You are here: Home - Investing -

Argentina downgraded to near default status

Written by:
Credit rating agency Fitch has downgraded Argentina and said the country would probably default on its debt obligations.

Fitch cut its long-term rating for Argentina to ‘CC’ from ‘B’, a downgrade of five notches. It also slashed its short-term rating from ‘B’ to ‘C’, which is one step above default, the Telegraph reports.

US judge Thomas Griesa of Manhattan federal court last week ordered Argentina to set aside $1.3bn for certain bond investors by 15 December.

Those investors do not want to continue following a debt restructure plan that came after an Argentine default in 2002, according to the Telegraph.

Argentine politicians have attacked the ruling, arguing it threatens the success of debt relief that enabled the country to grow again.

They are also concerned if Argentina is forced to pay in full, other holders of debt totaling more than $11bn will also demand immediate payment.

Besides the court case, Fitch cited a “tense and polarized political climate” and public dissatisfaction with high inflation, weak infrastructure and currency, as reasons for the downgrade. It highlighted Argentina’s economy has slowed sharply this year.

Currently, S&P has a rating of ‘B-‘ for Argentina, while Moody’s rates the country at ‘B3 negative’. For both ratings agencies, this is five steps above default.

Related Posts

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Workplace pensions’ charges set to become more transparent

The workplace pension's market is set to become clearer under a new pensions code aimed at making charges more clear...