Fitch to assign B/RR4 to YPF bond

Fitch Ratings said it expects to assign a rating of B(EXP)/RR4 to YPF SA's proposed senior unsecured bond issuance of up to $750 million notes due 2027.

The company expects to use the proceeds to fund capital investments in Argentina and working capital requirements.

The notes will rank pari passu in priority of payment with all other YPF senior unsecured debt. The notes would be rated the same as all of the company’s senior unsecured obligations.

Fitch said the ratings reflect YPF's strong linkage with the credit quality of the Republic of Argentina and the company's relatively low reserve life. The B long-term ratings are linked to Argentina's sovereign rating, which has long-term local- and foreign-currency issuer default rating of B/stable.

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