Fitch cuts Repsol, cites Argentine expropriation
NEW YORK, June 8 |
NEW YORK, June 8 (Reuters) - Fitch Ratings cut the credit rating on Spanish oil company Repsol by one notch to BBB-minus on Friday, citing the expectation the company will receive no compensation in the near or medium term from Argentina for the expropriation of its assets.
Repsol's rating remains negative.
"Fitch assumes that Repsol will not receive any cash compensation from the Argentine government in the short to medium term and will not recover any of the cash lent to The Petersen Group to purchase 25 percent of YPF's capital several years ago," Fitch said in a statement.
Argentina's government confiscated Repsol's 57 percent stake in the YPF business unit in April. Repsol's shares have plunged over 27 percent over the following two months.
Repsol is rated Baa2 by Moody's Investors Service and is on watch for a possible downgrade. Standard & Poor's has a BBB-minus rating with a negative outlook.
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