Fitch rates Cresud, notes B

Fitch Ratings said it assigned a foreign-currency issuer default rating of B to Cresud SA, along with a local-currency issuer default rating of B and a B rating on its $60 million senior unsecured bullet notes due in 2014 with a recovery rating of RR4.

Fitch also said it upgraded Cresud's national scale ratings to AA-(arg) from A(arg) and affirmed its national scale equity rating at category 1.

The outlook is stable.

The ratings are supported by its position as a leading company in the agribusiness and real estate sectors in Argentina, the agency said.

The ratings also reflect moderate consolidated leverage, as well as manageable liquidity as a result of unencumbered assets and land that could be sold, Fitch said.

The ratings are constrained by the above-average risks associated with operating in the real estate segment in Argentina, the volatility of the agribusiness activity and the somewhat high leverage on a standalone basis at Cresud, the agency said.

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