Fitch lowers province of La Rioja

Fitch Ratings said it downgraded the Argentinian province of La Rioja's long-term foreign and local currency issuer default ratings to C from CC. Fitch also lowered La Rioja's $318.4 million of senior unsecured step-up notes due 2028 to C from CC. The notes are rated at the same level as the province's IDRs.

“The downgrade of La Rioja´s ratings follows the province´s non-payment of its senior unsecured notes due in 2028, specifically a capital and semi-annual interest payment due Feb. 24, 2024, in the amount of $26.3 million,” the agency said in a press release.

The province’s three-day cure period expires Thursday.

“La Rioja declared its intention to initiate a debt restructuring process, driven by the distressed macroeconomic context and related losses of discretionary transfers from the central government, which make up for 18% of operating revenues. This will be the second time the province restructures its senior unsecured notes,” Fitch noted.

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