Fitch: Buenos Aires bond B

Fitch Ratings said it assigned an expected long-term rating of B to the City of Buenos Aires’ proposed bond.

The bond will be issued up to $890 million under a $2.3 billion euro medium-term note program, Fitch said.

This note is denominated in dollars to accrue a fixed interest rate to be determined at issuance and payable on a semi-annual basis, the agency said.

The maturity of the bond is estimated to be of 10 years with equal annual payments of $296.7 million in the last three years, Fitch said.

The bond will be a senior unsecured obligation of the city, the agency added.

The proceeds will be used for infrastructure investments and refinancing debt, Fitch said.

Fitch also said it assigned a long-term rating of B in line with the issuer’s long-term rating.

The rating considers the company’s adequate fiscal and budgetary performance, along with its good operating margins despite pressures on operating expenditures, the agency said.

The city manages its debt and sustainability ratios well and it is Argentina’s primary political and economic center, Fitch added.

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