{"id":48115,"date":"2019-08-29T19:03:10","date_gmt":"2019-08-30T00:03:10","guid":{"rendered":"https:\/\/olduvai.ca\/?p=48115"},"modified":"2019-08-29T19:03:13","modified_gmt":"2019-08-30T00:03:13","slug":"argentina-is-officially-in-default-again-sp-downgrades-credit-rating-to-sd","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=48115","title":{"rendered":"Argentina Is Officially In Default Again: S&P Downgrades Credit Rating To SD"},"content":{"rendered":"\n

Argentina Is Officially In Default Again: S&P Downgrades Credit Rating To SD<\/a><\/h3>\n\n\n\n

The IMF just broke its own record of incompetence: less than a year after its record, $57 billion bailout of Argentina was finalized, S&P just downgraded the country from B- to Selective Default – the equivalent to a default rating – following the government’s “reprofiling” of its debt on August 28, when it unilaterally extended the maturity of all short-term paper due to the continued inability to place short-term paper with private-sector market participants. Some $101 billion in debt is affected.<\/p>\n\n\n\n

However, the selective default state will last for just one day, as only a few hours later, S&P will upgrade Argentina from SF to CCC-. As S&P explains, “under our distressed exchange criteria, and in particular for ‘B-‘ rated entities, the extension of the maturities of the short-term debt with no compensation constitutes a default. As the new terms became effective  immediately, the default has also been cured. Therefore, we plan to raise the long-term ratings to ‘CCC-‘ and the short-term ratings to ‘C’ on Aug. 30, in line with our policies.”<\/p>\n\n\n\n

Here is the full summary of today’s action, per S&P:<\/p>\n\n\n\n