Fitch cuts, boosts Gemsa

Fitch Ratings said it downgraded Generacion Mediterranea SA's (Gemsa) issuer ratings to RD from C on the anticipated completion of its exchange offer and subsequently upgraded the issuer default ratings to CCC due to the completion of the exchange.

The agency said it considered the transaction a distressed debt exchange, which accounts for the downgrade.

The post-exchange rating of CCC reflects the company's exposure to offtaker Compania Administradora del Mercado Mayorista Electrico, Fitch said.

Fitch said it also raised the senior unsecured notes due 2023 co-issued by Gemsa and Central Termica Rocato CCC/RR4 from C/RR4 and gave a final rating of CCC/RR4 to Gemsa's and CTR's co-issued senior unsecured amortizing notes due 2027. Gemsa's and CTR's issuances are capped at an average recovery rating of RR4 since Argentina is categorized within group D with a soft cap of RR4, per criteria.

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