Fitch to assign CCC+ to YPF bond

Fitch Ratings said it expects to assign a rating of CCC+/RR3 to YPF SA's proposed senior unsecured bond issuance of up to $1 billion 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. The notes would be rated the same as all of YPF's senior unsecured obligations.

Fitch said the ratings reflect its strong linkage with the credit quality of the Republic of Argentina and the company's relatively low reserve life. YPF's CCC+ ratings are linked to the sovereign rating of Argentina, which has an RD foreign and local currency issuer default rating.

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