Data provided by iNet BFA
Loading...
See More

Moody's downgrades YPF

Jun 13 2012 08:26 AFP

Related Articles

Argentina nationalises oil firm YPF

Rule breaker

Argentine seizure scuppers Chinese deal

World Bank slams Argentina oil grab

Retaliation threats as Argentina seizes firm

Argentina to seize control of energy firm

 

Washington - Moody's on Tuesday downgraded its rating for Argentina's oil company YPF another notch, a month after Buenos Aires seized control of the country's largest oil firm, citing concerns over its debt.

The ratings agency downgraded YPF's global local currency rating to Caa1 from B3, but said its outlook was stable.

"The rating downgrade reflects YPF's near-term liquidity risk of debt acceleration and the ongoing challenge of meeting maturing short term debt obligations as they become due," Moody's said.

"Moody's believes that the company's large foreign currency needs for its foreign currency denominated debt increases the risk of a debt restructuring that would result in losses to creditors and prompt a distressed exchange default."

"Barring receipt of formal waivers from its lenders, a change-of-control and/or nationalisation could be deemed an event of default under certain YPF debt agreements, giving rise to acceleration rights," Moody's added.

The ratings agency noted that to date, "YPF has not received default or acceleration notices on any of its debt obligations."

Argentina declared YPF a public utility on April 16, with the government seizing a 51% stake in the subsidiary of Spain's Repsol - infuriating Madrid, and sparking concern in the United States and the European Union.

Later the same week, it extended the move to YPF Gas, a separate company 85% owned by a division of Repsol.

President Cristina Kirchner has argued that the expropriation was justified because YPF crude production had dropped while oil and gas imports doubled in 2011. Imports are forecast to triple by the end of the year.

repsol  |  ypf  |  moody's
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Expanding your business requires capital and banks have stringent lending criteria in place.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...