Fitch affirms Buenos Aires

Fitch Ratings said it has affirmed the B- global-scale foreign and local currency unsecured debt ratings, including the euro medium-term note program, of Buenos Aires and the city's B- foreign and local currency issuer rating.

The rating is stable.

Fitch said it believes recent political turmoil regarding the possible impeachment of mayor Anibal Ibarra will not spill into a credit risk and expects continuity in the current fiscal and financial policies.

The city continues to strengthen its credit profile through the achievement of an adequate internal saving level, high liquidity and sustainable debt levels and debt repayment schedule after the successful conclusion of the restructuring of the euro medium-term note program in March 2003, the agency said.

The main concerns regarding Buenos Aires's credit profile are risks associated with the federal government's economic policies, particularly exchange rate levels and capital controls.

The Argentinean city expects to end 2005 with a cash balance of about $450 million, the agency said.

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