S&P: Buenos Aires notes B-

Standard & Poor’s said it assigned a B- rating on the Province of Buenos Aires’ senior unsecured notes for $1.25 billion.

The amortizing notes will have a final maturity in 2024 and will be denominated in U.S. dollars, S&P said.

The proceeds of the bond issuance will be used to fund social, infrastructure and other public investment projects to improve the province’s debt maturity profile and to make debt service payments, the agency said.

Additionally about 17% of the proceeds will be used for special municipal funds created under the province’s 2016 budget law.

The agency said it believes that by the end of 2016, the impact of this issuance and other new borrowings on the province’s debt stock will be partially offset by debt repayments and inflation, which will nominally increase the province’s operating revenues.

These factors contribute to an expectation that the province’s debt will reach 50% of operating revenues by year-end 2016, compared to 51% estimated at year-end 2015, S&P said.

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