Moody's downgrades ratings of provinces, cities

Moody's Investor Service announced it has downgraded the issuer and debt ratings of several provincies and cities in Argentina, due to the risks these states may face to access foreign currency and "serve their obligations in foreign currency."

The agency stated in a communiqué that it had downgraded this ratings in order to put them at the same level or below the country's B3 negative sovereign bonds ratings.

Besides, the provinces' debts rating has been downgraded one notch below the sovereign rating, to Caa1.

This measure was aimed to: Buenos Aires City, Chubut province, Mendoza City, Mendoza province, Córdoba City, Buenos Aires province, Córdoba province, Río Cuarto City, Chaco province and Formosa province.

"With the exception of the Province of Formosa, the outlook for all the rated provinces and municipalities in Argentina is negative and follows the negative outlook of Argentina's B3 local and foreign currency government bond ratings. Formosa's issuer and debt ratings were placed under review for a possible downgrade," Moody's assured in its press release.