Argentina: Fitch upgrades rating to B
By FXStreet The rating agency Fitch upgraded Argentina’s from Restricted Default to B, after the country resumed its debt payments to restructured bondholder and amid an improvement in the sustainability and consistency of its policy, a reduction in external vulnerabilities and the easing of external and fiscal constraints.
It is the second upgrade in less than a week. On Friday, Standard & Poor’s upgraded Argentina from “Selected Default” to B- after the country completed the payment to restructured bondholders.
The outlook is stable amid a weak external liquidity position, macroeconomic underperformed and a deterioration of public finances.
Key Quotes:
“Fitch Ratings has upgraded Argentina’s Long-Term Foreign Currency Issuer Default Rating (LT FC IDR) to ‘B’/Stable Outlook from ‘RD’. Fitch has also upgraded the Short-Term FC IDR to ‘B’ from ‘RD’. The issue ratings on Argentina’s senior unsecured foreign-currency bonds were affirmed at ‘B’. Fitch has affirmed Argentina’s Long-Term Local-Currency (LC) IDR at ‘B’/Stable Outlook and Country Ceiling at ‘B’.”
“The LT FC IDR upgrade to ‘B’ is driven by Argentina’s resumption of debt payments to restructured bondholders, thus curing the default of July 2014. In addition, Argentina’s ratings reflect the improved consistency and sustainability of Argentina’s policy framework, reduced external vulnerability, and …read more
Source:: FX Street
