Argentina Natural Gas Faces Credit Risk: Fitch

Argentine pipeline companies are being negatively impacted by the natural gas crisis in their country, according to Fitch. The scarcity of natural gas has increased the near-term credit concerns of the two gas transportation companies in Argentina, TGN and TGS. The ongoing challenges faced by these companies include the low probability of domestic tariff increases and continued government influence, the agency says. These risks continue to be factored heavily into the companies’ ratings. TGN faces greater risk as there is a possibility that it will not be paid due to an existing gas transportation agreement. This led Fitch recently to change TGN’s outlook to negative from stable.