S&P upgrades Metrogas

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

The outlook is stable.

The actions follow the improvement in the company's capital structure since the Argentinean government announced implementation of the Integral Tariff Review (ITR) in April 2017, S&P said.

The ITR sets a mechanism for predictable tariffs, a budget for operating expenses and capital expenditure needs for the next five years, the agency explained.

The new regulatory framework eliminates the company's dependence on discretionary tariff adjustments and improves its cash flow predictability in the short- to medium-term, S&P said, as well as its liquidity and capital structure.

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