Fitch Raises TGN and TGS

Fitch has upgraded Argentina’s Transportadora de Gas del Sur (TGS) to B+ from B and Transportadora de Gas del Norte (TGN) to B from B minus. “The local and foreign currency IDR of TGS reflects the company’s moderate business risk profile, the sector’s weak regulatory framework, solid financial position and adequate operations in the gas transportation and gas processing business in Argentina,” says Fitch. “Despite a challenging energy environment, TGN maintains an adequate operating performance and internal cash generation,” it adds. TGN is exposed to a weak regulatory framework, the sector’s underinvestment, and is vulnerable to government interference, and exchange rate and inflation risks, the agency warns.