Moody's rates YPF debt Caa1

Moody's Investors Service said it assigned a Caa1 global foreign-currency bond rating to YPF Sociedada Anonima's proposed issuances of between $500 million and $1 billion of 10-year Obligaciones Negociables Clase XXVIII to be issued in Argentina. The outlook is stable.

The agency said YPF's ratings are based on the company's strong financial track record under majority ownership and control of the Argentine government. The company has also demonstrated modest access to the international capital markets and has signed a number of investment partnership agreements with international companies, Moody's added.

The agency acknowledged that YPF's track record since the nationalization is still fairly short and that the Argentina government has a history of interference in the energy sector. Nevertheless, Moody's believes that one of the government's goals continues to be to keep YPF's financial strength intact.

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