S&P trims Buenos Aires, four provinces

S&P said it lowered its foreign and local currency issuer credit ratings on the city of Buenos Aires to CCC+ from B-.

The agency also downgraded the provinces of Cordoba, Rio Negro, and Salta to CCC from B-. Finally, we lowered our ratings on the province of Neuquen to CCC- from B-.

The downgrades follow S&P’s downgrade of Argentina’s transfer and convertibility rating to CCC+ from B- following Argentina tightening restrictions on accessing foreign exchange, S&P said.

“The T&C assessment reflects our view of the likelihood of the sovereign restricting non-sovereign entities from accessing foreign exchange needed to satisfy their debt service obligations. According to our criteria, the foreign currency global scale ratings on LRGs are capped at the T&C level, which for Argentina is now CCC+,” the agency said in a press release.

The outlook on the city and the four provinces is negative.

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