S&P trims Metrogas

S&P said it lowered its global scale issuer credit rating on Metrogas SA to B- from B. The outlook is now negative.

“The downgrade reflects our view that Metrogas' refinancing risk is increasing, particularly in light of the payments of its $250 million syndicated bank loan from Industrial and Commercial Bank of China (ICBC; A/stable/A-1) and Itau Unibanco Holding SA (Itau; BB-/stable/B) that starts to amortize in February 2019 in nine quarterly installments,” S&P said in a news release.

“In addition, the steep depreciation of the Argentine peso in the past five months has weakened Metrogas' liquidity, given that the company's cash flow generation is in the domestic currency, while its dollar-denominated debt amortizes in the following months.”

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