New York rating agency S&P lifts Argentina out of default after debt revamp

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New York rating agency S&P lifts Argentina out of default after debt revamp

New York-headquartered global rating agency S&P, often contemplated as one of the “Big Three” rating agencies alongside Fitch and Moody’s, pulled the sovereign credit rating of Argentina out a default territory after the grief-sickened South American country had successfully negotiated a $100 billion in sovereign debt default, though several Wall St.

analysts were quoted saying that a number of creditors had almost been forced to stomach the revamp offer from the Argentine’s far-left Government of President Fernandez in a bid to salvage what they might have flocked following the departure of the far-right Government of President Macri of Juntos por el Cambio last year.

Nonetheless, in a statement released late on Monday, S&P had been quoted saying that it had upgraded the sovereign credit rating of Argentina to “CCC+” from a prior “SD” or “Selective Default,” citing that the fourth-largest LATAM economy’s successful conclusion of a compounded restructuring of local and foreign debt-papers worth of $100 billion which in effect would enable the nation to seek for further aid from global lenders.

On tops of that, the restructuring deal of roughly $100 billion in Argentine sovereign debt, would proffer the LATAM country a much-needed notion of breathing space, as in effect the revamp deal would substantially reduce the term payments of its sovereign debt-papers over the next few years.

S&P upgrades Argentina’s long-term sovereign credit rating

Meanwhile, addressing to a raft of large-scale reforms, which the LATAM nation should follow through in order to grapple with a swathe of macro-economic challenges, S&P said in the statement released late on Monday, “This important step forward provides the opportunity for the government to articulate a broader plan to tackle various post-pandemic macroeconomic challenges”.

Surprisingly, the LATAM economy led by a leftist Government that was sworn to take the office last year following a landslide defeat of former far-right President Macri whose Govt. had been thought to have squeezed the last drop of the country's economy that led to a mass-scale devaluation of the once-hailed Argentine currency, somehow had managed to restructure roughly $65 billion in foreign and $40 billion in domestic sovereign debts over the last week.