(Moody’s, 15.Nov.2019) — Moody’s Investors Service completed a periodic review of the ratings of YPF Sociedad Anonima and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody’s reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody’s practice has been to issue a press release following each periodic review to announce its completion.
Key rating considerations are summarized below.
The Caa2 ratings of YPF Sociedad Anonima (YPF) reflect the company’s (1) large oil and gas production and reserve size; (2) solid cash generation and credit metrics for its rating category; (3) status as the largest industrial corporate and energy company in the domestic market; and (4) links with the Government of Argentina (Caa2 RUR-), its controlling shareholder, which combine YPF’s underlying caa2 Baseline Credit Assessment (BCA), which expresses a company’s intrinsic credit risk, and our view of moderate support from and high dependence on the Argentine government. The review for downgrade of YPF’s ratings mirror the review for downgrade of the Caa2 Argentine bond rating.