Moody’s ups Metrogas to Baa2.ar

Moody's Latin America said it affirmed Metrogas SA's B3 global scale corporate family and debt ratings, upgraded its national scale rating to Baa2.ar from Baa3.ar and changed the outlook to positive from stable.

Moody’s said the outlook change and the upgrade in the national scale reflects Metrogas' strengthened credit profile following the implementation of a new tariff regime (RTI) for regulated utilities in Argentina.

“While the new tariff regime is still undergoing full implementation, the company's credit metrics have strengthened already,” the agency said in a news release.

“Strong cash flow generation has allowed the company to reduce its commercial obligations by approximately ARS 540 million during the first half of 2017, which is equivalent to 27% of total commercial obligations outstanding at year end 2016.”

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