...- Argentina has concluded its complex restructurings of $66 billion in foreign law foreign currency debt and over $40 billion in local law foreign currency debt, both of which entail minor decreases in face value and--more importantly--a significant reduction in coupons and debt service relief over the coming three years that provides important fiscal space. - This important step forward provides the opportunity for the government to articulate a broader plan to tackle various post-pandemic macroeconomic challenges, negotiate a new program with the IMF, and work to clear arrears with the Paris Club. - We are raising our long-term foreign and local currency sovereign credit ratings on Argentina to '###+' from '##'. - The stable outlook on the long-term ratings balances the risks stemming from remaining macroeconomic challenges--high inflation, low growth, large structural fiscal imbalances, high financing needs, and ongoing pressure in the foreign exchange markets--against a favorable near-term...
