Friday, August 1, 2014

Moody’s lowers Argentina outlook rating to negative

Ratings agency Moody’s Investors Service left today Argentina’s note bonds unchanged but it lowered the country’s outlook rating to “negative”, as it considered domestic economy will deteriorate after the failure to pay exchange bondholders.

Moody’s kept Argentine note bonds in “Caa1”, confirmed the “(P)Caa2” rating for foreign law Argentine bonds and ratified “Ca” rating for defaulted Argentine bonds.

However, the ratings agency lowered Argentina’s outlook to “negative” considering “pressure over its international reserves amid continuous economic stagnation may increase.”

“Negative outlook over Argentine debt also reflects the uncertainty on how the current legal situation can be resolved,” Moddy’s added.