Fitch rates WPE notes B+

Fitch Ratings said it assigned B+ local- and foreign-currency issuer default ratings to WPE International Coorperatief UA, which is owned by Industrias Metalurgicas Pescarmona (Impsa). The agency also said it assigned an expected B+ rating with a recovery rating of RR4 to its proposed guaranteed notes of up to $300 million due in 2017/2020. These notes will be irrevocably and unconditionally guaranteed by Impsa and WPE on a senior unsecured basis.

The outlook is stable.

The ratings reflect the creditworthiness of the guarantors, Fitch said. Impsa has B+ ratings, which reflect the positive trend for the company's long-term business fundamentals due to sustained global demand for hydro and wind power generating equipment, the agency said.

They also incorporate the company's growing business presence in Brazil and its sizeable backlog, which provides certainty to the company's cash generation over the medium term, Fitch added.

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