Moody's rates EPEC notes B3

Moody's Latin America said it assigned provisional ratings of B3 on the global scale and A3.ar on the Argentine national scale to Empresa Provincial de Energia de Cordoba's $565 million of notes.

The outlook is stable.

Proceeds from the notes will be used to repay an existing loan from the Fondo de Garantía de Sustentabilidad de la Administración Nacional de Seguridad Social and to complete the financing for the construction of a new combined cycle thermal plant at Pilar in the Province of Cordoba.

The ratings take into account a baseline credit assessment of 17 as a measure for the rated entity's standalone creditworthiness, the B3 rating of Cordoba as the support provider, estimates of a high degree of implied government support in the case of financial distress and a high default dependence between the company and the province, the agency said.

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