Province Of Neuquen 'B' Foreign And Local Currency Ratings Affirmed, Outlook Remains Stable

OVERVIEW We're affirming our 'B' long-term foreign and local currency issuer credit ratings on the Argentine province of Neuquén. Neuquén has an economy that's heavily dependent on the hydrocarbon sector; its financial management has been consistent, though it lacks formal, long-term policies; it faces budgetary constraints; and its budgetary performance is to a certain degree volatile. At the same time, Neuquén benefits from a moderate debt burden--at around 45% of operating revenue--and moderate contingent liabilities from government-related entities (GREs). The outlook on the province is stable, reflecting our view of a more consistent and institutionalized dialogue between Argentina's local and regional governments (LRGs) and the federal government, and our expectations that Neuquén's fiscal balances will improve with increasing financing. RATING

...OVERVIEW + We're affirming our 'B' long-term foreign and local currency issuer credit ratings on the Argentine province of NeuquTn. + NeuquTn has an economy that's heavily dependent on the hydrocarbon sector; its financial management has been consistent, though it lacks formal, long-term policies; it faces budgetary constraints; and its budgetary performance is to a certain degree volatile. + At the same time, NeuquTn benefits from a moderate debt burden--at around 45% of operating revenue--and moderate contingent liabilities from government-related entities (GREs). + The outlook on the province is stable, reflecting our view of a more consistent and institutionalized dialogue between Argentina's local and regional governments (LRGs) and the federal government, and our expectations that NeuquTn's fiscal balances will improve with increasing financing. RATING ACTION BUENOS AIRES (S&P Global Ratings) Aug. 25, 2017--S&P Global Ratings affirmed its 'B' foreign and local currency issuer credit...

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