Moody’s puts it’s hands back in Argentina: Threats to the Classification of Buenos Aires

 

April 4, 2012

 

The rating agency Moody’s issued comments on the controversy over the transfer of the Buenos Aires subway and buses to the City of Buenos Aires. They said it could downgrade the Federal Capital’s debt rate if the fares are not increased.

The company that provides debt ratings to private and state entities believed to be an impact on the “financial flexibility” of the City of Buenos Aires if not re-raise the tickets.

“Unless there is any further increase in the price of the ticket, the new responsibilities of the city affect its financial flexibility and will involve an increase in their financial needs,” said the financier.

Moody’s said in a study that the City of Buenos Aires should spend 3% of its budget to subsidize the subways and groups if no agreement with the National Government in terms of resources.