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Moody's assigns a Aa2.ar debt rating to GPAT Compania Financiera S.A.

January 31, 2014

Moody“s Latin America Agente de Calificaciףn de Riesgo has today assigned a B1 global local currency debt rating to the expected issuance of GPAT Compania Financiera (GPAT) Class A, up to the amount of Ar$200 million which will be due in 9 months, and Class B, up to the amount of Ar$200 million which will be due in 18 months. The total amount of both classes must not exceed Ar$200 million. At the same time, Moody's Latin America assigned a Aa2.ar national scale local currency debt rating to GPAT“s expected issuances. The issuances are under GPAT's debt program up to the amount of Ar$1500 million. The outlook on the ratings is negative, in line with the negative outlook on the sovereign ratings. The following ratings were assigned to GPAT Compania Financiera S.A.'s issuances: Class A: Ar$200 million senior unsecured debt issuance: B1 Global Local Currency Debt Rating, with negative outlook Aa2.ar Argentina National Scale Local Currency Debt Rating Class B: Ar$200 million senior unsecured debt issuance: B1 Global Local Currency Debt Rating; with negative outlook Aa2.ar Argentina National Scale Local Currency Debt Rating RATINGS RATIONALE Moody's explained that the local currency senior unsecured debt rating derives from GPAT's B1 global local currency corporate family rating (CFR), which incorporates the entity's key role as the financial agent for General Motors in Argentina and its strong commercial and strategic importance to the corporation, as well as its profitability and funding structure. The rating also takes into account the company's monoline business orientation. GPAT is 99% owned by Banco Patagonia S.A. (rated E+, Ba3). Moody's said that the one-notch differential between the Ba3 stand alone rating for Banco Patagonia and the B1 debt rating reflects the structural subordination of GPAT's bondholders to all liability holders of Banco Patagonia. GPAT Compania Financiera S.A. is headquartered in Buenos Aires , Argentina , and reported Ar$2,030 million of total assets and Ar$396 million of shareholders' equity as of September 2013 .


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Source: EMBIN (Emerging Markets Business Information News)


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