S&P lifts Metrogas to positive

Standard & Poor’s said it revised the outlook on Metrogas SA to positive from stable.

The agency also said it affirmed the company’s CCC corporate credit and issue-level ratings.

The outlook revision follows the recent request of Argentina’s department of energy and mines for the natural gas industry regulator (Enargas) to revise the rate-setting process within the next 12 months, S&P said.

Metrogas also defined terms and conditions for the 12-month transition period and provide new rate charts until the regulator completes the process, the agency said.

The natural gas rates increased, so Metrogas will have to comply with mandatory investments and service-quality targets during the transition period while recovering the higher operating costs due to inflation, S&P said.

But the new price-setting process could improve the company’s ability to recover its fixed- and variable-operating costs, the agency said, and capital expenditures.

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