Vene Risk Lurks Under Arcos Dorados

Vene Risk Lurks Under Arcos Dorados

Argentina

Bankers are at pains to note that Arcos Dorados, the Argentina-based private holdco for the McDonald’s LatAm franchise, is not really Argentina risk. But Fitch highlights significant Venezuela exposure in the benchmark-sized bond offering roadshowing this week. Fitch rates a $450m senior unsecured proposed notes issue from Arcos due 2019 at BBB minus and notes that Venezuela accounted for 31% of Arcos' EBITDA as of the 12 months through June 30, a decline from 34% in 2008. As such, the agency no

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