Fitch: Argentina Electric Industry Awaits Possible Post-Election Structural Reform

NEW YORK--(BUSINESS WIRE)-- In Fitch Ratings' view, 2016 will be seen as a turning point for Argentine corporates, especially the power sector, which is in dire need of reform. "The 2015 presidential elections could bring a more market-friendly administration into power, which could tackle the structural weakness inherent in the electrical system" according to Xavier Olave, an Associate Director at Fitch Ratings.

Price controls since 2001 - 2002 have negatively affected electric sector players across the value chain, with distribution companies forced to bear much of this burden with minimal government support. The system needs relief and new investment, but in a best-case scenario Fitch believes price adjustments will be gradual and not dramatic. New major investment in the sector does not look likely in the sector until 2017 at the earliest, and only after price distortions are removed.

The full report 'Argentine Electricity Sector - Awaiting Structural Reform' is available on 'www.fitchratings.com' or by clicking on the link below.

Additional information is available at 'www.fitchratings.com'

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research: Argentine Electricity Sector (Awaiting Structural Reform)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=865806

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Fitch Ratings
Xavier Olave
Associate Director
+1 212-612-7895
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
or
Paula Garcia-Uriburu
Director
+56 22 499-3316
or
Lucas Aristizabal
Senior Director
+1-312-368-3260
or
Media Relations
Elizabeth Fogerty, +1 212-908-0526
[email protected]

Source: Fitch Ratings

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