S&P provides B to YPF notes

S&P said it assigned a B issue-level rating to YPF SA's (B/stable/--) proposed $750 million 10-year senior unsecured notes.

The rating on the notes is the same as the corporate credit rating on YPF, because the agency doesn't believe there's significant structural subordination given that YPF is an operating holding company, and priority liabilities at the subsidiaries' level represent less than 10% of total adjusted assets.

S&P expects the company to use the proceeds to refinance some maturities and to finance working capital and capital expenditures which we already incorporate in the base case.

S&P said the B rating reflects YPF’s leading market position as the largest Argentine integrated oil and gas company, offset by exposure to the country's fragile economy and evolving institutional framework, as well as YPF's limited geographic diversification.

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