This decision was made after Argentina carried out a peso debt swap last week “which we classify as a distressed swap given the sovereign’s pronounced macroeconomic vulnerabilities and its very limited ability to extend maturities and place debt in the local market without continually relying on trades, the third since August 2022.”
While, They explained that since the new instruments under the exchange were delivered to the bondholders, they considered the “non-compliance according to our criteria, as corrected.”
“We are raising our long-term and short-term sovereign local currency ratings on Argentina to ‘CCC- and C’ from ‘SD and SD’, respectively, and affirming our long-term and short-term foreign currency ratings of ‘CCC+ and C’, respectively,” they said.
Lastly, they highlighted that the negative outlook on the long-term ratings reflects risks related to pronounced economic imbalances and political uncertainty before and after the 2023 national elections.
Source: Ambito
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