Latin American corporate credit indicators point to an improving economic and operating environment for most countries across the region in 2021, according to a series of new reports from Fitch Ratings.
Argentina’s credit rating was downgraded to near-default status by two of the biggest global rating companies, Fitch Ratings, and S&P Global after the government said it would delay payments on its short term dollar-denominated local debt.
Moody's on Friday downgraded the outlook for Britain's debt, citing mounting policy challenges amid the Brexit debate. The agency cut the outlook to negative from stable but kept the debt at the investment-grade Aa2.
Argentina could be downgraded again by Fitch Ratings if further weakness in the Peso boosts the risk of default, the agency’s head of sovereign ratings said in an interview. Argentina has issued billions of dollars worth of bonds denominated in U.S. currency.
Argentine Economy Minister Nicolas Dujovne resigned on Saturday, capping a week of market chaos that followed President Mauricio Macri’s stunning loss in a primary vote. Apparently, his resignation was on the table since last Tuesday.
Argentina's Peso ended a tumultuous week on Friday having shed 20% in its value against the dollar as Fitch cut the South American country's long-term debt by two notches, citing increased uncertainty and a rising risk of default.
Brazil’s Senate is expected to consider extending pension reform to states and municipal governments as it moves to vote on a bill overhauling the social security system, lawmakers said on Thursday.
Uruguay's Economy Minister Danilo Astori Sunday said he was surprised at last week's decision by the Fitch agency to maintain Uruguay's investment grade as it lowered the outlook down to BBB- and pointed out that this report “contrasts openly with those of other risk rating agencies and with the market itself.”
Fitch Ratings downgraded Brazil's sovereign debt further into junk territory on Thursday, citing a deeper-than-expected economic contraction and changing fiscal targets that have undermined credibility. The agency downgraded Brazil to BB from BB+ with a negative outlook a week before a Senate vote that is expected to lead to the suspension of unpopular leftist President Dilma Rousseff.
Brazil’s Congress on Thursday approved a 2016 budget with surplus targets lower than what Finance Minister Joaquim Levy wanted, a day after the country lost an investment-grade credit rating on concerns about fiscal restraint.