Research Update: Argentine Banks Downgraded On Tighter Controls On Foreign Exchange Markets, Outlook Remains Negative - S&P Global Ratings’ Credit Research

Research Update: Argentine Banks Downgraded On Tighter Controls On Foreign Exchange Markets, Outlook Remains Negative

Research Update: Argentine Banks Downgraded On Tighter Controls On Foreign Exchange Markets, Outlook Remains Negative - S&P Global Ratings’ Credit Research
Research Update: Argentine Banks Downgraded On Tighter Controls On Foreign Exchange Markets, Outlook Remains Negative
Published May 08, 2020
5 pages (2018 words) — Published May 08, 2020
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

On May 8, 2020, S&P Global Ratings revised its transfer and convertibility (T&C) assessment of Argentina to 'CCC+' from 'B-'. The ongoing debt restructuring negotiations with international bondholders and the COVID-19 pandemic continue to weigh on Argentina's economy and local financial market conditions. Because of this, and the increased pressures on official and various market exchange rates in recent weeks, the central bank has tightened aspects of regulation to access foreign exchange at the official rate. As a result, we're lowering our long-term ratings on three domestic banks to 'CCC+', the same level of our T&C assessment, from 'B-'. The T&C assessment reflects our view of the likelihood of a sovereign restricting domestic entities' access to foreign exchange needed to

  
Brief Excerpt:

...- On May 8, 2020, S&P Global Ratings revised its transfer and convertibility (T&C) assessment of Argentina to '###+' from 'B-'. The ongoing debt restructuring negotiations with international bondholders and the COVID-19 pandemic continue to weigh on Argentina's economy and local financial market conditions. Because of this, and the increased pressures on official and various market exchange rates in recent weeks, the central bank has tightened aspects of regulation to access foreign exchange at the official rate. - As a result, we're lowering our long-term ratings on three domestic banks to '###+', the same level of our T&C assessment, from 'B-'. The T&C assessment reflects our view of the likelihood of a sovereign restricting domestic entities' access to foreign exchange needed to meet their debt service obligations. At the same time, we're affirming our '###' ratings on Banco Hipotecario. - The outlook on the four banks remains negative, reflecting Argentina's economic malaise and its...

  
Report Type:

Research Update

Ticker
GALI@AR
Issuer
GICS
Diversified Banks (40101010)
Sector
Global Issuers, Structured Finance
Country
Region
Latin America
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Argentine Banks Downgraded On Tighter Controls On Foreign Exchange Markets, Outlook Remains Negative" May 08, 2020. Alacra Store. May 08, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Argentine-Banks-Downgraded-On-Tighter-Controls-On-Foreign-Exchange-Markets-Outlook-Remains-Negative-2427275>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Argentine Banks Downgraded On Tighter Controls On Foreign Exchange Markets, Outlook Remains Negative May 08, 2020. New York, NY: Alacra Store. Retrieved May 08, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Argentine-Banks-Downgraded-On-Tighter-Controls-On-Foreign-Exchange-Markets-Outlook-Remains-Negative-2427275>
  
US$ 225.00
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