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Fitch Places International Ratings of Argentine Corporates on Rating Watch Negative

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BUENOS AIRES, Argentina--(BUSINESS WIRE)--

Fitch Ratings has placed the ratings of several Argentine corporates on Rating Watch Negative. These actions follow Fitch's decision to place the 'B' foreign currency Issuer Default Rating (IDR) of the Republic of Argentina (Argentina) on Rating Watch Negative, as a result of increased uncertainty about the government's ability to service its international securities issued under New York Law on a timely basis using the U.S. financial system. No action has been taken on the local currency IDRs and ratings.

On Oct. 26, the U.S. Court of Appeals for the Second Circuit in New York upheld U.S. District Judge Griesa's ruling that Argentina breached the 'Equal Treatment Provision' of the original New York-based law bonds defaulted in 2001. The provision states that the payments rank at all times 'at least equally with all other present and future unsecured and unsubordinated external indebtedness'. The remedy of the ruling orders Argentina to make payments to holdouts at the same time as or prior to its payments to holders of the 2005 and 2010 restructured debt.

Fitch notes that there is some uncertainty about the timeframe of the legal process and when or how it could affect the country's ability to pay NY-law external debt. At present, Fitch understands that the government of Argentina is not legally restrained from making payments on its performing debt under NY law without making payments to the plaintiffs. However, this could change depending on Judge Griesa's observations and the subsequent considerations by the Appeals Court on these issues. The next coupon payment for the securities is on Dec. 1, 2012.

In and of itself, this ruling should not directly impact the ability of the Argentine corporates to make payments on their foreign currency obligations using the U.S. financial system. Indirectly, this ruling may further impact the willingness of the Argentine government to provide corporates with foreign exchange to make payments to their cross currency debt obligations.

Fitch expects to resolve the Rating Watch Negative status of the companies listed below as this U.S. legal process evolves.

Fitch has placed the foreign currency IDR of the following issuers on Rating Watch Negative:

-- Alto Palermo S.A.;

-- Arcor SAIC;

-- Cablevision S.A.;

-- Capex S.A.;

-- Celulosa Argentina S.A;

-- Compania Latinoamericana de Infraestructura y Servicios S.A.;

-- Cresud S.A.;

-- Inversiones y Representaciones S.A.;

-- Pan American Energy LLC;

-- Telecom Argentina S.A.;

-- Transportadora de Gas del Sur S.A. (TGS);

-- YPF S.A.

In conjunction with these rating actions, Fitch has also placed on Rating Watch Negative the following issue ratings:

Alto Palermo S.A.

-- Senior unsecured notes due 2017 'B+/RR3'.

Arcor SAIC

-- Senior unsecured notes due 2017 'B+/RR3'.

Cablevision S.A.

-- Senior unsecured notes due 2016 'B/RR4'.

Capex

-- Senior unsecured notes due 2018 'B/RR4'.

Cresud

-- Senior unsecured notes due 2014 'B/RR4'.

Inversiones y Representaciones S.A.;

-- Senior unsecured notes due 2017 & 2020 'B+/RR3'.

Pan American Energy LLC

-- Senior unsecured notes due 2009 & 2012 'BB'.

Transportadora de Gas del Sur S.A. (TGS)

-- Senior unsecured notes due 2017 'B/RR4'.

YPF S.A.

-- Senior unsecured notes due 2028 'B/RR4'.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

-- 'Corporate Rating Methodology' (Aug. 8, 2012).

Applicable Criteria and Related Research:

Corporate Rating Methodology
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684460

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Fitch Argentina Calificadora de Riesgo S.A.
Cecilia Minguillion, (5411) 5235 8123
Senior Director
Sarmiento 663, 7
Buenos Aires, Argentina
or
Committee Chairperson
Daniel Kastholm, +1-312-368-2070
Managing Director
or
Media Relations
Elizabeth Fogerty, +1-212-908-0526 (New York)
elizabeth.fogerty@fitchratings.com











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