ARGENTINA: New Policies Will Help Smooth Corporate Recovery - Moody's

(RTTNews) - The most qualified non-financial companies in Argentina will likely improve their credit metrics next year, while implementing new measures such as local reforms, according to a report by Moody's Investors Service.

The credit metrics of most of Argentina's 15 non-financial companies rated by Moody's will show some recovery by mid-2018 as the country's economic environment improves and inflation-related issues are addressed.

"The decline in the expected inflation rate will be critical for the improvement of Argentina's economic environment and for corporate operating margins, which will allow companies to pass on costs to their customers," wrote Martina Gallardo Barreyro, author of the report.

In Moody's view, the policies recently adopted that will likely to benefit companies in certain specific sectors are the implementation of export refunds and the elimination of export taxes in the agricultural sector and the end of import taxes on certain vehicles and computers.

Also, the report noted the increase in public works tenders in the construction and building materials sectors, a new regulatory framework in the telecommunications industry and the reduction of local oil prices in the energy sector.