...OVERVIEW + We're assigning our 'B' long-term foreign and local currency issuer credit ratings to the Argentine province of NeuquTn. We're also assigning a 'B' rating to the province's new issue for up to $366.13 million. + 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 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 the federal government, and our expectations that NeuquTn's operating balance and balance after capital accounts will improve with increasing financing. RATING ACTION...
