S&P rates Buenos Aires notes B-

Standard & Poor's said it assigned a B- rating to the up to $500 million in senior unsecured notes issued by the city of Buenos Aires, which has B- ratings and a stable outlook.

The notes are due in 2015 and are denominated in U.S. dollars. The proceeds are to be used to fully or partially fund the expansion of the city's subway system and make a variety of other infrastructure investments.

The ratings are constrained by the high risk inherent to Argentina, S&P said. Negative factors in the local context include high inflation, a low level of investment and the unpredictability of economic policies in the country, S&P said.

Several factors support the ratings, including its greater revenue flexibility than other local governments in Argentina, low debt and wealthy economy, the agency said.

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