Moody’s rates YPF notes B3

Moody's Investors Service said it assigned a B3 global foreign-currency rating to YPF SA's proposed $325 million notes, a reopening of the company's $1.325 billion notes due April 2024.

The proceeds will be used to repay YPF's local notes due between 2016 and 2017, Moody’s said.

The outlook is stable.

The rating is based on the company's status as the largest industrial and energy company in Argentina with sizable oil and gas reserves, including large shale resources, Moody’s said.

YPF's ratings also consider a belief that although credit metrics will deteriorate during 2016, given the adverse operating environment, they will remain strong for the rating category, the agency said.

Moody's said it will closely monitor the company's ability to adapt to the new environment following the 12% decrease in local oil prices in Argentina earlier this year and still uncertain policies for the energy sector.

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