TGS Seen in Strong Position: JPM

TGS Seen in Strong Position: JPM

Argentina

With net revenues up and a strong cash position, Transportadora de Gas del Sur is in a strong position relative to other Argentine single B credits, says JPMorgan. “[A] strong liquidity position, low leverage, high interest coverage, attractive maturity schedule, and potential company buy-backs should provide a floor to the bond price,” it says. The shop notes that based on prices in the mid-40s, (25% yield) TGS has enough cash to tender for almost the entire amount of its 7.875% of 2017 bonds.

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