S&P boosts Transener

S&P said it raised its ratings on Compania de Transporte de Energia Electrica en Alta Tension Transener SA to CCC+ from CCC- and removed them from CreditWatch with positive implications.

The company repaid its $86 million bond last week. The repayment eliminated refinancing risks amid FX access restrictions and improved its capital structure. “The company now has a significantly lower debt stock and marginal maturities in the upcoming three years,” S&P said in a press release.

Transener now has only domestic-currency denominated debt, and has no exposure to currency mismatch, which the agency said it considers a credit positive.

“The CCC+ ratings reflect that Transener still operates in uncertain business conditions in Argentina, which include high inflation, depressed economic activity, limited access to refinancing and lack of transparency and stability of the regulatory framework,” S&P said.

The outlook is negative.

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