It is due to the Government’s decision to order public organizations to change debt in dollars for another in pesos, at a time when the central bank (BCRA) continues to lose reserves.
Fitch Ratings agency lowered Argentina’s sovereign debt rating in foreign currency from “CCC-” to “C” on Fridayto reflect his view that a debt default is imminent because of his swap plans.
The decision is the result of a “decree that obliges national public sector entities to carry out operations with their holdings of sovereign debt securities, which would imply unilateral exchanges and forced currency conversion that constitute default events according to Fitch’s criteria.”
The Argentine government published decrees this week ordering public organizations to change debt in dollars for another in pesos, at a time when the central bank (BCRA) continues to lose reserves.
Fitch recalled in a note that the default events considered in its criteria include “a unilateral exchange (…) initiated by the sovereign on a public debt security” and “a forced redenomination of the sovereign debt to a different currency.”
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
