Fitch lowers Stoneway Capital view to negative

Fitch Ratings said it affirmed Stoneway Capital Corp.'s $665 million senior secured notes due in 2027 at B.

The outlook was revised to negative from stable.

The outlook revision reflects the revision of Argentina's sovereign rating outlook to negative from stable.

The deterioration of Argentina's credit quality directly affects the credit quality of Cammesa, Stoneway's sole off-taker.

Cammesa is dependent on sovereign subsidies to honor its commitments, the agency noted.

The outlook revision also considers the company's sharply weaker economic activity and uncertain prospects for multi-year fiscal consolidation and market financing availability as International Monetary Funds are used up, which would pose risks to sovereign debt sustainability, Fitch said.

The ratings also consider Stoneway's operational stage, the power purchase agreements with a sole off-taker and moderate operating risks, the agency said.

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