Fitch cuts Mastellone notes to CCC

Fitch Ratings said it affirmed Mastellone Hermanos SA’s long-term foreign currency issuer default rating at CCC and downgraded its long-term local currency IDR to CCC+ from B. Fitch also downgraded the senior unsecured notes to CCC/RR4 from CCC+/RR3.

“Mastellone's 'CCC+' ratings reflect the weak Argentine operating environment, as well as the company's exposure to raw milk production, and the currency mismatch of its U.S. dollar-denominated debt versus its Argentine peso-based operating cash flow,” Fitch said in a press release.

“The downgrade of the local currency IDR reflects increased refinancing risk of its senior unsecured notes due in 2021 as a result of the coronavirus pandemic and the deterioration of capital market access for Argentine corporates,” the agency said.

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