MercoPress. South Atlantic News Agency
S&P retained its 'B' rating for Argentine debt
Argentina's current economic downturn began with a currency run in April 2018 that led the Macri government to request a loan with the IMF. Standard & Poor's (S&P) confirmed it would maintain its 'B' rating for Argentine debt, highlighting that the president Mauricio Macri administration was continuing to meet the goals laid out by the International Monetary Fund (IMF) as part of the huge credit line agreed last year.
“We are affirming our long-term foreign currency and local currency ratings on Argentina at 'B' and our short-term foreign and local currency ratings at 'B',” the agency said.
IMF approved a US$ 56 billion standby loan for Argentina to help the Macri administration implement a tough austerity program to stabilize the economy, and prepare for any financial emergency ahead of the coming October presidential election.
“Reflecting strong policy commitment, Argentina continues to comply with challenging targets under its International Monetary Fund Stand-By Arrangement, despite a second year of economic contraction and uncertainties ahead of the October national elections,” the agency said in a statement.
Argentina's current economic downturn began with a currency run in April 2018 that led the Macri government to request a loan with the IMF.
Last year the Argentine economy contracted 2.5% and this year the IMF expects a GDP reduction of 1.3%.
“Persistent inflation and pronounced fiscal and external vulnerabilities prompted further adjustment of aspects of the exchange-rate framework, coupled with ongoing policy commitment, which have seemingly stabilized market volatility,” said S&P.
“The outlook on the long-term ratings remains stable, based on the balance of risks stemming from the uncertain election outcome, the need for the next government to continue to implement policies to stabilize the economy, slow inflation, and manage fiscal and external financing vulnerabilities and the manageable debt amortization profile of the next two years,” said the agency.
It should be remembered that last July credit ratings Moody's changed the prospects of Argentine debt to negative, although keeping the B2 rating.
Top Comments
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Read all commentsSo what was Argentina's credit rating under CFK?
Aug 05th, 2019 - 06:19 pm +1Oh look, it was SD (In default with little prospect for recovery)...and yet you think that B (Highly speculative-Stable) is somehow worse?
https://countryeconomy.com/ratings/argentina
As you can see the scale goes from D (default) < SD < CC < CCC- < CCC < CCC+ < B- < B so the credit rating has improved through several levels above default. Remember that this is an indication of a confidence level that Argentina can pay its debts which is related to economic health and management, so it should be good news. You seem upset that Argentina is moving away from a default situation.
“... I will assume you are trying to convince ill-informed people that all is well with Macri.”
Aug 06th, 2019 - 04:56 pm +1Not at all! I agree that the economy is a mess but it would have turned into Venezuela if CFK had remained in power. I don't know what motivates you to keep claiming that Macri has been a complete failure when the evidence shows that some economic indicators have improved. The balance of trade is looking very good which means more foreign income to reduce the external debt (which is what the numbers appear to indicate) and clearly, with the improving credit rating, the experts appear to agree. You are making claims about the foreign debt that are not supported by the facts.
“But time will tell. Soon.”
Indeed. Your track record of predicting election outcomes in Argentina isn't great, so any predictions this time?
Which company is that, Kamerad/Komrade Rique? Is it Smartmatic? If so it's not a Venezuelan company. Let's have a name shall we? Or not...
Aug 07th, 2019 - 05:17 am 0RIQUE! PAYASO! VOS SOS EL MENTIROSO!!!
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