S&P rates Entre Rios notes B-

S&P said it assigned a B- rating on the Province of Entre Rios' notes for up to $350 million.

The amortizing notes will be denominated in dollars.

The proceeds will be used to fund the development of infrastructure projects, improve the debt-maturity profile and for debt repayment, S&P said.

This is Entre Rios' first international issuance, the agency said.

The agency said it doesn’t believe the new issuance will hurt the province's financial profile.

Entre Rios has had uncertain access to external financing over the past several years due to market conditions, including the sovereign's default in 2014, S&P said.

The province has mostly relied on short- and medium-term debt to finance its budget, the agency explained.

Double-digit inflation and the limited access to financing have reduced the province's debt to an expected 29% of operating revenue in 2016 from 35% in 2013, S&P said.

But the agency said it believes the province’s debt burden will rise to 33% of operating revenue by 2018, partly as a result of the its improved access to international markets.

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