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© Reuters. S&P lowers Argentina’s sovereign debt rating
Buenos Aires, Mar 29 (EFE).- The risk rating agency Standard & Poor’s (S&P) lowered Argentina’s sovereign debt note this Wednesday due to greater vulnerability regarding the payment of debt in foreign currency.
The rating agency downgraded Argentina’s long-term foreign currency sovereign credit rating to “CCC-” (vulnerable investment), from “CCC+,” with a negative outlook.
S&P downgraded this rating after Argentina last week decreed that certain non-financial public sector entities swap or sell their holdings of US dollar-denominated foreign and local law bonds for peso-denominated local law bonds.
For the rating agency, this transaction would not amount to a debt default but “suggests greater risks and vulnerabilities” regarding the payment of the debt in foreign currency.
S&P said in a statement that the negative rating outlook “reflects the risks surrounding pronounced economic imbalances and political uncertainties before and after the 2023 national elections.”