Rating Agency Standard and Poor’s (S&P) downgraded Argentina’s economic and financial outlook to “negative,” after the expropriation of YPF, which endangers the “B” rating the country has for its sovereign debt.
Rating Agency S&P announced on Thursday it was downgrading Spain-based energy company Repsol-YPF after Argentina’s government announced the expropriation of 51% of its shares. The rating was lowered from BBB to BBB (minus), the agency said in a statement.
Bayerische Motoren Werke AG (BMW), the world’s largest luxury automaker, posted a 30% drop in first-quarter sales in Brazil due to a tax rise for imported cars, said Henning Dornbusch, the company’s country head.
Senator from the Argentine ruling majority and former cabinet chief, Aníbal Fernández assured that the government “will pay the real price for the expropriation of YPF and not what Repsol’s chairman (Antonio Brufau) wants.”
Colombia is available to mediate between Spain and Argentina to find a solution to the dispute over the seizure of YPF from Repsol, said Colombian Vice-president Angelino Garzón.
Spain’s main oil corporation Repsol warned it could take legal action against companies that invest in YPF after Argentina seized control of the Spanish company's energy unit last week.
Borders & Southern Petroleum Plc energy explorer operating in the Falkland Islands announced on Monday the discovery of gas condensate in the first well drilled to a depth of 4.867 meters.
The recent decision by President Cristina Fernandez to seize a majority stake in YPF from Spain’s Repsol has the approval of 62% of Argentines, while 23% disagree according to a public opinion poll from Poliarquía published in the Sunday edition of La Nacion.
The Argentine government decision to nationalize Spain’s Repsol owned YPF will be discussed in June in Los Cabos, Mexico, during the G-20 summit.
The British government, in a move designed to ease concern among the investment community about the Argentine legal threats, has written to some 15 banks and oil exploration companies operating in the region, reports the Daily Telegraph.