S&P: Metrogas unchanged after add-on

Standard & Poor's said the CCC debt rating on Metrogas SA's recently issued additional series A notes is unchanged after the $3.9 million add-on.

The agency also said it affirmed the CCC corporate credit rating on Metrogas.

The outlook remains negative.

The action follows the company's decision to capitalize 50% of the interest accrued from January 2013 until December 2013 for the $180 million series A notes, S&P said.

Metrogas issued additional series A notes of about $3.9 million, which bear the same interest rate of 8.875% and mature on the same date (Dec. 31, 2018) as the outstanding $180 million series A notes, the agency said.

The ratings reflect the company's vulnerable business risk profile and highly leveraged financial risk profile, S&P said.

The ratings also recognize Argentina's high regulatory risk and the company's exposure to foreign-exchange risk, the agency said.

The ratings also consider its high capital expenditures to meet growing demand for natural gas amid very low tariffs and weak liquidity, S&P said.

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