Fitch puts Buenos Aires, Salta, La Plata on watch

Fitch Ratings said it placed the foreign-currency ratings of three local and regional Argentine governments on Rating Watch negative.

The agency also placed the long-term foreign-currency and national long-term ratings on debt securities issued internationally and payable exclusively in foreign-currency on negative watch.

The outlook is stable.

These actions follow a decision to place Argentina's B foreign-currency issuer default rating on Rating Watch negative as a result of increased uncertainty about the government's ability to service its international securities issued under New York Law on a timely basis using the U.S. financial system, Fitch said.

Although this ruling should not directly impact the ability of the Argentine local and regional governments to make payments on their foreign-currency obligations using the U.S. financial system, it may further impact the willingness of the Argentine government to provide sub nationals with foreign exchange to make payments to their cross-currency debt obligations, the agency said.

Fitch said it expects to resolve the watch once the Rating Watch on the sovereign rating is resolved.

The ratings placed on negative watch include the City of Buenos Aires's foreign-currency long- and short-term ratings of B, along with the B and AA(arg) ratings on its $50 million series 7 notes, $475 million series 8 notes and $415 million series 10 notes.

The Province of Salta's foreign-currency long-term rating of B also was placed on watch, along with the B/AA-(arg) rating on its $185 million secured note (provincial law 7,691).

The Municipality of La Plata's foreign-currency long-term rating of B also was placed on negative watch.

The agency also affirmed Buenos Aires's local-currency long- and short-term ratings at B, along with its national long- and short-term ratings at AA(arg) and A1+(arg), respectively.

Salta's local-currency long-term rating also was affirmed at B and national long-term rating at AA-(arg); and La Plata's local-currency long-term rating at B and national long-term rating at AA-(arg).

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