S&P gives B- to Pampa Energia, notes

S&P said it assigned its B- corporate credit rating on Pampa Energia SA and a B- issue-level rating to its proposed senior unsecured notes.

The outlook is stable.

S&P said the ratings reflect Pampa Energia's competitive position as a strong player in the Argentine energy sector, which is tempered by exposure to the country's fragile economy and volatile regulatory framework, as well as Pampa's limited geographic diversification.

In addition, although Pampa's consolidated leverage pro forma after the Petrobras Argentina acquisition is moderate, the agency expects the company to post a free operating cash flow shortfall in the next two years, weighing on the rating.

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