S&P: Several Argentina companies to negative

Standard & Poor's said it revised to negative from stable the outlooks and affirmed the ratings on several Argentine companies.

Those companies include Aeropuertos Argentina 2000 SA, Alto Palermo SA, Clisa-Compania Latinoamericana de Infraestructura & Servicios SA, IRSA Inversiones y Representaciones SA, Transportadora de Gas del Sur SA, Alto Parana SA, Loma Negra CIASA and Petrobras Argentina SA.

The agency also said it affirmed the ratings on its Capex SA, Compania de Transporte de Energia Electrica en Alta Tension Transener SA, Electricidad Argentina SA, Empresa Distribuidora Y Comercializadora Norte SA, Hidroelectrica Piedra del Aguila SA, Industrias Metalurgicas Pescarmona SAIC yF, Mastellone Hermanos SA and Raghsa SA.

The actions follow the outlook revision on the Republic of Argentina to negative from stable.

The outlook revision reflects a belief that a potential downgrade of the sovereign would lead to a similar action on these companies, S&P said.

This is mainly because of their asset and cash-flow concentration in Argentina and absence of insulating factors that might help these companies to continue honor their financial obligations under a sovereign default scenario, the agency said.

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