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. On Aug.
