S&P cuts Jujuy

S&P said it lowered the Argentine province of Jujuy’s issuer rating to CC from CCC-.

“Our CC ratings on Jujuy reflect our view of a virtual certainty of default, either through a distressed debt exchange or a missed payment,” S&P said in a press release.

Almost 25% of its debt consists of the $210 million 2022 bond, proceeds from which the province used to build the Cauchari solar farm. The project is operational, and Jujuy estimates the farm will generate $60 million in revenue annually. Interest payments on this bond will total $18 million in 2021. “Nonetheless, the project’s start of operations was delayed for a year, which along with the province’s weak budgetary performance compromises Jujuy’s capacity to build sufficient cash to serve the bond’s bullet amortization in 2022,” the agency said.

The outlook is negative.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.