Argentina's credit rating cut by Fitch on public-sector debt swap
Argentina's credit rating has been downgraded by Fitch Ratings to the lowest level above default as the government plans to force state institutions to dispose of their holdings of dollar-denominated bonds.
Argentina's credit rating has been downgraded by Fitch Ratings to the lowest level above default as the government plans to force state institutions to dispose of their holdings of dollar-denominated bonds.
The South American country's rating was downgraded two notches to C from CCC- by Fitch, according to a statement sent on Friday.
The debt swap, announced in an official government decree on Thursday, would involve unilateral swaps and forced currency conversions that qualify as a default under Fitch's criteria.
"The 'C' rating reflects Fitch's view that a default is imminent," wrote Fitch analysts led by Todd Martinez. The rating agency said that Argentina's score would be downgraded to restrictive default when the swap occurs.
State-owned banks and public pension fund Anses will swap 100 per cent of their holdings of foreign bonds under New York law for peso-denominated debt. Peso bonds maturing in 2036 will pay the higher yield of a dollar-linked or inflation-linked option.
Moody's Investors Service gave the country a Caa3 rating, the third lowest score with a stable outlook. S&P Global Ratings rated the country two notches higher with a negative outlook.
related news
-
Posse predicts 139% inflation as he finally turns up in Congress
-
Poverty rate was 48.9% in April, says Universidad Di Tella study
-
Milei says Argentina is ‘very close’ to lifting FX controls
-
Milei attacks ‘loudmouth’ critics as he denies peso-dollar lag
-
330,000 porteños have dropped out of middle class in last eight years
-
Police raid dozens of soup kitchens
-
Central Bank cuts interest rate for sixth time to 40% as inflation slows
-
Inflation cools for fourth straight month
-
Monthly inflation slows to single-digit: 8.8% in April
-
Argentines flock to banks as Milei awakens mortgage market