Moody's rates Petersen Energia loan B1

Moody's Investors Service said it assigned a B1 rating to the $1.026 billion senior secured term loan of Petersen Energia SA.

The outlook is stable.

Proceeds helped financed Petersen's $2.235 billion purchase of a 14.9% stake in YPF SA (Baa2/negative) from Repsol YPF, SA (Baa1/negative).

With the closing of the loan, Petersen owns 14.9% of YPF as a highly leveraged entity, the agency said.

The B1 rating reflects the single asset risk and elevated financial leverage attached to Petersen's minority stake in YPF and its dependence on a dividend stream from YPF as the primary source of debt service on the term loan, the agency said.

The B1 rating also considers Argentine political risk and instability, Moody's said.

Factors that support the B1 rating include a security interest for senior lenders in the majority of Petersen's shares in YPF, a number of structural features that enhance lender protection, a strong shareholder agreement and YPF's cash flow position and historical dividend payment record, the agency said.

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