S&P affirms Arcor

Standard & Poor's said it affirmed its B+ long-term corporate credit rating and rating on the upcoming 10-year amortizing notes to be issued by Arcor SAIC.

The outlook is stable.

The agency said that this action follows the increase in the amount of the bonds to be issued to $150 million from $100 million, adding that it expects this increase not to affect the company's financial profile, as most of the bond issuance would be devoted to cancel debt maturities in 2007 and 2008.

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 U.S. dollar-denominated, while cash generation is to an important extent in Argentine pesos, the agency noted.

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