Fitch rates YPF notes B-

Fitch Ratings said it assigned a B- rating with recovery rating of RR4 to YPF SA's $100 million reopening of the company's 2018 notes.

The reopening of the 2018 notes is available only to holders of the company's $100 million senior unsecured notes due in November 2028.

An exchange of debt instruments by these holders would not result in an increase in the company's debt, Fitch said. If successful, the 2018 notes outstanding would be increased to $600 million, the agency said.

YPF's ratings reflect its strong linkage with the credit quality of the Republic of Argentina and the company's low reserve life, Fitch said.

The ratings also consider the close linkage with the Republic of Argentina resulting from the company's ownership structure, as well as recent government interventions, the agency said.

The ratings also take into account the company's relatively weak operating metrics characterized by low reserve life and historically declining production levels, Fitch said.

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