Fitch upgrades Arcor, notes

Fitch Ratings said it upgraded Arcor SAIC’s long-term local currency issuer default ratings to BB from B+ and senior unsecured notes to BB-/RR3 from B+/RR4.

In conjunction with these actions, the agency affirmed Arcor's foreign currency issuer default ratings at B+, which is one notch higher than the B country ceiling of Argentina.

The outlook is stable.

Fitch said the upgrade of the local currency issuer default ratings is due to Arcor's resilient operating performance during the past five years, despite high inflation and challenging economic conditions. It also reflects the company's consistent commitment to a conservative capital structure.

The upgrade of Arcor's notes to BB-/RR3 reflects above-average recovery expectations for these obligations, as it is Fitch's belief that a default on debt denominated in a foreign currency by Arcor would be driven by exchange controls rather than a deterioration of its solid financial profile or strong business position, the agency explained.

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