Fitch lifts Pan American Energy

Fitch Ratings said it upgraded Pan American Energy LLC’s long-term local-currency issuer default rating to BB from B+.

The agency also said it affirmed the company’s long-term foreign-currency issuer default rating at B+.

The outlook is stable.

Fitch also said it upgraded Pan American Energy LLC Sucursal Argentina's senior unsecured notes due 2021 to BB- with recovery rating of RR3 from B+ with recovery rating of RR4.

The ratings reflect the company’s good recovery prospects in the event of default given the company's solid balance sheet and cash flow generation, the agency said.

Fitch said it believes that a default, should it occur, would most likely be driven by transfer and convertibility restrictions imposed upon the payment of foreign debt, not by a material deterioration of the company's business or financial profile.

The upgrades reflect the company's protections against sovereign turbulence, as historically a significant portion of the company's revenues has been related to exports, the agency said.

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