Buenos Aires City, June 06, 2014 -- Moody's Latin America Agente de Calificación de Riesgo positioned
the national scale ratings of several rated Argentine issuers on the revised
national scale that Moody's applies to Argentine issuers.
The national scale rating outlooks for all issuers remain stable.
The recalibrated national scale ratings follow the adoption of a revised
correspondence between Moody's' global scale ratings and national
scale ratings for Argentina, as outlined in "Mapping Moody's
National Scale Ratings to Global Scale Ratings" http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_171508.
The new map allows for greater credit differentiation among domestic issuers.
The recalibrated national scale ratings do not signify a change in credit
quality, since the global scale ratings (GSRs) for these issuers
are unchanged. Rather, the new map associates higher NSRs
for the same global scale rating than did the previous map. In
releasing these NSRs, the credit rating agency reiterated its view
that all the issuers and securities Moody's rates in Argentina have
elevated default risk, as indicated by their deeply speculative
grade global scale ratings. As noted by Gersan Zurita, Moody's
Group Credit Officer for Latin America, "the NSRs do not suggest
that these issuers and their securities credit risks are in any way less
risky than indicated by their GSRs; rather the NSRs simply make additional
rating categories available for use by Moody's to provide greater
rating distinctions and more finely differentiate credit risk than is
possible on the global rating scale."
ISSUERS AND RATINGS AFFECTED
1. Issuer with global ratings at Baa1 (a rating level which has
historically been associated with default frequencies of 0.16%
and 0.7% over 1- and 3-year investment horizons,
respectively):
a. The foreign currency national scale ratings of the Backed Senior
Unsecured Notes of Petrobras Argentina S.A. is unchanged
at Aaa.ar (guarantor is Petroleo Brasileiro S.A.,
rated Baa1 Negative)
2. Issuers with global ratings at Baa3 (a rating level which has
historically been associated with default frequencies of 0.26%
and 1.4% over 1- and 3-year investment horizons,
respectively):
a. The foreign currency national scale ratings of the Backed Senior
Unsecured Notes of Alto Paraná S.A. is unchanged
at Aaa.ar (guarantor is Celulosa Arauco y Constitucion S.A.,
rated Baa3 Negative)
b. The local currency national scale rating for the Senior Secured
Notes of Quickfood S.A. is unchanged at Aaa.ar (guarantor
is BRF S.A., rated Baa3 Stable)
3. Issuers with global ratings at B2 (a rating level which has
historically been associated with default frequencies of 3.5%
and 14.4% over 1- and 3-year investment horizons,
respectively):
a. The foreign and local currency national scale rating for the
Senior Unsecured Notes of Arcor S.A.I.C. is
now Aa1.ar, compared to Aa3.ar, formerly
b. The local currency national scale rating for the Senior Unsecured
Bank Credit Facility of Pan American Energy LLC, (Argentine Branch)
is now Aa1.ar, compared to Aa3.ar, formerly
c. The foreign currency national scale rating for the Backed Senior
Unsecured notes of AMS Foods International S.A. is now Aa3.ar,
compared to A1.ar, formerly (guarantor is Aval Rural S.G.R.,
rated B2/Ba3.ar Stable)
4. Issuers with global ratings at B3 (a rating level which has
historically been associated with default frequencies of 6.0%
and 20.0% over 1- and 3-year investment horizons,
respectively):
a. The local currency national scale Corporate Family Rating of
Aluar Aluminio Argentino S.A.I.C. is now A1.ar,
compared to A2.ar, formerly. The foreign currency
national scale rating for the Senior Unsecured Notes is now A1.ar,
compared to A2.ar, formerly
b. The local currency national scale Corporate Family Rating of
Newsan S.A. is now A1.ar, compared to A2.ar,
formerly. The local currency national scale rating for the Senior
Unsecured Bank Credit Facility and the Senior Unsecured Notes is now A1.ar,
compared to A2.ar, formerly
c. The local currency national scale rating for the Senior Unsecured
Bank Credit Facility of Pilisar S.A. is now A1.ar,
compared to A2.ar, formerly (guarantor is Newsan S.A.,
rated B3/A1.ar Stable)
d. The local currency national scale Corporate Family Rating of
Asociacion de Cooperativas Argentinas Coop is unchanged at A2.ar.
The local and foreign currency national scale rating for the Senior Unsecured
Bank Credit Facility is unchanged at A2.ar
e. The local currency national scale Corporate Family Rating of
Holcim (Argentina) S.A. is unchanged at A2.ar
f. The local currency national scale Corporate Family Rating of
Carboclor S.A. is now A3.ar, compared to Baa1.ar,
formerly
5. Issuers with global ratings at Caa1 (a rating level which has
historically been associated with default frequencies of 7.5%
and 25.7% over 1- and 3-year investment horizons,
respectively):
a. The local currency national scale Corporate Family Rating of
Telecom Argentina S.A. is now Baa1.ar, compared
to Ba1.ar, formerly
b. The local currency national scale Issuer Rating of YPF S.A.
is now Baa1.ar, compared to Ba1.ar, formerly
c. The local currency national scale Corporate Family Rating of
Carsa S.A. is now Baa2.ar, compared to Ba1.ar,
formerly. The local currency national scale rating for the Senior
Unsecured Notes is now Baa2.ar, compared to Ba1.ar,
formerly
d. The local currency national scale Corporate Family Rating of
Car Security S.A. is now Baa2.ar, compared
to Ba1.ar, formerly.
e. The local currency national scale Corporate Family Rating of
Jose Cartellone Construcciones Civiles S.A. is now Baa2.ar,
compared to Ba1.ar, formerly. The local currency national
scale rating for the Senior Unsecured Bank Credit Facility is now Baa2.ar,
compared to Ba1.ar, formerly
f. The local currency national scale Corporate Family Rating of
Longvie S.A. is now Baa2.ar, compared to Ba1.ar,
formerly. The local currency national scale rating for the Senior
Unsecured Notes is now Baa2.ar, compared to Ba1.ar,
formerly
g. The local currency national scale Corporate Family Rating of
Mirgor S.A. is now Baa2.ar, compared to Ba1.ar,
formerly
h. The local currency national scale Corporate Family Rating of
Sullair Argentina S.A. is now Baa2.ar, compared
to Ba1.ar, formerly. The local currency national scale
rating for the Senior Unsecured Bank Credit Facility is now Baa2.ar,
compared to Ba1.ar, formerly
i. The local currency national scale Corporate Family Rating of
Electroingenieria S.A. is now Baa3.ar, compared
to Ba1.ar, formerly
j. The local currency national scale rating for the Senior Unsecured
Bank Credit Facility of Papel Misionero S.A.I.C.F.
is now Baa3.ar, compared to Ba1.ar, formerly
k. The local currency national scale Corporate Family Rating of
Raghsa S.A. is now Baa3.ar, compared to Ba1.ar,
formerly. The foreign currency national scale rating for the Senior
Unsecured Notes is now Baa3.ar, compared to Ba1.ar,
formerly
l. The local currency national scale Corporate Family Rating of
Zucamor S.A. is now Baa3.ar, compared to Ba1.ar,
formerly. The local currency national scale rating for the Senior
Unsecured Bank Credit Facility is now Baa3.ar, compared to
Ba1.ar, formerly
6. Issuer with global scale ratings at Caa2 (a rating level which
has historically been associated with default frequencies of 17.5%
and 38.6% over 1- and 3-year investment horizons,
respectively):
a. The local currency national scale Corporate Family Rating of
Quickfood S.A. is now B2.ar, compared to B3.ar,
formerly
RATINGS RATIONALE
National scale ratings are assigned by applying the published correspondence
from global scale ratings. Where multiple national scale ratings
are mapped to a single global scale rating, rating committees assigned
higher or lower national scale ratings to individual issuers and debts
depending on their relative credit position within the same global scale
rating category, based on the sector's rating methodology.
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 Bulding 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 Rating Methodology published
in January 2014. The principal methodology 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 S.A. was Global
Integrated Oil & Gas Industry published in April 2014. The
principal methodology used in rating AMS Foods International S.A.
and Arcor S.A.I.C. was Global Packaged Goods
published in June 2013. The principal methodology used in rating
Alto Parana SA, Paper 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 Aluar Aluminio Argentino
S.A.I.C. was Global Steel Industry published
in October 2012. The principal methodology used in rating Telecom
Argentina S.A. was Global Telecommunications Industry published
in June 2012. Please see the Credit Policy page on www.moodys.com.ar
for a copy of these methodologies.
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 Credit 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.
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.
Veronica Amendola
Vice President - Senior 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 repositions Argentine Companies on the revised national scale
