonds.
Peer Analysis
Wynn has high-quality assets and operates in attractive regulatory
regimes, while typically maintaining strong liquidity. The
company's competitive position is strong given its high-quality
assets and service. Leverage is high for a 'BB-' issuer, but this
is offset by Wynn's strong liquidity, market position, and lower
volatility of earnings.
MGM Resorts International (BB-/Stable) has greater diversification
and has a larger scale. MGM also has lower EBITDA leverage,
although this is offset by a lower EBITDAR fixed-charge coverage
ratio, as MGM has sale-leaseback agreements on most of its
properties. Wynn and MGM operate in the top tier of their
respective markets, but MGM also has properties that are marketed
to lower- to mid-tier customers, which results in lower margins and
are susceptible to more downside risk in economically challenging
periods.
Las Vegas Sands (BBB-/Stable) has a larger presence in Macau with
five gaming properties and operates one of the highest grossing
casinos in the world in Singapore. Both companies focus on premium
gaming customers in large gaming markets, although LVS has a lower
forecasted 2025 EBITDAR leverage at 3.3x compared with Wynn at
5.7x.
Fitch’s Key Rating-Case Assumptions
- Macau EBITDA in 2026 is expected to be mid to high-digit
increases. Recent revenue growth suggests higher revenue growth,
but promotional activity may be a headwind.
- Las Vegas operations in 2026 are expected to remain relatively
flat. The company has strong group and convention business and the
entertainment environment in the city continues to grow, but
concerns about lower economic growth could limit upside.
- Encore Boston Harbor is expected to remain stable throughout the
forecast period.
- Wynn Al Marjan Island is expected to open in 2027, Fitch has not
applied any credit to EBITDA to account for it given the
uncertainty of the exact timing of the opening and the expected
minimal cash impact from management fees. Fitch views the project
to be credit-accretive post 2027 given the unique aspects of the
property's location and brand. Assuming the property operates at
the base case of $260 million in FCF, leverage in 2027, on a steady
rate, would reduce to 5.2x.
- Capex and investment activity include the Macau concession
agreements, the UAE resort development, and expected room
renovations in Las Vegas.
- Base interest rate assumptions reflect the current SOFR curve.
Corporate Rating Tool Inputs and Scores
Fitch scored the issuer as follows, using its Corporate Rating Tool
(CRT) to produce the Standalone Credit Profile (SCP):
- Business and financial profile factors (assessment, relative
importance): Management (bbb-, Lower), Sector Characteristics
(bbb-, Moderate), Market and Competitive Positioning (bbb,
Moderate), Diversification and Asset Quality (b+, Moderate),
Company Operational Characteristics (bbb-, Moderate), Profitability
(bbb-, Moderate), Financial Structure (b, Higher), and Financial
Flexibility (bb+, Higher).
- The quantitative financial subfactors are based on standard CRT
financial period parameters: 20% weight for the latest historical
year 2024, 40% for the forecast year 2025 and 40% for the forecast
year 2026.
- The Governance assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'a' results in no
adjustment.
- The SCP is 'bb-'.
- No further adjustments made to SCP resulting in an IDR of 'BB-'.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- EBITDAR leverage exceeding 6.0x on a sustained basis;
- EBITDAR fixed charge coverage sustaining below 2.5x;
- An increase in financial commitments due to new development
projects or increased capital allocations to shareholders that
anticipates the company will breach the EBITDAR leverage or EBITDAR
fixed-charge coverage targets described above.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
- EBITDAR leverage declining below 5.0x;
- EBITDAR fixed-charge coverage above 3.0x;
- Maintain strong liquidity in order to ensure capital spending and
working capital needs are sufficiently financed.
Liquidity and Debt Structure
Liquidity includes $1.5 billion in cash, $475 million in short-term
investments, $1.235 billion of availability on the WRF revolver and
$1.36 billion available on its WML revolver as of Sept. 30, 2025.
The company has strong access to capital, as exhibited by its
ability to refinance 2026 bond maturities for Wynn Macau in 2025,
and extend maturities and increase commitments for its bank
facilities.
Fitch expects FCF could materially grow in 2027 after obligations
for Al Marjan and other current capex projects are completed. The
company has not explicitly stated that proceeds would be used to
repay debt, the returns on these investments should lead to
improved credit metrics. At this time, there are no other long-term
capital projects in 2027 and beyond other than maintenance capex.
Issuer Profile
Wynn Resorts, Limited owns and operates Encore Boston Harbor, Wynn
Las Vegas (including Wynn Encore) and through its 72% owned
subsidiary, Wynn Macau Limited, Wynn Macau and Wynn Palace in
Macau, SAR.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Sector Forecasts Monitor
data file which aggregates key data points used in its credit
analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
Climate Vulnerability Signals
The 2035 EBITDA rated climate.VS for Wynn is 54, suggesting
elevated exposure to climate related risks. This is because of high
concentration of EBITDA coming out of Macau, which has high risk of
flooding, and Las Vegas, which has high water stress.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
WM Cayman Holdings
Limited II LT IDR BB- Affirmed BB-
senior unsecured LT BB- Affirmed RR4 BB-
Wynn Macau, Limited LT IDR BB- Affirmed BB-
senior unsecured LT BB- Affirmed RR4 BB-
Wynn Las Vegas LLC LT IDR BB- Affirmed BB-
senior unsecured LT BB- Affirmed RR4 BB-
Wynn Resorts, Limited LT IDR BB- Affirmed BB-
Wynn Resorts
Finance, LLC LT IDR BB- Affirmed BB-
senior unsecured LT BB- Affirmed RR4 BB-
senior secured LT BB+ Affirmed RR1 BB+
=========
C H I L E
=========
CAP SA: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
--------------------------------------------------------
Fitch Ratings has affirmed CAP S.A.'s Long Term Foreign and Local
Currency Issuer Default Ratings (IDRs) and senior unsecured notes
at 'BB+', and the National Long-Term Ratings at 'A+(cl)'. Fitch
also affirmed CAP's National Equity Rating at First Class Level
'2(cl)'. The Rating Outlook is Stable.
CAP´s ratings reflect its medium-size single commodity producer
profile, with flexibility to mix high-grade iron ore, average cost
position and mine life, and moderate leverage and liquidity
profile. CAP's also has operations in the industrial segment and
has others infrastructure assets, but the bulk (90%) of its EBITDA
is in mining.
CAP's rating headroom is limited, with expected net leverage to
average 2.7x in 2026-2027, after peaking at 3.2x in 2025. CAP's
challenge is to manage capital allocation for mining life
extensions starting later in 2027 and funding growth opportunities
without further pressuring its credit metrics.
Key Rating Drivers
Limited Rating Headroom: CAP's net leverage is expected to peak at
about 3.2x at YE 2025, and average 2.7x during 2026-2027 (2024:
3.0x). Over the past two years, CAP faced operating issues related
to its now indefinitely suspended steel operations and weaker
high-quality product mix, which has impact profitability. Fitch
believes the company still retains some capex flexibility until
2027.
CAP has indicated it may seek to sell non-core assets to support
further deleveraging. Nevertheless, Fitch considers that capex
requirements in 2027 and growth opportunities should continue to
pressure metrics and difficult any major deleveraging on
sustainable basis.
Stabilization of Operating Performance: Fitch expects the company's
EBITDA to stabilize from 2026 onward following the indefinite
suspension of CHS, the recovery at Cintac and improved production
at CMP. Fitch forecasts EBITDA of USD453 million in 2025, USD531
million in 2026 and USD500 million in 2027, based on Fitch's price
assumptions.
Fitch's analysis assumes the improvement is mostly driven by higher
volumes at CMP, after 2024-2025 production was affected by
disruptions in Phase 5. Volumes are expected to increase toward
2027 as Phase 6 reaches areas with higher mineral concentration.
FCF Returning Positive: FCF is projected to be negative at USD87
million in 2025, considering the acquisition of the remaining
participation in Aguas CAP, and turn positive in 2026 at USD84
million in 2026 and USD21 million in 2027, reflecting increasing
capital expenditure and dividend payments for 2027 under Fitch's
mid-cycle price scenario assumptions. These figures do not
incorporate any potential equity movements at Aclara or others.
Moderate Mineral Reserves: Fitch considers CMP's reserve life
moderate, assuming no additional significant investment. However,
CAP has proved and probable reserves that, with effective capex
execution over the next few years, could extend mine life beyond
2040 while maintaining annual production at a similar level. As of
YE December 2024, the company reported more than 630 million tonnes
of proved and probable reserves.
Low Diversification: Fitch considers CAP's diversification low due
to product concentration and its small iron ore operation; in 2024,
about 90% of consolidated EBITDA came from the mining business.
This low diversification is partly offset by the high purity iron
ore and a product mix that can be quicky adjusted between pellet
feed, pellets and sinter feed, depending on prices, which can
support competitiveness during periods of price pressure.
Average Cash-Cost Position: CAP has an average cost position,
ranking in the third quartile on the global iron ore cost curve and
in the second quartile for high-purity iron ore, according to Wood
Mackenzie. In addition, the company can adjust its production mix
depending on premium levels and iron ore prices, allowing it to
prioritize higher-margin products.
Equity Rating: CAP's equity rating is based on the company's strong
credit profile, its long track record in the stock market, and a
market presence of 100%. CAP also reports market capitalization of
USD1,424 million, as an important player in the Santiago stock
market, and high levels of daily trading volume that averaged
USD3.8 million over the last month, as of Jan. 27, 2026.
Peer Analysis
CAP's ratings are constrained by its small size relative to the
global mining industry and low mining and geographic
diversification. Ferrexpo plc (CCC-), compared to CAP, exported
globally at 12 million tonnes of pellets (pre-war) compared with
CAP's pellet production capacity of 4.0 million tonnes. Ferrexpo's
rating also reflects its heightened operating risk for the company
following Ukraine's military invasion by Russia and several legal
claims.
Compared with Brazilian steel maker and high-grade iron ore miner
Companhia Siderurgica Nacional (CSN) (BB/Negative), CAP is less
diversified based on the share of iron ore and steel in EBITDA
(share of +90% - against 70% expected for CSN), worse positioned in
profitability and smaller in size (16 million tons of iron ore vs
42 million tons and about 30% of CSN's EBITDA generation). However,
CAP's net leverage is expected to be lower than CSN, reflecting a
more conservative financial policy.
Compared to Brazilian pellets producer Samarco Mineracao S.A.
(B/Positive), CAP is smaller in size (2 million tons versus 9.5
million tons of pellets) and in EBITDA generation (about 50% of
Samarco), albeit almost as operationally and geographically
concentrated. However, CAP has lower leverage (~2.6x versus ~4.8x
expected for 2026) higher financial flexibility and does not deal
with the remediation expenses after a past environmental incident
the way Samarco does.
Fitch’s Key Rating-Case Assumptions
- Fitch's mid-cycle prices are at USD900/tonne for 2026;
USD75/tonne for 2027 and USD70/tonne for 2028;
- Cash costs of around USD48/tonne for 2026 and USD43/tonne for
2027-2028;
- Compania Minera del Pacifico S.A.'s shipments of approximately
15.3 million tonnes for 2026; 16.2 million tonnes for 2027 and 17.0
million tonnes for 2028;
- Recovery of Cintac from 2025 onward;
- Capex at USD325 in 2026, USD325 million in 2027 and USD332
million in 2028.
Corporate Rating Tool Inputs and Scores
Fitch scored the issuer as follows, using its Corporate Rating Tool
(CRT) to produce the Standalone Credit Profile (SCP):
- Business and financial profile factors (assessment, relative
importance): Management (bbb, Moderate), Sector Characteristics
(bbb, Moderate), Market & Competitive Positioning (bb, Lower),
Diversification and Asset Quality (bb+, Higher), Company
Operational Characteristics (bb+, Moderate), Profitability (bb,
Moderate), Financial Structure (bb, Moderate), and Financial
Flexibility (bb, Moderate).
- The quantitative financial subfactors are based on custom CRT
financial period parameters: 20% weight for the forecast year 2025,
40% for the forecast year 2026 and 40% for the forecast year 2027.
- The Governance Impact assessment of 'Good' results in no
adjustment.
- The Operating Environment Impact assessment of 'bbb+' results in
no adjustment.
- The SCP is 'bb+'.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Aggressive growth strategy;
- Total debt/EBITDA and Net debt/EBITDA above 3.5x and 3.0x, on a
sustained basis;
- Consolidated cost profile consistent with the fourth quartile;
- A significant and prolonged negative FCF.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Total debt/EBITDA and Net debt/EBITDA below 2.5x and 2.0x, on a
sustained basis;
- Improvement of maturity profile, reducing short to medium term
refinancing risks;
- Consolidated cost profile consistent with the second quartile.
Liquidity and Debt Structure
CAP has a track record of being exposed to ongoing refinancing
risks and dependence on access credit market. As of September 2025.
CAP reported USD330 million of cash, an undrawn revolving credit
facility of USD450 million, against a USD508 million of short-term
debt. This short-term debt primarily consists of working capital
funding through trade lines. In 4Q25, the company refinanced USD75
million of short-term debt at CMP level. However, Fitch believes
CAP still has a concentrated short-term debt maturity profile. An
extended maturity profile would reduce near-term refinancing risk.
Issuer Profile
CAP is a medium- to small-scale Chilean iron ore miner focused on
high-quality iron ore production with a significant proportion of
EBITDA derived from the mining activity. Iron ore production is
exported mainly to China.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Sector Forecasts Monitor
data file which aggregates key data points used in its credit
analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
Climate Vulnerability Signals
The results of its Climate.VS screener did not indicate an elevated
risk for CAP S.A.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
CAP S.A. LT IDR BB+ Affirmed BB+
LC LT IDR BB+ Affirmed BB+
Natl LT A+(cl) Affirmed A+(cl)
Nat Equity
Rating Primera
Clase Nivel 2 Affirmed
senior
unsecured LT BB+ Affirmed BB+
senior
unsecured Natl LT A+(cl) Affirmed A+(cl)
=======
C U B A
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CUBA: Willing to Hold Talks With Trump Amid U.S. Pressure
---------------------------------------------------------
RJR News reports that faced with the country's worst economic
crisis in decades, which has led to a shortage of food, electricity
and medicine, Cuban President Rafael Díaz-Canel said the country
is willing to engage in discussions with US President Donald
Trump.
However, Mr. Diaz-Canel suggested that these talks would have to be
one of mutual respect as two sovereign nations, and the right to
self-determination and without interference in its internal
affairs, according to RJR News.
He denied that any discussions are taking place after President
Trump said that he must "make a deal before it's too late," the
report notes.
Cuba is currently experiencing an energy crisis after the United
States cut off the supply of Venezuelan oil to the country, the
report relays.
Both Mexico and Russia have however promised to help the country to
deal with this problem, the report adds.
As reported in the Troubled Company Reporter-Latin America in
December 2023, Moody's Investors Service withdrew the Ca long-term
domestic-and foreign-currency issuer ratings of the Government of
Cuba due to lack of sufficient information. The outlook at the time
of the withdrawal was stable. In a related action, Moody's also
withdrew the Ca local and foreign-currency country ceilings for
Cuba.
=====================
P U E R T O R I C O
=====================
LINEAS DE PUERTO: Retains Monge Robertin as Restructuring Advisors
------------------------------------------------------------------
Lineas de Puerto Rico Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to retain Monge Robertin
Advisors, LLC and Jose M. Monge Robertin, CPA, CIRA, to serve as
insolvency and restructuring advisors for the Debtor in
Possession.
Monge Robertin Advisors, LLC and Jose M. Monge Robertin, CPA, CIRA
will provide these services:
(a) plan development;
(b) liquidation analysis;
(c) claims administration and review;
(d) tax consulting;
(e) financial consulting;
(f) feasibility analysis;
(g) negotiations with creditors;
(h) investment and financing matters; and
(i) other matters to assist counsel and the Debtor's
reorganization.
Jose M. Monge Robertin, CPA, CIRA will receive an hourly rate of
$275. Other professionals' hourly rates range from $35 to $175. A
deposit of $5,000 has been provided.
Monge Robertin Advisors, LLC and Jose M. Monge Robertin, CPA, CIRA
are "disinterested persons" within the meaning of Sections 101 and
327 of the Bankruptcy Code, according to court filings.
The firm can be reached at:
Jose M. Monge Robertin, CPA, CIRA
MONGE ROBERTIN ADVISORS, LLC
INOVA Building, Suite 100
16 Innovacion Ave, Valle Tolima
Caguas, PR 00727
Telephone: (787) 745-0707
E-mail: cpamonge@cirapr.com
About Lineas de Puerto Rico Inc.
Lineas de Puerto Rico, Inc. provides highway, street, and bridge
construction services in Puerto Rico, operating as a construction
contractor focused on public infrastructure projects. The Company
undertakes roadway-related construction and related contracting
activities and serves government and other clients across the
island.
Lineas de Puerto Rico Inc. sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. Case No. 26-00298) on January 29,
2026.
At the time of the filing, Debtor had estimated assets of between
$100,001 to $500,000 and liabilities of between $1,000,001 to $10
million.
NELSON ROBLES-DIAZ LAW OFFICES, P.S.C. is Debtor's legal counsel.
PARAMOUNT PROPERTIES: Taps Jose M Prieto Carballo Esq. as Counsel
-----------------------------------------------------------------
Paramount Properties, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Nevada to hire Jose M Prieto Carballo,
Esq, as its attorney.
The firm will render these services:
a. advise debtor with respect to its duties, powers and
responsibilities in this case under the laws of the United States
and Puerto Rico in which the debtor in possession conducts its
operations, do business, or is involved in litigation;
b. advise debtor in connection with a determination whether a
reorganization is feasible and, if not, help debtor in the orderly
liquidation of its assets;
c. assist the debtor with respect to negotiations with
creditors for the purpose of arranging the orderly liquidation of
assets and/or for proposing a viable plan of
reorganization;
d. prepare on behalf of the debtor the necessary complaints,
answers, orders, reports, memoranda of law and/or any other legal
papers or documents;
e. appear before the bankruptcy court, or any court in which
debtors assert a claim interest or defense directly or indirectly
related to this bankruptcy case;
f. perform such other legal services for debtors as may be
required in these proceedings or in connection with the operation
of/and involvement with debtor's business, including but not
limited to notarial services; and
g. employ other professional services, if necessary.
The firm will charge $200 per hour for the services render of Jose
M Prieto Carballo, Esq, (Attorney), plus any costs and expenses.
The firm received a retainer in the amount of $5,262, in addition
to the filing fee of $1,738.
As disclosed in the court filings, Jose M Prieto Carballo is a
disinterested person
within the meaning of 11 U.S.C. 101 (14).
The firm can be reached through:
Jose M Prieto Carballo, Esq.
P.O. Box 363565
San Juan, P.R. 00936-3565
Tel: (787) 607-2066
Fax: (787) 200-8837
Email: jpc@jpclawpr.com
About Paramount Properties, Inc.
Paramount Properties, Inc. filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case No.
09-11106) on January 28, 2009, listing up to $50,000 in assets and
$1,000,001 to $10,000,000 in liabilities.
Jose M Prieto Carballo, Esq. serves as the Debtor's counsel.
*********
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.
The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail. Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Peter A. Chapman at 215-945-7000.
.
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