Argentine gov't to audit, oversee highway operator

BUENOS AIRES Nov 23 (Reuters) - The Argentine government said on Monday it will audit and temporarily oversee highway operator Autopistas del Sol after the company defaulted on its debt.

Autopistas del Sol SA (AUS.BA), which operates a key toll highway leading in and out of Buenos Aires, failed to make a $9 million debt payment on Monday and said it is working on a proposal to restructure its debt.

Autopistas, along with some other public service companies, has repeatedly complained that the government has not allowed it to raise the prices it charges to meet rising costs and payments on their dollar-denominated debt.

The companies have also said a weak local currency is adding to their financial troubles.

The government uses price controls on gas, electricity, highway tolls, fixed telephone rates among other services in an effort to keep a lid on inflation.

It has nationalized several public service companies in recent years, most recently the country's top airline, Aerolineas Argentinas.

The Planning Ministry said the government intervention of Autopistas would last 120 days and was aimed at ensuring the company continues to operate.

Autopistas did not immediately comment.

On Monday, Standard & Poor's Ratings Service lowered its ratings on Autopistas to 'D' from 'CC'. It said the company had about $307 million in total debt as of Sept. 30, with $52.5 million in notes maturing in 2014 and $155 million in 2017.

Autopistas' "financial position and repayment capacity have continued to deteriorate in recent quarters, given lower traffic levels, increasing operational costs, and a gradual devaluation in Argentina's currency," Standard and Poor's said.

Local media reports said Autopistas generates monthly revenue of around $3.1 million.

But a government spokesman, speaking on condition of anonymity because of the audit announcement, blamed the company's financial troubles on mismanagement.

"Some companies say their problems are because of the tariffs, but they are poorly run," the spokesman said. (Reporting by Jorge Otaola; writing by Kevin Gray; editing by Andre Grenon) ((kevin.gray@reuters.com ; +54 11 4510-2505; Reuters Messaging: kevin.gray.reuters.com@reuters.net))