LatinNews Daily - 08 September 2020

* International credit ratings agency Standard and Poor’s (S&P) has lifted Argentina’s long-term sovereign credit rating out of ‘SD’ (selective default) status, following confirmation that the country has successfully restructured sovereign debt issued under local and international law, totalling some US$107.7bn. The agency raised Argentina’s rating to ‘CCC+’, a category it assigns to debt that is vulnerable to non-payment, and adjusted its outlook on long-term ratings to 'stable'. S&P noted that the conclusion of “complex restructurings” is an “important step forward” that will clear the path for the Argentine government to address post-pandemic macroeconomic challenges, to negotiate a new programme with the International Monetary Fund (IMF), and to work to clear its arrears with the Paris Club of creditors. S&P cautions that it could downgrade Argentina’s rating over the next year if “unexpected political developments undermine prospects for economic recovery”.

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