Fitch rates IRSA

Fitch Ratings said it assigned foreign and local currency issuer default ratings of B to IRSA Inversiones y Representaciones SA.

Fitch said it has also assigned a B rating to IRSA's proposed $150 million senior unsecured note due in 2017, as well as a recovery rating of RR4, which indicates average recovery prospects in the event of default.

All ratings have a stable outlook.

The ratings are supported by IRSA's strong business position in both residential and office property development and management, the agency said.

The company's B ratings reflect the cyclical nature of the real estate market in Argentina, which is highly correlated with the local economy and the lack of geographic diversification of the company's cash flows, Fitch noted.

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