Buenos Aires City, August 07, 2014 -- Moody's Latin America Agente de Calificación de Riesgo has revised
to negative from stable the outlook for several companies operating in
Argentine, while ratings of all Argentine companies were affirmed.
The companies' outlook changes follow the revision in Argentinean
government's Caa1 rating outlook to negative from stable on July
31, 2014.
ISSUERS AND RATINGS AFFIRMED
Alto Paraná S.A: the Baa3 Global Foreign Currency
and Aaa.ar National Foreign Currency rating of the Backed Senior
Unsecured Notes (guarantor is Celulosa Arauco y Constitucion S.A.,
rated Baa3 Stable) were affirmed. The outlook remains Stable.
Arcor S.A.I.C: the B2 Global Foreign &
National Currency rating and Aa1.ar National Foreign & National
Currency rating for the Senior Unsecured Notes were affirmed. The
outlook remains Stable.
Asociacion de Cooperativas Argentinas Coop: the B3 Global Local
Currency Corporate Family Rating and A2.ar National Local Currency
Corporate Family Rating; and the B3 Global National & Local Currency
rating and A2.ar National Global & Local Currency rating for
the Senior Unsecured Bank Credit Facility were affirmed. The outlook
remains Stable.
Carboclor S.A: the B3 Global Local Currency Corporate Family
Rating and A3.ar National Local Currency Corporate Family Rating
were affirmed. The outlook remains Stable.
Car Security S.A: the Caa1 Global Local Currency Corporate
Family rating and Baa2.ar National Local Currency Corporate Family
rating were affirmed. The outlook was changed to Negative from
Stable.
Carsa S.A: the Caa1 Global Local Currency Corporate Family
Rating and Baa2.ar National Local Currency Corporate Family Rating;
and the Caa1 Global Local Currency rating and Baa2.ar National
Local Currency rating for the Senior Unsecured Notes were affirmed.
The outlook was changed to Negative from Stable.
Electroingenieria S.A: the Caa1 Global Local Currency Corporate
Family Rating and Baa3.ar National Local Currency Corporate Family
Ratings were affirmed. The outlook was changed to Negative from
Stable.
Holcim (Argentina) S.A: the B3 Global Local Currency Corporate
Family Rating and A2.ar National Local Currency Corporate Family
Rating were affirmed. The outlook remains Stable.
Jose Cartellone Construcciones Civiles S.A.: the Caa1
Global Local Currency Corporate Family Rating and Baa2.ar National
Local Currency Corporate Family Rating; and the Caa1 Global Local
Currency rating and Baa2.ar National Local Currency rating for
the Senior Unsecured Bank Credit Facility were affirmed. The outlook
was changed to Negative from Stable.
Longvie S.A: the Caa1 Global Local Currency Corporate Family
Rating and Baa2.ar National Local Currency Corporate Family Rating;
and the Caa1 Global Local Currency rating and Baa2.ar National
Local Currency rating for the Senior Unsecured Notes were affirmed.
The outlook was changed to Negative from Stable.
Mirgor S.A: the Caa1 Global Local Currency Corporate Family
Rating and Baa2.ar National Local Currency Corporate Family Rating
were affirmed. The outlook was changed to Negative from Stable.
Newsan S.A: the B3 Global Local Currency Corporate Family
Rating and A1.ar National Local Currency Corporate Family Rating;
the B3 Global Local Currency rating and A1.ar National Local Currency
rating for the Senior Unsecured Bank Credit Facility; and the B3
Global Local Currency rating and A1.ar National Local Currency
rating for the Senior Unsecured Notes were affirmed. The outlook
remains Stable.
Papel Misionero S.A.I.C.F: the Caa1
Global Local Currency rating and Baa3.ar National Local Currency
rating for the Senior Unsecured Bank Credit Facility were affirmed.
The outlook was changed to Negative from Stable.
Pilisar S.A: the B3 Global Local Currency rating and A1.ar
National Local Currency rating for the Senior Unsecured Bank Credit Facility
(guarantor is Newsan S.A., rated B3/A1.ar stable)
were affirmed. The outlook remains Stable.
Quickfood S.A: the Caa2 Global Local Currency Corporate Family
Rating and B2.ar National Local Currency Corporate Family rating;
and the Baa3 Global Foreign Currency and Aaa.ar National Foreign
Currency rating of the Backed Senior Secured Notes (guarantor is BRF S.A.,
rated Baa3 Stable) were affirmed. The outlook remains Stable.
Raghsa S.A: the Caa1 Global Local Currency Corporate Family
Rating and Baa3.ar National Local Currency Corporate Family Rating;
and the Caa1 Global Foreign Currency rating and Baa3.ar National
Foreign Currency rating for the Senior Unsecured Notes were affirmed.
The outlook was changed to Negative from Stable.
Sullair Argentina S.A: the Caa1 Global Local Currency Corporate
Family Rating and Baa2.ar National Local Currency Corporate Family
Rating; and the Caa1 Global Local Currency rating and Baa2.ar
National Local Currency rating for the Senior Unsecured Bank Credit Facility
were affirmed. The outlook remains Stable.
YPF S.A: the Caa1 Global Local Currency Issuer Rating and
Baa1.ar National Local Currency Issuer Rating; were affirmed.
The outlook was changed to Negative from Stable.
Zucamor S.A: the Caa1 Global Local Currency Corporate Family
Rating and Baa3.ar National Local Currency Corporate Family Rating;
and the Caa1 Global Foreign Currency rating and Baa3.ar National
Foreign Currency rating for the Senior Unsecured Bank Credit Facility
were affirmed. The outlook was changed to Negative from Stable.
Pan American Energy LLC, (Argentine Branch): the B2 Global
Local Currency rating and Aa1.ar National Local Currency rating
for the Senior Unsecured Bank Credit Facility; and were affirmed.
The outlook remains Stable.
Petrobras Argentina the Baa1 Global Foreign Currency rating and Aaa.ar
National Foreign Currency Rating for the Backed Senior Unsecured Notes
(guarantor is Petroleo Brasileiro S.A., rated Baa1
Negative) were affirmed. The outlook remains Stable.
Telecom Argentina S.A: the Caa1 Global Local Currency Corporate
Family Rating and Baa1.ar National Local Currency Corporate Family
Rating were affirmed. The outlook remains Stable.
RATINGS RATIONALE
The rating outlook revisions for these companies were triggered by the
change to negative in the outlook for the Argentine government's
Caa1 rating, as holders of Argentine foreign legislation bonds restructured
in 2005 and 2010 had not received their scheduled payment on July 30,
following a 30 day grace period from the original June 30 payment date.
The negative outlook on Argentina's Caa1 issuer rating reflects Moody's
view that the default could increase pressure on Argentina's official
foreign exchange reserves amid continued economic stagnation. The
default is likely to exacerbate the economic contraction, increase
pressure on the exchange rate, and push inflation even higher.
Argentina is mired in stagflation with a GDP that declined 0.2%
year-over-year during the first quarter and high inflation
of over 30%, driven in good part by continued currency depreciation.
The default is likely to exacerbate the economic contraction, increase
pressure on the exchange rate, and push inflation even higher.
The negative outlook for the affected corporates reflects Moody's view
that the creditworthiness of these companies cannot be completely de-linked
from the credit quality of the Argentine government, and thus their
ratings need to closely reflect the risk that they share with the sovereign.
Moody's believes that a weaker sovereign has the potential to create a
ratings drag on companies operating within its borders, and therefore
it is appropriate to limit the extent to which these issuers can be rated
higher than the sovereign, in line with Moody's Rating Implementation
Guidance "How Sovereign Credit Quality May Affect Other Ratings" published
on 13 February 2012, and available on www.moodys.com.
The principal methodology used in rating MIRGOR S.A. was
Global Automotive Supplier Industry published in May 2013. The
principal methodology used in rating Holcim (Argentina) S.A.
was Global Building Materials Industry published in July 2009.
The principal methodology used in rating Car Security S.A.
was Global Business & Consumer Service Industry Rating Methodology
published in October 2010. The principal methodology used in rating
Carboclor S.A. was Global Chemical Industry published in
December 2013. The principal methdology used in rating Electroingenieria
S.A. and Jose Cartellone Construcciones Civiles S.A.
was Global Construction Methodology published in November 2010.
The principal methodology used in rating Longvie S.A.;
Newsan S.A. and PILISAR S.A. was Global Consumer
Durables published in October 2010. The principal methodology used
in rating Sullair Argentina S.A. was Global Equipment and
Automobile Rental Industry published in December 2010. The principal
methodology used in rating Pan American Energy LLC, Argentine Branch,
and Petrobras Argentina S.A. was Global Independent Exploration
and Production Industry published in December 2011. The principal
methodology used in rating YPF Sociedad Anonima was Global Integrated
Oil & Gas Industry published in April 2014. The principal methodology
used in rating Arcor S.A.I.C. was Global Packaged
Goods published in June 2013. The principal methodology used in
rating Alto Parana SA, Papel Misionero S.A.I.F.C.,
and Zucamor S.A. was Global Paper and Forest Products Industry
published in October 2013. The principal methodology used in rating
Asociacion de Cooperativas Argentinas Coop. and Quickfood S.A.
was Global Protein and Agriculture Industry published in May 2013.
The principal methodology used in rating Raghsa S.A. was
Global Rating Methodology for REITs and Other Commercial Property Firms
published in July 2010. The principal methodology used in rating
Carsa S.A. was Global Retail Industry published in June
2011. The principal methodology used in rating Telecom Argentina
S.A. was Global Telecommunications Industry published in
December 2010. Please see the Credit Policy page on www.moodys.com.ar
for a copy of these methodologies.
Other Factors used in these ratings are described in How Sovereign Credit
Quality May Affect Other Ratings, published in February 2012.
Moody's National Scale Credit Ratings (NSRs) are intended as relative
measures of creditworthiness among debt issues and issuers within a country,
enabling market participants to better differentiate relative risks.
NSRs differ from Moody's global scale credit ratings in that they are
not globally comparable with the full universe of Moody's rated entities,
but only with NSRs for other rated debt issues and issuers within the
same country. NSRs are designated by a ".nn"
country modifier signifying the relevant country, as in ".mx"
for Mexico. For further information on Moody's approach to national
scale credit ratings, please refer to Moody's Credit rating Methodology
published in June 2014 entitled "Mapping Moody's National Scale
Ratings to Global Scale Ratings".
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support provider's credit rating. For provisional ratings,
this announcement provides certain regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
have affected the rating. For further information please see the
ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.ar.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this rating action, and
whose ratings may change as a result of this rating action, the
associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
The below contact information is provided for information purposes only.
Please see the ratings tab of the issuer page at www.moodys.com.ar,
for each of the ratings covered, Moody's disclosures on the
lead analyst and the Moody's legal entity that has issued the ratings.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
The regulatory report related to this rating action is available on www.moodys.com.ar.
Please see www.moodys.com.ar for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com.ar
for additional regulatory disclosures for each credit rating.
Martina Gallardo Barreyro
Analyst
Corporate Finance Group
Moody's Latin America Agente de Calificación de Riesgo
Ing. Butty 240
16th Floor
Buenos Aires City C1001AFB
Argentina
JOURNALISTS: (800) 666 -3506
SUBSCRIBERS: (5411) 5129 2600
Marianna Fernandes Rodrigues Waltz
Associate Managing Director
Corporate Finance Group
JOURNALISTS: 800-891-2518
SUBSCRIBERS: 55-11-3043-7300
Releasing Office:
Moody's Latin America Agente de Calificación de Riesgo
Ing. Butty 240
16th Floor
Buenos Aires City C1001AFB
Argentina
JOURNALISTS: (800) 666 -3506
SUBSCRIBERS: (5411) 5129 2600
Moody's changes outlook to negative on Argentine Companies
