Fitch Rates Cresud Bond

Fitch has assigned a B rating for an upcoming $60m 2014 from Argentina agriculture company Cresud. Through the new issue, the company hopes to extend the average life of its debt, the agency says. Cresud, which owns 57.5% of real estate firm IRSA, had a net debt-to-Ebitda ratio of 3.1 times and an Ebitda-to-interest expense ratio of 3.5x as of March 31, say Fitch which links the ratings of both companies. Dividend flows from IRSA to Cresud have been stable, and amounted to $17m in November 2010. “IRSA represents approximately 85% of Cresud’s consolidated Ebitda and 77% of consolidated assets,” it says.