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UPDATE: Moody's Revises Argentina Rating Outlook To Negative

July 31, 2014



BUENOS AIRES (Alliance News) - Moody's investor service on Friday revised its rating outlook for Argentina to 'negative', citing continued economic stagnation in the country.

At the same time, Moody's affirmed Argentina's Caa1 issuer rating, confirmed the (p)Caa2 rating for its foreign bonds and confirmed the Ca rating on the original defaulted bonds. The long term issuer rating was placed on negative outlook.

Earlier in the day, data from the National Institute of Statistics and Census showed that Argentina's industrial output declined 0.3% year-over-year in June, a slower rate of decline than the 4.3% drop expected by economists. In May, output had declined 4.9%.

On a month-over-month basis, industrial output grew 2.1% in June.

Earlier this week, Standard & Poor, or S&P, lowered its unsolicited long- and short-term foreign currency sovereign credit ratings on Argentina to selective default ('SD') from 'CCC-/C'. At the same time, 'CCC-/C' foreign currency ratings from Credit Watch were removed, where they were placed with negative implications on July 1, 2014.

On Thursday, Fitch lowered Argentina's Foreign Currency Issuer Default Rating to 'RD', indicating an uncured payment default on a bond, loan or other material financial obligation but which has not entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, and which has not otherwise ceased operating.



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Source: Alliance News


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