Fitch: Argentine companies on negative watch

Fitch Ratings said it placed the ratings of several Argentine corporations on Rating Watch negative.

These actions follow a decision to place the B foreign-currency issuer default rating of the Republic of Argentina on Rating Watch Negative as a result of increased uncertainty about the government's ability to service its international securities issued under New York Law on a timely basis using the U.S. financial system.

On Oct. 26, the U.S. Court of Appeals for the Second Circuit in New York upheld a U.S. district judge's ruling that Argentina breached the equal treatment provision of the original New York-based law bonds defaulted in 2001. The remedy of the ruling orders Argentina to make payments to holdouts at the same time as or prior to its payments to holders of the 2005 and 2010 restructured debt.

Fitch noted that there is some uncertainty about the timeframe of the legal process and when or how it could affect the country's ability to pay New York-law external debt.

Fitch said it placed on Rating Watch negative the foreign-currency issuer default ratings of Alto Palermo SA, Arcor SAIC, Cablevision SA, Capex SA, Celulosa Argentina SA, Compania Latinoamericana de Infraestructura y Servicios SA, Cresud SA, Inversiones y Representaciones SA, Pan American Energy LLC, Telecom Argentina SA, Transportadora de Gas del Sur SA and YPF SA.

Fitch has also placed on Rating Watch Negative the B+ with a recovery rating of RR3 to Alto Palermo's senior unsecured notes due 2017; B+ rating with RR3 recovery rating to Arcor's senior unsecured notes due 2017, B rating and RR4 recovery rating on Cablevision's senior unsecured notes due 2016; B rating and recovery rating of RR4 to Capex's senior unsecured notes due 2018; B rating and recovery rating of RR4 to Cresud's senior unsecured notes due 2014; B+ rating with RR3 recovery rating to Inversiones y Representaciones' senior unsecured notes due 2017 & 2020; BB rating to Pan American Energy LLC's senior unsecured notes due 2009 & 2012; B rating with RR4 recovery rating to Transportadora de Gas del Sur's senior unsecured notes due 2017; and B rating and RR4 recovery rating to YPF's senior unsecured notes due 2028.

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