Moody’s rates GPAT notes B1

Moody's Investors Service said it assigned a B1 global scale rating and an Aa3.ar national scale rating to GPAT Compania Financiera's XXV series issuance up to 300 million in Argentine pesos under its senior debt program.

All of the ratings were placed under review for downgrade, in line with the company’s other ratings, Moody’s said.

GPAT is a finance company mainly focused on the financing of General Motors vehicle purchases by individuals through car dealers, the agency said.

The rating on the issue is derived from GPAT's B1 corporate family rating, reflecting a moderate probability of support from its parent, Banco Patagonia, in the event of stress, Moody’s said.

While GPAT's global scale rating compares poorly with global peers, its national scale rating is one of the highest in the country, the agency explained.

The ratings also consider Argentina's ongoing macroeconomic and institutional challenges together with GPAT's monoline business model dedicated to the financing of General Motors vehicles and the increasing level of competition within the car-financing industry in Argentina, Moody’s said.

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