Buenos Aires City, April 21, 2016 -- Moody's Latin America Agente de Calificación de Riesgo, ("Moody´s")
upgraded the global scale ratings of several companies with operations
in Argentina, with the outlook changed to stable from positive.
Moody's also placed under review with direction uncertain the National
scale ratings (NSRs) of several Argentine companies.
The rating actions on the companies' global scale ratings follow
Moody's Investors Service upgrade on April 15, 2016 of Argentina's
government bond rating to B3 from Caa1, with the outlook changed
to stable from positive. For more information, please see
"Moody's upgrades Argentina's issuer rating to B3 with a stable outlook"
available at moodys.com.
The NSRs are being placed under review direction uncertain as a result
of a potential revision of the Argentina's NSR map.
RATINGS RATIONALE
Companies whose global scale ratings were upgraded and national scale
ratings were placed under review:
Arcor S.A.I.C.
Lead Analyst: Veronica Amendola
Person Approving Credit Rating: Peter Abdill
Moody's has upgraded the global scale rating of Arcor's senior
unsecured notes' to B1 from B2 and placed under review with direction
uncertain the Aa1.ar national scale rating. At the same
time, Moody's Investors Service has upgraded Arcor's
CFR and senior unsecured notes to B1 from B2 in the global scale.
The company's outlook was changed to stable (multiple) from positive,
to recognize a stable outlook for the global scale ratings and the placement
of the national scale ratings under review.
Arcor's rating upgrade to B1 from B2 are supported by its leading market
position as one of the largest global producers and exporters of candy
and leading manufacturer of cookies, processed food and corrugated
cardboard. The ratings are also supported by the limited volatility
in products as the majority of its revenues are derived from the relatively
stable food business and attractive expansion opportunities in its local
and international business mainly in Argentina, Brazil, Chile,
Mexico and Peru. Its international business gives it access to
fast-growing developing markets.
The stable outlook reflects Moody's expectation that Arcor will
be able to increase revenues and earnings over the near term based on
its operating plants' efficiency and commercial initiatives thus
allowing the company to preserve adequate access to external financing
sources to meet its short-term debt obligations while maintaining
adequate levels of cash generation in relation to debt.
Asociacion de Cooperativas Argentinas Coop. (ACA)
Lead Analyst: Martina Gallardo Barreyro
Person Approving Credit Rating: Peter Abdill
Moody's upgraded ACA's CFR and ratings of the senior unsecured bank
credit facilities to B2 from B3 in the global scale. In addition,
Moody's placed under review with direction uncertain ACA's
A2.ar national scale CFR and ratings of the senior unsecured bank
credit facilities. The company's outlook was changed to stable
(multiple) from stable, to recognize a stable outlook for the global
scale ratings and the placement of the national scale ratings under review.
The rating upgrade to B2 from B3 is supported by ACA's position
as one of the leading grain exporters and our expectations that the company
will benefit from recent changes on export tax regulations. Also,
the upgrade is supported by ACA's efficient business model,
based on the strong relationships it has forged with its member cooperatives,
with solid logistics capacity and a broad range of services to members.
ACA's strong credit metrics for its rating category also support
the B2 rating.
ACA's stable outlook mainly reflects our expectations that the solid
position of ACA as a leader grain exporter and long track record in the
local market will allow for revenue growth and margin stabilization in
the next 12-18 moths, with particular benefits from tax elimination/reductions
on exports, which represent approximately two thirds of revenues.
Car Security S.A.
Lead Analyst: Martina Gallardo Barreyro
Person Approving Credit Rating: Glenn Eckert
Moody's upgraded Car Security's CFR to B3 from Caa1 in the global
scale. In addition, Moody's placed under review with
direction uncertain the Baa2.ar national scale CFR. The
company's outlook was changed to stable (multiple) from positive,
to recognize a stable outlook for the global scale rating and the placement
of the national scale rating under review.
The rating upgrade to B3 from Caa1 is supported by Car Security's leading
position in Argentina's SVRS market and strong credit metrics for its
rating category, despite its small size relative to global peers.
The rating action also reflects its strategy for growth and its evolving
business model, which relies on a significant amount of recurring
revenues from automobile insurance companies.
Car Security's stable outlook mainly reflects the company's
broad base of recurrent revenues derived from insurance companies,
which will support revenue growth despite economic slowdown expected in
2016.
Holcim (Argentina) S.A.
Lead Analyst: Martina Gallardo Barreyro
Person Approving Credit Rating: Glenn Eckert
Moody's upgraded Holcim (Argentina)'s CFR to B2 from B3 in the global
scale. In addition, Moody's placed under review with
direction uncertain the A2.ar national scale CFR. The company's
outlook was changed to stable (multiple) from positive, to recognize
a stable outlook for the global scale rating and the placement of the
national scale rating under review.
The rating upgrade to B2 from B3 is supported by Holcim's strong
credit metrics for its rating category, with low leverage and good
liquidity profile, and our expectation that the company will continue
to benefit from its position as one of the largest players in the local
cement industry, serving around 27% of the local demand.
Moreover, the B2 rating is also supported by the strong credit profile
and the ongoing support provided by its parent company, LafargeHolcim
Ltd., (Baa2 stable).
Holcim (Argentina)'s stable outlook reflects our expectation that
the company will be able to maintain its strong credit metrics by taking
advantage of increased construction activity in Argentina, mainly
driven by public work activity, particularly as a result of significant
energy and infrastructure projects.
Longvie S.A.
Lead Analyst: Martina Gallardo Barreyro
Person Approving Credit Rating: Glenn Eckert
Moody's upgraded Longvie' CFR and senior unsecured notes'
ratings to B3 from Caa1 in the global scale. In addition,
Moody's placed under review with direction uncertain the Baa2.ar
national scale CFR and senior unsecured notes' ratings. The
company's outlook was changed to stable (multiple) from positive,
to recognize a stable outlook for the global scale ratings and the placement
of the national scale ratings under review.
The rating upgrade to B3 from Caa1 is supported by Longvie's position
as one of the largest Argentine gas and electric appliances manufacturers,
with a wide product range and well-known brand name, which
will provide difersification to support revenue growth despite Argentina's
economic slowdown. Additionally, the upgrade considers Longvie's
strong credit metrics for its rating category. It also considers
its well-established relationships with parts suppliers and proven
track record of operations, serving the local market since 1918.
Longvie's stable outlook reflects Moody's view that the creditworthiness
of the company will remain strong despite economic downturn, with
an adequate liquidity profile and low leverage.
Mirgor S.A.
Lead Analyst: Martina Gallardo Barreyro
Person Approving Credit Rating: Glenn Eckert
Moody's upgraded Mirgor' CFR to B3 from Caa1 in the global scale.
In addition, Moody's placed under review with direction uncertain
the Baa2.ar national scale CFR. The company's outlook
was changed to stable (multiple) from positive, to recognize a stable
outlook for the global scale rating and the placement of the national
scale rating under review.
The rating upgrade to B3 from Caa1 is supported by Mirgor's position
as one of the leader players in the Argentine domestic auto-parts
business and a sound business model in the electronics industry,
as well as long-established, coordinated, operations
with local automakers and, more recently, with the international
brands of electronic goods that Mirgor manufactures. The rating
upgrade is also supported by Mirgor's good credit metrics for its
rating category and adequate liquidity profile.
Mirgor's stable outlook reflects Moody's view that the creditworthiness
of the company will be supported by the company's sound business
and strong liquidity profile.
Raghsa S.A.
Lead Analyst: Martina Gallardo Barreyro
Person Approving Credit Rating: Glenn Eckert
Moody's upgraded Raghsa' CFR and senior unsecured notes' ratings
maturing in 2017 to B3 from Caa1 in the global scale. At the same
time, Moody's Investors Service has upgraded Raghsa's
senior unsecured notes' ratings maturing in 2021 to B3 from Caa1.
In addition, Moody's placed under review with direction uncertain
the Baa3.ar national scale CFR and senior unsecured notes'
ratings. The company's outlook was changed to stable (multiple)
from positive, to recognize a stable outlook for the global scale
ratings and the placement of the national scale ratings under review.
The rating upgrade to B3 from Caa1 is supported by Raghsa's expected growth
in operating cash flow generation as a result of the new Madero project
due mid-year 2016, high occupancy rates and healthy tenants
base. Also supporting the B3 rating are Raghsa's good credit
metrics, moderate leverage for the rating category and high quality
assets, mostly unencumbered, that support its liquidity profie
Raghsa's stable outlook reflects Moody's view that the creditworthiness
of the company will be supported steady revenue growth and cash flow generation
derived from the broad base of tenants, high occupancy rates and
multiple-year lease contracts.
.
Sullair Argentina S.A.
Lead Analyst: Martina Gallardo Barreyro
Person Approving Credit Rating: Glenn Eckert
Moody's upgraded Sullair Argentina' CFR B3 from Caa1 in the global
scale. In addition, Moody's placed under review with
direction uncertain the Baa2.ar national scale CFR. The
company's outlook was changed to stable (multiple) from positive,
to recognize a stable outlook for the global scale ratings and the placement
of the national scale ratings under review.
The rating upgrade to B3 from Caa1 is supported by Sullair's strong credit
metrics, solid franchise and long track record in the equipment
rental market in Argentina, as well as by its growing business in
Uruguay. Sullair's long-established commercial relationship
with its main suppliers, also supports the company's business model
and ratings.
Sullair's stable outlook reflects Moody's view that the company's
long track record and broad base of clients will support revenue growth,
driven by expected growth in the construction and energy sectors.
Telecom Argentina S.A.
Lead Analyst: Marcos Schmidt
Person Approving Credit Rating: John Diaz
Moody's upgraded Telecom Argentina S.A.'s ("Telecom")
CFR to B3 from Caa1 in the global scale. In addition, Moody's
placed under review with direction uncertain the Baa1.ar national
scale CFR. The company's outlook was changed to stable (multiple)
from positive, to recognize a stable outlook for the global scale
rating and the placement of the national scale rating under review.
The rating upgrade reflects Telecom's track record of sustainable growth
over the last few years, despite a challenging economic and political
environment in Argentina as well as the company's solid credit profile,
supported by low leverage as evidenced by a sustained gross debt/EBITDA
ratio below 0.5 time as adjusted by Moody's throughout the FY2010
to FY2015 periods.
The global scale stable outlook for Telecom reflects Moody's view that
the creditworthiness of the company will remain sound over the next quarters,
with acceptable liquidity and low leverage.
YPF S.A.
Lead Analyst: Nymia Almeida
Person Approving Credit Rating: Steve Wood
Moody's upgraded YPF's issuer rating to B3 from Caa1 in the global.
In addition, Moody's placed under review with direction uncertain
the Baa1.ar national scale issuer rating. At the same time,
Moody's Investors Service has upgraded YPF's global scale
senior unsecured notes' ratings to B3 from Caa1 and the MTN program
rating to (P) B3 from (P) Caa1, with the outlook changed to stable
from positive. The company's outlook was changed to stable
(multiple) from positive, to recognize a stable outlook for the
global scale ratings and the placement of the national scale rating under
review.
The action incorporates YPF's vulnerability to the local energy
policy framework, as well as its status as the largest industrial
corporate and energy company in Argentina, where it generates the
bulk of its revenues. In addition, this action reflects the
close relationship between YPF and the government of Argentina,
since YPF is majority owned and controlled by the latter. YPF's
B3 ratings reflect the application of Moody's joint default rating methodology
for government-related issuers. YPF's B3 rating combines
its underlying b3 Baseline Credit Assessment, which expresses a
company's intrinsic credit risk, and Moody's view of moderate support
from and high dependence of the government and the company on credit factors
that could cause stress on both simultaneously.
YPF's stable outlook assumes that the Argentine government has incentives
to maintain prices at a level that makes it economically attractive for
oil companies to invest to increase production and reduce the country´s
dependence on imports of oil and gas.
Companies with unchanged global scale ratings and national scale ratings
placed under review
Carboclor S.A.
Lead Analyst: Nymia Almeida
Person Approving Credit Rating: Steve Wood
Moody's placed under review with direction uncertain Carboclor's
Baa3.ar national scale CFR and Aaa.ar national scale rating
of the senior unsecured notes guaranteed by Administracion Nacional de
Combustibles (ANCAP, B1 stable). Global scale CFR is unchanged
at Caa1 and senior unsecured notes ratings' at B1, both with
stable outlook. The company's outlook was changed to stable
(multiple) from stable, to recognize a stable outlook for the global
scale ratings and the placement of the national scale ratings under review.
Electroingenieria S.A.
Lead Analyst: Martina Gallardo Barreyro
Person Approving Credit Rating: Glenn Eckert
Moody's placed under review with direction uncertain Electroingenieria's
Baa3.ar national scale CFR and senior unsecured notes rating.
Global scale CFR and senior unsecured notes ratings are unchanged at Caa1
with stable outlook. The company's outlook was changed to
stable (multiple) from stable, to recognize a stable outlook for
the global scale ratings and the placement of the national scale ratings
under review.
Newsan S.A.
Lead Analyst: Martina Gallardo Barreyro
Person Approving Credit Rating: Glenn Eckert
Moody's placed under review with direction uncertain Newsan's
A1.ar national scale CFR and senior unsecured notes rating.
Global scale CFR and senior unsecured notes ratings are unchanged at B3
with positive outlook. The company's outlook was changed
to positive (multiple) from positive, to recognize a positive outlook
for the global scale ratings and the placement of the national scale ratings
under review.
Petrobras Argentina S.A.
Lead Analyst: Nymia Almeida
Person Approving Credit Rating: Steve Wood
Moody's placed under review with direction uncertain Petrobras Argentina's
A3.ar national scale senior unsecured notes ratings, guaranteed
by Petroleo Brasileiro S.A. (B3 negative). Global
scale CFR and senior unsecured notes ratings are unchanged at B3 with
negative outlook. The company's outlook was changed to negative
(multiple) from negative, to recognize a negative outlook for the
global scale ratings and the placement of the national scale ratings under
review.
Quickfood S.A.
Lead Analyst: Martina Gallardo Barreyro
Person Approving Credit Rating: Peter Abdill
Moody's placed under review with direction uncertain Quickfood's
Ba1.ar national scale CFR. Global scale CFR is unchanged
at Caa1 with stable outlook. The Ba1 global scale and Aaa.ar
national scale ratings of Quickfood's senior notes guaranteed by
BRF S.A. (Ba1 negative) remain unchanged with negative outlook.
The company's outlook stays as stable (multiple) to recognize a
stable outlook for the global scale CFR, a negative outlook for
the guaranteed notes and the placement of the national scale ratings under
review.
POTENTIAL MAPPING RECALIBRATION FROM GLOBAL SCALE TO NATIONAL SCALE RATINGS
NSRs are being placed under review direction uncertain pending a potential
revision of the Argentina's NSR map. Following the recent
upgrade of Argentina's sovereign rating and the increase of its
local currency country ceiling to Ba3 from B1, the current mapping
of global scale ratings to national scale ratings may no longer adequately
serve one of its intended purposes, which is to provide greater
credit differentiation among issuers in Argentina than is possible on
the global rating scale. As a result, the lowest global scale
rating that maps to Aaa.ar is likely to rise to Ba3 in line with
the new country ceiling, and the new map is likely to associate
lower NSRs with a given global scale rating than does the current map.
Assuming the map is revised in line with current expectations, we
would anticipate that the large majority of NSRs being placed under review
will be confirmed at their current levels when the reviews conclude,
though a small number may be raised or lowered.
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 ".za"
for South Africa. 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".
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 Asociacion de Cooperativas Argentinas
Coop. was Global Protien and Agriculture Industry published in
May 2013.
The principal methodology used in rating Car Security S.A.
was Business and Consumer Service Industry published in December 2014.
The principal methodology used in rating Holcim (Argentina) S.A.
was Building Materials Industry published in September 2014.
The principal methodology used in rating Longvie S.A. and
Newsan S.A. was Consumer Durables Industry published in
September 2014.
The principal methodology used in rating Mirgor S.A. was
Global Automotive Supplier Industry published in May 2013.
The principal methodology used in rating Sullair Argentina S.A.
was Equipment and Transporation Rental Industry published in December
2014.
The principal methodology used in rating YPF Sociedad Anonima was Global
Integrated Oil & Gas Industry published in April 2014. Other
methodologies used include the Government-Related Issuers methodology
published in October 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 Telecom Argentina S.A.
was Global Telecommunications Industry published in December 2010.
The principal methodology used in rating Carboclor S.A.
was Global Chemical Industry Rating Methodology published in December
2013.
The principal methodology used in rating Petrobras Argentina S.A.
was Global Independent Exploration and Production Industry published in
December 2011.
The principal methodology used in rating Quickfood S.A.
was Global Protein and Agriculture Industry published in May 2013.
The principal methodology used in rating Electroingenieria S.A.
was Construction Industry published in November 2014.
Please see the Ratings Methodologies page on www.moodys.com.ar
for a copy of these methodologies.
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 credit rating action on the support provider and in relation to
each particular credit 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 credit rating action,
and whose ratings may change as a result of this credit 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 person who approved Asociacion de Cooperativas Argentinas Coop.,
Quickfood S.A., and Arcor S.A.I.C.'s
credit ratings is Peter Abdill, MD- Corporate Finance,
Healthcare and Consumer Products, Journalists Tel 212-553-0376,
Subscribers Tel 212-553-1653. The person who approved
Raghsa S.A., Car Security S.A.,
Holcim (Argentina) S.A., Longvie S.A.,
Newsan S.A., Mirgor S.A., Electroingenieria
S.A., and Sullair Argentina S.A.'s,
credit ratings is Glenn Eckert, Associate Managing Director,
Home Building Materials, Journalists Tel 212-553-0376,
Subscribers Tel 212-553-1653. The person who approved
Carboclor S.A., Petrobras Argentina S.A.,
and YPF Sociedad Anonima's credit ratings is Steve Wood, MD-
Corporate Finance, Energy-Oil-Gas, Journalists
Tel 212-553-0376, Subscribers Tel 212-553-1653.
The person who approved Telecom Argentina S.A.'s credit
ratings is John Diaz, MD-Corporate Finance, Telco-Media,
Journalists Tel 212-553-0376, Subscribers Tel 212-553-1653.
The below contact information is provided for information purposes only.
Please see the ratings tab of the issuer page at www.moodys.com,
for each of the ratings covered, Moody's disclosures on the
lead analyst and the Moody's legal entity that has issued the ratings.
For issuers domiciled in Argentina, 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
Asst Vice President - Analyst
Corporate Finance Group
Moody's Latin America ACR
Ing. Butty 240
16th Floor
Buenos Aires City C1001AFB
Argentina
JOURNALISTS: (800) 666 -3506
SUBSCRIBERS: (5411) 5129 2600
Glenn B. Eckert
Associate Managing Director
Corporate Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Releasing Office:
Moody's Latin America ACR
Ing. Butty 240
16th Floor
Buenos Aires City C1001AFB
Argentina
JOURNALISTS: (800) 666 -3506
SUBSCRIBERS: (5411) 5129 2600
Moody´s upgrades Argentine corporate issuers and places NSRs under review
