S&P ups TGS, notes to CCC+

Standard & Poor's said it raised its corporate credit rating on Transportadora de Gas del Sur SA to CCC+ from D after the company announced that it has reached a high 99.76% level of acceptance from creditors to restructure its about $1 billion debt under an exchange offer proposal launched on Oct. 1. The outlook is stable.

At the same time, a CCC+ rating was assigned to the series A notes for up to $277.7 million and series A-P notes for up to $43 million, series B-A notes for up to $256.3 million, series B-A-P notes for up to $39.9 million, series B-B notes for up to $ 256.3 million and series B-B-P notes for up to $39.9 million with nine-year final maturity.

S&P also assigned a CCC+ rating to the new bonds to be issued in replacement of TGS' special-purpose entity Inter American Development Bank's loans.

S&P said the ratings assigned to TGS reflect the high regulatory risk in Argentina and future cash-flow generation uncertainties since regulated tariffs have remained frozen in Argentine peso terms since January 2002.

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