Thursday , March 4 2021

S & P reduces Argentina's credit rating to "B", but improves the outlook to stable. | AmericaEconomy



Buenos Aires. Standard & Poor's lowered Argentina's long-term sovereign rating to "B +" from B + on Monday, although it improved the outlook for government debt and withdrew its negative special report, which it posted at the end of August.

The rating agency explained in a statement that "Argentina's debt profile has declined, the economic growth path and the dynamics of inflation following the turmoil in the implementation of the disputed economic adjustment program."

However, he said that the outlook for long-term ratings is robust, as it is expected that the government of President Mauricio Macri will implement fiscal, monetary and other measures in the next 18 months to stabilize the economy, which will improve the financial situation.

"A combination of less public funding needs, lower inflation and interest rates, and expectations for continued economic policies beyond the national elections of October 2019 could be the basis for economic recovery and external vulnerability," he said.

The agency warned that it could lower the rating again in the next 12 months in the event of unplanned political events or poor implementation of the government's economic austerity program.

Regarding S & P, the recovery of the Argentinean agricultural sector, one of the largest grain producers in the world, could increase production and exports in the second quarter of 2019, the year when it provided for a near 1% reduction in the country. that the economy will recover and increase by about 2.5% in 2020.

The agency warned that it could lower the rating again in the next 12 months in the event of unplanned political events or poor implementation of the government's economic austerity program.

"The recent economic crisis has reduced the political approval of President Mauricio Macri's administration, increasing the risk of economic policies being implemented," he noted.

S & P maintained "B" short-term debt ratings in foreign currency and local currency.


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