Fitch ups Impsa national-scale

Fitch Ratings said it affirmed Industrias Metalurgicas Pescarmona Saicyf (Impsa)'s foreign-currency and local-currency issuer default ratings at B+ and $225 million of senior notes due 2014 at B+'/RR4. Fitch upgraded Impsa's national-scale ratings to AA(arg) from AA-(arg).

The outlook is stable.

The ratings 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.

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

Balanced against these strengths are the company's high leverage, aggressive capital expenditure program and its backlog concentration on a few large projects in developing countries, Fitch said.

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