S&P: Buenos Aires, Cordoba, Mendoza to negative

Standard & Poor's said it revised the outlook on the City of Buenos Aires and the provinces of Buenos Aires, Cordoba and Mendoza to negative from stable.

S&P also said it affirmed the B global scale ratings on the four sub-sovereigns.

The level of association is comprehensive. In addition to facing similar economic challenges, critical links include significant transfers from the central government to the local and regional governments and direct financing or approval for new indebtedness provided by the central authority, the agency said.

In addition, particularly for the city of Buenos Aires, the ongoing discussion about the determination of expenditure responsibilities at different levels of government and the corresponding financing of this potential new spending highlights potential future risk, S&P added.

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