Moody's downgrades Argentina's because of inconsistent economic policy

Tuesday, March 18th 2014 - 06:56 UTC

Full article 14 comments

International credit rating agency Moody's has reduced the rating of Argentina's sovereign debt, moving the grade down one step from B3 to Caa1 due to the fall in the nation's international reserves and its “inconsistent” economic policy. Read full article

Comments

Disclaimer & comment rules

LEPRecon
Junk bond status only a stones throw away for Argentina.

But of course there is nothing wrong with their economy - it is just the world out to get them.
Mar 18th, 2014 - 07:38 am - Link - Report abuse 0
-+
Klingon
I strongly dispute this latest rating by Moody's.
We have a very consistent down trend going on for the last 3 years!
Mar 18th, 2014 - 09:50 am - Link - Report abuse 0
-+
Rufus
@1 LEPRecon, strictly speaking Moody's consider anything rated Ba1 or lower as “speculative grade” (aka junk bonds), so Uruguay, Turkey, the Philippines and Ireland are just above junk status.

Argentina has just dropped from extremely-risky-better-not-to to may-as-well-burn-the-bond-paperwork-for-warmth.
Mar 18th, 2014 - 10:29 am - Link - Report abuse 0
-+
GeoffWard2
Well, Argentina has at last joined Zimbabwe!
Two countries firmly supporting the rest of the world economies (as CFK would have it).
Mar 18th, 2014 - 10:35 am - Link - Report abuse 0
-+
CaptainSilver
Puzzles me that it can go any lower? Has it reached the bottom yet? What other countries have this rating?
Mar 18th, 2014 - 10:53 am - Link - Report abuse 0
-+
Condorito
A good time to buy.
Mar 18th, 2014 - 01:03 pm - Link - Report abuse 0
-+
Conqueror
@5 Yep, it can go down four further steps. When it gets down to C, that's as far as it goes. I'm a little surprised at Moody's. C is defined as “Rated as the lowest quality, usually in default and low likelihood of recovering principal or interest.” I would have thought argieland was already there!
Mar 18th, 2014 - 01:14 pm - Link - Report abuse 0
-+
Squeaky
I simply wonder how a great rich treasure trove can go so badly wrong? Stealing and bribes are an anathema to much of the world; but here it seems, that it's OK to siphon off vast amounts for personal gain. If “corruption is the root of all evil”, nobody in the world does it much better.. When will the voters wake up, and say “basta”?
Mar 18th, 2014 - 04:00 pm - Link - Report abuse 0
-+
Think
(6) Condorito

You say...:
“A good time to buy.”

I say...:
Momio but no Turnip, huhhhh?
A good time top buy, indeed... Look at the Argentinean stocks on the world exchanges...
Or just read what those economic midgets as Barclays and Bank of America are recommending today...

Happy buying ;-)))
Mar 18th, 2014 - 05:49 pm - Link - Report abuse 0
-+
yankeeboy
Awful lot of rumors out there of another devaluation this year.
My guess is they are correct
Watch inflation soar past my 60% prediction if it comes to pass.
Mar 18th, 2014 - 06:00 pm - Link - Report abuse 0
-+
GeoffWard2
Its sad, but I see Argentina following in the footsteps of Brasil, where the Central Bank created the free-floating Real, following hyper-inflation. Stabilization followed, but this was only 'breathing space' to 'get the house in order', which Cardoso did - largely through privatizations.

What Argentina is signally failing to do is to create 'breathing space' and fill it with things that work.
Mar 18th, 2014 - 06:56 pm - Link - Report abuse 0
-+
Briton
Moody's downgrades Argentina,

well that will upset suzy...lol
Mar 19th, 2014 - 11:43 am - Link - Report abuse 0
-+
Squeaky
I'm not sure that Argy's model is worth the powder to blow it to hell. Why don't they just get a grip, and try not to reinvent the wheel
Mar 19th, 2014 - 09:08 pm - Link - Report abuse 0
-+
ChrisR
@ 3 Rufus
“ Uruguay, [Turkey, the Philippines and Ireland] are just above junk status.”

Don’t worry, “No money Pepe” will get us there with all his wastrel spending before he is kicked out on his arse and good riddance too.

As for The Dark Country they have worked hard to reach the bottom, but they still have a way to go yet.

Let us hope it comes sooner, before TMBOA’s “reign” ends, I would REALLY love to see the cow hanging off a telephone pole with Maximus Pratuss © ChrisR 2014 hanging off the next one along. At least that would be the end of the K line for a generation but sadly there are quite a few “worthy” families who can carry the flag onwards and downwards for the country.
Mar 19th, 2014 - 09:22 pm - Link - Report abuse 0
-+

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!