An upgrade of Argentina’s credit rating depends on the government taking measures to boost data credibility while compensating investors holding defaulted debt and companies for expropriated assets, said Gabriel Torres, Argentina’s sovereign credit analyst at Moody’s Investors Service.
The outlook the Uruguayan banking system is stable, based on expectations that continued economic growth and favourable labour market conditions will sustain loan growth and banks' profitability, says Moody's Investors Service in the report Banking System Outlook: Uruguay.
Moody's lowered on Thursday Argentina's foreign-currency bond ceiling to b3 from b2 in line with bonds in local currency on growing concerns of market access for the private sector and local governments.
Moody's Investor Service announced on Wednesday it has downgraded the issuer and debt ratings of several provinces and cities in Argentina, due to the risks these states may face to access foreign currency and serve their obligations in foreign currency.
Rating agency Moody's changed to negative the rating outlook on 30 rated Argentine financial institutions on Thursday. Moody's cut the outlook to negative from stable, as a reflection of the outlook change on the country announced last week.Moody's rates Argentina at B3, six levels into junk territory.
German Finance Minister Wolfgang Schaeuble and his counterpart from Madrid said Spain’s borrowing costs don’t reflect the strength of its economy as they pledged to work toward deeper integration to fight the debt crisis.
Ratings agency Moody's has cut the credit ratings of 16 Spanish banks, a further blow to a country that is struggling to deal with the bad debts of its banking sector. It also cut the debt rating on Santander UK, a subsidiary of the Spanish banking giant.
Fitch Ratings revised Uruguay's rating outlook to positive from stable on Tuesday, citing the country's ability to cut external and budget vulnerabilities. However Fitch warns about the deteriorating situation in neighbouring Argentina and inflation.
Rating agency Moody's said on Tuesday that Spain's fiscal outlook remained challenging despite recently softened deficit targets. The announcement comes when the Secretary for Public administration admitted that 4.000 ‘ayuntamientos’ town councils in Spain are not financially viable.
Uruguay is likely to be the next Latin American country to win an investment grade rating from Moody's Investors Service, with a review likely late this year, a senior officer from the ratings agency said on Sunday.