S&P cuts Argentine issuers

S&P said it lowered its foreign- and local-currency issuer credit and debt ratings on the city of Buenos Aires and the provinces of Mendoza, Salta, Entre Rios, La Rioja, Neuquen, Rio Negro, Jujuy, and Buenos Aires to CCC- from CCC+. The outlook on the nine local regional governments is negative.

The downgrades follow a similar action on Argentina’s long-term foreign currency sovereign credit rating to CCC- from CCC+ on Wednesday, the agency said. S&P also cut lowered the transfer and convertibility assessment to CCC- from CCC+, indicating greater pressure on the foreign-exchange markets.

“Notwithstanding the very complex context, Argentine provinces in general have been improving their financial positions in recent months. However, they depend on the availability of foreign currency to service their debt,” S&P said in a press release.

The outlook is negative.

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