Moody's: Buenos Aires bonds B3

Moody's Investors Service said it assigned a global scale, foreign-currency rating of B3 to the $750 million of senior unsecured global bonds to be issued by the Province of Buenos Aires.

The agency also said it assigned a rating of A3.ar on the Argentina national scale to these bonds.

The proceeds will be used for general purposes, including infrastructure and social projects and to finance fiscal imbalances, Moody's said.

The bonds, which constitute direct, unconditional, unsecured and unsubordinated obligations of the province, are to be nominated in dollars.

The rating reflects the province's considerable cost pressures and weakened financial performance since 2005, the agency said.

The ratings also take into account its financial dependence on the federal government, the agency said.

The ratings also are constrained by the operating environment for regional and local governments in Argentina, Moody's added.

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