LATAM Corporates Daily: Your daily dose of all things LatAm

Research evidence excerpt

LATAM Corporates Daily: Your daily dose of all things LatAm

J P M O R G A N Latin America Credit Research

30 June 2026

LATAM Corporates Daily

Your daily dose of all things LatAm

Highlights Latin America Corporate Research

Natalia Corfield AC

• FSBIOE: Fueling growth while testing the brakes (1-212) 834-9150

natalia.corfield@jpmorgan.com

• Braskem: Removal from JPM indexes following S&P’s downgrade J.P. Morgan Securities LLC

• Performance Alejandra Andrade

(1-212) 834-3220

Prices in this note are as of June 29, 2026. alejandra.andrade@jpmorgan.com

J.P. Morgan Securities LLC

Ian B Snyder

(1-212) 834-3798

ian.b.snyder@jpmchase.com

FSBIOE: Fueling growth while testing the brakes J.P. Morgan Securities LLC

We view FS’s decision to proceed with its fifth plant as an aggressive step, as it will Florencia Palacios

be the first time the company manages two construction projects simultaneously. (1-212) 622-1129

florencia.x.palacios@jpmorgan.com

The expansion, together with the new dividend distribution, is expected to pressure J.P. Morgan Securities LLC

the balance sheet through elevated capex and working capital needs, at a time when

Bhavya Gupta

FY27 EBITDA will be weaker due to lower ethanol prices. Under our calculations, (91-22) 6157-3132

this should result in negative FCF of R$2.7 billion in FY27 and a temporary bhavya.x.gupta@jpmchase.com

leverage spike to 5.1x. We see a deleveraging path once the plants ramp up and FCF J.P. Morgan India Private Limited

turns positive in FY28, but the pace will depend largely on the ethanol price

environment. Rating agencies may look through the temporary spike, but weaker

credit metrics, simultaneous execution risk, and continued dividends could test

their tolerance. The market reacted negatively, with bonds dropping by almost 4