Province of Neuquen 'B' Ratings Affirmed, Outlook Remains Stable

OVERVIEW The dynamic oil and gas sector should bolster Neuquen's operating revenues and more than compensate for its high spending, which we expect to grow above inflation, resulting in solid operating surpluses. However, the Argentine province will continue to face challenges in implementing formal medium- and long-term financial policies. We're affirming our 'B' long-term global scale foreign and local currency issuer credit ratings on the province of Neuquén. We're also affirming the 'B' issue-level ratings on its rated secured and unsecured notes. The outlook is stable, reflecting our view that Neuquen will continue attracting investments in the hydrocarbon sector, and the local economy should grow faster than national GDP, resulting in operating surpluses and a lower debt. RATING ACTION BUENOS

...OVERVIEW + The dynamic oil and gas sector should bolster Neuquen's operating revenues and more than compensate for its high spending, which we expect to grow above inflation, resulting in solid operating surpluses. + However, the Argentine province will continue to face challenges in implementing formal medium- and long-term financial policies. + We're affirming our 'B' long-term global scale foreign and local currency issuer credit ratings on the province of NeuquTn. We're also affirming the 'B' issue-level ratings on its rated secured and unsecured notes. + The outlook is stable, reflecting our view that Neuquen will continue attracting investments in the hydrocarbon sector, and the local economy should grow faster than national GDP, resulting in operating surpluses and a lower debt. RATING ACTION BUENOS AIRES (S&P Global Ratings) March 12, 2019--S&P Global Ratings affirmed its 'B' global scale foreign and local currency ratings on Neuquen. We also affirmed our 'B' issue-level ratings...

Ratings Action