Fitch: 13 Argentine issuers on watch

Fitch Ratings said it has placed the credit ratings of the following Argentine corporates on rating watch negative upon the decision by the Argentine Senate to approve President Cristina Fernandez de Kirchner's plan to nationalize the private pension funds:

• Alto Palermo SA; foreign currency issuer default ratings B+; local currency issuer default rating B+; and senior unsecured notes due 2012 & 2017 B+/RR4;

• Cablevision SA; foreign currency issuer default rating B+; local currency issuer default rating B+; and senior unsecured notes due 2012, 2013, 2015 & 2016 B+/RR4;

• Cerveceria y Malteria Quilmes SAI.C.A. y G; foreign currency issuer default rating BB; local currency issuer default rating BB; and senior unsecured notes due 2012 BB;

• Industrias Metalurgicas Pescarmona SA; foreign currency issuer default rating B; local currency issuer default rating B; and senior unsecured notes due 2009 & 2014 B/RR4;

• Inversiones y Representaciones SA; foreign currency issuer default rating B+; local currency issuer default rating B+; and senior unsecured notes due 2017 B+/RR4;

• Pan American Energy LLC; foreign currency issuer default rating BB; local currency issuer default rating BB+; and senior unsecured notes due 2009 & 2012 BB;

• Petrobras Energia SA; foreign currency issuer default rating BB; local currency issuer default rating BB; and senior unsecured notes due 2009, 2010, 2011 and 2013 BB;

• Telecom Argentina SA; foreign currency issuer default rating B+; local currency issuer default rating B+; and senior unsecured notes due 2011 & 2014 B+/RR4;

• Telecom Personal SA; foreign currency issuer default rating B+; local currency issuer default rating B+; and senior unsecured notes due 2010 B+/RR4;

• Telefonica de Argentina SA; foreign currency issuer default rating B+; local currency issuer default rating BB; and senior unsecured notes due 2010 & 2011 BB-/RR3.

• Transener SA; foreign currency issuer default rating B; local currency issuer default rating B; and senior unsecured notes due 2016 B/RR4;

Transportadora de Gas del Sur SA; foreign currency issuer default rating B+; local currency issuer default rating B+; and senior unsecured notes due 2017 B+/RR4; and

YPF SA; foreign currency issuer default rating BB+; local currency issuer default rating BBB-; and senior unsecured notes due 2009 & 2028 BB+.

In Fitch's view, the nationalization of the pension funds will heighten liquidity risks due to diminished investor perception of Argentina as well as increase funding costs to the corporates while the absence of private pension funds would also marginalize the domestic bond market as a source of funding and liquidity for these companies going forward.

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