Bulletin: Argentina Announces Debt Restructuring Plan; Ratings Already Incorporate Selective Default

NEW YORK (S&P Global Ratings) April 17, 2020--On April 16, President Alberto Fernández and Economy Minister Martín Guzman outlined the broad parameters of the long-awaited restructuring offer on Argentina's foreign-law foreign-currency debt. The president and economy minister were accompanied by the vice president, key governors, and other members of the government's cabinet to underscore political solidarity for the offer and the government's message to investors that it is not capable of paying its debt in the current context. Details of the offer are scheduled to be presented to bondholders and the U.S. SEC formally today. The outline of the offer appears to include net present value losses for bondholders, which is what we expected. At least initially, there does not

...April 17, 2020 NEW YORK (S&P Global Ratings) April 17, 2020--On April 16, President Alberto Fernßndez and Economy Minister Martfn Guzman outlined the broad parameters of the long-awaited restructuring offer on Argentina's foreign-law foreign-currency debt. The president and economy minister were accompanied by the vice president, key governors, and other members of the government's cabinet to underscore political solidarity for the offer and the government's message to investors that it is not capable of paying its debt in the current context. Details of the offer are scheduled to be presented to bondholders and the U.S. SEC formally today. The outline of the offer appears to include net present value losses for bondholders, which is what we expected. At least initially, there does not appear to be scope for negotiation in the offer, and bondholders will have 20 days to consider the terms, once they are formally presented. The broad terms appear to entail a larger hit to interest payments,...

Bulletin