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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, June 16, 2026, Vol. 27, No. 119
Headlines
A R G E N T I N A
AEROPUERTOS ARGENTINA: S&P Raises ICR to 'B', Outlook Stable
ARGENTINA: Construction Activity & Manufacturing Output Drops
ARGENTINA: UNICEF Says Child Poverty Fell to 42.3% in 2025
B R A Z I L
BRAZIL: EU Deepens Ties, Seeks Less Reliance on U.S. Tech
GENERAL SHOPPING: Fitch Lowers Foreign & Local Currency IDRs to 'C'
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: US$10 Increase on Airline Tickets
P E R U
AENZA SAA: Fitch Hikes LongTerm IDRs to 'BB', Outlook Stable
P U E R T O R I C O
BRIGHT BEGINNINGS: Seeks to Hire Jose O. Ayala as Accountant
WILSON 1350: Commences Chapter 11 Bankruptcy in Puerto Rico
V E N E Z U E L A
VENEZUELA: Retains Greenberg for Court Case Against Crystallex
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A R G E N T I N A
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AEROPUERTOS ARGENTINA: S&P Raises ICR to 'B', Outlook Stable
------------------------------------------------------------
S&P Global Ratings raised its local and foreign currency ratings on
eight Argentine corporate and infrastructure entities to 'B' from
'B-' following the upgrade of Argentina. The outlooks on all these
ratings are stable.
The sovereign upgrade reflects easing economic vulnerabilities and
gradually improving external liquidity that set the stage for
continued economic recovery. Fiscal austerity, along with other
measures, has improved the government's access to voluntary funding
from capital markets, as well as official lenders, to meet
substantial foreign currency commercial debt servicing needs in
2026 and 2027.
S&P's base case assumes that there will likely be stress over the
next 12-18 months that risks undermining economic stability, but
the combination of continued fiscal surpluses and the accumulation
of foreign exchange reserves by the central bank has strengthened
the government's liquidity.
S&P upgraded the following entities:
Aeropuertos Argentina 2000 S.A.,
Empresa Distribuidora de Electricidad de Mendoza S.A. (EDEMSA),
Genneia S.A.,
Pampa Energia S.A.,
Telecom Argentina S.A.,
Transportadora de Gas del Sur S.A. (TGS),
YPF Energia Electrica S.A. (YPF Luz), and
YPF S.A.
All these companies have stand-alone credit profiles of at least
'b', and they pass our stress test to be rated above the sovereign.
S&P said, "As a result, we now rate these entities one notch above
our long-term foreign currency rating on Argentina, reflecting our
view that they would be able to withstand the conditions associated
with a sovereign default with sufficient liquidity to meet their
financial obligations."
Under a hypothetical sovereign default scenario, S&P assumes the
following main conditions:
-- A 6% contraction of GDP,
-- The consumer price index at around 65%,
-- A doubling of the foreign exchange rate,
-- Domestic base rates of around 60%,
-- Frozen tariffs for utilities, and
-- A general inability to fully pass through inflation or
depreciation into prices and tariffs and increases in working
capital needs.
The ratings on these entities remain capped at Argentina's T&C
assessment, which S&P revised upward, to 'B' from 'B-', based on
its view of a slightly diminished risk of the sovereign interfering
with the ability of domestic entities to access, convert, and
transfer money abroad. Still, Argentina faces persistent economic
imbalances, and external liquidity remains fragile and vulnerable
to shocks.
Even though some of these entities do not face material obligations
in foreign currency in the next 12 months, their long-term ability
to make foreign currency payments depends on their access to
foreign currency, given all of them generate the bulk of their cash
flow domestically.
Outlook
The stable rating outlooks on these entities mirror that on the
sovereign and reflect our expectation that the government will
continue its fiscal austerity program as the central bank boosts
its foreign exchange reserves, sustaining economic growth and
reducing inflation. In addition, the rating outlooks on the
upgraded entities incorporate improved T&C conditions.
Ratings List
Ratings List
Aeropuertos Argentina 2000 S.A.
Upgraded
To From
Aeropuertos Argentina 2000 S.A.
Issuer Credit Rating B/Stable/-- B-/Stable/--
Senior Secured B B-
Compania De Inversiones de Energia S.A.
Upgraded
To From
Transportadora de Gas del Sur S.A. (TGS)
Issuer Credit Rating B/Stable/-- B-/Stable/--
Senior Unsecured B B-
Empresa Distribuidora de Electricidad de Mendoza S.A.
Upgraded
To From
Empresa Distribuidora de Electricidad de Mendoza S.A.
Issuer Credit Rating B/Stable/-- B-/Stable/--
Senior Unsecured B B-
Genneia S.A.
Upgraded
To From
Genneia S.A.
Issuer Credit Rating B/Stable/-- B-/Stable/--
Senior Unsecured B B-
Pampa Energia S.A.
Upgraded
To From
Pampa Energia S.A.
Issuer Credit Rating B/Stable/-- B-/Stable/--
Senior Unsecured B B-
Telecom Argentina S.A.
Upgraded
To From
Telecom Argentina S.A.
Issuer Credit Rating B/Stable/-- B-/Stable/--
Senior Unsecured B B-
YPF S.A.
Upgraded
To From
YPF S.A.
YPF Energia Electrica S.A.
Issuer Credit Rating B/Stable/-- B-/Stable/--
Foreign Currency B/Stable/-- B-/Stable/--
Senior Unsecured B B-
ARGENTINA: Construction Activity & Manufacturing Output Drops
-------------------------------------------------------------
Buenos Aires Times reports that construction activity and
manufacturing output in Argentina posted further declines in April,
according to fresh data published by the INDEC national statistics
bureau.
Both sectors recorded a year-on-year decrease of 2.8 percent
compared to the same month in 2025, said INDEC, chiming with a
broader slowdown in economic activity, according to Buenos Aires
Times.
On a seasonally adjusted basis, construction activity declined by
four percent compared with March, while manufacturing output fell
by 2.1 percent, the report notes.
Despite April's results, cumulative performance during the first
four months of 2026 differed between the two sectors, the report
relays. Construction overall maintained growth of 2.1 percent
compared with the same period in 2025, whereas manufacturing output
accumulated a decline of 2.4 percent, the report says.
Following the release of the data, Economy Minister Luis Caputo
highlighted that the trend-cycle indicator showed growth of 0.1
percent for industry and 0.3 percent for construction, marking five
and six consecutive months of positive variation respectively, the
report discloses. He also noted that, in March, the number of
registered private-sector jobs in construction increased by 2.5
percent year-on-year, while the floor area authorised through
building permits rose by 14.5 percent, the report notes.
Manufacturing also posted a largely negative performance during
April, the report says. Twelve of the 16 divisions surveyed by
INDEC recorded year-on-year declines, the report relays.
The sharpest contraction was seen in machinery and equipment, which
fell by 20.2 percent, the report notes. Within this sector,
agricultural machinery manufacturing declined by 29.7 percent,
driven by lower production and sales of tractors, combine
harvesters, self-propelled sprayers, and other agricultural
equipment, the report relates.
Another of the most affected sectors was textiles, which contracted
by 22.2 percent, the report discloses. In particular, the
production of textiles and textile finishing services fell by 35.4
percent year-on-year, the report relates. According to INDEC, the
companies surveyed attributed the decline to weaker domestic
demand, the report 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.
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.
Moody’s Ratings, on July 17, 2025 upgraded the Government of
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 its view 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.
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.
ARGENTINA: UNICEF Says Child Poverty Fell to 42.3% in 2025
----------------------------------------------------------
Buenos Aires Times reports that child poverty in Argentina fell to
42.3 percent in 2025, reaching its lowest level since 2018,
according to UNICEF Argentina.
In a report published, the Argentine chapter of the UN agency for
children reported that 5.1 million children and adolescents were
living in poor households by the end of 2025, compared with 6.3
million in 2024, according to Buenos Aires Times.
The organisation's figures correspond to the second half of 2025
and show that four in every 10 children and adolescents in
Argentina - 42.3 percent of all kids - were living in poor
households, while 9.4 percent were living in extreme poverty,
according to the UNICEF report, which is based on government data,
the report notes.
However, UNICEF warned that the downward trend compared with the
same period in 2024 could reverse during the first half of 2026,
projecting that child poverty may have risen to around 44.4
percent, the report relates.
According to the report, factors like changes in household incomes,
the cost of basic goods and services, labor market conditions and
social transfers will play a decisive role in determining whether
the recent improvement can be sustained, the report notes.
Of the 5.1 million minors living in poverty, 1.1 million were
living in extreme poverty, according to UNICEF, the report says.
The number of children considered destitute fell by 52.7 percent
compared with the second half of 2024, the report discloses.
UNICEF attributed the decline in child poverty to a combination of
factors, including slower inflation, a partial recovery in
household incomes and the impact of social assistance programs,
such as child benefits, the report notes.
The report also highlights educational inequality as a key driver
of social disparities, the report discloses. In households with
low levels of educational attainment, child poverty reaches 68
percent, rising to 74.8 percent when the main household earner is
unemployed, the report says.
UNICEF Argentina also found that child poverty affects 52.8 percent
of households headed solely by women, the report relays.
Meanwhile, seven in 10 households with children reported having
relied at some point on strategies to supplement their income,
including borrowing money, selling personal belongings or
purchasing goods on credit, the report notes.
Another concerning finding was that 42.8 percent of children
experience at least one non-monetary deprivation, including
shortcomings related to housing, sanitation, access to water,
living conditions, education or social protection, the report
discloses.
UNICEF cautioned that the improvement was not uniform across the
country, with significant disparities persisting between regions
and among households with different educational and employment
profiles, the report says.
The 'Pobreza Monetaria y privaciones vinculadas a niñas y ninos'
report also states that extreme poverty among children would be six
percentage points higher in the absence of cash transfer programs,
the report relays.
Finally, the study confirmed that poverty affects children and
adolescents more severely than the population as a whole, the
report notes. While overall poverty stood at 28.2 percent in the
second half of 2025, the rate among children and adolescents
reached 42.3 percent, the report discloses. A similar gap was
recorded for extreme poverty, which affected 6.3 percent of the
total population compared with 9.4 percent of minors, the report
relays.
The findings led UNICEF to warn of a possible increase in child
poverty during the first half of 2026, noting that the economic
recovery has yet to become firmly established, the report says.
UNICEF also noted that poverty affects not only nutrition but also
access to healthcare, education, recreation and other rights
essential to children's development, the report 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.
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.
Moody’s Ratings, on July 17, 2025 upgraded the Government of
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 its view 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.
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.
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B R A Z I L
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BRAZIL: EU Deepens Ties, Seeks Less Reliance on U.S. Tech
---------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that the European
Union and Brazil are signing a digital partnership, as the bloc
seeks to deepen ties with more countries and reduce its reliance
on U.S. technology, Henna Virkkunen, the European Commission
tech chief, said.
The partnership will focus on cooperation in areas such as data,
connectivity, cybersecurity, and the protection of minors,
Virkkunen, European Commission's executive vice-president for tech
sovereignty, security and democracy told reporters on the
sidelines of the Web Summit in Rio, according to
globalinsolvency.com.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian
general election. He was sworn in on January 1, 2023, as the 39th
president of Brazil, succeeding Jair Bolsonaro.
In October 2024, Moody's Ratings upgraded the Government of
Brazil's long-term issuer and senior unsecured bond ratings to Ba1
from Ba2, the senior unsecured shelf rating to (P)Ba1 from (P)Ba2;
and maintained the positive outlook. S&P Global Ratings raised on
Dec. 19, 2023, its long-term global scale ratings on Brazil to
'BB' from 'BB-'. Fitch Ratings affirmed on Dec. 15, 2023, Brazil's
Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with
a Stable Outlook. DBRS' credit rating for Brazil was last reported
at BB with stable outlook at July 2023.
GENERAL SHOPPING: Fitch Lowers Foreign & Local Currency IDRs to 'C'
-------------------------------------------------------------------
Fitch Ratings has downgraded General Shopping e Outlets do Brasil
S.A.'s (GSB) Long-Term Foreign and Local Currency Issuer Default
Ratings (IDRs) to 'C' from 'CC', and the Long-Term National Scale
Rating to 'C(bra)' from 'CC(bra)'. Fitch has also downgraded
General Shopping Investment Limited's senior secured notes due in
2026 to 'C', from 'CC', with a Recovery Rating of 'RR4', and
affirmed the subordinated perpetual notes at 'C'/'RR6'. Fitch has
affirmed General Shopping Finance Limited's unsecured perpetual
notes at 'C'/'RR6'.
Fitch believes a default-like process has begun. This follows GSB's
announcement of a transfer of certain assets to a Real Estate
Investment Fund and an exchange offer to convert its senior
unsecured and subordinated perpetual notes into shares of said
fund. Fitch considers this a distressed debt exchange (DDE) as it
imposes a material reduction in the existing terms of the notes and
may allow the issuer to avoid an eventual probable default.
Key Rating Drivers
Exchange Offer Overview: GSB launched an exchange offer for its
senior unsecured and subordinated perpetual notes for quotas issued
by Clear Fundo de Investimento Imobiliário Responsabilidade
Limitada (Clear FII), an entity indirectly controlled by the
company. It follows an asset swap transaction with GSFI (a Real
Estate Investment Fund) to migrate certain assets to Clear FII. In
exchange, GSB transferred the shares of other assets to GSFI. Clear
FII holds possession and acquisition rights over the shares of five
real estate assets. Per early exchange terms, bondholders would
receive 3,615 quotas per USD1,000 of the senior notes and 401
quotas per USD1,000 of the subordinated notes.
The senior notes have an outstanding amount of USD100 million,
while the subordinated notes have an original amount of USD150
million. The issuances are fully and irrevocably guaranteed by GSB.
Nevertheless, the current balance of the subordinated notes on
GSB's balance sheet is USD285 million, as GSB has been exercising
its right to defer interest payments since 2015. Fitch believes GSB
will not pay any accrued and unpaid interest on its subordinated
notes. Fitch expects fair value of the assets owned by Clear FII to
be below the amount of the notes.
Transaction Qualifies as DDE: The transaction will qualify as a DDE
under Fitch's criteria if executed, because it deteriorates the
original contractual terms for bondholders by worsening the form of
repayment and weakening the security or claim priority. This deal
aims to enhance capital structure, as GSB's financial leverage is
unrecoverable, which poses significant risks to its credit profile
and business continuity. At YE 2025, net adjusted leverage was
above 20x, net loan-to-value (LTV) ratio exceeded 100%, and net
equity is negative. There are no prospects of deleveraging
organically under the rating case.
Restricted Default and Re-Rate: GSB's IDR will likely be downgraded
to Restricted Default (RD) if the proposed transaction is completed
successfully or if the company fails to pay any material financial
obligation. Fitch will then re-rate the company's IDRs, which will
probably remain in a highly distressed territory, since GSB has an
irredeemable business model, weakened asset base, and defective
governance levels. The exchange offer does not include the USD9
million secured notes due in August and Fitch has no visibility on
the company's strategy to address it.
ESG - Management Strategy and Governance Structure: GSB has a track
record of recurring operational and debt restructuring processes in
recent years due to challenges in implementing business strategy
and maintaining competitive positions within its key markets. GSB's
below-average execution of its strategy has contributed to a
materially weaker operational performance and unsustainable capital
structure. GSB's owners have a strong influence over management,
which has resulted in decisions related to the company making
operational and financial strategies that have been detrimental to
its creditors.
Peer Analysis
GSB's 'C' rating reflects its exchange offer announcement, deemed a
DDE by Fitch. This occurs amid an unsustainable business base and
unrecoverable leverage profile. GSB's ratings are well below Latin
American shopping mall operator peers Parque Arauco S.A.
(BBB/Stable), Plaza S.A. (BBB/Stable), IRSA Inversiones y
Representaciones S.A. (B-/Stable), ALLOS S.A. (AAA(bra)/Stable),
Iguatemi S.A. (AAA(bra)/Stable), and Multiplan Empreendimentos
Imobiliarios S.A. (AAA(bra)/Stable).
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 ('ccc-', Higher), access to capital
('ccc-', Moderate), liability profile ('ccc', Lower), property
portfolio ('ccc', Moderate), rental income risk profile ('bb-',
Lower), profitability ('b-', Moderate), financial structure
('ccc-', Moderate), and financial flexibility ('ccc-', Higher).
The quantitative financial subfactors are based on standard CRT
financial period parameters: 20% weight for the latest historical
year 2025, 40% for the forecast year 2026 and 40% for the forecast
year 2027.
The governance assessment of 'material failures' has no impact.
The operating environment assessment of 'bb' has no impact.
The other risk elements adjustment applies and results in an
adjustment of -2 notch(es).
The SCP is 'c'.
To derive the Long-Term IDR:
Fitch made no adjustments to the SCP, resulting in an IDR of 'C'.
Recovery Analysis
Fitch applies a bespoke approach to recovery for issuers rated 'B+'
and below, using the higher of going concern (GC) and liquidation
estimates to enterprise valuation. The recovery analysis assumes
that GSB would be liquidated in bankruptcy, based on the
expectation that its investment properties (BRL220 million assuming
a 70% discount on it to reflect a likely distressed sale of assets)
would be greater than the enterprise value as a GC (BRL160
million). The GC enterprise value assumes EBITDA 50% below the
level reported in 2025 to reflect the company's operational
performance when facing a distress scenario and an enterprise
value/EBITDA multiple of 4.5x.
The USD9 million secured notes due in 2026 have been assigned a
Recovery Rating of 'RR4'. The bespoke analysis indicated the
potential for higher recovery; however, Fitch capped the ratings at
'RR4' in accordance with its "Country Specific Treatment of
Recovery Rating Criteria," which caps recovery ratings in Brazil at
'RR4' due to concerns about issues such as creditors' rights during
a debt restructuring or the consistent application of the rule of
law. The unsecured perpetual notes and the subordinated perpetual
notes have been rated one notch below the IDR to indicate below
average or poor recovery prospects in the event of a default.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to a
Negative Rating Action/Downgrade
- Completion of the proposed exchange offer will lead to a
downgrade of the IDRs to 'RD';
- An uncured payment default on any material financial obligation
would also lead to a downgrade of the IDRs to 'RD'.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- After the proposed exchange offer is completed, Fitch may upgrade
GSB to a rating level that reflects the post-DDE credit profile.
Liquidity and Debt Structure
As of March 31, 2026, GSB had BRL49 million of readily available
cash and total adjusted debt, considering the 50% equity credit for
the subordinated perpetual notes, of BRL1.5 billion. Upcoming debt
amortizations are BRL86.5 million in 2026, BRL16 million in 2027,
and BRL16 million in 2028.
Issuer Profile
GSB is a Brazilian shopping mall developer and operator. As of
December 2025, it managed 15 projects with an owned GLA of 80,910
sqm.
Summary of Financial Adjustments
- Fitch applies 50% equity credit on the subordinated perpetual
notes.
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 GSB.
ESG Considerations
GSB has an ESG Relevance Score of '5' for management strategy
because of its track record of recurring operational and debt
restructuring processes following challenges in implementing its
strategy and maintaining competitive positions in its key markets.
GSB's below-average execution of its strategy has contributed to a
materially weaker operational performance and unsustainable capital
structure. This has a negative impact on the credit profile and is
highly relevant to the rating.
GSB has an ESG Relevance Score of '5' for its governance structure
because of GSB's owners' strong influence on management, which has
resulted in decisions related to the company's operational and
financial strategies that have been detrimental to its creditors.
This has a negative impact on the credit profile and is highly
relevant to the ratings.
GSB has an ESG Relevance Score of '4' for group structure,
reflecting complexity, transparency and related-party transactions,
which has a negative impact on the credit profile and is relevant
to the ratings in conjunction with other factors.
GSB has an ESG Relevance Score of '4' for financial transparency
due to the poor quality of financial disclosures, which has a
negative impact on the credit profile and is relevant to the
ratings 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
----------- ------ -------- -----
General Shopping
Investment
Limited
Subordinated LT C Affirmed RR6 C
senior secured LT C Downgrade RR4 CC
General Shopping
Finance Limited
(GSF)
senior
unsecured LT C Affirmed RR6 C
General Shopping
e Outlets do
Brasil S.A. LT IDR C Downgrade CC
LC LT IDR C Downgrade CC
Natl LT C(bra) Downgrade CC(bra)
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D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: US$10 Increase on Airline Tickets
-----------------------------------------------------
Dominican Today reports that as part of a package of fiscal
measures aimed at mitigating the effects of the international
economic crisis and strengthening public finances, the Dominican
government is proposing a US$10 increase on airline tickets, a move
that could have significant implications for the tourism sector,
one of the country's main economic drivers.
The proposal was presented by Economy and Finance Minister Magín
Díaz during a meeting with media executives under the initiative
titled "Measures for Economic Growth and Mitigation of the
International Crisis," according to Dominican Today. The plan,
which still requires approval by the National Congress, forms part
of a broader fiscal consolidation strategy that includes higher
taxes on financial transactions, large corporations, electronic
cigarettes, casinos, and gambling activities, the report notes.
Among the proposed measures is an increase in the tax on checks and
electronic transfers from 0.15% to 0.20%, the report relays.
Companies with annual revenues exceeding RD$1 billion would also
face a temporary corporate income tax rate of 30% for three years,
the report says. In addition, the government is proposing a new
27% income tax bracket for individuals earning more than RD$400,000
per month, a measure expected to affect a relatively small share of
taxpayers, the report notes.
The proposed US$10 surcharge on airline tickets is expected to
attract particular attention due to its potential effect on travel
costs and the competitiveness of the tourism industry, the report
discloses. The Dominican Republic is one of the Caribbean’s
leading tourist destinations, welcoming millions of visitors by air
each year, the report says. Industry observers warn that higher
ticket prices could influence travel decisions and affect the
country’s competitive position relative to other destinations in
the region, the report relays.
Tourism remains a major source of employment, economic activity,
and foreign exchange earnings, the report notes. As a result,
stakeholders are expected to closely monitor the proposal’s
progress in Congress and assess its potential impact on visitor
arrivals and the broader tourism economy, the report discloses.
The government argues that the measures are necessary to generate
additional revenue and strengthen economic stability amid global
uncertainty, while concentrating the tax burden on higher-income
individuals, large corporations, and selected sectors, the report
relates. The package is expected to be formally presented to the
public as part of the administration’s broader strategy to
sustain economic growth and address external economic pressures,
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.
=======
P E R U
=======
AENZA SAA: Fitch Hikes LongTerm IDRs to 'BB', Outlook Stable
------------------------------------------------------------
Fitch Ratings has upgraded Aenza S.A.A.'s (Aenza) Long-Term Foreign
and Local Currency Issuer Default Ratings (IDRs) and USD240 million
senior secured notes due 2029 to 'BB 'from 'BB-'. The Rating
Outlook is Stable.
The upgrade reflects better revenue visibility after Aenza
separated its engineering & construction (E&C) business. This
segment had materially reduced cash flow and increased
Fitch-calculated net leverage. Separating this more volatile
business strengthens Aenza's overall credit profile, despite the
loss of potential revenue and EBITDA.
Aenza's ratings are supported by cash flow visibility from mature
infrastructure concessions, including toll roads and a subway line.
The ratings also reflect expected oil & gas (O&G) production growth
and adequate liquidity.
The Stable Outlook assumes that Aenza will maintain an adequate
capital structure, with net leverage around 3.0x over the next
three years.
Key Rating Drivers
Reduced Volatility of Cash Flow: The separation of the E&C
business, which generated over 50% of Aenza's revenue, should
improve cash flow visibility and reduce volatility. Historically,
this division produced highly unpredictable cash flow, with
negative operating cash flow in 2024 and 2025 increasing leverage.
Although the loss of a major business unit could decrease long-term
EBITDA, Aenza's new structure should make cash flow more
predictable.
Capital Structure Improving: Fitch expects Aenza to gradually
improve its capital structure, bringing net leverage to less than
3.0x by 2027, down from 3.1x in 2025. Unna Energia has increased
its contribution to consolidated results by raising production to
an average of 5,600 barrels per day (bpd) from 4,200 bpd in 2024.
This division is a strategic priority for Aenza because it benefits
from long-term contracts. However, it requires continuous capex to
maintain and expand oil production, compressing near-term FCF
despite solid EBITDA margins.
Medium-Sized & Diversified Profile: Aenza's rating reflects its
medium-sized scale as well as geographic and service
diversification. These strengths enhance brand recognition and
reduce revenue volatility. After the reorganization, about 50% of
EBITDA will come from mature infrastructure concessions. Aenza
operates in complementary segments: O&G (40% of EBITDA) and real
estate (10%). It holds a strong market position in Peru, where most
of its cash flow is generated, with branches in Chile. Exposure to
public clients is negligible.
FCF Pressured by Investments: Fitch projects criteria-based EBITDA
will rise to PEN395 million in 2026 and PEN505 million in 2027 from
PEN379 million in 2025. Fitch also expects margins to improve to
26% in 2026 and 30% in 2027 from 25% in 2025, driven by the absence
of cost overruns and increased oil production. Fitch expects FCF to
be negative at PEN38 million in 2026 due to high capex needs and
interest expenses before turning positive in 2028. Fitch forecasts
interest coverage will range from 2.0x in 2026 to 3.0x in 2028.
Peer Analysis
Aenza's rating is weaker than larger contractors like Ferrovial SE
(BBB/Stable) and Webuild S.p.A. (BB+/Stable), which benefit from
their substantially larger and global scale, conservative capital
structure and moderate-to-strong liquidity. In Latin America,
Aenza's rating is stronger than Compania Latinoamericana de
Infraestructura y Servicio (CLISA; CCC).
Fitch’s Key Rating-Case Assumptions
- Infrastructure revenue benefited from tariff readjustments in
line with inflation and the recovery of the traffic;
- Average oil prices of USD65 per barrel and USD58 per barrel in
2026 and 2027, respectively;
- Annual real estate units delivered numbering 880 in 2026 and 950
in 2027;
- Fitch-based EBITDA margins of 26% in 2026 and 30% in 2027;
- Annual capex of PEN250 million for 2026 and PEN280 million 2027;
- No dividend payment to Aenza's shareholders.
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 ('bb+',
Moderate), diversification and asset quality ('bb', Moderate),
company operational characteristics ('bb+', Moderate),
profitability ('bbb', Lower), financial structure ('bb-', Higher),
and financial flexibility ('bb', Moderate).
The quantitative financial subfactors are based on custom CRT
financial period parameters: 40% weight for the forecast year 2026,
40% for the forecast year 2027 and 20% for the forecast year 2028.
The governance assessment of 'good' has no impact.
The operating environment assessment of 'bb' has no impact.
The SCP is 'bb'.
To derive the Long-Term IDR:
Fitch made no adjustments to the SCP, resulting in a foreign and
local currency IDR of 'BB'.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Net adjusted leverage consistently above 3.5x;
- FCF consistently neutral to positive;
- EBITDA interest coverage below 2.0x;
- Weaker liquidity profile.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Stronger diversification into concessions and to other countries
in Latin America;
- Net adjusted leverage sustainably below 2.5x.
Liquidity and Debt Structure
Fitch expects Aenza to maintain strong liquidity over the next
three years, supported by the capital increase in 2025, the re-tap
of its bond in May 2026, the positive cash flow generation (CFO)
from concessions and energy business, and an extended debt maturity
schedule. As of March 2026, PEN578 million in readily available
cash was sufficient to cover debt maturities for the next three
years, with the next significant maturity being the USD240 million
senior secured bond due in 2029.
As of December 2025, Aenza's total debt was PEN1.6 billion, after
deconsolidating 81.8% of Norvial's debt as per Fitch's criteria.
Half of the group's debt is allocated at the holding level, while
42% is in infrastructure, 7% in energy, and 5% in real estate.
About 50% of the total debt is in U.S. dollars and is naturally
hedged.
Issuer Profile
Aenza is a Peruvian conglomerate. Infrastructure concessions
contribute the largest share of revenue, followed by energy and
real estate. Key assets include Lima Metro Line 1, one of Peru's
most important urban transit systems, and Norvial, a major coastal
road.
Summary of Financial Adjustments
Fitch deconsolidated 81.8% of Norvial's results from Aenza's
consolidated figures.
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 Aenza S.A.A.
ESG Considerations
Aenza S.A.A. has an ESG Relevance Score of '4' for Group Structure
due to its complexity, related-party transactions, and other joint
operations, which has a negative impact on the credit profile, and
is relevant to the ratings 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 Prior
----------- ------ -----
Aenza S.A.A.
LT IDR BB Upgrade BB-
LC LT IDR BB Upgrade BB-
senior secured LT BB Upgrade BB-
=====================
P U E R T O R I C O
=====================
BRIGHT BEGINNINGS: Seeks to Hire Jose O. Ayala as Accountant
------------------------------------------------------------
Bright Beginnings Day Care and Learning Academy Corp. seeks
approval from the U.S. Bankruptcy Court for the District of Puerto
Rico to employ Jose O. Ayala, CPA, MBA as accountant.
The firm will provide these services:
(a) assist the Debtor in gathering and compiling the necessary
information required to file the required information and
schedules;
(b) provide consulting services;
(c) prepare monthly reports;
(d) prepare all necessary tax returns to ascertain the Debtor
is in full compliance with his fiscal responsibilities;
and
(e) assist the Debtor and its attorney in all related to court
instructions, transactions, and or information requests of
an accounting or financial nature.
The firm will be paid at these hourly rates:
Jose Ayala, CPA, MBA $190
Senior Accountant $125
Staff Accountant $75
The firm requires a retainer of $3,000 from the Debtor.
Mr. Ayala 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 through:
Jose O. Ayala, CPA, MBA
EE-1 Gautier Benitez St.
Toa Baja, PR 00949
Telephone: (787) 396-8421
About Bright Beginnings Day Care Center
and Learning Academy Corp
Bright Beginnings Day Care Center and Learning ACA filed its
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. D.P.R. Case No. 26-02112) on May 8, 2026, listing up
to $50,000 in assets and $500,001 to $1 million in liabilities.
Judge Mildred Caban Flores presides over the case.
The Debtor tapped Carmen D. Conde Torres, Esq., at C. Conde &
Associates as counsel and Jose O. Ayala, CPA, MBA.
WILSON 1350: Commences Chapter 11 Bankruptcy in Puerto Rico
-----------------------------------------------------------
Wilson 1350 LLC filed for Chapter 11 protection in the U.S.
Bankruptcy Court for the District of Puerto Rico on May 27, 2026.
According to court filings, the Debtor reports between $1 million
and $10 million in debt owed to between 1 and 49 creditors.
A meeting of creditors under Section 341(a) will be held on June
22, 2026, at 2:00 p.m. via Telephonic Conference Information for
AUST/Trial Attorneys.
The deadline to file the Chapter 11 Plan and accompanying
Disclosure Statement is September 24, 2026.
About Wilson 1350 LLC
Wilson 1350 LLC is a limited liability company engaged in real
estate ownership, property management, and related investment
activities.
Wilson 1350 LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. Case No. 26-02372) on May 27, 2026. In its
petition, the Debtor reports estimated assets of $10 million to $50
million and estimated liabilities of $1 million to $10 million.
The presiding bankruptcy judge was not identified in the available
filing information.
The Debtor is represented by Noemi Landrau Rivera, Esq.
=================
V E N E Z U E L A
=================
VENEZUELA: Retains Greenberg for Court Case Against Crystallex
--------------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that Venezuela's
government has retained law firm Greenberg Traurig to represent the
country in a long-standing legal battle against miner Crystallex
that involves over a dozen creditors trying to get compensation
for expropriations, the firm previously defending it, told a U.S.
court of appeals.
Lawyers Daniel Pulecio and Dominic Draye are now leading
Venezuela's team in the case, the country's Attorney General,
Arianny Seijo, said in a letter to firm Munger, Tolles & Olson,
which requested to be withdrawn as counsel by the U.S, according to
globalinsolvency.com.
About Venezuela
Venezuela, officially the Bolivarian Republic of Venezuela, is a
country on the northern coast of South America, consisting of a
continental landmass and a large number of small islands and islets
in the Caribbean sea. The capital is the city of Caracas.
Hugo Chavez was president to Venezuela from 1999 to 2013. The
Chavez presidency was plagued with challenges,
which included a 2002 coup d'etat, a 2002 national strike and a
2004 recall referendum. Nicolas Maduro was elected president in
2013 after the death of Chavez. Maduro won a second term at the
May 2018 Venezuela elections, but this result has been challenged
by countries including Argentina, Chile, Colombia, Brazil, Canada,
Germany, France and the United States who deemed it fraudulent and
moved to recognize Juan Guaido as president.
The presidencies of Chavez and Maduro have challenged Venezuela
with a socioeconomic and political crisis. It is
marked by hyperinflation, climbing hunger, poverty, disease, crime
and death rates, social unrest, corruption and emigration from the
country.
On January 3, 2026, the United States launched a military operation
in Venezuela and Maduro and his wife were captured and were flown
out of the country. As of January 4, 2026, the government formerly
led by Maduro remains in control, with Vice President Delcy
Rodriguez having been appointed acting president.
Moody's has withdrawn 'C' local currency and foreign currency
ceilings for Venezuela in September 2022. Standard &
Poors has also withdrawn its 'SD/D' foreign currency sovereign
credit ratings and 'CCC-/C' local currency ratings on Venezuela in
September 2021 due to lack of sufficient information. Fitch
withdrew its own 'RD/C' Issuer Default
Ratings on Venezuela in June 2019 due to the imposition of U.S.
sanctions on the country's government.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
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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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