Fitch rates YPF notes reopening CCC

Fitch Ratings said it assigned YPF SA's reopening of the company's 2018 and 2024 notes by up to $750 million CCC.

The company's rated notes with maturity dates of December 2018 and April 2024 notes total, before the reopening, $587 million and $1 billion, respectively. The 2024 notes have a 10-year maturity with amortizations in years eight (30%), nine (30%) and 10 (40%). The 2018 notes have a 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 (Fitch local and foreign currency issuer default ratings of RD and a country ceiling of CCC) and the company's relatively low reserve life.

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