We're assigning our 'B' long-term foreign and local currency issuer credit ratings to the Argentine province of Neuquén. We're also assigning a 'B' rating to the province's new issue for up to $366.13 million. 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 44% 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
