Fitch ups Impsa

Fitch Ratings said it upgraded Industrias Metalurgicas Pescarmona's foreign-currency issuer default rating to B+ from B, local-currency issuer default rating to B+ from B, $225 million of senior unsecured notes due 2014 to B+ with a recovery rating of RR4 from B with a recovery rating of RR4, national scale issuer default rating to AA-(arg) from A(arg).

The outlook is stable.

The upgrade reflects the improvement of the company's long-term business fundamentals due to the development of its operations in Brazil and the sustained global demand for hydro and wind power generating equipment, Fitch said.

The ratings also incorporate its sizeable backlog, which provides some certainty to the company's cash generation over the medium term, the agency said.

The ratings also consider the company's high leverage, aggressive capital expenditure program and its dependence on a few large projects in developing countries, Fitch added.

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