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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
Tuesday, August 11, 2026, Vol. 27, No. 159
Headlines
A R G E N T I N A
ARGENTINA: Gets $60MM IDB Loan to Digitalize Rio Negro Healthcare
MSU GREEN: New Green Notes Reopening No Impact on Moody's 'B2' CFR
B R A Z I L
BRASKEM SA: Moody's Lowers CFR to Ca, Outlook Remains Negative
COMPANHIA SIDERURGICA: Fitch Lowers Long-Term IDR to 'CCC+'
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Peso Appreciated 8.4% Against Dollar in 2026
DOMINICAN REPUBLIC: Swine Fever, Costs Empty Monte Adentro Pigpens
J A M A I C A
JAMAICA: GOJEP 2.0 Launched to Improve Public Procurement System
JAMAICA: Saw $16.8B Shortfall in Projected Tax Revenue for 1H 2026
P A R A G U A Y
FRIGORIFICO CONCEPCION: Moody's Cuts CFR to 'C', Outlook Now Stable
P U E R T O R I C O
NOVA TERRA: Seeks to Hire Finanzas Al Dia as Accountant
PEREZ MENENDEZ: Hires Jose E. Alicea Figueroa CPA as Accountant
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A R G E N T I N A
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ARGENTINA: Gets $60MM IDB Loan to Digitalize Rio Negro Healthcare
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The Board of Executive Directors of the Inter-American Development
Bank (IDB) approved an operation of up to $60 million to support
the digital transformation of the healthcare system in the province
of Rio Negro, Argentina. The initiative will strengthen the
healthcare system's digital capabilities and expand access to
specialized services for the prevention, diagnosis, and treatment
of cardiovascular diseases, diabetes, and cancer.
The project supports the strategy of the Province of Rio Negro,
which spans a large geographic area, to bring specialized
healthcare services closer to people across the province,
regardless of where they live. The initiative will directly benefit
approximately 320,000 people who rely exclusively on the
province’s public healthcare system.
This is the second operation under the Conditional Credit Line for
Investment Projects (CCLIP) “Digital Transformation in Health,”
which supports the digital transformation of public healthcare
systems in Argentina’s provinces. The plan supported by the IDB
includes the introduction of telehealth tools, interactive digital
portals for patients and healthcare professionals, and
complementary artificial intelligence-based solutions to strengthen
diagnosis, clinical follow-up, and continuity of care. People
living in remote areas will be able to access consultations and
follow-up care without having to travel to major urban centers.
“Digital transformation represents an opportunity to bring
higher-quality healthcare services closer to people, regardless of
where they live. At the IDB, we are supporting the Province of Río
Negro in modernizing its healthcare system through an agenda that
strengthens its capabilities and expands access to more timely,
integrated, and people-centered care,” said Viviana Alva-Hart,
IDB Group Representative in Argentina.
“Through this IDB financing, we will strengthen the technological
infrastructure of hospitals and primary healthcare centers,
ensuring faster, more integrated, and more accessible care
throughout the province,” said Alberto Weretilneck, Governor of
the Province of Río Negro.
The resources will finance investments in digital infrastructure,
the development of digital health platforms, and efforts to
strengthen care delivery models and institutional change
management.
The initiative will strengthen the prevention, early diagnosis, and
treatment of cardiovascular diseases, diabetes, and different types
of cancer, particularly breast cancer. The digital portals and
platforms will be developed in accordance with international
accessibility standards to facilitate their use by people with
disabilities.
The financing has a 25-year maturity, a 5.5-year grace period, and
an interest rate based on SOFR.
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 21, 2026, has upgraded the Government of
Argentina's long-term local and foreign-currency issuer ratings to
B3 from Caa1 and changed the outlook to positive from stable. The
upgrade reflects Moody's assessments that Argentina's default risk
has declined materially as macroeconomic stabilization has
advanced beyond the initial adjustment phase into a more durable
improvement in credit fundamentals, a sign of improving
governance.
Fitch Ratings, on May 5, 2026, upgraded Argentina's Long-Term
Foreign Currency and Local Currency Issuer Default Rating (IDR) to
'B-' from 'CCC+'. The rating Outlook is Stable.
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'. Its 'B-' transfer and convertibility
assessment
is unchanged.
DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local
Currency Issuer Ratings to B (low) from CCC in November 2024, and
confirmed such ratings in November 2025.
MSU GREEN: New Green Notes Reopening No Impact on Moody's 'B2' CFR
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Moody's Ratings comments that MSU Green Energy S.A.'s (MSUGE) B2
corporate family rating, B2 rating on its senior secured green
notes and stable outlook remain unchanged following the company's
announcement of a proposed reopening of its senior secured green
notes due 2036. The proposed transaction consists of an additional
issuance under the existing notes originally issued in June 2026,
which were structured for a total issuance size of up to USD500
million; following the initial placement of USD400 million, the
proposed reopening would complete the originally contemplated
issuance amount.
The assigned rating to the proposed notes is based on preliminary
documentation received. Should issuance conditions and/or final
documentation of the notes deviate from the original terms
submitted and reviewed by the rating agency, Moody's will assess
the impact that these differences may have on the ratings and act
accordingly.
The company intends to use the net proceeds in accordance with its
Green Financing Framework, including the financing and refinancing
of eligible green projects and other permitted corporate purposes.
The proposed reopening is also expected to include participation
from development finance institutions (DFIs), a category of
long-term investors that typically require enhanced environmental,
social and governance standards and reporting practices. Moody's
views the participation of DFIs as supportive of the company's
sustainable financing strategy and broadly consistent with its
existing ESG framework.
Pro forma for the proposed reopening, Moody's expects MSU Green
Energy's leverage and cash flow metrics to remain broadly unchanged
from Moody's original expectations. Moody's Ratings base case
continues to incorporate elevated leverage following the
transaction (Moody's Ratings base case considers a 8.8x Net
Debt/EBITDA in December 2026), reflecting the refinancing of
acquisition debt and the funding of growth capex, while the
deleveraging will be only gradual and dependent on the timely
completion of contracted projects. Financial metrics under Moody's
Ratings base case for the next 12 to 18 months, including Funds
from Operations (FFO) interest coverage of around 1.96x and FFO/Net
Debt of about 7.02%, are broadly consistent with the B2 rating
category, although weaker than similarly rated peers.
MSUGE's B2 ratings reflect its largely contracted revenue profile,
supported by long-term US dollar-denominated power purchase
agreements with CAMMESA and private industrial off-takers, which
provide adequate visibility on future cash flows. The ratings also
consider the company's diversified renewable generation platform,
anchored by the recently acquired El Chocon-Arroyito hydroelectric
complex, which operates under a 30-year concession through 2055,
and complemented by operating solar assets. In addition, the
company expects to continue expanding and diversifying its asset
base through the development of contracted renewable generation and
energy storage projects.
Further supporting credit quality is the strategic positioning of
the company's assets within Argentina's power system, particularly
the hydroelectric complex, which provides dispatchable and low-cost
generation in a market characterized by growing demand and
relatively tight reserve margins. The diversified revenue profile
of the hydro assets provides some mitigation against short-term
hydrological variability, while contracted renewable and storage
projects are expected to support cash flow generation once
operational.
Execution and operating risks remain present, reflecting the
company's relatively new and expanding renewable generation
platform, including the integration and operation of the hydro
assets and the development and ramp-up of contracted projects. The
company is also exposed to an evolving revenue mix as contractual
coverage gradually declines over time, increasing exposure to
bilateral contracting and market-based pricing dynamics. While this
transition may support higher realized prices, it could also
increase cash flow volatility and reliance on re-contracting
assumptions.
MSUGE remains exposed to resource risk inherent to hydroelectric
generation and to the intermittency of solar generation.
Hydrological variability in the Comahue basin has historically
resulted in periods of lower generation relative to long-term
averages, illustrating the potential for downside volatility in
operating performance and cash flows under stressed conditions.
Liquidity remains constrained by the absence of dedicated reserve
accounts, reliance on operating cash flow generation and ongoing
working capital requirements. The financing structure provides
additional support to bondholders through a security package over
certain project receivables, a defined enforcement waterfall and
limitations on additional debt and distributions. However, the
collateral package remains limited in scope, which constrains
recovery prospects despite the protections embedded in the
structure.
The stable outlook reflects Moody's expectations that MSU Green
Energy will maintain a largely contracted revenue profile and
continue executing its capital expenditure program broadly as
planned, while sustaining adequate operating performance across its
asset base. The outlook also considers the company's ability to
gradually strengthen its cash flow generation, supporting a
deleveraging trajectory over the next 18 to 24 months.
An upgrade would be subject to MSUGE's rating relative position to
the Government of Argentina's rating (B3 positive). An upward
rating movement would further require a sustained improvement in
the company's credit profile, supported by solid operating
performance across its asset portfolio, timely completion and
ramp-up of contracted projects, and maintenance of a largely
contracted revenue base. Quantitatively, positive rating pressure
could develop if MSU Green Energy sustains FFO interest coverage
above 2.4x and FFO to net debt above 11% on a consistent basis.
Downward rating pressure could emerge if operating performance
weakens, contracted capital expenditure execution is delayed, or
the company adopts a more aggressive financial policy that weakens
cash flow visibility or delays deleveraging. A deterioration in the
contracted position, higher-than-expected working capital needs or
weaker liquidity could also pressure the ratings. Quantitatively,
the ratings could be downgraded if FFO interest coverage fails to
improve above 1.8x or if FFO to net debt remains below 7.5% on a
sustained basis.
MSU Green Energy S.A. is an Argentine renewable power generation
company whose portfolio is anchored by the El Chocon-Arroyito
hydroelectric complex (1,418 MW), operating under a 30-year
concession, and complemented by 277 MW of five solar PV assets. The
company is also advancing a pipeline of renewable generation and
energy storage projects that support the continued growth of the
platform. Revenues are largely supported by long-term, US
dollar-denominated PPAs with CAMMESA and private industrial
off-takers, while the credit profile reflects execution risks
associated with the ongoing expansion of the platform and a gradual
increase in exposure to bilateral contracting and merchant
remuneration within the hydro segment.
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B R A Z I L
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BRASKEM SA: Moody's Lowers CFR to Ca, Outlook Remains Negative
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Moody's Ratings has downgraded to Ca from Caa3 Braskem S.A.
("Braskem")'s Corporate Family Rating and the rating on Braskem
America Finance Company's Backed Senior Unsecured Global Bonds,
fully guaranteed by Braskem S.A. The outlook for both companies
remains negative.
RATINGS RATIONALE
The downgrade of Braskem's rating to Ca follows the 60 days
standstill granted by a Sao Paulo Bankruptcy and Judicial
Reorganization Court to Braskem. The stay include all enforcement
actions and attachments by creditors that have been invited to
participate in the mediation proceeding initiated by the company.
The injunctive relief and the mediation have a limited scope,
strictly financial, and do not include any obligations of the
company and its subsidiaries with their suppliers, customers, and
other stakeholders. The Ca rating incorporates the standstill which
Moody's considers as a default and Moody's views of some recovery
prospects for creditors in light of Braskem's ongoing cash burn and
weak operations.
Braskem's rating reflects the sharp deterioration in the company's
credit metrics since late 2022, significant cash burn, weak
industry conditions globally stemming from global overcapacity as
well as the company's high exposure to the volatility of
petrochemical spreads. The rating also considers the dependence on
Petroleo Brasileiro S.A. - PETROBRAS (PETROBRAS, Ba1 stable) and
Petroleos Mexicanos (PEMEX, B1 stable) for the supply of naphtha
and ethane in Brazil and Mexico, respectively, although both have
been declining over the past years. Additional credit concerns
include the potential additional liabilities related to Alagoas and
still subdued operations in Mexico.
Braskem's fundamental credit profile is constrained by the current
standstill agreement, despite its size as the largest petrochemical
company in Brazil and in the Americas in terms of production
capacity of resins, the company's market position in Brazil and its
geographic diversification, with operations in the US, Mexico and
Europe.
RATING OUTLOOK
The negative outlook reflects Moody's views of a prolonged recovery
period to Braskem as part of the reorganization and its limited
financial flexibility, which will lead to losses to secured and
unsecured creditors.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could downgrade Braskem's rating if the recovery prospects
for the company's creditors deteriorate.
An upgrade could occur if Braskem is able to improve its capital
structure substantially reducing its debt balance, sustaining an
adequate liquidity and a consistent operational performance.
COMPANY PROFILE
Braskem is the largest producer of thermoplastic resins
(polyethylene, polypropylene and polyvinyl chloride) in the
Americas, with an annual production capacity of 9.3 million tons.
Braskem also has a production capacity of 10.8 million tons of
basic petrochemicals such as ethylene, propylene and gasoline,
among others; and about 1.4 million tons of caustic soda, EDC and
chlorine. In the twelve months ended March 2026, the company
reported consolidated net revenue of BRL66.7 billion ($12.3
billion), with EBITDA margin of 8.8%.
The principal methodology used in these ratings was Chemicals
published in February 2026.
Braskem's Ca rating is five notches below the B2 rating indicated
by Moody's Chemicals rating methodology scorecard. This is due to
the constrains imposed by the current standstill agreement.
COMPANHIA SIDERURGICA: Fitch Lowers Long-Term IDR to 'CCC+'
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Fitch Ratings has downgraded Companhia Siderurgica Nacional's (CSN)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
to 'CCC+' from 'B' and its National Long-Term Rating to 'CCC+(bra)'
from 'BBB-(bra)'. Fitch has also downgraded to 'CCC+' with a
Recovery Rating of 'RR4' the senior unsecured notes issued by CSN
Inova Ventures and CSN Resources S.A., and guaranteed by CSN, from
'B'/'RR4'.
In addition, Fitch has downgraded CSN Mineracao S.A.'s National
Long-Term Rating and local debentures to 'B(bra)' from 'BBB-(bra)',
based on its Parent Consolidated Profile plus one-notch approach
under the Parent Subsidiary Linkage Criteria.
Fitch also assigned a rating of 'CCC+'/'RR4' to the new senior
unsecured notes due 2030 issued by CSN Inova Ventures. The Rating
Watch Negative has been maintained on CSN and assigned to the new
CSN Inova Ventures issuance.
The downgrade reflects CSN's weakening financial flexibility,
driven by ongoing cash flow burn despite some operational
improvement. High interest expenses, elevated capex, an unbalanced
capital structure and persistently high refinancing risks are
commensurate with the 'CCC' category.
The Rating Watch Negative (RWN) reflects CSN's challenges in
executing its deleveraging strategy through asset sales in the
short to medium term.
Key Rating Drivers
Exchange Not Considered a DDE: Fitch does not consider the exchange
a distressed debt exchange (DDE). Although the exchange results in
a material reduction in terms, Fitch does not consider it an effort
to avoid a default at this time. CSN has been pursuing a broader
capital structure rebalancing strategy. The strategy includes a
divestment plan to reduce leverage, the use of a secured bridge
loan, and new debt issuance linked to the pending exchange offer.
Exchange Offer Overview: CSN Inova Ventures is offering to exchange
all outstanding 6.75% senior notes due 2028 for 11% senior notes
due 2030 plus cash. For each USD1,000 tendered and accepted,
holders would receive USD253.85 in cash and USD746.15 of new notes.
Aggregate cash is capped at USD330 million, assuming full
participation. The new notes would be issued by CSN Inova Ventures
and guaranteed by CSN. The notes would mature in August 2030, and
the coupon could step down by 50 bp from February 2028 if aggregate
principal reduction reaches at least USD200 million.
New Debt and Structural Features: The new notes would be senior
unsecured obligations and rank equally with other senior unsecured
debt but would be effectively subordinated to secured debt. As of
March 31, 2026, CSN had BRL1.6 billion of secured debt. CSN Inova
Ventures also incurred a USD1.2 billion bridge loan in April 2026,
guaranteed by CSN and CSN Cimentos Brasil S.A., to refinance debt
due through Dec. 31, 2028. The new notes would include a covenant
limiting adjusted net debt to EBITDA to no more than 4.5x.
Unsustainably High Leverage: CSN's total debt, per Fitch's criteria
and excluding any asset sale, is expected to surpass BRL60 billion
in 2026 and 2027, with EBITDA leverage and net EBITDA leverage
ratios of 5.7x, 4.4x (2026) and 6.3x, 5.1x (2027). Fitch adjusts
its leverage ratio by including customer advances and forfaiting
obligations, in addition to its standard EBITDA adjustments,
including dividends received from and paid to non-controlling
interests.
Excluding CSN's mining segment, Fitch estimates its ex-mining total
and net leverage at 11.7x and 10.5x, respectively. The high
interest burden and access to more restrictive credit lines are
further pressuring CSN`s financial flexibility.
Asset Sales Execution Risks: CSN is working on a series of asset
sales seeking to rebalance its capital structure. The timing to
conclude these transactions remain aligned with company's
announcement earlier in the year (3Q26-4Q26). On a hypothetical
asset sale scenario of 100% in the cement and 25% and
infrastructure businesses, respectively, CSN could raise around
BRL16.2 billion per agency's estimates (about 28% of CSN's total
debt as of March 31, 2026, per Fitch).
On a pro forma basis, CSN's total and net debt figures would
decline to BRL37 billion and BRL22 billion, respectively, leading
to proforma total and net leverage to nearly 4.3x and 2.6x,
depending on stakes sold and market valuations.
Refinancing Risk Concern: Continued risk aversion in international
markets for Brazilian corporates raises refinancing risk for CSN
and adds to its high interest burden. Without successful asset
sales later in the year to materially reduce debt, refinancing risk
will remain high in 2027. Fitch estimates CSN's holding company
refinancing exposure at around BRL4 billion in 2026, BRL5 billion
in 2027, and BRL10 billion in 2028. Total adjusted holding company
debt, including forfaiting obligations and customer advances, is
estimated at about BRL39 billion.
Higher Investment Needs: Fitch expects investment to rise in
2026-2027 as mining construction intensifies for the P15 project.
Fitch forecasts 2026 EBITDA of BRL11.3 billion and capex of BRL6.5
billion. FCF is forecast to remain negative over the next three
years, with mining dividends only passed through, as iron ore
prices fall and limits to the steel market recovery limits emerge.
CSN also spends about 40% of EBITDA on interest, resulting in
EBITDA interest coverage of 2.4x.
Subsidiary Linkage: Fitch applies its Parent and Subsidiary Rating
Linkage Criteria to CSN, CSN Cimentos and CSN Mineração. The
subsidiaries' lower leverage and higher liquidity than the parent's
support a Stronger Subsidiary approach. Fitch rates CSN Cimentos
(1.9x net EBITDA leverage) at the parent's consolidated profile,
reflecting open legal ring-fencing and open access and control.
Fitch rates CSN Mineração (0.2x net EBITDA leverage) one notch
above the parent's consolidated profile, reflecting open legal
ring-fencing and porous access and control.
Peer Analysis
CSN's ratings reflect a more leveraged and weaker financial profile
than Vale S.A. (BBB+/Stable). Vale's credit profile is stronger,
supported by its leading iron ore position, low costs, long reserve
life, conservative capital structure and low leverage.
Mineral Resources Limited (BB-/Stable) is more concentrated than
CSN, but its financial profile is improving after debt reduction
through asset sales. CSN benefits from broader diversification, but
this is offset by weaker financial flexibility and refinancing
dependence.
Compared with CAP S.A. (BB+/Stable), CSN is more diversified across
steel, mining, cement, logistics and energy and is larger in iron
ore. CAP's rating benefits from lower leverage and a more
conservative financial policy.
Samarco Mineracao S.A. (B/Positive) faces ramp-up and remediation
constraints. CSN has a broader and more diversified operating
profile, but high holding-company leverage and refinancing risk
constrain its ratings.
Fitch’s Key Rating-Case Assumptions
- Benchmark iron ore prices average USD95/ton in 2026, USD85/ton in
2027 and USD80/ton in 2028;
- Iron ore volumes rise in 2026 to 46.3 million tons, grow 4% in
2027 and 8% in 2028;
- Iron ore EBITDA/ton at USD23 in 2026, USD20 in 2027, and USD27 in
2028;
- Steel volumes stay flat at 4.2 million tons in 2026, 2027, and
2028;
- Steel EBITDA/ton at USD98 in 2026, USD85 in 2027, and USD85 in
2028;
- Cement volumes increase to 13.5 million tons in 2026 and grow 7%
in 2027 and 3% in 2028;
- Cement EBITDA/ton at BRL118 in 2026, BRL117 in 2027 and BRL115 in
2028;
- No cash inflows from asset sales are considered;
- Capex reaches BRL6.5 billion in 2026, BRL7.0 billion in 2027 and
BRL6.0 billion in 2028;
- An exchange rate of BRL5.4/USD1.00 at YE 2026, BRL5.5 in 2027 and
BRL5.5 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 ('bb', Moderate), sector characteristics
('bbb-', Lower), market and competitive positioning ('bbb-',
Moderate), diversification and asset quality ('bb+', Moderate),
company operational characteristics ('bbb-', Moderate),
profitability ('b', Moderate), financial structure ('ccc', Higher),
and financial flexibility ('b', Higher).
The quantitative financial subfactors are based on custom CRT
financial period parameters: 10% weight for the historical year
2025, 20% for the forecast year 2026, 30% for the forecast year
2027, 30% for the forecast year 2028 and 10% for the forecast year
2029.
B+ to CC considerations apply in its analysis and results in an
adjustment of -1 notch.
The governance assessment of 'good' has no impact.
The operating environment assessment of 'bb+' has no impact.
The SCP is 'ccc+'.
To derive the Long-Term IDR:
Fitch made no adjustments to the SCP, resulting in an IDR of
'CCC+'.
Recovery Analysis
The recovery analysis assumes that CSN would be considered a going
concern in the event of bankruptcy and that the company would be
reorganized rather than liquidated. Fitch assumes a 10%
administrative claim. CSN's going concern EBITDA assumption is
based on a decline of iron ore prices from 2026 through 2028.
The going concern EBITDA estimate reflects Fitch's view of a
sustainable, post-reorganization EBITDA level upon which it bases
the enterprise valuation. An enterprise valuation multiple of 5.0x
EBITDA is applied to the going concern EBITDA to calculate a
post-reorganization enterprise value. The choice of this multiple
considered the following factors: the historical bankruptcy case
study exit multiples for peer companies were 4.0x-7.0x, difficult
financial subfactors, mid-quality assets and high growth prospects
despite challenging dynamics in a volatile and commoditized
industry.
Fitch applies a waterfall analysis to the post-default enterprise
valuation based on the relative claims of debt in the capital
structure. These assumptions result in a recovery rate for CSN's
unsecured notes commensurate with the 'RR4' recovery range,
resulting in a rating of 'CCC+'/'RR4'.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Accelerated deterioration of the liquidity position at the
holding level;
- Failure to sell assets and use all proceeds to repay debt;
- Inability to refinance the short-term debt ahead of maturity or
debt restructuring that indicates a debt distressed exchange
according to Fitch's criteria;
- Lack of progress on 2028 bond refinancing during 2026;
- Sustained adjusted debt/EBITDA and adjusted net debt/EBITDA
ratios consistently above 6.5x and 5.5x;
- Maintenance of FFO interest coverage below 1.25x.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch will not consider resolving the RWN or taking other
positive rating action until the company provides further clarity
on its ability to sell assets and execute its deleveraging
strategy.
Liquidity and Debt Structure
CSN had BRL50.4 billion (USD9.6 billion) of debt as of March 31,
2026. Fitch adds customer advances for iron ore and electric energy
supply, as well as forfaiting, which results in an adjusted value
of total debt of BRL57.4 billion (USD10.9 billion) as of March 31,
2026. Fitch excludes lease-related debt from its adjustments.
Capital markets represent 54% of the total, while banks account for
33%, customer advances 8% and forfaiting obligations 4%.
Readily available cash and marketable securities reached BRL12.4
billion (USD2.6 billion) as of March 31, 2026. Holding cash is
estimated at BRL3.0 billion. Almost 80% of CSN's cash is located
outside Brazil.
CSN is vulnerable to refinancing risk and needs to continuously
access the market. CSN has an annual average of BRL8.9 billion of
debt due in 2026-2028. About 52% of these maturities are comprised
of bank debt. The largest maturity is expected in 2028, at BRL11.4
billion.
Issuer Profile
CSN is an integrated, high value-added steelmaker with a large
market share in the Brazilian flat steels market and presence in
Germany, the U.S. and Portugal. CSN is Brazil's second-largest iron
ore exporter.
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 Companhia Siderurgica Nacional (CSN).
ESG Considerations
Companhia Siderurgica Nacional (CSN) has an ESG Relevance Score of
'4' for Governance Structure due to key person risk and limited
board independence through a single powerful shareholder, which has
a negative impact on the credit profile, and is relevant to the
rating[s] in conjunction with other factors.
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
----------- ------ -------- -----
Companhia
Siderurgica
Nacional (CSN) LT IDR CCC+ Downgrade B
LC LT IDR CCC+ Downgrade B
Natl LT CCC+(bra)Downgrade BBB-(bra)
senior
unsecured Natl LT CCC+(bra)Downgrade BBB-(bra)
CSN
Mineracao S.A. Natl LT B(bra) Downgrade BBB-(bra)
senior
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D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Peso Appreciated 8.4% Against Dollar in 2026
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Dominican Today reports that the appreciation of the Dominican peso
against the dollar reduces the competitiveness of national exports
and lowers the peso income of other sectors that generate foreign
currency, such as investors and families that receive remittances,
warned economists Henri Hebrard and Juan del Rosario.
They agreed that this phenomenon is not exclusive to the Dominican
Republic, since countries with similar economic profiles, such as
Costa Rica and Colombia, are undergoing comparable processes of
strengthening their currencies against the dollar, driven by
massive inflows of foreign currency into their economies, according
to Dominican Today.
The Dominican peso has appreciated 8.4% against the dollar this
year, with the exchange rate falling from RD$63.30 at the beginning
of 2026 to around RD$58.12, the report notes. This change means
that those receiving dollars get fewer pesos per dollar, while
sectors whose costs are primarily in the national currency face a
reduction in their income when expressed in pesos, ultimately
affecting their profit margins and competitiveness, Hebrard
explained, the report relays.
Both economists pointed out that the effect is not yet fully
reflected in the statistics because, for much of the year, the
exchange rate remained at higher levels, the report notes.
Del Rosario warned that the situation is becoming more complex for
exports because the Dominican Republic is also facing an increase
in the tariff applied by the United States, which rose from 10% to
12.5%, while several Central American competitors maintain a 10%
tariff, the report relates. He believes that both factors are
simultaneously impacting the competitiveness of Dominican products,
especially those that compete primarily on price, the report says.
On the other hand, Hebrard pointed out that families receiving
remittances are among the most affected groups, since this year's
budget projected they would receive dollars at 65 pesos, while they
have received them at 58 pesos, the report notes. He also
explained that the impact extends to tourism activities such as
Airbnb rentals, whose owners receive dollars but have costs in
pesos. He said that for tourists and the industry itself, there is
no effect because they pay and sell in dollars, 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, "we'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.
DOMINICAN REPUBLIC: Swine Fever, Costs Empty Monte Adentro Pigpens
------------------------------------------------------------------
Dominican Today reports that just a few years ago, a visit to the
Don Pedro sector in Monte Adentro, Santiago, meant encountering
dozens of small pig farmers and family-run butcher shops supplying
communities throughout the area. Today, the scene is different.
Many pigpens stand empty, and those who remain in the business say
that producing pork has become a daily struggle against African
swine fever (ASF), increased imports, and high production costs,
according to Dominican Today.
The scene reflects a reality that began to emerge after a report
published by Listin Diario, in which specialists and producers
questioned the handling of African swine fever (ASF) in the country
and warned about the decline in national production. In Don Pedro,
those figures have a face, the report notes.
Jose, known to everyone as "Manano" and in charge of the farm's
care, says that the sector's pig-farming tradition has been lost,
the report says.
"Fewer than 50% of the producers who used to be here are still
here. Swine fever and imports wiped out many small and medium-sized
farmers," he said while touring one of the farms that are still
operating, the report relates.
His statements coincide with the arguments put forward by
veterinarian and swine disease specialist Francisco Trincado, who,
in an interview with Listín Diario, warned that African Swine
Fever (ASF) continues to affect national production and that the
increase in imports has reduced the participation of local
producers in the market, especially small and medium-sized
breeders, the report discloses.
For Dr. Francisco Trincado, figures and warnings about the decrease
in national production, in Don Pedro, translate into empty corrals
and producers who have abandoned an activity that for decades was
the livelihood of hundreds of families, the report says.
In that situation, Manano explained that each pig from these farms
intended for sale must first undergo a health control process that
they must pay for, the report relates.
"These animals have had blood drawn. That sample is sent to Santo
Domingo to verify that they are not sick, and if everything is
fine, they will give you a permit. That’s how you can sell," he
explained, the report relays.
From Within
Visiting a farm reveals why so many producers have abandoned the
business, the report relates. Keeping a pig for several months
requires a constant investment in feed, medicine, infrastructure,
and labor, with no guarantee of recouping the investment if a
disease outbreak occurs, the report discloses.
The animals go through different feeding stages, with concentrates
identified as Phase 1, Phase 2, and Growth, each designed for a
specific developmental stage, the report says. Each 100-pound bag
of feed costs between RD$1,500 and RD$2,000 and, depending on the
number of animals, can be consumed in less than a week, the report
notes.
"It's been like that for three or four months. After that time,
everything the animal continues to consume is practically wasted,"
he commented, the report relates.
He also noted that another factor affecting farm profitability is
the decline in pork prices, which he attributes to increased pork
imports, the report notes.
As he explained, a few months ago the price of a kilogram of live
pigs was around RD$135, while currently it is around RD$120, a
reduction that, although it seems small, represents a considerable
difference for those who have to bear the high costs of feed,
medicines and farm maintenance, the report discloses.
"That is one of the reasons why many producers have disappeared,"
he concluded, the report says.
The transformation of the sector was also evident among the
merchants in the area consulted by Listín Diario; several butchers
agreed that pig farming has decreased drastically in recent years,
the report relates.
"There are no farms or breeders left within a five-kilometer
radius," one of them said, describing how a community that for
decades was known for pig farming now has only a few producers
struggling to stay in business, 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, "we'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.
=============
J A M A I C A
=============
JAMAICA: GOJEP 2.0 Launched to Improve Public Procurement System
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RJR News reports that the Ministry of Finance on launched GOJEP
2.0, an upgraded version of the government's electronic procurement
system, to make it easier for small and medium-sized businesses to
compete for public contracts.
The platform is expected to improve access to government
procurement opportunities while providing better data on
procurement timelines, competition and participation by micro,
small and medium-sized enterprises, according to RJR News.
The government spends approximately $470 billion each year on
goods, services and works from the private sector, the report
notes.
However, Finance Minister Fayval Williams said despite the size of
that market, only about 1 per cent of government contracts
currently go to micro, small and medium-sized enterprises, the
report relays.
"It's easier to use. You no longer need to install extra software
just to submit a bid. You log in from any ordinary web browser on
any device, including your phone. It's better connected. The
system now talks to other government systems, so the same
information doesn't have to be entered twice," said the minister,
the report says.
She noted that the upgraded procurement portal is aimed at changing
that by creating a more efficient and transparent system that
allows smaller businesses to compete for government contracts, the
report discloses.
The Ministry said the improved platform will also help policymakers
identify areas where further improvements are needed to increase
MSME participation in public procurement, the report adds.
About Jamaica
Jamaica is an island country situated in the Caribbean Sea. Jamaica
is an upper-middle income country with an economy heavily dependent
on tourism. Other major sectors of the Jamaican economy include
agriculture, mining, manufacturing, petroleum refining, financial
and insurance services.
On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a
positive rating outlook. In October 2023, Moody's upgraded the
Government of Jamaica's long-term issuer and senior unsecured
ratings to B1 from B2, and senior unsecured shelf rating to (P)B1
from (P)B2. The outlook has been changed to positive from stable.
In September 2024, S&P affirmed 'BB-/B' longterm foreign and local
currency sovereign credit ratings on Jamaica and revised outlook to
positive.
JAMAICA: Saw $16.8B Shortfall in Projected Tax Revenue for 1H 2026
------------------------------------------------------------------
RJR News reports that the Government of Jamaica collected $16.8
billion less than expected in tax revenue during the first three
months of the current fiscal year, as weaker economic activity
continues to weigh on earnings.
For the period April to June, the Government collected $95.8
billion in taxes, compared with the $112.6 billion that had been
budgeted, according to RJR News.
Pay As You Earn (PAYE) taxes, paid by employed Jamaicans, accounted
for a significant portion of the shortfall, the report notes.
PAYE collections were $13.3 billion below target, with the
Government collecting only $42.8 billion, against the $56 billion
projected, the report relays.
Non-tax revenue also underperformed, coming in $10.5 billion below
expectation, with $9.8 billion collected, compared with the $20.3
billion budgeted, the report notes.
Analysts say the revenue gap reflects the impact of declining
economic activity, including a 7.3 per cent contraction in the
economy during the final quarter of last year and a further 4.1 per
cent decline during the first quarter of this year, the report
discloses.
They also point to the loss of approximately 20,700 jobs from April
2025 to April 2026 as another factor contributing to the decline in
income tax collections, the report adds.
About Jamaica
Jamaica is an island country situated in the Caribbean Sea. Jamaica
is an upper-middle income country with an economy heavily dependent
on tourism. Other major sectors of the Jamaican economy include
agriculture, mining, manufacturing, petroleum refining, financial
and insurance services.
On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a
positive rating outlook. In October 2023, Moody's upgraded the
Government of Jamaica's long-term issuer and senior unsecured
ratings to B1 from B2, and senior unsecured shelf rating to (P)B1
from (P)B2. The outlook has been changed to positive from stable.
In September 2024, S&P affirmed 'BB-/B' longterm foreign and local
currency sovereign credit ratings on Jamaica and revised outlook to
positive.
===============
P A R A G U A Y
===============
FRIGORIFICO CONCEPCION: Moody's Cuts CFR to 'C', Outlook Now Stable
-------------------------------------------------------------------
Moody's Ratings has downgraded to C from Ca Frigorifico Concepcion
S.A.'s (FriCon) Corporate Family Rating and backed senior secured
notes' rating. The outlook changed to stable from negative.
Subsequent to the actions, Frigorifico Concepcion S.A. ratings will
be withdrawn shortly as a consequence of the filing for judicial
recovery.
RATINGS RATIONALE
The downgrade of FriCon's ratings to C follows the announcement on
August 02, 2026 that the company has filed for court supervised
insolvency protection in Brazil, under the financial reorganization
process and Moody's view of low prospect for recovery for existing
secured creditors.
The action also reflects the company's decision to suspend payments
on its $300 million 7.7% backed senior secured notes due 2028 while
it pursues a comprehensive restructuring of approximately $843
million of debt. As of December 2025, the company held $23 million
in cash, $302 million in PP&E and $602 million in trade
receivables. The C rating also incorporates Moody's views of weak
recovery prospects and significant uncertainty over the outcome of
the restructuring due to FriCon's operations being severely
disrupted, with activities halted in Paraguay, reduced installed
capacity in Brazil and disruptions in Bolivia, reducing the
company's ability to generate cash flow during the restructuring
process. Recovery estimates remain highly uncertain because of
delayed financial reporting, the ongoing advisor review of the
company's financials and the complexity of a multi-jurisdictional
restructuring across Paraguay, Brazil and Bolivia.
Governance is a key factor in the rating assessment as the present
situation is a direct outcome of the strategies pursued in the
previous years, which focused on an aggressive, debt-driven growth
strategy that increased leverage and exacerbated cash burn.
The stable outlook reflects that the C rating already incorporates
Moody's expectations of very high credit risk, a default or
distressed exchange restructuring and little prospect for recovery
of principal or interest for creditors.
Subsequent to the actions, the ratings for Frigorifico Concepcion
S.A. will be withdrawn shortly as a consequence of the filing for
court supervised insolvency protection.
COMPANY PROFILE
Founded in 1997 and headquartered in Asuncion, Paraguay, FriCon has
a leading position in the production and sale of fresh beef and
pork in Paraguay, Bolivia and Brazil, with a diversified portfolio
of global clients. Since 2017, FriCon has also incorporated
industrialized product lines such as burgers, premium burgers,
meatballs and sausages. As of December 2025, around 55% of revenue
came from exports to 37 countries, with the remainder from local
market sales.
The principal methodology used in these ratings was Protein and
Agriculture published in October 2025.
FriCon's C rating is three notches below the Caa2 indicated by
Moody's Protein and Agriculture rating methodology scorecard as of
FY 2025, because of the company's missed debt payments and filed
for court supervised insolvency protection amid the comprehensive
restructuring of its capital structure, which Moody's expects to
result in a default with weak recovery prospects for creditors.
=====================
P U E R T O R I C O
=====================
NOVA TERRA: Seeks to Hire Finanzas Al Dia as Accountant
-------------------------------------------------------
Nova Terra Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Puerto to employ Luz Disla Pena of Finanzas Al Dia,
Inc. as accountant.
The firm will administer the bankruptcy proceeding and comply with
reporting requirements, including but not limited to monthly
operating reports and financial analysis.
The firm will be paid at $125 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Luz Disla Peña, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Luz Disla Peña
Finanzas Al Dia, Inc.
Calle Delbrey 185
San Juan, PR 00911
Tel. (787) 724-3234
Email: ldisla@finanzasaldia.com
About Nova Terra Inc.
Nova Terra Inc. is an e-waste and industrial waste recycling
company in Puerto Rico founded in 1996. The company provides IT
recycling and reuse, asset management, data destruction, logistics
and warehousing, appliance recycling, and material processing and
recovery services. It also performs processing, disassembly,
analysis, refurbishment, and parts recovery for electronic
equipment, serving businesses and organizations in industries
including pharmaceuticals and manufacturing. Its work covers
computers, telecommunications equipment, manufacturing machinery,
and electrical and electronic devices.
Nova Terra Inc. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 26-02364)
on May 26, 2026, listing $385,208 in assets and $1,259,466 in
liabilities. The petition was signed by Vanessa Piereschi Fernandez
as president.
Noemi Landrau Rivera, Esq. at LANDRAU RIVERA & ASSOC. serves as the
Debtor's counsel.
PEREZ MENENDEZ: Hires Jose E. Alicea Figueroa CPA as Accountant
---------------------------------------------------------------
Perez Menendez HNOS Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to hire Jose E. Alicea
Figueroa, CPA as accountant.
The firm will render these services:
a. close out the Debtor's books as of the date of the filing
of this case and open new books as of the next day thereafter;
b. establish a new bookkeeping system to replace the system
used by the Debtor;
c. prepare the periodic statements of the Debtor in
Possession's operations;
d. prepare and file the Debtor's state and federal tax return
for the fiscal year which ended in the semester prior to the date
of the filing of this case;
e. prepare General Ledger and Disbursements Register;
f. reconcile the account;
g. prepare Certified Interim Financial Statements as needed;
h. prepare annual financial statements and returns;
i. tax and management counseling; and
j. representation in taxes investigations.
The accountant will bill based in a flat fee monthly payment of
$1,040, and additional fees.
Mr. Alicea Figueroa assured the court that he is a "disinterested
person" within the meaning of 11 U.S.C. 101(14).
The firm can be reached through:
Jose E. Alicea Figueroa, CPA
Urb. Baldrich 557 Pedro A. Bigay Street
San Juan, PR 00936-1274
Phone: (787) 685-5944
Email: aliceaje@gmail.com
About Perez Menendez HNOS Inc.
Perez Menendez HNOS, Inc., also known as Farmacia Garden Hills
Plaza, sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. D. P.R. Case No. 26-01990) on April 30, 2026, with assets
of up to $50,000 and liabilities of between $1 million and $10
million.
Judge Mildred Caban Flores oversees the case.
Juan C. Bigas Valedon Law Office is Debtor's bankruptcy 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
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Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.
Copyright 2026. All rights reserved. ISSN 1529-2746.
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* * * End of Transmission * * *