Fitch gives B to Petroquimica, notes

Fitch Ratings said it assigned B long-term foreign and local currency issuer default ratings to Petroquimica Comodoro Rivadavia SA.

The outlook is positive.

At the same time, the agency assigned an expected rating of B(EXP)/RR4 to the company’s proposed senior unsecured notes of up to $300 million.

Proceeds will be used to refinance existing debt, general corporate purposes including working capital and capital expenditures.

Fitch said the B long-term foreign currency and local currency issuer default ratings reflect Petroquimica’s small oil and gas production size and reserve concentration, and its small cement business concentrated in the Patagonia region of Argentina.

Moreover, the rating reflects the company's aggressive capex plan, which will predominately be financed with project finance debt and will mostly be allocated to constructing its 325MW wind farm projects from 2018 through early 2020, the agency explained.

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