Friday, October 31, 2014

Fitch downgrades Argentina's Par bonds ratings to 'D'

Fitch ratings agency today downgraded Argentina's Par bonds issued under Foreign Law to 'D' from 'C', after the country failed to complete an interest payment, raising the risk that creditors could demand that its cash-strapped government immediately repay all of its debt.

The country last month deposited a $161 million payment with a newly appointed local trustee to try to circumvent US court orders for it to settle with "holdout" investors suing for full repayment of bondsfrom a 2002 default before paying debtholders who accepted a restructuring.