Rating agency Fitch upgraded YPF’s long-term rating to CCC after YPF struck a deal last week to swap $2.1bn in international bonds. Fitch estimated that YPF will pay an average of $700mn in interest per year through 2023. In the exchange, YPF issued:
YPF will save ~$105mn annually on interest costs till end-2022 as per Fitch estimates, which the rating agency expects the company to use towards upstream capex to ramp up production “by up to 40,000boed, when assuming that unconventional wells average cost is $5.5 million in Vaca Muerta and each new well produces on average 1,000boed.” YPF’s 8.5% 2025s and 6.95% 2027s traded stable at 88.33 and 67.5 respectively.
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