Fitch rates Neuquen bond B

Fitch Ratings said it assigned an expected foreign-currency long-term rating of B to the province of Neuquen's upcoming bond issuance.

Fitch also said it affirmed Neuquen's long-term foreign- and local-currency issuer default ratings at B with a stable outlook.

The bond is rated at the same level as the province, considering the country ceiling, an analysis of the hydrocarbon market and the proposed bond's structure, the agency said.

The bond will be issued for up to $526.2 million and will be denominated in U.S. dollars, Fitch said.

Neuquen has a medium-term maturity debt profile with a constant need of refinancing, the agency said.

The province recorded very volatile and weak operating margins in the periods 2011 through 2015, Fitch said.

During 2015, the province registered deterioration in its operating performance relative to 2014 due to a deceleration of hydrocarbon royalties affected by international oil prices and substantial growth in personnel costs, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.