YPF Takeover Is Negative for Telefonica, Moody’s Says
(Corrects headline in story published April 24 to show that Moody’s said Argentina’s takeover of YPF has negative implications for Telefonica.)
Argentine’s decision to seize Repsol YPF SA (REP)’s unit will have negative implications for companies like Telefonica SA (TEF) with investments in the country, according to Moody’s Investors Service.
Plans to nationalize YPF, Argentina’s biggest energy company, will not only hurt Repsol but also have “negative credit implications” on Telefonica, Endesa SA (ELE), Gas Natural SA and Obrascon Huarte Lain SA (OHL), according to an e-mailed report. Argentine companies in the energy sector may also be affected as they “face a higher risk of further government interference in the oil and gas sector.”
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