S&P rates Alto Palermo, notes B+

Standard & Poor's said it assigned its B+ long-term corporate credit rating to Alto Palermo SA.

The outlook is stable.

At the same time, the agency said it assigned a B+ rating on up to $120 million 10-year bullet notes and the equivalent of nearly $50 million amortizing notes that mature in 2012, adding that the new bonds would go toward funding new investments and repaying short-term debt.

The rating reflects the inherent volatility of the shopping mall and real estate sectors, particularly in light of the economic volatility in Argentina and the weakening financial metrics expected after the upcoming bond issuance, the agency said.

These negative factors are partially mitigated by the company's good cash generation and solid competitive position in Argentina's shopping mall sector, especially in Buenos Aires, S&P added.

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