Fitch lowers IRSA

Fitch Ratings said it downgraded IRSA Inversiones y Representaciones SA's long-term local- and foreign-currency issuer default ratings to RD from C on the recent completion of its exchange offer. Fitch considers the debt exchange, which closed on Nov. 12, a distressed debt exchange under its DDE criteria.

Subsequently, Fitch upgraded IRSA's IDRs to CCC post completion of the exchange. Fitch also affirmed IRSA Propiedades Comerciales SA’s long-term foreign- and local-currency IDRs at CCC and IRSA PC's unsecured notes at CCC/RR4.

“The rating actions reflect IRSA's recent successful debt exchange completion, continued high refinancing risks for IRSA and IRSA PC during FY2021 ended in June 2021, strong parent-subsidiary linkages between IRSA and IRSA PC, exposure to Argentina's challenging macro and business environment, and sharp deterioration in operational performance of the company's real estate portfolio driven by the pandemic and worsening economy,” Fitch said in a press release.

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