The rating action is in line with the agency's upgrade of Uruguay to B+ from B, S&P said in a statement. The outlook is stable.
"The ratings on Ancap reflect the risks inherent in operating as a single-asset refiner, Uruguay's challenging economic environment, ownership by Uruguay and the potential effects of the deregulation of the Uruguayan fuels market," S&P said.
The rating also incorporates S&P's expectations that the company will maintain its dominant market position in Uruguay.
S&P added the ratings could come under pressure if the company assumes a significantly more aggressive capital structure that could affect Ancap's financial profile.
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