Liberty Latin America Ltd | Latin America Litigation Impacts The Risk Reward

Research evidence excerpt

Not for redistribution without written consent of Morgan Stanley

M

Update

September 16, 2026 01:38 PM GMT

Liberty Latin America Ltd | Latin America

Morgan Stanley & Co. LLC

Cesar A Medina

Equity Analyst

Litigation Impacts The Risk

Reward

Morgan Stanley México, Casa de Bolsa, S.A. de C.V.+

Ernesto Gonzalez

Equity Analyst

Morgan Stanley C.T.V.M. S.A.+

Key Takeaways

Gabriel Vaz de Lima

Research Associate

A breakdown in negotiations with Puerto Rico's bondholders is a negative

headwind for a Bull Case where the asset is de-consolidated and RemainCo delevers.

We remain UW as we see a better risk reward elsewhere in our telco coverage.

LILA disclosed negotiations with Puerto Rico bondholders have been terminated

(next relevant maturity is October 2027). In a filing (link), LILA noted it has rejected

a request to repay the principal of a "forgiven intercompany receivable" (a

Liberty Latin America Ltd (LILA.O, LILA US)

Latin America Telecom | Chile

Stock Rating

Industry View

Price target

Shr price, close (Sep 15, 2026)

Mkt cap, curr (mm)

52-Week Range

Underweight

No Rating

US$7.00

US$8.88

US$1,776

US$8.95-4.58

transaction we believe is linked to a services agreement, as discussed in page 4 and

8 of this filing). While negotiations could resume at any point before next year's

maturity, we think these litigation developments are a headwind for Puerto Rico's

de-consolidation (a transaction that would remove 38% of consolidated net debt

and 21% of Adj. OIBDA, as of 2Q26).

Morgan Stanley does and seeks to do business with

companies covered in Morgan Stanley Research. As a result,

investors should be aware that the firm may have a conflict of

interest that could affect the objectivity of Morgan Stanley

Research. Investors should consider Morgan Stanley

Research as only a single factor in making their investment

decision.