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DBRS: Argentina's short-term ratings upgraded, placed under review-negative

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DBRS: Argentina's short-term ratings upgraded, placed under review-negative

DBRS raised Argentina's short-term foreign and local currency issuer ratings to R-5 from selective default, or SD, after the country started making payments on its newly rescheduled short-term debt obligations.

However, DBRS also placed the ratings under review with negative implications, saying short-term debt repayments still remain in doubt since they will come due shortly after the inauguration of a new administration. Argentina will hold a general election in October.

"DBRS expects volatile conditions to persist through the election period and subsequent transition. In this context, Argentina may struggle to rollover or repay its short-term obligations as they come due early in 2020," the rating agency said.

Argentina's sovereign credit ratings were downgraded on Aug. 30 after the country unilaterally extended the maturity of its short-term debt.

DBRS said the long-term foreign and local currency issuer ratings remain at CC and under review with negative implications as of Sept. 9.

DBRS warned that Argentina's ratings could face downward pressure if the country's fiscal or monetary policy discipline significantly weakens in the lead up to or following any change in administration.