Rating Action: Moody's downgrades Argentine companies The document has been translated in other languages
Global Credit Research - 19 Mar 2014
Buenos Aires City, March 19, 2014 -- Moody's Latin America Agente de Calificación de Riesgo downgraded the global scale debt and issuer ratings for several Argentine non-financial corporates to Caa1 from B3. The action follows Moody's 17 March 2014 downgrade of the Argentine government's bond rating to Caa1 with stable outlook from B3 with negative outlook. The deterioration in Argentina's credit profile as captured in the rating downgrade has direct implications for the ratings of corporates, given that it also expresses the increase of systemic risks for all local credits.
At the same time and in light of the downgrade of the global scale, issuer and foreign and local currency debt ratings, Moody´s downgraded the ratings of the following issuers:
The ratings affected are detailed as follows:
1. Alto Paraná S.A: B2 Global Local Currency Corporate Family Rating from B1 Global Local Currency Corporate Family Rating; The Baa3 Global Foreign Currency and Aaa.ar National Foreign Currency rating of the Senior Unsecured Notes remain unchanged (backed).
2. Aluar Aluminio Argentino S.A.I.C.: B3 Global Local Currency Corporate Family Rating and A2.ar National Local Currency rating from B2/Aa3.ar; B3 Global Foreign Currency and A2.ar National Local Currency for the Senior Unsecured Notes, from B2/Aa3.ar
3. Arcor S.A.I.C: B2 Global Local Currency Corporate Family Rating from B1 Global Local Currency Corporate Family Rating; B2 Global Foreign & National Currency rating for the Senior Unsecured Notes and Aa3.ar National Foreign & National Currency rating for the Senior Unsecured Notes from B1/Aa2.ar
4. Asociación de Cooperativas Argentinas SA: B3 Global Local Currency Corporate Family Rating and A2.ar National Local Currency Corporate Family Rating from B2/A1.ar; B3 Global National & Local Currency rating and A2.ar National Global & Local Currency rating for the Unsecured Bank Credit Facility, from B2/A1.ar.
5. Cablevision S.A: Caa1 Global Foreign Currency Corporate Family rating from B3; Caa1 Global Foreign Currency rating for the Senior Unsecured Notes, from B3.
6. Car Security S.A.: Caa1 Global Local Currency Corporate Family rating and Ba1.ar National Local Currency Corporate Family rating, from B3/A3.ar
7. Carsa S.A.: Caa1 Global Local Currency Corporate Family Rating and Ba1.ar National Local Currency Corporate Family Rating, from B3/A2.ar; Caa1 Global Local Currency rating and Ba1.ar National Local Currency rating for the Senior Unsecured Notes, from B3/A2.ar
8. Electroingenieria S.A.: Caa1 Global Local Currency and Ba1.ar National Local Currency Corporate Family Ratings, from B3/A3.ar
9. Holcim (Argentina) S.A: B3 Global Local Currency Corporate Family Rating from B2; the A2.ar National Local Currency Corporate Family Rating remains unchanged, given that it still maps to the rating category.
10. Jose Cartellone Construcciones Civiles S.A.: Caa1 Global Local Currency Corporate Family Rating and Ba1.ar National Local Currency Corporate Family Rating, from B3/A3.ar; Caa1 Global Local Currency rating and Ba1.ar National Local Currency rating for the Senior Unsecured Bank Credit Facility, from B3/A3.ar
11. Longvie S.A: Caa1 Global Local Currency Corporate Family Rating and Ba1.ar National Local Currency Corporate Family Rating, from B3/A3.ar; Caa1 Global Local Currency rating and Ba1.ar National Local Currency rating for the Senior Unsecured Notes, from B3/A3.ar
12. Mirgor S.A: Caa1 Global Local Currency Corporate Family Rating and Ba1.ar National Local Currency Corporate Family Rating, from B3/A3.ar; Caa1 Global Local Currency rating and Ba1.ar National Local Currency rating for the Senior Unsecured Bank Credit Facility, from B3/Baa1.ar
13. Newsan S.A: B3 Global Local Currency Corporate Family Rating and A2.ar National Local Currency Corporate Family Rating, from B2/Aa3.ar; B3 Global Local Currency rating and A2.ar National Local Currency rating for the Senior Unsecured Bank Credit Facility, from B2/Aa3.ar; B3 Global Local Currency rating and A2.ar National Local Currency rating for the Senior Unsecured Notes, from B2/Aa3.ar
14. Papel Misionero S.A.I.C.F: Ba1.ar National Local Currency rating for the Senior Unsecured Bank Credit Facility, from Baa1.ar
15. Pilisar S.A: the Caa3 Global Local Currency Corporate Family Rating remains unchanged, given that it was already below the sovereign rating; B3 Global Local Currency rating and A2.ar National Local Currency rating for the Senior Unsecured Bank Credit Facility, from B2/Aa3.ar
16. Quickfood S.A: the Caa2 Global Local Currency Corporate Family Rating remains unchanged, given that it was already below the sovereign rating; B3.ar National Local Currency Corporate Family rating, from B2.ar; the Baa3 Global Foreign Currency and Aaa.ar National Foreign Currency rating of the Senior Secured Notes remain unchanged (backed).
17. Raghsa S.A: Caa1 Global Local Currency Corporate Family Rating and Ba1.ar National Local Currency Corporate Family Rating, from B3/Baa2.ar; Caa1 Global Foreign Currency rating and Ba1.ar National Foreign Currency rating for the Senior Unsecured Notes, from B3/Baa2.ar
18. Sullair Argentina S.A: Caa1 Global Local Currency Corporate Family Rating and Ba1.ar National Local Currency Corporate Family Rating, from B3/A2.ar; Caa1 Global Local Currency rating and Ba1.ar National Local Currency rating for the Senior Unsecured Bank Credit Facility, from B3/A2.ar
19. YPF S.A: Caa1 Global Local Currency Issuer Rating and Ba1.ar National Local Currency Issuer Rating, from B3/A2.ar; Caa1 and (P)Caa1 Global Foreign Currency rating for the Senior Unsecured Notes and Medium-Term Note Program, from B3 and P(B3).
20. Zucamor S.A: Caa1 Global Local Currency Corporate Family Rating and Ba1.ar National Local Currency Corporate Family Rating, from B3/Baa1.ar; Caa1 Global Foreign Currency rating and Ba1.ar National Foreign Currency rating for the Senior Unsecured Bank Credit Facility, from B3/Baa1.ar
21. Pan American Energy LLC: B2 Global Local Currency Corporate Family Rating, from B1. Pan American Energy LLC, (Argentine Branch): B2 Global Local Currency rating for the Senior Unsecured Bank Credit Facility, from B1. Aa3.ar National Local Currency rating for the Senior Unsecured Bank Credit Facility, from Aa2.ar.; B2 Global Foreign Currency rating for the Senior Unsecured Notes, from B1.
22. Petrobras Argentina S.A: B2 Global Local Currency Corporate Family Rating, from B1; B2 Global Foreign Currency rating for the Senior Unsecured Notes, from B1; B1 Global Foreign Currency rating for the Senior Secured Notes, from Ba3; the Baa1 Global Foreign Currency rating for the Backed Senior Unsecured Notes remains unchanged, as well as the Aaa.ar National Foreign Currency Rating for the same Backed Senior Unsecured Notes,
At the same time, Moody's changed the Outlook of AMS Foods International S.A to Stable from Negative, in line with the outlook change of its guarantor (Aval Rural S.G.R from Financial Intitutions Group). The Caa3 Global Local Currency Corporate Family Rating and the B2/A1.ar Foreign Currency ratings for the Backed Senior Unsecured notes remain unchanged.
RATINGS RATIONALE
The global scale ratings have been downgraded so they align with Moody's Argentina's sovereign and foreign currency country ceiling ratings after Moody's downgraded them to Caa1 from B3. Moody's believes that there has been no deterioration in the intrinsic credit quality of these corporates. Rather, their rating downgrades reflect Moody's view that the creditworthiness of these companies cannot be completely de-linked from the current operating environment and regulatory regimes in Argentina, which have made credit quality more uncertain for companies operating within its borders.
Please refer to Moody's Cross Sector Rating Methodology "How Sovereign Credit Quality May Affect Other Ratings" published on 13 February 2012, and available on
www.moodys.com.ar.
Moody's decision to downgrade Argentina's government bond rating was driven by the following factors:
1. A significant fall in official reserves, which have dropped to $27.5 billion from a high of $52.7 billion in 2011, thereby increasing the risk that Argentina may not meet its foreign-currency debt service obligations, and
2. An inconsistent policy environment that increases the likelihood that official reserves will remain under pressure this year and next.
Moody's rates 20+ non-financial corporates that are highly dependent on local economic conditions. The downgrade of these issuers' national scale ratings reflects Moody's view that a weaker economic environment amid inconsistent policy environment will negatively impact the companies' operating environment as well as funding options; their national scale ratings within the Ba.ar range, therefore, reflect below-average creditworthiness relative to other domestic issuers.
The stable outlook for all these companies mainly reflects Moody's stable outlook for Argentina's government bond rating and Moody's view that the creditworthiness of these companies is highly dependent on the credit quality of the Argentine government. Moody's notes that a rating downgrade of the sovereign would likely result in negative rating actions on these companies so that the issuers' current notching gap relative to the sovereign would be maintained, in the absence of any significant change in their underlying credit quality.
Please see
www.moodys.com.ar for further details on the recent change in Argentina's foreign currency bond ceiling and government's rating outlook.
With the recent downgrade of the government of Argentina on the global rating scale and other issuers whose risk profiles are affected by related credit considerations, the distribution of ratings among issuers in Argentina has become compressed within the bottom half of the national rating scale. As a result, the current mapping of global scale ratings to national scale ratings may no longer be adequately serving one of its intended purposes, which is to provide substantially greater potential credit differentiation among issuers in Argentina than is possible on the global rating scale. Moody's is therefore assessing the opportunity to revise its mapping from global scale ratings to national scale ratings for Argentina. If the mapping is revised, the new scale would likely imply that higher rated Argentine issuers would be remapped to higher ratings on the national scale.
The principal methodology used in rating Newsan S.A. and PILISAR S.A. was Asian Consumer Electronics published in December 2010. 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 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. 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, 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 November 2009. 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, 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 CableVision S.A. was Global Pay Television - Cable and Direct-to-Home Satellite Operators published in April 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. 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 October 2012 entitled "Mapping Moody's National Scale Credit Ratings to Global Scale Credit Ratings".
la mia posizione attuale sul warrant è difensiva.dopo aver fatto fuori quasi tutto poco sotto 8 prima della crisi valutaria ,ho 275k e attendo il 27 marzo. per il resto sono posizionato su baires bonds.qual'è la tua strategia sul warrant?
