260617.mbx

260617.mbx 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 Wednesday, June 17, 2026, Vol. 27, No. 120 Headlines A R G E N T I N A IMPSA SA: In Talks To Resume Turbine Work in Venezuela B R A Z I L AEGEA SANEAMENTO: Fitch Lowers LongTerm IDRs to B+, Outlook Stable D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Raises Fuel Prices by RD$3.00 - RD$6.00 H O N D U R A S HONDURAS: IDB OKS $100MM Loan to Strengthen Fiscal Sustainability J A M A I C A JAMAICA: BOJ to Withdraw Another $15BB From Financial System JAMAICA: TODSS Says Price Hike Could Force Out Transport Operators P A R A G U A Y FRIGORIFICO CONCEPCION: Moody's Cuts CFR & Sr. Secured Notes to Ca P E R U VOLCAN COMPANIA: Moody's Ups CFR to B1, Alters Outlook to Stable P U E R T O R I C O NOVA TERRA: Seeks to Hire Landrau Rivera & Assoc. as Counsel SN TRANSPORT: Seeks Chapter 7 Bankruptcy in Puerto Rico - - - - - ================= A R G E N T I N A ================= IMPSA SA: In Talks To Resume Turbine Work in Venezuela ------------------------------------------------------ Buenos Aires Times reports that Argentina's Impsa SA is in talks with the Venezuelan government to restart manufacturing and repairs on turbines for the Andean nation’s sprawling Guri dam complex, according to the company’s top executive. Now privately owned, the hydroelectric construction firm is looking to resume work at the Macagua and Tocoma dams that would add 672 megawatts of capacity to Venezuela’s power grid, Chief Executive Officer Jorge Salcedo said in an interview, according to Buenos Aires Times. The projects, which started in the mid-2000s when both countries were governed by leftist leaders who aggressively expanded state control of their respective economies, ground to a halt amid Venezuela’s economic and political crisis, the report notes. Venezuela's grid has deteriorated over the past two decades to a point where blackouts occur daily in towns across the country and even in parts of the capital, Caracas, the report relays. Lawmakers are pushing for an overhaul the nation’s electricity law that would open the sector to private investment, allowing companies to generate, distribute and sell power under government concessions, the report says. Impsa's resumption of work would be included as an addendum to current and unfinished contracts with Venezuela, the report discloses. The aim is to repair three 80-megawatt turbines at Macagua and, when that is completed, to install two 216-megawatt units at Tocoma, said Salcedo, who is also president of Impsa’s board, the report says. “Our schedule aims to bring 160 megawatts online at Macagua within the next 100 days,” he said, without specifying when an agreement could be signed, the report notes. The information ministry in Caracas didn’t immediately respond to a request for comment on the Impsa talks. While the additional wattage planned represents less than two percent of Venezuela’s total installed capacity, it would help the nation start to rebuild its rickety grid, the report relates. Blackouts are so frequent that the government is advising energy companies that want to be part of US-led efforts to rebuild the oil sector to bring their own power supplies, the report says. Impsa, meanwhile, was the first company to be privatised after President Javier Milei took office in Argentina on an aggressive austerity mandate at the end of 2023, the report recalls. As a state-run firm, it restructured its debt twice in the decade before that, the report notes. Argentina’s government transferred ownership of Impsa to the Industrial Acquisitions Fund consortium, a US special purpose vehicle that focuses on the energy and infrastructure sectors, in February 2025, the report adds. * * * * According to a May 2026 press release, IMPSA a leading company in hydropower projects, port crane manufacturing and supply, and nuclear technology development, disclosed that the Second Court for Insolvency Proceedings of Mendoza has approved the Acuerdo Preventivo Extrajudicial (APE) submitted by the company as part of its financial restructuring process. The approval of the APE marks a significant step toward IMPSA’s financial normalization and the consolidation of its new stage, enabling progress in the debt exchange process established under the agreement previously approved by creditors. The company expressed its appreciation for the support received from creditors, who endorsed the proposal promoted by Industrial Acquisitions Fund LLC (IAF), IMPSA’s controlling shareholder. With this milestone, IMPSA will continue focusing on restoring its industrial and technological capabilities while strengthening its international positioning across its hydropower, nuclear, port cranes, and renewable energy business units. =========== B R A Z I L =========== AEGEA SANEAMENTO: Fitch Lowers LongTerm IDRs to B+, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has downgraded Aegea Saneamento e Participacoes S.A.'s (Aegea) Foreign and Local Currency Issuer Default Ratings (IDRs) to 'B+' from 'BB-'. Fitch has also downgraded Aegea's National Long-Term Ratings (NLTRs) and debentures to 'A(bra)' from 'A+(bra)'. Fitch also downgraded Aegea Finance's senior unsecured notes to 'B+' with a Recovery Rating of 'RR4' from 'BB-' and Aegea's subsidiaries' NLTRs to 'AA-(bra)' from 'AA(bra)'. Fitch has removed the ratings from Rating Watch Negative and assigned a Stable Outlook. The downgrade reflects a weaker financial structure and lower financial flexibility, driven by expected slower deleveraging and high financing costs. Fitch expects Aegea's consolidated adjusted EBITDA leverage to remain around 5.0x and net leverage to remain above 4.0x over the rating horizon. Despite a strong business profile, Aegea's Standalone Credit Profile (SCP) is constrained by the complexity of the group's structure and deficient information quality and accounting practices. Key Rating Drivers Weak EBITDA Interest Coverage: Aegea's capital-intensive business profile and sizeable recurring investment requirements make continued access to external funding crucial to support its capex plan, refinance debt maturities and sustain growth. Fitch projects EBITDA interest coverage below 2.0x due to higher debt needed to fund capex and increased financial costs. Aegea's financial flexibility weakened following delayed publication of its 2025 financial statements, the restatement of its 2024 results and related accounting adjustments. These developments may result in tighter financing conditions and reduce the company's ability to access debt capital markets on a timely basis or at a reasonable cost, increasing refinancing risk. Holding Debt, Negative FCF: Aegea's holding-level debt is high, and deleveraging will depend on increasing dividends from operating subsidiaries that are still ramping up. As of March 31, 2026, holding company debt totaled BRL21.5 billion. Aegea subsidiary Companhia Riograndense de Saneamento (Corsan) should be the main dividend contributor due to its size and low leverage. Fitch forecasts consolidated EBITDA, excluding Águas do Rio (AdR), of BRL9.3 billion in 2026 and BRL10.7 billion in 2027, with margins around 62%. The base case scenario for the rating projects cash flow from operations (CFFO) of BRL3.4 billion on average in 2026-2028 and capex of about BRL22 billion over the same period, resulting in negative FCF of roughly BRL15.9 billion within this period. Fitch assumes tariff adjustments aligned with inflation and robust organic growth, while total billed volumes should increase at an average annual rate of 11% in 2026-2028. Stronger Subsidiaries: Fitch rates Aegea's subsidiaries Corsan, Águas Guariroba S.A., Prolagos S.A. - Concessionária de Serviços Públicos de Água e Esgoto and Águas de Teresina Saneamento SPE S.A. above the parent. Stronger SCPs and porous ring-fencing and open access & control allow the subsidiaries to be rated above the parent under Fitch's Parent and Subsidiary Linkage Rating Criteria. Leverage to Remain High: Fitch expects Aegea to report high leverage ratios in the next three years. Fitch's rating case projects adjusted EBITDA leverage at around 5.0x and adjusted EBITDA net leverage slightly above 4.0x by 2028. These projections do not include acquisitions over the rating horizon, despite the company's historical focus on inorganic growth. The ongoing development of Corsan and the nonconsolidated subsidiary AdR will be key to the deleveraging trajectory. Solid Business Position: Aegea is a large private player in the water and wastewater industry in Brazil. The company has a diverse portfolio of assets, which mitigates the operational, hydrological, political and regulatory risks linked with its business. Its subsidiaries benefit from monopolistic positions in their service areas, a well-diversified customer mix, and a transparent tariff-setting process. The group's credit profile benefits from predictable demand and rising operational scale from recently incorporated activities. ESG -Governance: Fitch assesses Aegea's group structure as complex and its financial information quality and transparency as deficient after the company delayed publishing its annual financial statements and restated its accounts. These assessments result in a one-notch negative impact on the SCP. Peer Analysis Aegea's Local and Foreign Currency IDRs are three notches below Companhia de Saneamento Básico do Estado de São Paulo (Sabesp; BB+ and AAA(bra), both with Stable Outlook). Fitch forecasts Sabesp's EBITDA net leverage to remain below 3.5x, while Aegea's is expected to remain slightly above 4.0x. Sabesp's SCP is not affected by governance considerations. Sabesp's lower leverage and stronger governance support its higher ratings. On the national scale, Aegea also compares with Iguá Saneamento S.A. (Iguá, A+(bra), Stable Outlook). Despite reporting higher leverage, Iguá has lower debt at the holding company. Iguá has recently incorporated new concessions into its portfolio, and they are securing funding to cover an extensive capex plan. Despite Aegea's stronger portfolio and high EBITDA margins, its ratings are constrained by deficiencies in governance. Fitch’s Key Rating-Case Assumptions - Tariff increases in line with Fitch's inflation estimates, being 4.0% in 2026 and 3.8% in 2027 and 2028; - Annual average total volume billed growth of 11% from 2026 to 2028; - Average annual capex of around BRL7.0 billion from 2026 to 2028; - Annual dividends of around BRL1.5 billion per year in 2026 to 2028, considering payout of 100% of net income; - Average CDI of 13.5% in 2026, 11.25% in 2027, and 10.25% in 2028, as per Fitch's Global Economic Outlook from March 2026; - Refinancing/new debt at an average financing cost of CDI+2.0% (subsidiaries) and CDI+4.0% (holding); - Roll over of maturities; - No new acquisitions. Corporate Rating Tool Inputs and Scores Fitch scored Aegea as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('bb', Moderate), sector characteristics ('bbb-', Moderate), market and competitive positioning ('bbb', Lower), diversification and asset quality ('bbb', Moderate), company operational characteristics ('bb+', Moderate), profitability ('bb-', Moderate), financial structure ('bb', Higher), and financial flexibility ('b+', Higher). The quantitative financial subfactors are based on custom CRT financial period parameters: 20% weight for the forecast year 2026, 40% for the forecast year 2027 and 40% for the forecast year 2028. The governance assessment of 'some deficiencies' results in an adjustment of -1 notch(es). The operating environment assessment of 'bb' has no impact. The SCP is 'b+'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in Local and Foreign Currency IDRs of 'B+'. 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 GC enterprise value assumes an EBITDA 20% 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 6.0x. Fitch assigned the senior notes a Recovery Rating of 'RR4'. The bespoke analysis indicated the potential for higher recovery; however, Fitch capped the recovery ratings at 'RR4' in accordance with its "Country Specific Treatment of Recovery Rating Criteria" considering all the assets and cash flow generation are in Brazil. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Prolonged deterioration of financial flexibility, with liquidity ratio below 1.0x; - Sustainable EBITDA interest coverage approaching 1.0x. - Sustained net EBITDA leverage above 4.5x; - EBITDA leverage consistently above 5.0x. - For the rated subsidiaries, the downgrade of Aegea's ratings; - For Águas de Teresina, EBITDA leverage and net EBITDA leverage consistently above 4.0x and 4.5x, respectively. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Improvements in financial transparency and disclosure; - EBITDA interest coverage consistently above 2.0x; - Sustained net EBITDA leverage below 4.0x; - EBITDA leverage consistently below 4.5x; - Ability to secure funding at costs below Fitch's rating case assumption. Liquidity and Debt Structure Aegea's liquidity profile and financial flexibility have been supported by access to local and international debt markets. By the end of March 2026, Aegea's total adjusted debt was BRL46.6 billion on a consolidated basis, excluding Aguas do Rio 1 and 4. Cash and equivalents were BRL10.2 billion, compared with BRL5.4 billion of short-term debt. Aegea fully hedges its exposure to foreign currency debt from senior notes and other US dollar-denominated bank loan. Issuer Profile Aegea operates water/wastewater concessions across 893 municipalities in 15 Brazilian states through long-term contractual agreements. The company is majority-owned by Equipav Group (52.8%), with additional ownership held by GIC, a Singaporean sovereign fund, (34.3%), and Itausa S.A. (12.9%). Summary of Financial Adjustments - Fitch analyzes Aegea on a consolidated basis, which does not include Águas do Rio 1 and 4 as these subsidiaries are ring-fenced. - Finance leases are treated as an operating expense; - Construction revenues are offset by construction costs (considering intangibles and financial assets - PPPs agreements); - Financial assets (PPPs) construction costs are considered capex; - Parsan's debt guaranteed by Aegea is considered off-balance debt and included in the adjusted leverage ratios; - Preferred shares on Tertúlia and Camastra are considered debt. 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 Aegea. ESG Considerations Aegea Saneamento e Participacoes S.A. has an ESG Relevance Score of '5' for Group Structure and Financial Transparency due to the complexity of issuer's organizational structure and the recent accountancy restatement and delay in the annual release of the financial statements, which has a negative impact on the credit profile, and is highly relevant to the rating, resulting in one notch decrease in the SCP. 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 ----------- ------ -------- ----- Aegea Saneamento e Participacoes S.A. LT IDR B+ Downgrade B- LC LT IDR B+ Downgrade BB- Natl LT A(bra) Downgrade A+(bra) senior unsecured Natl LT A(bra) Downgrade A+(bra) Aguas de Teresina Saneamento SPE S.A. Natl LT AA-(bra) Downgrade AA(bra) senior unsecured Natl LT AA-(bra) Downgrade AA(bra) Companhia Riograndense de Saneamento Corsan Natl LT AA-(bra) Downgrade AA(bra) senior unsecured Natl LT AA-(bra) Downgrade AA(bra) senior secured Natl LT AA-(bra) Downgrade AA(bra) Prolagos S.A. – Concessionaria de Servicos Publicos de Agua e Esgoto Natl LT AA-(bra) Downgrade AA(bra) Aegea Finance S.a r.l. senior unsecured LT B+ Downgrade RR4 BB- Aguas Guariroba S.A. Natl LT AA-(bra) Downgrade AA(bra) senior unsecured Natl LT AA-(bra) Downgrade AA(bra) =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Raises Fuel Prices by RD$3.00 - RD$6.00 ----------------------------------------------------------- Dominican Today reports that the Dominican government disclosed increases of between RD$3.00 and RD$6.00 in the prices of the country's main fuels for the week of June 13–19, according to the Ministry of Industry, Commerce and MSMEs (MICM). Premium gasoline will be sold at RD$341.10 per gallon, an increase of RD$6.00, while regular gasoline will cost RD$313.50 per gallon, up RD$3.00, according to Dominican Today. Meanwhile, regular diesel will be sold at RD$262.80 per gallon, increasing by RD$3.00, and premium diesel will be priced at RD$293.10 per gallon, up RD$6.00, the report notes. Liquefied petroleum gas (LPG) will remain unchanged at RD$137.20 per gallon, while natural gas will continue to be sold at RD$43.97 per cubic meter, the report relates. Fuel prices for the week are as follows: -- Premium Gasoline: RD$341.10 per gallon (up RD$6.00) -- Regular Gasoline: RD$313.50 per gallon (up RD$3.00) -- Premium Diesel: RD$293.10 per gallon (up RD$6.00) -- Regular Diesel: RD$262.80 per gallon (up RD$3.00) -- LPG (Liquefied Petroleum Gas): RD$137.20 per gallon (unchanged) -- Natural Gas: RD$43.97 per cubic meter (unchanged) 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. =============== H O N D U R A S =============== HONDURAS: IDB OKS $100MM Loan to Strengthen Fiscal Sustainability ----------------------------------------------------------------- The Board of Executive Directors of the Inter-American Development Bank (IDB) has approved a $100 million programmatic policy-based loan to support structural reforms that will strengthen fiscal sustainability in Honduras. The loan is the first of two standalone, but technically linked operations, designed to strengthen regulatory and institutional capacity that improve the country’s fiscal resilience to external shocks. The first IDB operation will strengthen the country’s fiscal responsibility framework and enhance institutional capacity for macrofiscal management within the Ministry of Finance. It will also support reforms to improve efficiency, oversight, and transparency of tax incentives, and promote key improvements in public expenditure management, particularly in public procurement, treasury management, and public investment. The program aims to reduce public debt, strengthen the primary balance, rationalize tax expenditures, enhance the quality of public investment projects, and improve capital expenditure execution. These reforms are expected to bolster fiscal sustainability and improve the overall business environment in the country, benefiting both firms and the population at large. The $100 million IDB financing consists of $60 million from the Bank’s Ordinary Capital, with a 20-year maturity, a 5.5-year grace period, and an interest rate based on SOFR. The remaining $40 million will be provided from the IDB’s Concessional Ordinary Capital, with a 0.25% interest rate and a 40-year maturity and grace period. This operation is aligned with the ongoing 2023 agreement with the International Monetary Fund (IMF) and complements fiscal policy programs supported by the World Bank and the Development Bank of Latin America and the Caribbean (CAF). ============= J A M A I C A ============= JAMAICA: BOJ to Withdraw Another $15BB From Financial System ------------------------------------------------------------ RJR News reports that the Bank of Jamaica sought to withdraw another $15 billion from the financial system on June 10, as it continues efforts to contain inflationary pressures. The move follows the central bank's absorption of $53 billion on Monday, June 8, and a further 27 billion, according to RJR News. The instrument will mature on July 10, when investors will receive interest at a rate of 5.75% per annum, subject to the government's 25 per cent withholding tax, the report notes. 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: TODSS Says Price Hike Could Force Out Transport Operators ------------------------------------------------------------------ RJR News reports that President of the Transport Operators Development Sustainable Services (TODSS), Egeton Newman, says the $10.50 increase in the price of diesel by Petrojam is having a negative impact on the viability of the sector despite the recent 8 per cent fare increase and the one to come in July. Speaking in an interview with Radio Jamaica's Real Business on, Mr. Newman said members of the sector cannot pass this increase onto the travelling public because they are already facing increases in the prices of almost all basic goods and services, according to RJR News. He added that many of his members are planning to exit the sector because they are losing money on their operations, the report notes. Mr. Newman called for the government to reverse the recent increases in fuel prices and to provide a fuel subsidy for the sector, 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 & Sr. Secured Notes to Ca ------------------------------------------------------------------ Moody's Ratings has downgraded to Ca from Caa1 Frigorifico Concepcion S.A.'s (FriCon) corporate family rating and backed senior secured notes' rating. The outlook for the ratings remains negative. The downgrade follows FriCon's announcement on June 9th that it had appointed legal and financial advisors to examine its capital structure and outstanding debt obligations. RATINGS RATIONALE The Ca rating reflects the high probability that creditors will face material losses through the capital structure review process. The rating incorporates severe liquidity and refinancing risk ($23 million in cash as of December 2025 vs. $211 million short-term maturities as of March 2026), continued negative cash flow generation (Moody's adjusted), and limited to no access to long-term financing, all of which have prevented the company from extending its debt maturity profile and constrained its financial flexibility. The company's recent announcement that a financial advisor will assist in designing a refinancing proposal to improve its capital structure increases the likelihood of potential creditor losses. Governance is also 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. Moreover, despite relatively stable operating margins, FriCon has been unable to reverse cash outflows, primarily because of structurally high working capital requirements associated with its growing export-oriented business model. As a result, free cash flow has continually been negative. As of December 2025, FriCon had $23 million in cash against approximately $269.7 million in short-term debt. The company generated negative cash flow of $50 million in 2025, driven primarily by negative FFO. While most of the company's debt is denominated in US dollars (67% as of December 2025) and there are no financial hedges in place, export operations provide a natural hedge against foreign-currency risk. Moreover, a more restrictive global financing environment, particularly for lower rated issuers and elevated interest rates, alongside tighter global credit conditions, will further constrain access to cross border capital markets. RATING OUTLOOK The negative outlook reflects the risk that the final debt restructurings could result in higher economic losses for creditors than currently anticipated. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Given the negative outlook, an upgrade of the ratings is unlikely. However, if the company is able to improve its capital structure and, more importantly, its liquidity position by a significant extension of its debt maturity profile or reduction of its debt balance that better matches its cash generation profile, the outlook could be stabilized. Moody's could downgrade Frigorifico Concepción's ratings if the recovery prospects for the company's creditors deteriorate. COMPANY PROFILE Founded in 1997 and headquartered in Asunción, 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 46% 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 Ca rating is three notches below the Caa1 indicated by Moody's Protein and Agriculture rating methodology scorecard as of FY 2025, due to the uncertainty regarding the measures to improve its capital structure which could result in a default or in a default like event. ======= P E R U ======= VOLCAN COMPANIA: Moody's Ups CFR to B1, Alters Outlook to Stable ---------------------------------------------------------------- Moody's Ratings has upgraded Volcan Compania Minera S.A.A. y Subsidiarias ("Volcan")'s corporate family rating to B1 from B2. Moody's have also upgraded the ratings of the company's remaining $35 million in senior secured notes due 2030 and its $750 million in senior secured notes due 2032 to B1 from B2. The outlook was changed to stable from positive. The rating action is triggered by Volcan's improved cash flow generation and visibility driven by the ramp up of Romina in June 2026, optimization projects, hedging strategy and incremental production related to the company's other brownfield projects. Volcan's credit profile also benefits from adequate liquidity underpinned by $280 million in cash as of March 2026, Moody's expectations of positive FCF (free cash flow) and no major debt maturities before 2032. The stable outlook reflects Moody's views that Volcan's credit metrics will remain adequate for the B1 rating category during its investment phase while the company builds a track record of operating stability and conservative liquidity management. The outlook also assumes that the company will use excess cash to reduce debt levels. RATINGS RATIONALE Volcan's B1 ratings reflect the company's balanced portfolio of zinc and silver, mainly, as well as lead, copper and gold. Volcan is the third largest silver producer in Peru and benefits from a portfolio of assets with organic growth opportunities and potential mineral resources conversion. The B1 rating also incorporates the company's adequate credit metrics for the rating category and adequate liquidity including Moody's expectations of positive FCF and no major maturities before 2032. Volcan's B1 ratings are constrained by its geographic concentration in Peru and Volcan's modest scale compared with that of its global peers. The B1 ratings also consider the company's exposure to commodity price volatility and its relatively high cost structure, which is expected to decrease as the company benefits from the ramp up of Romina. Moody's expects Volcan's cash flow generation to improve in the second half of 2026 supported by higher production, stable ore grades and relatively lower costs per unit. Going forward, as production increases due to Romina ramp up, revenues and cash flows will increase accordingly, further supported by costs reductions. The company expects costs reductions of $60 million in 2026 and $20 million in 2027 driven by higher production, investments in infrastructure, energy efficiency, changes in the mining method in some areas and automatization. These initiatives should take unit costs to $57/MT in 2027 down from $60.6/MT in 1Q 2026. Adequate liquidity and no major maturities before 2032 provide the company with financial flexibility to support organic growth. During the last twelve months ended March 2026, Volcan generated $116 million in FCF. Moody's expects the company to maintain the positive FCF trend. Moody's also expect Volcan to use excess cash to reduce debt, as it did in 1Q 2026 when the company repaid $68 million in debt related to its senior unsecured notes. Going forward, Volcan has an aggressive capex program that will average $400 million per year through 2028 (including both sustaining and expansion capex), and Moody's expects the bulk of it to be covered with the company's own liquidity and cash generation. Sustaining capex will address the under investment observed in previous years when the company had to protect its liquidity. Expansion capex will be directed towards brownfield projects that will benefit from the company's current infrastructure. The largest projects are Santa, located within the Romina mining district and Esperanza, located in the Animon complex. Both are polymetallic projects that should start operations after 2029 supporting Volcan's cash flows and extending its life of mine (LOM). The ramp up of the Romina project, in June 2026 will support the company's overall cost position, production and cash flow generation. Romina's production cost would be around $50/MT, compared with Volcan's consolidated cost in 2025 of $54.3/MT. Romina is a polymetallic project in the Alpamarca unit with a LOM of 13 years and average estimated production per year of 61 thousand MT of zinc and 1.4 million ounces of silver in the 2026-2028 period, representing 26% and 10% production growth of zinc and silver, respectively. In addition, Volcan reported a 56% increase in its reserves inventory, mainly due to the inclusion of Romina in 2025. The company's senior secured notes benefit from a collateral package that includes a trust over receivables, shares of subsidiaries and mortgages over most of the company's assets. The B1 rating of the senior secured notes is aligned with the company's B1 CFR. Governance considerations were a key driver of the rating action given the company's liquidity improvements and adequate credit metrics. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Volcan's ratings could be upgraded if the company improves its scale, operational diversity, cost position, and establishes a multi-year track record of generating positive FCF under various commodity price environments, while maintaining a good liquidity. An upgrade will be subject to the maintenance of Moody's adjusted EBIT margin above 15%, leverage below 3x and retained cash flow/debt above 25%, all at different price points. The ratings of Volcan could be downgraded if FCF was negative on a sustained basis driven by shareholders distributions, operational issues at any of its mines or with the ramp up of Romina that result in lower production and higher costs, or if the company engages in material debt-financed M&A activity. Additionally, downgrade pressure could emerge if debt/EBITDA is maintained above 4.0x and retained cash flow/debt below 20%. Volcan Compania Minera S.A.A. y Subsidiarias (Volcan) is a Peruvian mining company that produces zinc and silver, mainly, as well as lead, copper and gold. The company operates through four operating units including six mines (four underground mines and two open pits), five concentrator plants and one leaching plant. All of Volcan's operations are located in Peru, and the company reported revenue of $1,264 million for the 12 months that ended March 2026. Volcan is a company listed on the stock exchanges of Lima, Santiago and Madrid. Since May 2024 Transition Metals AG, subsidiary of Integra Capital, holds a controlling stake of 63% in Volcan's Class A voting shares, which is equivalent to a 23.3% economic interest in Volcan. The principal methodology used in these ratings was Mining published in February 2026. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. ===================== P U E R T O R I C O ===================== NOVA TERRA: Seeks to Hire Landrau Rivera & Assoc. as Counsel ------------------------------------------------------------ Nova Terra Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire Landrau Rivera & Assoc. as counsel. The firm's services include: (a) advise the Debtor with respect to its duties, powers and responsibilities in this case under the laws of the United States and Puerto Rico in which it conducts its business, or is involved in litigation; (b) advise the Debtor in connection with a determination whether a reorganization is feasible and, if not, aid it in the orderly liquidation of its assets; (c) advise the Debtor with respect to its negotiations with creditors for the purpose of proposing a viable plan of reorganization; (d) prepare on behalf of the Debtor the necessary legal papers or documents; (e) appear before the Bankruptcy Court, or any court in which the Debtor asserts a claim interest or defense directly or indirectly related to this bankruptcy case; (f) perform such other legal services for the Debtor as may be required in these proceedings or in connection with the operation of/and involvement with its business; (g) employ other professional services as necessary to complete the Debtor's financial reorganization with Chapter 11 of the Bankruptcy Code. The firm will be paid at these hourly rates: Noemi Landrau Rivera, Attorney $250 Legal and Finncial Assistants $75 In addition, the firm will seek reimbursement for expenses incurred. The firm received a retainer of $15,000 from the Debtor. Ms. Rivera 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: Noemi Landrau Rivera, Esq. Landrau Rivera & Assoc. P.O. Box 270219 San Juan, PR 00928 Telephone: (787) 774-0224 Facsimile: (787) 919-7713 Email: nlandrau@landraulaw.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. SN TRANSPORT: Seeks Chapter 7 Bankruptcy in Puerto Rico ------------------------------------------------------- On June 2, 2026, SN Transport Inc. filed for Chapter 7 protection in the U.S. Bankruptcy Court for the District of Puerto Rico. According to court filings, the Debtor reports between $1 million and $10 million in debt owed to between 1 and 49 creditors. Statement of Financial Affairs and Summary of Assets and Liabilities are both due by June 16, 2026. About SN Transport Inc. SN Transport Inc. is a transportation company engaged in freight and logistics services. SN Transport Inc. sought relief under Chapter 7 of the U.S. Bankruptcy Code (Bankr. Case No. 26-02530) on June 2, 2026. In its petition, the Debtor reports estimated assets of $1 million to $10 million and estimated liabilities of $1 million to $10 million. The Honorable Bankruptcy Judge Enrique S. Lamoutte Inclán handles the case. The Debtor is represented by Joseph F. Gierbolini, Esq. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2026. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *