Fitch rates Arcor's proposed unsecured dnotes B+'RR3'

Fitch rates Arcor's proposed unsecured dnotes B+'RR3'

Fitch Ratings has assigned a B+' rating with a 'RR3' outlook to Arcor's proposed unsecured debt. The rating reflects the company's moderate credit profile and the debt's senior unsecured status [1].

The B+ rating indicates that Arcor's debt is considered speculative-grade, meaning there is a significant risk of default. However, the 'RR3' outlook suggests that Fitch expects Arcor's financial situation to remain stable over the next three years. This outlook is based on the company's current liquidity, strong operating cash flows, and a manageable debt level.

Arcor's proposed debt issuance is expected to total $500 million, with proceeds earmarked for working capital, capital expenditures, and potential acquisitions. The debt will be unsecured and senior to other unsecured obligations, providing creditors with priority in the event of a default.

Fitch's rating reflects the company's moderate credit profile, which includes a strong balance sheet with low leverage and adequate liquidity. However, the rating also reflects the company's moderate credit risk, which is due to its exposure to the volatile marine fuel sector and the potential for changes in regulatory environments.

In conclusion, Fitch Ratings' B+' rating with a 'RR3' outlook for Arcor's proposed unsecured debt reflects the company's moderate credit profile and the debt's senior unsecured status. The rating indicates a significant risk of default but also suggests that Arcor's financial situation is expected to remain stable over the next three years.

References:
[1] https://economictimes.indiatimes.com/news/international/us/justin-bieber-cant-pay-off-31-5-million-debt-until-haileys-1-billion-rhode-deal-comes-through/articleshow/122766986.cms