Fitch to rate YPF debt B-/RR4

Fitch Ratings said it expects to assign a rating of B-/RR4 to YPF SA's proposed senior unsecured debt issuance for up to $500 million with a five-year bullet maturity.

Proceeds will be used to fund fixed asset investments in Argentina and working capital requirements.

The notes rank at least pari passu in priority of payment with all other YPF senior unsecured debt and are rated the same as all senior unsecured obligations of YPF.

Fitch said YPF's ratings reflect its strong linkage with the credit quality of the Republic of Argentina (local- and foreign-currency issuer default ratings of B-, outlook negative, and CC, respectively) and the company's low reserve life. The ratings also factor in YPF's strong business position in the local market as well as its strong credit protection measures, the agency said.

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