Moody's rates Rio Cuarto Aa3(ar)

Moody's Investors Service said it assigned issuer ratings of Aa3(ar) and B1 (global scale, local currency) to the Municipality of Rio Cuarto, Argentina.

The outlook is stable.

The agency said that the ratings reflect the municipality's ability to generate a high level of own-source revenue, positive operating results which have been sufficient to fund increasing capital investments and a debt level which, while high, carries a manageable debt service cost.

"The Municipality of Rio Cuarto has achieved positive operating results over the last five years and current revenues exceeded current spending by nearly 20% in 2005 and 16% in 2006," said Moody's Associate Analyst Patricio Esnaola.

"These positive results allowed the municipality to cover its capital investment requirements without borrowing."

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