Fitch downgrades Mastellone

Fitch Ratings said it lowered Mastellone Hermanos SA’s long-term local and foreign currency issuer default ratings to CC from CCC+ and its senior unsecured notes at CC/RR4 from CCC+/RR4.

“The ratings downgrade reflects Mastellone's elevated refinancing risk following the extension of existing capital controls by the Central Bank of Argentina (BCRA). The CC indicates that Fitch expects Mastellone to implement a distressed debt exchange (DDE) to extend the maturity of its $200 million bond that matures in July,” the agency said in a press release.

If Mastellone launches a tender that would meet Fitch’s definition of a distressed debt exchange, the agency said it would cut Mastellone’s ratings to C, and once the offer is completed to restricted default or RD. Afterward, Fitch would reevaluate Mastellone.

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