S&P lifts Metrogas to CCC+

S&P said it raised its corporate credit and issue-level ratings on Metrogas SA to CCC+ from CCC.

The outlook is positive.

S&P said the action follows the new legal ground for companies in Argentina's gas sector, which sets a mechanism for predictable tariffs, a budget for operating expenses, and capital expenditure (capex) needs for the next five years.

For the upcoming 18 months, the agency said it believes these measures will stabilize Metrogas' cash-flow generation without transitory economic assistance from the government. Nevertheless, S&P’s perception of risk remains high, considering the lack of predictability and consistency in the regulatory framework in the past few years that undermined Metrogas' capital structure and finances.

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