Moody's: Buenos Aires bonds B3/Baa3.ar

Moody's Latin America said it assigned ratings of B3 (global local currency scale) and Baa3.ar (Argentina national scale) to the Province of Buenos Aires' first series up to $200 million to be issued under the 2013 local market bonds program for up to $800 million.

Moody's also assigned provisional a B3 rating (global local currency scale) and a Baa3.ar rating (Argentina national scale) to the program. The bonds to be issued under the program will be payable in Argentine pesos and sold in the local capital market.

The ratings are in line with the province's long-term local currency issuer ratings, which carry negative outlooks.

The assigned ratings reflect the ongoing deterioration in Argentina's operating environment, including a decelerating economy and rising fiscal and foreign exchange pressures.

"Despite the intrinsic financial characteristics of the Province of Buenos Aires, the lack of consistent and predictable policies at the national level affects the institutional framework under which the province operates and ultimately anchors its credit quality to that of the Sovereign," Moody's analyst Alejandro Pavlov said in a news release.

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