MercoPress. South Atlantic News Agency
Moody's downgrades Argentina's credit rating
Moody's downgraded Argentina’s credit rating on Friday, cutting it to Ca from Caa2 in a move that reflects the firm’s expectation that private creditors will incur losses as a result of the government’s efforts to restructure its sovereign debt. Read full article
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Disclaimer & comment rules“cutting it to Ca from Caa2 ” ?? --- that is very charitable. “Ca” was already “ highly speculative intrinsic, or standalone, financial strength, and are likely to be either in, or very near, default...”
Apr 04th, 2020 - 01:04 pm - Link - Report abuse +3In a few weeks or perhaps less it will be rated by other agencies as “D.”
That's D for Default, reeky. It was planned all along.
Let's help reeky understand what default means, though other examples also apply:
“.... [debt] issuers effectively fail to meet their debt service obligations...”
”....a missed or delayed disbursement of a contractually-obligated interest or principal payment (excluding missed payments cured within a contractually allowed grace period), as defined in credit agreements and indentures“
”...a change in the payment terms of a credit agreement or indenture imposed by the sovereign that results in a diminished financial obligation, such as a forced currency re-denomination (imposed by the debtor, or the debtor’s sovereign) ...”
Argentina: the Poster Child for Default.
Here goes Marti again and his fixation:“Argentina will default, you know?” and so on.
Apr 05th, 2020 - 09:57 pm - Link - Report abuse -4Somehow, our anonymous keyboard warrior imagines Argentina is cowering at the possibility of default. Nothing is further from the truth.
In fact, whether to default is not the crux of the matter. It may happen. Is it the end of the world for Argentina? Most likely not. Do you remember a certain Argentine president in office between 2003 and 2007 under whom Argentina grew annually eight per cent in spite of the 2001 default?
Regardless, even a mediocre agreement is better for all parties than a total disagreement, and I am confident everybody can benefit from past experiences.
Marti,
Apr 05th, 2020 - 10:59 pm - Link - Report abuse +3They don't cower at defaulting on their loans. They cower at having to honor them.
Maybe I posted here repeatedly, “they won't default, they won't default, they won't default.”
But now, because it seems that soon I am going to be wrong, I need to take a different line and say something else.
“Maybe they will default, but that is really irrelevant”.
Because not honoring your agreements doesn't matter if your economy grows.
And remember how that certain leader's own pile of money grew between 2003 and 2007?
You just have to remember ML,
It is really better for both parties if I do not honor my part of the agreement with the people who loaned me money.
It's always educational to watch Kamerad/Komrade Rique spouting false figures to justify his support of the Narcokleptocracy. But then,he is a product of Viveza Criolla with a penchant for Castroism. In the final analysis, he will never be anything but...a chantapufi.
Apr 06th, 2020 - 04:51 pm - Link - Report abuse +3https://oi1290.photobucket.com/albums/b521/imoyaro/chantapufi3_zpsgzwcn4qh.gif
It is amazing that reeky lacks the substance need to actually understand the nature of default. And he had elevated mendacity to an art form.
Apr 06th, 2020 - 06:04 pm - Link - Report abuse +3Remember in 2014 when Argentina sunk into yet another famous default and CFK tried to tell everyone that the country was not in default? Her reasoning sounded reekyish: the country could not be in default because it had “TRIED TO PAY. ” It failed to pay its creditors and was thus in default but under argie reasoning it was not in default because it had failed after attempting to do something unlawful.
https://www.forbes.com/sites/mikepatton/2014/08/01/argentina-defaults-on-its-debt-again/#607e15854637
Poor reeky. He doesn't appreciate the amount of entertainment he brings to this site.
“under whom Argentina grew annually eight per cent in spite of the 2001 default?”
Apr 06th, 2020 - 06:44 pm - Link - Report abuse +1In spite of? If Argentina hadn't defaulted it could instead have endured a 9 year long recession like Greece after the financial crisis. Such is the power of austerity...
DT, when you steal billions of dollars under the guise of defaulting, and still have an economy that is only tuppence above nada, eight percent of that tuppence still isn't much.
Apr 06th, 2020 - 09:28 pm - Link - Report abuse +2And that is at the heart of Argentine defaults and their unilateral “restructuring”-- a disguised version of theft.
Former Uruguyan president Mujica was right: “Argentines are a band of thieves, from start to finish.”
Eight percent of anything is better than a nine year recession.
Apr 07th, 2020 - 05:21 pm - Link - Report abuse -1And if you choose to lend your money to a serial defaulter, don't cry when you lose it. Fool me once...
You do have to wonder at any investor lending Argentina money, whatever the interest rate.
Apr 07th, 2020 - 05:38 pm - Link - Report abuse +1What was it Einstein said about doing the same thing over and over again and expecting a different result?
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