Argentine Corporates on Watch Negative

Fitch has placed 13 Argentine corporates on negative watch after the nationalization of the private pension funds was approved by the senate, making it official. In Fitch’s view, the nationalization of the AFJPs will heighten liquidity risks due to diminished investor perception of Argentina as well as increase funding costs to the corporates. The absence of private pension funds would also marginalize the domestic bond market as a source of funding and liquidity for these companies going forward. The corporates on Fitch’s negative watch are: Alto Palermo (rated B+), Cablevision (B+), Quilmes (BB), IMPSA (B), Inversiones y Representaciones (B+), Pan American Energy (BB), Petrobras Energia (BB), Telecom Argentina (B+), Telecom Personal (B+), Telefonica de Argentina (B+), Transener (B), TGS (B+) and YPF (BB+).