Research Update: Argentina Long-Term Local Currency Rating Raised To 'CCC-' As Default Is Cured; 'CCC+' Foreign Currency Rating Affirmed

Last week, Argentina conducted its fourth peso-debt exchange since August 2022. We classified it as a distressed exchange given the sovereign's pronounced macroeconomic vulnerabilities and very limited ability to extend maturities and place paper in the local market without continued reliance on exchanges. Since the new instruments under the exchange have been delivered to bondholders, we deem the distressed exchange--tantamount to default under our criteria--as cured. We raised our local currency sovereign credit ratings on Argentina to 'CCC-/C' from 'SD/SD' and affirmed our 'CCC+/C' foreign currency ratings. The negative outlook on the long-term ratings reflects risks surrounding pronounced economic imbalances and policy uncertainties before and after the 2023 national elections. On March 14, 2023, S&P Global Ratings raised its local

...- Last week, Argentina conducted its fourth peso-debt exchange since August 2022. We classified it as a distressed exchange given the sovereign's pronounced macroeconomic vulnerabilities and very limited ability to extend maturities and place paper in the local market without continued reliance on exchanges. - Since the new instruments under the exchange have been delivered to bondholders, we deem the distressed exchange--tantamount to default under our criteria--as cured. - We raised our local currency sovereign credit ratings on Argentina to '###-/C' from '##/##' and affirmed our '###+/C' foreign currency ratings. - The negative outlook on the long-term ratings reflects risks surrounding pronounced economic imbalances and policy uncertainties before and after the 2023 national elections....

Research Update