Fitch assigns B ratings to Chubut

Fitch Ratings said it assigned a long-term foreign-currency issuer default rating of B to the Province of Chubut in Argentina.

The agency also assigned a long-term local-currency issuer default rating of B to Chubut.

The outlook is stable.

The ratings consider the province’s strong sustainability and leverage ratios, along with positive and adequate operating margins from 2011 through 2015, Fitch said.

The ratings also reflect its higher fiscal autonomy compared with other provinces in Argentina due partly to its collection of hydrocarbon royalties, the agency said.

The ratings are limited by the constrained fiscal and budgetary flexibility of the province, as well as its weak liquidity position, Fitch said.

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