Moody's cuts Argentine companies, reviewed further

Moody's Investors Service said it downgraded and placed on review for further downgrade the ratings of the following Argentine oil and gas companies and related companies:

• Pan American Energy LLC's global local-currency rating downgraded to Ba2 from Ba1;

• Pan American Energy LLC, Argentine Branch's global local-currency rating downgraded to Ba2 from Ba1, foreign-currency rating downgraded to Ba3 from Ba2;

• Petrobras Argentina SA's global local-currency rating downgraded to Ba2 from Ba1, foreign-currency rating downgraded to Ba3 from Ba2; and

• YPF Sociedad AnÛnima's global local-currency rating downgraded to Ba2 from Ba1.

Moody's said the downgrades and reviews for further downgrade were prompted by the new presidential decree requiring oil, gas and mining companies to repatriate 100% of their export proceeds and convert them to Argentine pesos. Previously, oil and gas companies operating in Argentina were permitted to keep up to 70% of their export proceeds offshore.

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