Simpar and Subsidiaries Deliver Solid 4Q25 Preliminary Results

Operating momentum and balance sheet discipline support the credit story

We maintain our initiation framework that asymmetric risk favors operating-company bonds over the holding company, even as 4Q25 preliminary results improve the group’s credit optics. The deleveraging to 3.1x and the completion of the Ciclus Rio sale are credit positive and reduce near-term downside risk, but they do not change the structural reality that SIMHBZ 2031 remains structurally subordinated and reliant on upstreaming after subsidiaries meet their own debt service and liquidity needs. That dependence on upstreaming and structurally path-dependent recoveries was a core reason we preferred Vamos over Simpar at initiation.