Fitch rates Cordoba bond B

Fitch Ratings said it assigned a B rating to the Province of Cordoba's long-term foreign-currency and local-currency issuer default ratings.

The outlook is stable.

Fitch also said it assigned an expected long-term rating of B to the province's upcoming senior unsecured bond issuance.

The ratings are constrained by Argentina's sovereign rating, the agency said.

The notes will be issued in U.S. dollars for up to $550 million in 2017 to accrue a fixed interest rate to be determined at issuance and potentially be payable on a semi-annual basis, Fitch said.

The ratings reflect the province’s low leverage metrics, economic importance in the national context and its balanced fiscal performance, the agency said.

The ratings are mainly limited by the province's high refinancing risk, high infrastructure needs and structurally high staff expenditure and unfunded pension liabilities, Fitch said.

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