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

13 July 2026

LATAM Corporates Daily

Your daily dose of all things LatAm

Latin America Corporate Research

Natalia Corfield AC

(1-212) 834-9150

natalia.corfield@jpmorgan.com

J.P. Morgan Securities LLC

Alejandra Andrade

Highlights (1-212) 834-3220

alejandra.andrade@jpmorgan.com

• FS: Ratings downgraded to B+ from BB- by Fitch J.P. Morgan Securities LLC

• Amaggi: Downgraded to B+ from BB- by Fitch Ian B Snyder (1-212) 834-3798

• Performance ian.b.snyder@jpmchase.com

Prices in this note are as of July 10, 2026. Florencia Palacios

(1-212) 622-1129

florencia.x.palacios@jpmorgan.com

FS: Ratings downgraded to B+ from BB- by Fitch J.P. Morgan Securities LLC

Bhavya Gupta

Fitch downgraded FS to B+ from BB-, with a Stable outlook. The action reflects

(91-22) 6157-3132

expectations that credit metrics will remain pressured through FY27, as FS fully bhavya.x.gupta@jpmchase.com

debt-funds the construction of a fifth corn-ethanol plant in Mato Grosso alongside J.P. Morgan India Private Limited

another greenfield project. Fitch forecasts gross leverage to peak at around 6.3x in

FY27, with net leverage reaching 5.1x, while the higher debt burden should push

EBITDA/interest below 1.5x. Free cash flow is also expected to stay negative

through FY27, weighed down by heavy capex of BRL 3.1 billion in FY27 and BRL

1.5 billion in FY28. Fitch expects metrics to begin improving as the new plants

ramp up from FY28, with fuller normalization by FY29. The ratings remain

supported by FS’s large-scale corn ethanol platform and Mato Grosso footprint but

are constrained by ethanol price volatility and the low correlation between corn

input costs and ethanol prices.