S&P ups Neuquen

S&P said it upgraded its long-term foreign- and local-currency issuer credit ratings to CCC+ from SD on the province of Neuquen. The agency also affirmed senior unsecured and secured issue-level ratings at CCC+.

“Given that the terms of Neuquen loan from an international bank became effective on Dec. 4, 2020, the province completed the restructuring of its international debt. This reduces sharply the province’s debt service and mitigates the risk of default for the next two years. However, our ratings reflect Neuquen’s fragile budgetary performance and liquidity position, along with the weak debt payment culture, constraining our assessment of the province’s financial management,” S&P said in a press release.

The agency said it sees the province’s debt profile as unsustainable in the long term without unexpected and favorable economic improvements.

The outlook is stable.

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