Moody's rates Arcor, notes B1

Moody's Investors Service said it assigned a first-time B1 foreign-currency rating and an Aa2.ar Argentina national scale rating to Arcor SAIC's proposed new $200 million senior unsecured notes due in 2017, along with a Ba2 global local-currency corporate family rating.

The outlook is stable.

The notes are subject to Argentina's B2 foreign-currency country ceiling, and are subject to Argentina's foreign-currency convertibility and transfer risk, reflected in the foreign-currency country ceiling, Moody's said.

The ratings reflect the piercing of the ceiling by one notch due to the availability of a liquidity cushion account in the United States covering almost half of the total debt outstanding and the company's sizeable international business, which currently generates over $1 billion in annual revenues.

The ratings also are supported by its global market presence, leading category market position, the agency said, and broadly diversified portfolio of branded packaged food product.

These credit strengths are offset by the company's country risk exposure to Argentina as the first largest market, with concentration of cash flows from that country, Moody's said.

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