trending Market Intelligence /marketintelligence/en/news-insights/trending/uD9YLVEEOcNu03BpquZEwQ2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

In This List

S&P downgrades Argentina to selective default after short-term debt extension

Key Credit Risk Factors When Assessing Banks In The Context Of COVID-19

Paypal Well-Positioned To Gain Share In COVID-Related Digital Payments Shift

Street Talk Episode 61 - Investors debate if U.S. banks have enough capital in post COVID world

You Down With PPP? Consider The Risks

S&P downgrades Argentina to selective default after short-term debt extension

S&P Global Ratings said Aug. 29 it downgraded Argentina's sovereign credit ratings to selective default, after the government unilaterally extended the maturity of its short-term debt, a move the rating agency considers a default.

It was the agency's second downgrade in two weeks. On Aug. 16, it cut Argentina's long-term foreign and local currency sovereign credit ratings to B- from B, with a negative outlook, while affirming the short-term ratings at B, citing the market turmoil caused by President Mauricio Macri's defeat in the Aug. 11 primary elections.

But S&P added it intends to upgrade the sovereign credit ratings to CCC- from selective default on Aug. 30. It said the new terms of the short-term debt took effect immediately, meaning the default has been resolved.

Argentine Finance Minister Hernán Lacunza on Aug. 28 announced plans to extend the maturity dates on short-term government debt to give the country a "less demanding" repayment schedule. The government said it also would work on extending the repayment schedule of its $57 billion rescue package with the International Monetary Fund.

A quickly deteriorating financial environment and the absence of market confidence about policy initiatives since the primary elections have led to "heightened vulnerabilities" in Argentina's credit profile, S&P said.

"This has immensely stressed debt dynamics amid a depreciating exchange rate, a likely acceleration in inflation, and a deepening economic recession," the rating agency said.

Also on Aug. 29, the agency lowered Argentina's long- and short-term issue ratings to CCC-/D from B-/B on heightened default risk.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.