S&P Global Ratings downgraded Argentina's credit rating, bringing
it to just three notches above default
, as investors brace for an imminent recession expected ahead of the election year.
The country's long-term foreign currency sovereign debt rating
was lowered two notches, from "CCC+" to "CCC-"
, according to a statement issued by the risk rating agency.
S&P also assigned a negative outlook, citing
economic imbalances and political uncertainty
surrounding the 2023 election.
It is the second downgrade of the nation's credit rating in less than a week
, after Fitch Ratings last Friday cut the country's long-term foreign currency debt rating to "C," one notch above default. .
“Divisions across the political spectrum limit the sovereign's ability to implement timely changes in economic policy.
The world capital markets are closed for Argentina,” wrote the S&P analysts led by Lisa Schineller.
"The ongoing severe drought has exacerbated pressures on the already troubled currency market
. "
S&P could downgrade the ratings further in the next six to 12 months,
depending on the nation's execution of an International Monetary Fund program, as well as the health of its banking system.
The agency affirmed its long-term local currency rating of “CCC-”.
NS
look too
Due to inflation and the increase in debt to the State, Moody's puts Argentine banks under the microscope
Despite raising rates to 125%, the economy barely covered maturities
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