S&P acts on six Argentinean companies

S&P said it raised its local and foreign currency ratings on the following companies and utilities to B: AES Argentina Generacion SA; Pampa Energia SA; and Transportadora de Gas del Sur SA (TGS).

The outlooks are stable.

The agency also upgraded the foreign currency rating on Arauco Argentina SA to B from B- and affirmed its B local currency rating. S&P also lifted the local and foreign currency rating on Aeropuertos Argentina 2000 SA (AA2000) to B+ from B- and affirmed the B- ratings on Capex SA.

The actions follow Argentina’s upgrade to B from B- and the revision of its T&C assessment to B+ from B-.

S&P said the action on the sovereign reflects the advances it made in overall economic policy aimed at resolving large economic imbalances while restoring the country's policy credibility.

“The government has made progress in improving external liquidity and access to commercial funding. Initial steps to resolve the country's large economic imbalances and microeconomic distortions are helping to slowly restore economic stability,” the agency said in a news release.

“At the same time, policy predictability has improved, and institutions are strengthening. We believe that the government will continue to face political and social challenges to implement its economic plan.”

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