S&P rates Rioja B-

S&P said it assigned a B- foreign- and local-currency issuer ratings on the province of La Rioja.

The outlook is stable.

The B- ratings and B- stand-alone credit profile reflect the province's individual credit worthiness and the institutional framework in which it operates, S&P said.

La Rioja, like all local and regional governments in Argentina, operates under a very volatile and underfunded institutional framework, the agency explained.

The province’s ratings are constrained by its very weak economy and budgetary flexibility, weak financial management and high contingent liabilities, S&P said.

On the other hand, the province's average budgetary performance, adequate liquidity and moderate debt burden support its creditworthiness, the agency said.

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