- Argentina-based oil and gas exploration and production (E&P) company Campania General de Combustibles S.A. (CGC) recently announced a debt refinancing that will extend its debt maturity profile and materially reduce refinancing risk.
- BUENOS AIRES (S&P Global Ratings) July 26, 2019–S&P Global Ratings assigned its preliminary ‘B’ rating to CGC’s proposed bond issuance. At the same time, we affirmed our ‘B-‘ issuer credit rating (ICR) on CGC and placed it on CreditWatch with positive implications.
- The CreditWatch positive reflects that there’s a high chance that the company will be able to issue the bond in the next few days, which will prompt us to upgrade CGC to ‘B’ with a stable outlook.
The preliminary rating on the proposed senior unsecured notes reflects that the issuance would materially reduce CGC’s refinancing risk. It also incorporates the imminent upgrade of the ICR once the transaction becomes effective. In the meantime, we’re placing the ICR on CreditWatch positive.
The rating on the notes is preliminary pending their successful issuance, and assuming that the notes’ final terms and conditions do not differ materially from the draft documents presented to us.
Atlantic Investors Service 