S&P gives Arcor, notes B+

Standard & Poor's said it assigned its B+ corporate credit rating to Arcor SAIC.

The outlook is stable.

At the same time, the agency said it assigned its B+ rating to the company's upcoming issuance of up to $100 million in 10-year amortizing notes.

The proceeds would be applied to cancel debt maturities in 2007 and 2008, the agency noted, adding that Arcor's credit quality reflects the inherent risks of operating in the volatile Argentine market and the exposure to foreign currency mismatch risks, given that a portion of the raw material costs and about 80% of the financial debt is dollar-denominated, while cash generation is in Argentine pesos.

These factors are mitigated by the company's good competitive position as a leading confectionary producer in Argentina and Latin America and by its export base, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.