Moody's Upgrades YPF S.A. (YPF) to 'B3'; Placed Under Review with Direction Uncertain

Moody's upgraded YPF's (NYSE: YPF) issuer rating to B3 from Caa1 in the global. In addition, Moody's placed under review with direction uncertain the Baa1.ar national scale issuer rating. At the same time, Moody's Investors Service has upgraded YPF's global scale senior unsecured notes' ratings to B3 from Caa1 and the MTN program rating to (P) B3 from (P) Caa1, with the outlook changed to stable from positive. The company's outlook was changed to stable (multiple) from positive, to recognize a stable outlook for the global scale ratings and the placement of the national scale rating under review.

The action incorporates YPF's vulnerability to the local energy policy framework, as well as its status as the largest industrial corporate and energy company in Argentina, where it generates the bulk of its revenues. In addition, this action reflects the close relationship between YPF and the government of Argentina, since YPF is majority owned and controlled by the latter. YPF's B3 ratings reflect the application of Moody's joint default rating methodology for government-related issuers. YPF's B3 rating combines its underlying b3 Baseline Credit Assessment, which expresses a company's intrinsic credit risk, and Moody's view of moderate support from and high dependence of the government and the company on credit factors that could cause stress on both simultaneously.

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