260730.mbx

260730.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 Thursday, July 30, 2026, Vol. 27, No. 151 Headlines A R G E N T I N A PROVINCIA CASA FINANCIERA: S&P Affirms 'B-' LT ICR, Outlook Stable VISTA ENERGY: Joins Milei's RIGI Investment Incentive Scheme B R A Z I L BRAZIL: Requests WTO Consultations Over U.S. Tariffs JBS SA: JPMorgan Upgrades Stock Rating on Valuation, Beef Outlook NATURA COSMETICOS:S&P Alters Outlook to Negative, Affirms 'BB' ICR C A Y M A N I S L A N D S AMBIPAR EMERGENCY: Chapter 15 Case Summary C O L O M B I A DISTRITO ESPECIAL: Fitch Rates USD350MM Sr. Unsecured Bond 'BB' D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Tariffs Could Impact Free Zone Competitiveness P A R A G U A Y FRIGORIFICO CONCEPCION: Fitch Lowers Long-Term IDR to 'C' P U E R T O R I C O PUERTO RICO: Monserrate-Torres Loses Bid for Automatic Stay Relief V E N E Z U E L A VENEZUELA: Creditor Group Expands Ahead of Debt Restructuring - - - - - ================= A R G E N T I N A ================= PROVINCIA CASA FINANCIERA: S&P Affirms 'B-' LT ICR, Outlook Stable ------------------------------------------------------------------ S&P Global Ratings affirmed its 'B-' long-term issuer credit ratings on Provincia Casa Financiera (PCF). The outlook remains stable. On June 10, 2026, S&P Global Ratings raised its local and foreign currency sovereign credit ratings on Argentina to 'B-/B' from 'CCC+/C', reflecting diminishing economic vulnerabilities. S&P said, "We base the rating on Provincia Casa Financiera's (PCF) status as a branch of Argentina-based Banco de la Provincia de Buenos Aires. As a result, we cap PCF's creditworthiness by Argentina's sovereign rating. "Our rating on PCF is based on its status as a branch of the Argentina-based bank Banco de la Provincia de Buenos Aires (BAPRO; rAA/Stable/raA-1+)." On June 10, 2026, S&P Global Ratings raised its local and foreign currency sovereign credit ratings on Argentina to 'B-/B' from 'CCC+/C'. The upgrade reflected declining economic vulnerabilities and improving access to external funding, raising prospects for continued economic recovery and reduced refinancing risk. The creditworthiness of PCF is closely tied to the credit profile of its parent, BAPRO, which in turn is constrained by the sovereign rating on Argentina. Despite conducting its operations in Uruguay, PCF's credit profile as a full branch is limited by the parent's creditworthiness. This is primarily due to BAPRO's significant asset exposure in the Argentine market and to the sovereign. Moreover, most of its liquid assets are largely invested in domestic government bonds. As of March 2026, PCF represented 0.3% of BAPRO's consolidated assets. On the other hand, S&P considers BAPRO to be well positioned in the Argentine market. It plays a relevant role in Buenos Aires as the financial agent that collects revenue and pays obligations for the public administration and decentralized public agencies. BAPRO is also the receiving agent for all the province's official and judicial deposits, providing it with low-cost funding. Also, BAPRO has a large distribution network, and its portfolio covers several economic sectors, while it also focuses on developing primary industries in the regional economy. As of March 2026, BAPRO was the sixth-largest financial institution by deposits and loans, with a market share of 7.6% and 7.3%, respectively. PCF's business model is geared toward providing financial services to nonresident clients in Uruguay, most of whom are linked to the BAPRO ecosystem. This strategy allows it to capture value in a segment that seeks to preserve assets in foreign currency outside of Argentina while also facilitating cross-border economic activity between the two countries. Over the past three years, PCF's portfolio of commercial loans to residents has quadrupled, driven primarily by the growth of captive clients linked to its parent company. This has allowed it to consolidate a competitive advantage within this segment of the Uruguayan banking system. As of May 2026, PCF's loan portfolio totaled Uruguayan peso (UYU) 196.8 million, representing a 46.6% year-on-year increase. However, PCF remains a small franchise in Uruguay, with a market share of 0.02% of loans and 0.05% of deposits. Despite its fast growth, it has not damaged its asset quality and has maintained strong capitalization. As of June 2026, the branch continues to have no nonperforming assets and net charge-offs because its corporate loan portfolio is geared toward low-risk issuers. Its regulatory capital ratio is 78.3%, well above the minimum requirement (15%) and the industry's average. Robust capitalization allows the branch to absorb losses and withstand stress scenarios amid volatility in its financial statements. Furthermore, the entity maintains a conservative risk profile, with assets composed mainly of U.S. and Uruguayan government securities, which represent close to 75% of its investment portfolio and contributes to a low exposure to regional sovereign risk. Moreover, it exhibits a suitable maturity match between assets and liabilities, which reinforces the stability of its balance sheet structure. Its funding sources, although concentrated in term deposits from nonresidents, have shown stability, although they are more sensitive than deposits from local clients. This funding profile is in line with its client base and the international nature of its operations. PCF has ample liquidity to cover its obligations thanks to its conservative and highly liquid portfolio, composed entirely of fixed income and investment-grade securities. Cash and investments represent 68.1% of its assets as of June 2026, and its regulatory liquidity coverage ratio was 673.02%, well above Uruguayan private banks. The stable outlook on PCF mirrors that on the sovereign rating on Argentina, given that the rating on PCF reflects our view of the parent's credit profile, which is limited by Argentina's sovereign rating. The outlook considers 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 our view. Therefore, the ratings on the branch would move in tandem with the sovereign of Argentina. S&P could lower the ratings in the next six to 12 months in the event of a reversal of recent progress in Argentina in stabilizing the economy and improving the sovereign's access to market funding. Failure to stabilize macroeconomic variables or advance reforms could lead to instability and interfere with the ability of domestic banks in that country to access, convert, and transfer money abroad. S&P could take a positive rating action on PCF if it was to raise the sovereign rating on Argentina. This could happen if greater medium-term policy certainty facilitates sustained access to external liquidity and limits economic volatility. VISTA ENERGY: Joins Milei's RIGI Investment Incentive Scheme ------------------------------------------------------------ Buenos Aires Times reports that Vista Energy, headed by former YPF CEO Miguel Galuccio, formalised its application to join the RIGI (Regimen de Incentivo para Grandes Inversiones) incentive scheme for major investments. The firm has pledged to plough US$5.8 billion into drilling 336 wells in over 10,000 hectares of the northern reaches of Vaca Muerta shale deposits with the aim of producing a daily 50,000 barrels of oil – almost a third of the company's current total production, according to Buenos Aires Times. The Bandera Norte area where Vista proposes to operate has no supporting infrastructure at present so that the investment would also cover supplying that, including pipelines to transport the oil and gas, a compressor plant and other necessary works, the report notes. Vista has been operating in Vaca Muerta since 2017 and has grown to become the country's leading exporter of crude oil, having already invested almost US$7 billion into the Neuquen shale deposits, the report says. Over 70 percent of its total daily output of over 160,000 barrels is exported, the report relates. Vista decided to expand its Vaca Muerta activities last February when the Middle East conflict sent world oil prices soaring from US$60 per barrel into treble digits, the report notes. Around the same time the government raised the floor for entry into RIGI from US$200 billion to US$600 billion for the energy sector, the report discloses. RIGI was created in 2024 to lure major investments into Argentina with a combination of tax breaks, Customs rebates and a favourable exchange rate over a 30-year period, the report recalls. Since then it has become the main source of financing for Vaca Muerta, the report notes. The incentives include the reduction of corporate tax from 35 to 25 percent, the payment of IVA value-added tax with fiscal credit certificates, the possibility of computing the cheque tax as a credit against corporate tax and an exemption from import tariffs and export duties, the report says. Perhaps the benefit most valued abroad is gradual access to a free exchange rate for export earnings with 20 percent in the first year, 40 percent in the second and total liberation in the third but before then the company must have invested at least 40 percent of the pledged sum, the report relays. Vista are not the only people interested in Vaca Muerta - on the same day as their application, approval of Pampa Energia's proposal to invest US$4.52 billion into expanding their oil production was published in the Official Gazette, the report discloses. Pampa Energia, which is headed by Marcelo Mindlin, proposes to focus on export markets under the Peelp (Proyectos de Exportacion Estrategica de Largo Plazo) scheme for long-term strategic export projects, the report adds. As reported in the Troubled Company Reporter-Latin America on April 7, 2026, Fitch Ratings has assigned a 'BB-' rating to Vista Energy Argentina S.A.U.'s proposed benchmark-size unsecured bonds. Proceeds will fund the acquisition of Equinor Argentina A.S.'s assets. Should the deal not close, proceeds will support acquisitions, capex, and other general corporate purposes tied to the growth of Vista Argentina's oil and gas business. =========== B R A Z I L =========== BRAZIL: Requests WTO Consultations Over U.S. Tariffs ---------------------------------------------------- Reuters reports that Brazil has requested consultations ‌with the U.S. under the World Trade Organization's dispute settlement system over tariffs announced by the Trump administration this month, the Brazilian Foreign Relations Ministry said in a ⁠statement. The request is related to tariffs of 25% imposed by the U.S. on imports of some Brazilian goods for alleged unfair trade practices, and up to 12.5% tariffs on goods from dozens of nations, including Brazil, linked to allegations of lax enforcement of forced labor bans, according to the report. Brazil claims the measures are inconsistent with the United States' obligations under various provisions of the General Agreement on Tariffs and Trade (GATT) 1994 and the Dispute Settlement Understanding (DSU) by seeking redress through tariff measures, rather than with recourse to the rules and procedures of the DSU. 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. JBS SA: JPMorgan Upgrades Stock Rating on Valuation, Beef Outlook ----------------------------------------------------------------- investing.com reports that JPMorgan upgraded JBS SA (NYSE:JBS) from Neutral to Overweight with a price target of $18.00. The stock currently trades at $13.55, and InvestingPro data suggests the shares are undervalued, with analysis indicating significant upside potential. According to InvestingPro Tips, JBS is trading at a low earnings multiple, reinforcing the upgrade thesis, according to investing.com. The firm cited the recent correction in the share price as an opportunity, with 2027 valuation now at 6.0x EV/EBITDA US GAAP 2027e and 2% FCF yield, the report notes. JPMorgan said the phased reopening of the Mexico-U.S. cattle border should help set a floor for U.S. Beef industry margins and support a gradual recovery into the second half of 2026, the report says. The firm estimates that every 1 percentage point increase in US Beef EBITDA margin could lift JBS's consolidated EBITDA by 4.6%, the report relays. The firm's calculations suggest the current share price is already discounting 0% normalized EBITDA margins for US Beef and 8% for PPC, which it views as overly conservative in the long run, the report discloses. JPMorgan identified the main risk for the stock in PPC as the U.S. poultry market's supply indicators have not shown meaningful cuts and big-bird prices remain subdued, limiting near-term margin recovery, the report notes. PPC's consensus EBITDA has dropped to $1.5 billion from roughly $1.9 billion three months ago, the report says. Investors seeking deeper insights can access JBS’s comprehensive Pro Research Report, one of 1,400+ available on InvestingPro, which transforms complex Wall Street data into actionable intelligence, the report adds. In other recent news, JBS S.A. reported its first-quarter earnings for 2026, revealing mixed results. The company's earnings per share (EPS) fell short of expectations at $0.21, compared to the anticipated $0.23, marking an EPS surprise of -8.7%, the report relays. However, JBS exceeded revenue forecasts, reporting $21.61 billion against the expected $21.08 billion, a 2.51% beat, the report discloses. In other developments, the U.S. Department of Agriculture announced it would resume cattle imports from Mexico, which is expected to alleviate a domestic cattle shortage and benefit companies like Tyson Foods and JBS. Additionally, the Trump administration plans to provide financial support to smaller meatpacking companies, pledging up to $500 million in payments, the report notes. This move is aimed at helping smaller beef plants maintain their processing volumes, the report relays. These recent developments could have varying impacts on major industry players, the report adds. About JBS S.A. JBS S.A. is a Brazilian company that is a large meat processing enterprise, producing factory processed beef, chicken, salmon, pork, and also selling by-products from the processing of these meats. It is headquartered in Sao Paulo. It was founded in 1953 in Anapolis, Goias. As reported in the Troubled Company Reporter-Latin America in August 2021, S&P Global Ratings revised the global scale outlook on JBS S.A. (JBS) and its fully owned subsidiary JBS USA Lux S.A. (JBS USA) to positive from stable and affirmed its 'BB+' issuer credit rating. The recovery expectations remain unchanged, and S&P affirmed the 'BB+' ratings on the senior unsecured notes and the 'BBB' ratings on the secured term loans. NATURA COSMETICOS:S&P Alters Outlook to Negative, Affirms 'BB' ICR ------------------------------------------------------------------ S&P Global Ratings revised its outlook on Brazil-based cosmetic company Natura Cosmeticos to negative from stable and affirmed its 'BB' issuer credit and issue ratings. The negative outlook indicates a one-in-three chance of a downgrade in the next 12-18 months if Natura is unable to improve EBITDA and cash flows and its cash generation remains under pressure, preventing the company from keeping leverage in line with S&P's expectations for the rating. The negative outlook reflects challenges Natura faces in improving EBITDA and cash generation amid a tough year for discretionary consumption. S&P now forecasts revenue of Brazilian real (R$) 21.6 billion and EBITDA of R$2.6 billion (margin of 11.9%) in 2026, compared with our previous forecast of R$23.7 billion and R$3.1 billion (margin of 13.2%), after consecutive years of revenue declines and pressured margins. The first-quarter and preliminary second-quarter results indicate a meaningful deterioration in revenue, down 9%-10% year over year. Implementation issues with new systems (SAP and Integrated Planning) and the reallocation of volumes following the closure of the Interlagos plant (as part of the integration strategy) led to product shortage, which, coupled with weak demand in Brazil, resulted in a significant drop in volume for the direct sales channel. This channel represents close to 85%-90% of the company's revenue. Natura is undertaking initiatives such as improved consultant incentives to address weak productivity, product focus, and regional tailoring. S&P expects efficiency gains from the new operating model and growth in Hispanic markets will support performance in the second half of this year, but execution risks and broader volatility remain, potentially hindering further revenue and EBITDA recovery. Natura has reduced complexity and increased its focus on key markets but continues to struggle with achieving consistent profitability and cash flow while operating on a smaller scale. Since Avon's acquisition, Natura has faced difficulties in integrating its assets amid a complex corporate structure, external challenges, and struggling performance at its subsidiaries, leading to EBITDA and cash generation below S&P's expectations in recent years. Management's focus gradually shifted toward its known key markets--Brazil, Argentina, and Mexico. With the sale of Aesop in 2023, Natura strengthened its balance sheet, which provided it financial flexibility to deal with the delayed improvement of Avon. The corporate reorganization and the divestment of Avon International and CARD in 2025 reduced the group's operational complexity. However, the company's scale and scope of operations also declined relative to global peers, while restructuring costs and slow synergies continued to weigh on profitability and cash generation. Those factors, coupled with a likely lower appeal for the direct sales model, a difficult turnaround of the Avon brand, and a lack of visibility over potential improvement in margins and cash conversion, lead S&P to assess Natura's business risk profile as weak, from fair previously. Natura's prudent capital allocation and solid liquidity provide some flexibility to navigate the tough operating conditions. S&P's base case assumes operational cash flow turns positive in 2026, reaching above R$820 million--driven by stronger performance in the second half of this year and prudent working capital management--following a deficit of R$100 million in 2025. As the company's primary integration and simplification projects conclude, S&P expects capital expenditure to normalize at approximately 1.5% of net revenue over the next two years, or around R$330 million per year. This stabilization in capex alongside improved operations should lead to free operating cash flow (F0CF) after leasing of roughly R$357 million in 2026 and close to R$732 million in 2027, recovering from negative R$649 million in 2025. S&P said, "We expect Natura will prioritize its cash position until operations normalize, in line with its conservative approach to financial policies, which led us to also revise our forecast for shareholders' remuneration. We now assume about R$150 million will be distributed within its current share buyback program but no other dividend payments in 2026, and about 30% of previous year's net income will be distributed in 2027, in line with its bylaws. "We expect gross leverage will be about 3.1x in 2026 and 2.7x in 2027, up from 2.9x in 2025 but still commensurate with our assessment of the company's significant financial risk. Given the change in our view of Natura's business risk, we now assess its leverage on a gross metrics base, aligned with our methodology. Nevertheless, the financial flexibility from Natura's solid cash balance--which could lead to net metrics around 1.5x-2.0x in the next two years--and solid liquidity cushion underpin our 'BB' rating on the company. "We expect Advent International, which recently became a significant minority shareholder, to support Natura's current strategy." This strategy focuses on strengthening operational execution, restoring growth in Brazil, and supporting the company's renewed focus on Latin America. The private equity firm concluded in early July the direct acquisition of a 6.6% stake in Natura plus another 1.4% held through derivatives. Advent gained the right to appoint two board members, but without obtaining control or veto rights. Advent has experience in retail, beauty, direct selling, and operational transformation, and has stakes in other companies within similar segments. The negative outlook reflects a one-in-three chance of a downgrade in the next 12-18 months if Natura is unable to improve EBITDA and cash flows and its cash generation remains under pressure, preventing the company from maintaining gross leverage below 3.0x. S&P could downgrade Natura in the next 12-18 months if: -- Recurrent operational challenges and weak consumer spending continue to hurt performance, preventing Natura from executing its strategy in key markets and leading to strained revenue, volatile EBITDA, and still negative cash flows; or -- The group becomes more aggressive in terms of mergers and acquisitions, or shareholder returns, with gross debt to EBITDA consistently above 3.0x. S&P said, "We could revise the outlook to stable in the next 12-18 months if Natura's simplified portfolio, the ramp-up of structural integration projects, and ongoing operational remediations translate into more consistent growth and improvements in EBITDA and cash flow. We would also expect the company to continue to reduce gross leverage, with gross debt to EBITDA close to 2.5x in 2027 and consistently positive FOCF." =========================== C A Y M A N I S L A N D S =========================== AMBIPAR EMERGENCY: Chapter 15 Case Summary ------------------------------------------ Lead Debtor: Ambipar Emergency Response c/o Services Cayman Limited P.O. Box 10008 Willow House, Cricket Square, Grand Cayman, KY1-1001 Cayman Islands Business Description: Ambipar Emergency Response is part of the Brazil-based Ambipar Group, founded in 1995. The group provides waste management, recycling, logistics, transportation, environmental consulting, industrial field, training, and emergency response services, including the handling and processing of residues and recyclable materials. Its Response operations include emergency command centers serving incidents such as wildfires and oil spills. The group operates from more than 600 locations in 41 countries, while Ambipar Response maintains its U.S. headquarters in Houston, Texas. Chapter 15 Petition Date: July 9, 2026 Court: United States Bankruptcy Court Southern District of Texas Five affiliates that concurrently filed voluntary petitions for relief under Chapter 15 of the Bankruptcy Code: Debtor Case No. ------ -------- Ambipar Emergency Response (Lead Case) 26-90709 Ambipar Participacoes e Empreendimentos S.A. 26-90710 Ambipar Lux S.a r.l. 26-90711 Environmental ESG Participacoes S.A. 26-90712 Emergencia Participacoes S.A. 26-90713 Judge: Hon. Alfredo R Perez Foreign Proceeding: Judicial Reorganization proceedings pursuant to Brazilian Federal Law No. 11.101 of February 9, 2005, filed before the Third Business Court of Rio de Janeiro. Foreign Representaive: Thiago da Costa Silva Avenida Pacaembu, no. 1088 Sao Paulo, State of Sao Paulo 01234-0000 Brazil Foreign Representative's Counsel: Jason S. Brookner, Esq. Lydia R. Webb, Esq. GRAY REED 1300 Post Oak Blvd., Suite 2000 Houston, Texas 77056 Tel: (713) 986-7000 Fax: (713) 986-7100 E-mail: jbrookner@grayreed.com lwebb@grayreed.com AND David R. Zylberberg, Esq. Nicholas E. Baker, Esq. Moshe A. Fink, Esq. Rachael L. Foust, Esq. Zachary J. Weiner, Esq. SIMPSON THACHER & BARTLETT LLP 425 Lexington Avenue New York, New York 10017 Tel: 212-455-3702 Fax: 212-455-2502 E-mail: david.zylberberg@stblaw.com nbaker@stblaw.com moshe.fink@stblaw.com rachael.foust@stblaw.com zachary.weiner@stblaw.com Estimated Assets: Unknown Estimated Debt: Unknown A full-text copy of the Lead Debtor's Chapter 15 is available for free on PacerMonitor at: https://www.pacermonitor.com/view/W5QDNJA/Ambipar_Emergency_Response__txsbke-26-90709__0001.0.pdf?mcid=tGE4TAMA =============== C O L O M B I A =============== DISTRITO ESPECIAL: Fitch Rates USD350MM Sr. Unsecured Bond 'BB' --------------------------------------------------------------- Fitch Ratings has assigned Distrito Especial Industrial y Portuario de Barranquilla's (Barranquilla) USD350 million senior unsecured bond a long-term rating of 'BB'. Key Rating Drivers The bond rating is at the same level as Barranquilla's Long-Term Foreign-Currency Issuer Default Rating (IDR), as it will constitute Barranquilla's senior, direct, general, unconditional and unsecured obligations and rank pari passu in right of payment with its other external unsecured obligations. Barranquilla intends to use the net proceeds to repay existing internal debt. Bond term sheet: Coupon: 7.35% Principal repayment: bullet (single payment at maturity) Maturity: Five years Use of proceeds: Refinancing certain debt. An equal amount of the net proceeds will be allocated to finance or refinance, in whole or in part, one or more new or existing eligible green and social projects, with disbursements covering project expenditure for up to 24 months preceding the bond's issue date and up to 24 months after the issue date Listing: Singapore Stock Exchange (Rule 144A / Regulation S) Cross default: Yes, with any external debt exceeding USD25 million or its equivalent in other currencies. Fitch Affirmed Barranquilla's IDR on May 15, 2026; see "Fitch Affirms Barranquilla's IDR at 'BB'; Outlook Stable". Issuer Profile Barranquilla is the capital district of the department of Atlantico and Colombia's fourth-largest city, with around 1.3 million inhabitants. Its value added per capita is slightly above the national average. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade of Barranquilla's Long-Term Foreign-Currency IDR would be reflected in the bond rating. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of Barranquilla's Long-Term Foreign-Currency IDR would be reflected in the bond rating. Date of Relevant Committee 15 July 2026 Public Ratings with Credit Linkage to other ratings The bond rating is linked to Barranquilla's rating. ESG Considerations Fitch does not provide ESG relevance scores for Barranquilla. Where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. Entity/Debt Rating Prior ----------- ------ ----- Distrito Especial Industrial y Portuario de Barranquilla senior unsecured LT BB New Rating BB(EXP) =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Tariffs Could Impact Free Zone Competitiveness ------------------------------------------------------------------ Dominican Today reports that the Dominican Association of Free Zones (Adozona) expressed concern over the United States' decision to impose a 12.5% tariff on imports from the Dominican Republic and 59 other countries, warning that the measure could create uncertainty in international trade and affect the competitiveness of export-driven economies. The organization said it is evaluating the scope of the tariffs, possible exemptions, and their impact on Dominican exports, particularly on the free zone sector, which it described as a key partner of the United States in manufacturing, investment, and job creation, according to Dominican Today. Adozona highlighted that Dominican free zones play a vital role in regional supply chains, especially in industries such as medical devices, advanced manufacturing, electronics, apparel, and services, helping strengthen U.S. production capacity, the report notes. The association said it will continue working with Dominican authorities to maintain a constructive dialogue with the United States aimed at preserving stable and mutually beneficial trade relations, the report relays. It also reaffirmed its commitment to complying with national laws, international trade agreements, and high labor and sustainability standards while supporting efforts to protect the country's competitiveness and investor confidence, 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 A R A G U A Y =============== FRIGORIFICO CONCEPCION: Fitch Lowers Long-Term IDR to 'C' --------------------------------------------------------- Fitch Ratings has downgraded Frigorifico Concepcion S.A.'s (FriCon) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'C' from 'CC'. Fitch has also downgraded FriCon's US dollar senior secured notes due 2028 to 'C' from 'CC'; the Recovery Rating has been changed to 'RR5' from 'RR4' due to lower recovery prospects in a liquidation scenario. The downgrade reflects FriCon's missed coupon payment on 21 July on its 2028 senior secured notes, in connection with an ongoing debt restructuring process. Key Rating Drivers Missed Coupon Payment: FriCon failed to make the coupon payment due on 21 July 2026 on its 2028 senior secured notes amid an ongoing debt restructuring process. The start of a grace period following non-payment of a material financial obligation is consistent with a 'C' Long-Term IDR, which indicates near default under Fitch's rating definitions. Potential Event of Default: Failure to cure the missed interest payment within the grace period would be an event of default and result in a further downgrade of the IDRs to 'RD'. Any changes agreed with bondholders resulting in a deterioration of terms that would constitute a distressed debt exchange under Fitch's rating definitions would also result in a downgrade to 'RD'. Fitch will continue to monitor the progress of FriCon's ongoing debt restructuring. Peer Analysis FriCon's ratings reflect the non-payment of the bond interest and its entry into the 30-day grace period. 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 ('bb+', lower), market and competitive positioning ('b+', moderate), diversification and asset quality ('bb', moderate), company operational characteristics ('bb-', moderate), 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 2025 and 40% for the forecast year 2026. B+ to CC considerations apply in its analysis and results in an adjustment of -2 notches. The governance assessment of 'some deficiencies' has no impact. The operating environment assessment of 'bb+' has no impact. The other risk elements adjustment applies and results in an adjustment of -1 notch. The SCP is 'c'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in Foreign- and Local-Currency IDRs of 'C'. Recovery Analysis The Liquidation Value (LV) approach usually involves discounting the book value of balance sheet assets and summing the results to estimate the total asset liquidation proceeds in a hypothetical liquidation process. The recovery analysis assumes that FriCon would be liquidated in an event of bankruptcy rather than continue as a going concern (GC). This assumption is driven by the current stress on the company's cash flows as evident from the delayed payment of interest on its local bonds and the non-payment of the coupon on the company's US dollar 7.7% bond due 2028; Fitch decided to use the liquidation approach as asset values tend to be less volatile than cash flows. Fitch bases its recovery ratings on FY2025 reported accounts. Fitch assumed a 10% administrative claim. The above assumptions result in a recovery rate assumption within the 'RR5' range for the 2028 senior secured notes. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Fitch would consider failure to cure the missed coupon payment within the original 30-day grace period as an event of default, which would result in a further downgrade of the Long-Term IDR. A debt restructuring that would constitute a distressed debt exchange under Fitch's criteria would also result in a downgrade. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade is not anticipated in the near term. Liquidity and Debt Structure FriCon's liquidity and financial flexibility are weak due to its historically low levels of cash and cash equivalents compared to short-term debt. The missed coupon payment significantly hinders FriCon's ability to access new funding, in Fitch's view, and is in line with the ongoing restructuring process. As of December 2025, cash on hand was USD23 million, compared with a short-term debt of USD270 million. Total debt was around USD840 million, consisting of USD300 million secured notes due in 2028, local-currency notes and bank debt. Issuer Profile Frigorifico Concepcion S.A. was founded in 1997 and is based in Concepcion, Paraguay. The company operates as a meatpacker in Paraguay, Bolivia and Brazil. 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 Frigorífico Concepcio S.A. ESG Considerations Frigorifico Concepcion S.A. has an ESG Relevance Score of '4' for Waste & Hazardous Materials Management; Ecological Impacts , as the company is exposed to cattle sourcing and must monitor direct and indirect suppliers in South America, and it is also exposed to export bans on the beef sector, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. Frigorifico Concepcion S.A. has an ESG Relevance Score of '4' for Governance Structure due to the shareholder's strong influence on management could result in decision making that is detrimental to the company's creditors, 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 ----------- ------ -------- ----- Frigorifico Concepcion S.A. LT IDR C Downgrade CC LC LT IDR C Downgrade CC senior secured LT C Downgrade RR5 CC ===================== P U E R T O R I C O ===================== PUERTO RICO: Monserrate-Torres Loses Bid for Automatic Stay Relief ------------------------------------------------------------------ Judge Laura Taylor Swain of the U.S. District Court for the District of Puerto Rico denied the motion for relief from automatic stay filed by Gelabel Monserrate-Torres in the bankruptcy case of the Commonwealth of Puerto Rico; Puerto Rico Electric Power Authority (PREPA). Movant is the plaintiff in an action captioned Gelabel Monserrate-Torres v. Guardia Nacional de Puerto Rico, et al., Civil No. SJ2020CV01624 (the "Action") that was commenced in the Puerto Rico Court of First Instance, Superior Court of San Juan (the "Commonwealth Court") on February 21, 2020, and asserts claims against the Commonwealth; the National Guard of Puerto Rico, an agency of the Commonwealth; individuals Jose Juan Reyes, Isabelo Rivera Negron, and Magali Ramos Algarín; and the marital property between Mr. Rivera Negron and Ms. Ramos Algarin. On April 18, 2022, the Commonwealth Court entered partial judgment in the Action, dismissing all claims, including personal capacity claims, asserted against Mr. Rivera Negron, Ms. Ramos Algarin, and the marital property formed between them. As a result of the Partial Judgment, no claims against any individual defendant in his or her personal capacity are presently pending in the Action. By the Motion, Movant seeks entry of an order lifting the automatic stay pursuant to section 362(d)(1) of the Bankruptcy Code to permit the Action to proceed before the Commonwealth Court. The Action asserts claims for retaliatory dismissal, alleged to have taken place in June 2018, in violation of Puerto Rico's Anti-Retaliation Act, Act No. 115-1991, 29 L.P.R.A. SEc. 194 et seq., and the Anti-Corruption Code for the New Puerto Rico, Act No. 2-2018, 3 L.P.R.A. Sec. 1881 et seq., arising from Movant's reporting of corruption within the National Guard. The Court finds that, although the automatic stay imposed by section 362 of the Bankruptcy Code in connection with the Commonwealth's Title III case has expired, no relief of any kind permitting pursuit of the Action against the Commonwealth is warranted. Movant did not file an administrative expense proof of claim in the Commonwealth's Title III case, which Movant does not dispute, despite having received notice of the relevant deadline to do so. Movant is subject to a permanent injunction (the "Discharge Injunction") barring further litigation against the Commonwealth on account of the claims asserted in the Action and has not established cause to justify modifying the Discharge Injunction to permit the Action to proceed. Accordingly, the Court denies the Motion. A copy of the Court's Memorandum Order dated July 13, 2026, is available at https://urlcurt.com/u?l=cw0kbe from Pacermonitor.com. About the Commonwealth of Puerto Rico; Puerto Rico Electric Power Authority (PREPA) PREPA is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico PROMESA petition is available at http://bankrupt.com/misc/1701578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agencies; Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case Web site https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. ================= V E N E Z U E L A ================= VENEZUELA: Creditor Group Expands Ahead of Debt Restructuring ------------------------------------------------------------- Bloomberg News reports that a group of Venezuela bondholders is adding new members as it positions for long-awaited debt talks over what could be the biggest sovereign restructuring in more than a decade. More than 15 funds have joined the Venezuela Creditor Committee since the US captured former president Nicolas Maduro in early January, according to a person familiar with the matter, boosting the group's ranks as investors bet warming relations between Caracas and Washington could pave the way for restructuring negotiations, according to the report. The person declined to say how many are presently in the group, the report adds. According to the report, committee representatives are in talks with additional investors interested in joining, including hedge funds in the US and the UK, as they seek to amass holdings of as much as half of Venezuela's roughly $60 billion in outstanding international bonds, according to people familiar with the matter. While the committee declined to disclose its current holdings, it was estimated to control more than $10 billion of defaulted sovereign and state oil company debt as of 2024, says the report. The restructuring effort has been delayed as Venezuela grapples with the aftermath of two catastrophic earthquakes that killed more than 5,000 people and left tens of thousands injured, notes Bloomberg News. Even so, Economic Vice President Calixto Ortega said earlier this month the government expects to release a roadmap "in the next few weeks." An initial assessment of the debt had originally been expected before the end of June, recalls Bloomberg. The creditor group was formed shortly after Venezuela defaulted on its debt in 2017. Its members include Morgan Stanley Investment Management, Grantham, Mayo, Van Otterloo & Co. LLC, among others. Founding member Greylock Capital Management has stepped back from the steering committee while remaining a member of the broader creditor group, according to people familiar with the matter, Bloomberg relays. Through their legal counsel Orrick, Herrington & Sutcliffe LLP, the group said the steering committee, which guides its strategy and includes about a dozen funds, has remained largely unchanged since January even as the broader creditor group has continued to add members, adds the report. Greylock and Houlihan Lokey, the financial adviser for creditors, declined to comment. 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. 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 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. 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