S&P rates YPF notes B

S&P said it assigned a B corporate credit rating to YPF SA, along with a B rating on the company's proposed senior unsecured notes.

The proposed notes will be denominated in Argentine pesos, but payable in dollars, and will bear a fixed rate and have a bullet five-year maturity, the agency said.

S&P also said it assigned a B+ stand-alone credit profile.

The outlook is stable.

The rating is the same as corporate credit rating because the agency said it doesn't believe there's significant structural subordination because YPF is an operating holding company.

The ratings reflect an expectation that YPF will maintain its competitive position as the leading player in the Argentine integrated oil and gas sector, S&P said.

The ratings are offset by exposure to the country's fragile economy and evolving institutional framework and the company's limited geographic diversification, the agency said.

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