Fitch rates Arcor notes B+

Fitch Ratings said it assigned to Arcor SAIC a foreign-currency issuer default rating of B+, local-currency issuer default rating of BB-, along with a B+ rating and recovery rating of RR4 on its $200 million of senior unsecured notes due 2017 and national scale ratings of AA+(arg).

The outlook is stable.

The ratings reflect the company's strong business position as a leading Latin American producer of confectionary and cookie products, Fitch said, as well as its solid capital structure.

The company's positive track record during the 2002 financial crisis in Argentina is also factored into the ratings, the agency said.

The ratings are constrained by the high correlation of its cash flow with the strength of the Argentine economy and its exposure to variations in commodity prices, Fitch added.

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