Moody’s assigns B1/Aa1.ar to Arcor notes

Moody's Investors Service said it assigned a B1 foreign currency rating and an Aa1.ar Argentina national scale rating to Arcor SAIC's $300 million new senior unsecured notes.

The B1 global scale corporate family rating and stable outlook remain unchanged.

"Arcor's B1 rating are supported by its solid credit metrics, strong asset coverage, adequate liquidity profile and historical low adjusted debt leverage. Arcor's global market presence, leading category market position, and its broadly diversified portfolio of branded packaged food products are additional credit positives. The ratings also reflect Arcor's leadership positions in confectionery and the diversification of the company's product offering across chocolate, chewing gum, cookies and candy," Moody's vice president, analyst Veronica Amendola said in a news release.

Moreover, the ratings incorporate the limited product volatility as the majority of revenues comes from fairly stable food businesses and the attractive expansion opportunities that the company has in their international business, the agency said.

Finally, the rating considers Moody's expectation that Arcor will generate sufficient cash flow from operations to maintain its credit metrics profile, including a strong liquidity position due to the company's relatively prudent financial strategies.

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