Fitch lifts IRSA

Fitch Ratings said it upgraded IRSA Inversiones y Representaciones SA's foreign- and local-currency issuer default ratings to B+ from B, its $150 million notes due 2017 to B+/RR4 from B and its national scale ratings to AA-(arg) from A-(arg).

The outlook is stable.

The agency said the upgrade reflects improvements in the company's cash flow generation and the successful financings by IRSA and its subsidiary, APSA, during 2007 that have improved IRSA's debt profile and lessened refinancing risk.

IRSA's credit ratings are supported by its strong business position in the Argentine real estate market, Fitch said. Through APSA, IRSA has a 60% market share in the shopping center segment of the market within Buenos Aires, and IRSA is the clear leader in the development and management of office buildings in Buenos Aires, with a market share of about 20% in the premium buildings class.

The company's B+ ratings also 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, the agency said.

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