Moody's rates MetroGas notes A1

Moody's Investors Service said it assigned a B1 global scale local-currency rating and Aa3.ar national scale rating to MetroGas SA's 1.5 million in Argentine pesos proposed senior unsecured class 1 and 2 notes to be issued under its medium-term notes program.

The outlook is stable.

The ratings acknowledge that despite a very challenging macroeconomic environment in Argentina, regulatory conditions remain broadly supportive for Metrogas through the government's passage and implementation of a new tariff regime, Moody's said.

This has adjusted gas distribution tariffs significantly, the agency said.

While the regulatory changes introduced in the last two years are still recent and have been subject to public scrutiny, Moody's said it considers them to be credit positive and overall supportive of the company's credit profile.

The ratings continue to be constrained by a still incipient regulatory environment that could be challenged in the medium term, the agency added.

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