S&P ups Pan American Energy to B+

Standard & Poor's said it raised its long-term local and foreign currency corporate credit ratings on Pan American Energy LLC to B+ from B.

The outlook on the local currency rating is positive; the outlook on the foreign currency rating is stable.

The upgrade is based on S&P's perceptions of a strengthening of the economic and operating environments in Argentina and more specifically on expectations that the company will continue to show sound financial and operating performance despite the still challenging conditions in the country and a certain degree of sovereign intervention.

S&P said the ratings reflect Pan American's heavy concentration in Argentina, exposing the company to the risks of operating under a highly uncertain and rapidly changing economic and regulatory environment, as well as a significant need for capital expenditures to develop its large reserve base.

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