S&P: Buenos Aires unchanged

Standard & Poor's said the B rating on the Province of Buenos Aires' senior unsecured notes due in 2015 will remain unchanged following the $250 million add-on to the issuance.

The notes had an outstanding amount of $800 million before the proposed reopening, S&P said.

The recovery rating on the notes remains unchanged at 3, indicating 50% to 70% expected recovery in a default.

The notes will have identical terms and conditions as the initial notes, other than the issue price, and they will be part of the same series, the agency said.

The ratings remain solidly supported by the Republic of Argentina, even though high fiscal deficits in the provincial budget persist, S&P said.

In 2010, the province's deficit was close to 10% of total revenue, despite the strong positive impact that economic activity and high inflation had on provincial revenues, the agency said.

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