Fitch Ratings agency announced it has downgraded Argentina’s long-term foreign currency Issuer Default Rating from «B» to «CC,» with a negative outlook, as it sees a «probable default» if the country misses its payment to holdout investors.
The agency stated in a communiqué that «the increased probability that Argentina will not service its restructured debt securities issued under New York law on a timely basis reflects US District Judge Griesa’s decision on Nov. 21 to remove the stay order on the ruling that Argentina must pay US$1.33 billion to holdout investors concurrent with or prior to its payments due to holders of the 2005 and 2010 restructured debt.»
Fitch assured that a missed payment could lead to a «cross default on all exchanged debt securities issued under international law.»
«A missed coupon payment of any other external securities would also trigger a cross default on all exchanged bonds issued under international law,» it continued.
Source: Buenos Aires Herald