Fitch affirms Alto Palermo

Fitch Ratings said it affirmed Alto Palermo SA's foreign-currency issuer default rating at B, local-currency issuer default rating at BB-, national scale rating at AA+(arg), national scale senior unsecured notes at AA+(arg) and national equity rating at 1.

The agency also affirmed the B+ rating on the company's $120 million senior unsecured notes due in 2017 with a recovery rating of RR3, along with the B+ rating on its $50 million Argentine peso-linked notes due in 2012 with a recovery rating of RR3.

The outlook is stable.

The ratings are supported by the company's strong market position in the Argentine shopping center industry, Fitch said.

While debt at the company is low in relation to cash flow, Fitch said it linked its credit quality with its more highly leveraged parent company, Inversiones y Representaciones SA.

The ratings are constrained by the company's aggressive growth strategy and the high degree of risk associated with operating in Argentina's real estate industry, the agency said.

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