Fitch Places International Ratings of Argentine Corporates on Rating Watch …

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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IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE
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