Fitch Downgrades Argentina’s Credit Rating Fearing ‘Probable Default’

By Merco Press

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 1.33 billion dollars 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.

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