S&P upgrades IRSA, notes to B

S&P said it raised the corporate credit ratings on IRSA Inversiones y Representaciones SA (IRSA) and on its subsidiary, IRSA Propiedades Comerciales SA (IRCP), to B from B-.

The outlook is stable.

The agency also upgraded the issue-level ratings on IRSA and IRCP to B from B-. The rating on IRSA's senior unsecured notes is at the same level as the corporate credit rating because S&P believes that investors on these notes do not face a disadvantage as creditors of the holding company.

Although it believes IRSA partly depends on cash flows from IRCP, the holding company has also operations and assets of its own, and S&P said it believes that in an event of default, creditors at the parent level would likely also benefit from residual assets at the subsidiary level after paying all creditors at that level.

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