RIO DE JANEIRO, BRAZIL – S&P Global risk agency raised Argentina’s rating from SD (selective default) to CCC+. The outlook is stable.
The rating comes after Argentina has restructured approximately 99 percent of its bonds denominated in dollars, and secured a guarantee from the International Monetary Fund (IMF) to begin renegotiating an agreement.
“This important step forward provides the opportunity for the government to articulate a broader plan to tackle various post-pandemic macroeconomic challenges, negotiate a new program with the IMF, and work to settle delays with the Paris Club,” S&P Global said in a statement.
However, the agency considered that the stable outlook of the CCC+ rating is due to permanent macroeconomic risks such as high inflation, low growth, structural fiscal problems, strong need for external financing, and continued pressure on the exchange market. All this weighs against the favorable short-term repayment of Argentina’s debt profile, said the company.
Source: Estadão Conteúdo