Moody's rates Buenos Aires note B3

Moody's Investors Service said it assigned a B3 global scale foreign-currency rating to the Province of Buenos Aires' planned offering of up to $450 million senior unsecured notes.

The outlook is stable.

The province plans to use note proceeds for capital expenditures.

The agency said the B3 rating reflects economic recovery evident in the province and nationally, which has supported strong revenue growth in the years since 2002.

The rating also acknowledges the considerable economic uncertainty and financial pressures still facing the province - reflected in weaker financial performance since 2005 - as well as its financial reliance on the federal government, which includes the need to refinance debt maturities as they come due and the importance of federal transfers to the province's revenue stream (over 44% in 2005 and preliminary 2006), Moody's said.

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