Apr 17 (Reuters) – Fitch Ratings downgraded Argentina’s credit rating to “C” from “CC” on Friday, assuring that a debt default could be imminent if the country fails to reach a deal with bondholders in the coming weeks .
Argentina’s economy minister said Thursday that he will offer his creditors a 62% interest cut, a three-year grace period and a 5.4% capital drawdown on his foreign debt of close to 70 billion on this day. of dollars, which the country currently considers unpayable.
For Fitch, the reduction in the note indicates that a default debt swap process was initiated. The agency also maintained Argentina’s local currency credit rating at “restricted default.”
The country’s bonds in the over-the-counter market shot up on Friday and the country’s risk was down 312 basis points after the presentation of the guidelines for debt restructuring.
(Written by Manuel Farías, Edited by Gabriela Donoso)