Fitch Upgrades Numerous Argentine Corporate Ratings

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has taken rating actions on the following corporate issuers due to the recent upgrade of Argentina's Country Ceiling to 'B' from 'CCC':

--Arcor S.A.I.C.--Capex S.A.--Central Puerto S.A.--Compania Latinoamericana de Infraestructura y Servicios S.A. (CLISA)--Inversiones y Representaciones S.A.--IRSA Propiedades Comerciales S.A.--Mastellone Hermanos Sociedad Anonima--Medanito S.A.--Pan American Energy LLC--Pan American Energy LLC Sucursal Argentina--YPF S.A.

A full list of rating actions follows at the end of this release.

Fitch upgraded the local currency Issuer Default Ratings (IDRs) of Argentina as well as its Country Ceiling to 'B' from 'CCC' on March 22, 2016. The long-term local currency IDR upgrade was driven by the improved consistency and sustainability of Argentina's policy framework, reduced external vulnerability, and the expected easing of fiscal financing constraints.

Country Ceilings are designed to reflect the risks associated with sovereigns placing restrictions upon private sector corporates, which may prevent them from converting local currency to any foreign currency) under a stress scenario, and/or may not allow the transfer of FC abroad to service FC debt obligations. Since taking power in December 2015, the Mauricio Macri administration removed FX controls introduced in 2011 and increased the flexibility of the Argentine peso, which should contribute towards improving the capacity of the economy to absorb external shocks and relieve pressure on international reserves.

RATING SENSITIVITIESPositive: Future developments that could, individually or collectively, lead to positive rating actions in the short term:--An upgrade of the Argentine sovereign rating and country rating;--Material improvements in economic conditions and the availability of additional financing options could positively impact local currency and issuance ratings.

Negative: Future developments that could, individually or collectively, lead to negative rating actions in the short term:--Any negative rating actions on the Argentine sovereign;--Marked economic weakness;--A significant deterioration of corporates' credit metrics.

FULL LIST OF RATING ACTIONS

Fitch has taken the following rating actions:

Arcor S.A.I.C.--Foreign currency long-term IDR upgraded to 'B+' from 'B-'; Outlook Stable;--Local currency long-term IDR affirmed at 'B+'; Outlook Stable;--Notes due 2017 upgraded to 'B+' from 'B'; Recovery Rating revised to 'RR4' from 'RR3'.

Capex S.A.--Foreign currency long-term IDR upgraded to 'B' from 'CCC'; assigned a Stable Rating Outlook;--Local currency long-term IDR affirmed at 'B'; Outlook Stable;--Notes due 2018 upgraded to 'B' from 'CCC+'; Recovery Rating revised to 'RR4' from 'RR3'.

Central Puerto S.A.--Foreign currency long-term IDR upgraded to 'B' from 'CCC'; assigned a Stable Rating Outlook;--Local currency long-term IDR affirmed at 'B'; Outlook Stable;--Notes due 2017 upgraded to 'B' from 'CCC+'; Recovery Rating revised to 'RR4' from 'RR3'.

Compania Latinoamericana de Infraestructura y Servicios S.A. (CLISA)--Foreign currency long-term IDR upgraded to 'B-' from 'CCC'; assigned a Negative Rating Outlook;--Local currency long-term IDR affirmed at 'B-'; Outlook Negative;--Notes due 2019 upgraded to 'B-' from 'CCC'; Recovery Rating affirmed at 'RR4'.

Inversiones y Representaciones S.A.--Foreign currency long-term IDR upgraded to 'B' from 'CCC'; assigned a Stable Rating Outlook;--Local currency long-term IDR affirmed at B+; Outlook Stable;--Notes due 2017 and 2020 upgraded to 'B' from 'B-'; Recovery Rating revised to 'RR4' from 'RR3'.

IRSA Propiedades Comerciales S.A.--Foreign currency long-term IDR upgraded to 'B' from 'CCC'; assigned a Stable Rating Outlook;--Local currency long-term IDR affirmed at 'B+'; Outlook Stable;--Notes due 2017 and 2023 upgraded to 'B' from 'B-'; Recovery Rating revised to 'RR4' from 'RR3'.

Mastellone Hermanos Sociedad Anonima--Foreign currency long-term IDR affirmed at 'CCC';--Local currency long-term IDR affirmed at 'CCC';--Notes due 2021 upgraded to 'CCC' from 'CCC-'; Recovery Rating affirmed at 'RR4'.

Medanito S.A.--Foreign currency long-term IDR upgraded to 'B-' from 'CCC'; assigned a Stable Rating Outlook;--Local currency long-term IDR affirmed at 'B-'; Outlook Stable;--Long-term international senior unsecured expected debt rating of 'CCC+/RR3(EXP)' was withdrawn. The rating is being withdrawn as the transaction is no longer expected to proceed as previously envisaged.

Pan American Energy LLC--Foreign currency long-term IDR upgraded to 'B+' from 'B-'; Outlook Stable;--Local currency long-term IDR affirmed at 'B+'; Outlook Stable.

Pan American Energy LLC Sucursal Argentina--Notes due 2021 upgraded to 'B+' from 'B'; Recovery Rating revised to 'RR4' from 'RR3'.

YPF S.A.--Foreign currency long-term IDR upgraded to 'B' from 'CCC'; assigned a Stable Rating Outlook;--Local currency long-term IDR affirmed at 'B'; Outlook Stable;--Notes due 2018, 2021, 2024, 2025, 2028 upgraded to 'B' from 'CCC+'; Recovery Rating revised to 'RR4' from 'RR3'.

Date of Relevant Rating Committee: March 23, 2016.

Additional information is available at 'www.fitchratings.com'.

Applicable CriteriaCorporate Rating Methodology - Including Short-Term Ratings and Parent and Subsidiary Linkage (pub. 17 Aug 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=869362

Additional DisclosuresDodd-Frank Rating Information Disclosure Formhttps://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1001419Solicitation Statushttps://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1001419Endorsement Policyhttps://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160323006601/en/

Fitch Ratings
Primary Analyst
Joe Bormann, CFA
Managing Director
+1-312-368-3340
Fitch Ratings, Inc.
70 W. Madison St.
Chicago, IL 60602
or
Secondary Analyst
Paula Garcia-Uriburu
Director
+56 2 2499 3316
or
Committee Chairperson
Lucas Aristizabal
Senior Director
+1-312-368-3260
or
Media Relations
Elizabeth Fogerty, New York, +1 212-908-0526
[email protected]

Source: Fitch Ratings

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