Fitch ups Alto Palermo

Fitch Ratings said it upgraded Alto Palermo SA's local currency issuer default rating to BB- from B+, $120 million of senior notes due in 2017 and $50 million of argentine peso-linked notes due in 2012 to B+/RR3 from B/RR4, and national-scale ratings to AA+(arg) from AA-(arg).

Fitch has affirmed Alto's foreign-currency issuer default rating at B and its equity rating at Category 1.

The outlook is stable.

The upgrade reflects the company's strong performance and the sale of 80% of its consumer finance business Tarshop, Fitch said. The sale of Tarshop should lower cash flow volatility and will reduce the company's financial risk during an economic downturn.

The ratings reflect the company's strong business position in the Argentine shopping center industry as well as the company's aggressive growth strategy and the high degree of risk associated with operating in the real estate industry, the agency added.

For the latest 12 months ended Dec. 31, the company's total debt-to-EBITDA ratio was 1.4 times.

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