March 21, 2012 / 6:59 PM / in 6 years

TEXT-Fitch: Arcor SAIC plans reopening of notes

March 21 - Arcor is planning the reopening of its 7.25% fixed-rate notes due
2017. The reopening will carry the same rating as the original deal at 'B+/RR4'.
This add-on issuance for up to USD100 million (to USD300 million) is expected to
be primarily used to refinance short-term indebtedness and fund working capital
needs. Fitch expects Arcor will continue to manage its balance sheet to a
targeted ratio of debt-to-EBITDA of around 2 times (x).	
	
Fitch rates Arcor's Foreign Currency Issuer Default Rating (IDR) at 'B+' and
Local Currency IDR at 'BB-', with a Stable Outlook. Arcor's 'BB-' local currency
IDR reflects the company's strong business position as a leading Latin American
producer of confectionary and cookie products, 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. Arcor's 'BB-' Local Currency IDR
is constrained by the high correlation of its cash flow with the strength of the
Argentine economy and its exposure to variations in commodity prices.	
	
	
Additional information is available at 'www.fitchratings.com'.	
	
Applicable Criteria and Related Research:	
--'Corporate Rating Methodology' (Aug. 12, 2011);	
--'Liquidity Considerations for Corporate Issues' (June 12, 2007);	
--'Rating Corporates Above the Country Ceiling' (Jan. 5, 2011.)	
	
Applicable Criteria and Related Research:	
Corporate Rating Methodology	
Liquidity Considerations for Corporate Issuers	
Rating Corporates Above the Rating Ceiling
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