S&P ups Transportadora de Gas del Sur bonds

Standard & Poor's said it raised its ratings on Transportadora de Gas del Sur SA's $201.14 million and $89.00 million Inter-American Development Bank bonds to B from B-.

The agency said that the bonds benefit from the bank's preferred-creditor-status umbrella, which means that the rating on the bonds' underlying loans is based on the B issuer credit rating on Transportadora de Gas del Sur.

According to S&P, the ratings on the company reflect the high political and regulatory risk the company faces in Argentina, its still-high leverage after restructuring, the partial currency mismatch between revenues and its limited financial flexibility.

Those risks are partially offset by the benefits of the Argentine peso devaluation on Transportadora de Gas del Sur unregulated activity, the agency added.

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