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Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Pampa Energia S.A.
Global Credit Research - 13 Aug 2020
New York, August 13, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Pampa Energia S.A. 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.
This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Key rating considerations are summarized below.
Pampa Energia S.A.'s Caa3 rating reflects the company's good cash flow generation capacity, supported by a strong assets' base and strong position as an integrated power-electricity producer, which also is able to source a large portion of the natural gas requirements of its thermal power plants from its own exploration and production activities in the oil and gas (O&G) sector. The company's good liquidity position and low leverage also support the credit profile.
These credit strengths are mainly constrained by the concentration of the company's operations in Argentina and exposure to uncertain local regulation in the power and oil & gas businesses, and particularly to Government of Argentina's (Ca negative) credit risk in its power generation business.
This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.
The principal methodology used for this review was Unregulated Utilities and Unregulated Power Companies published in May 2017. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
This announcement applies only to EU rated and EU endorsed ratings. Non EU rated and non EU endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Daniela Cuan Vice President - Senior Analyst Project & Infrastructure Finance Alejandro Olivo Associate Managing Director Project & Infrastructure Finance JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653
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