Moody's upgrades Garbarino

Moody's Investors Service said it upgraded Garbarino SA's local-currency corporate family rating to B1 from B2 and its Argentina national-scale rating to Aa2.ar from Aa3.ar.

The outlook is stable.

The upgrades were prompted by Garbarino's ability to translate consumers' increased spending power as a result of improved economic fundamentals and more flexible payment plans rolled out by banks and retailers into meaningful revenue and earnings growth, Moody's said.

The ratings also consider the positive impact on the company's receivables portfolio from the use of third party credit cards, the agency said.

Garbarino's low geographic diversity and relatively small scale when compared to its global peers constrains the ratings, Moody's said.

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