Fitch rates ODS notes B

Fitch Ratings said it assigned ODS SA B foreign-currency and local-currency issuer default ratings and an A+(arg) national-scale rating. Fitch assigned a B/RR4 rating to the proposed $150 million of senior notes due 2018.

The outlook is stable.

The notes will be fully and unconditionally guaranteed jointly and severally by its subsidiaries IECSA and Creaurban. These two companies represent more than 70% of ODS' consolidated revenues.

The ratings reflect ODS' leading market position in the construction industry in Argentina, its strong liquidity and moderate leverage as well as sizeable backlog, which provides some certainty to the company's cash generation over the medium term, the agency added.

ODS' ratings are constrained by its exposure to the devaluation of the Argentine peso due to its peso denominated cash flow and primarily dollar-denominated debt, the agency noted.

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