Fitch lowers Argentina companies view to negative

Fitch Ratings said it revised the outlooks on several corporations in Argentina following the outlook revision of the sovereign's rating outlook.

The companies with negative outlook include AES Argentina Generacion SA, Agua y Saneamientos Argentinos SA, Arcor SAIC, Capex SA, Compania General de Combustibles SA, Genneia SA, IRSA Propiedades Comerciales SA, Mastellone Hermanos Sociedad Anonima, Pampa Energia SA, Petroquimica Comodoro Rivadavia SA, Telecom Argentina SA and YPF SA.

The outlook revision of Argentina's outlook reflects sharply weaker economic activity and uncertain prospects for multi-year fiscal consolidation and market financing availability as International Monetary Fund funds are used up, posing risks to sovereign debt sustainability, Fitch explained.

The agency said it assumes that in 2019, the government will achieve the fiscal adjustment targeted in the budget and that the recently renegotiated IMF program will help it fully cover its financing needs.

But, downside risks persist amid a nascent economic recession and election cycle, the agency added.

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