- S&P Global Ratings raises Argentina's long-term foreign currency ratings to CC from SD (selective default) and short-term rating to C from D.
- Assigns negative outlook, reflecting "prominent downside risks to timely and full payment of debt per our criteria over the coming months amid stressed economic and financial market dynamics," S&P said.
- Affirms long-term issue ratings of CC and local currency sovereign credit ratings of CC/C.
- The ratings boost reflects two government auctions of peso-denominated debt on Dec. 20 and Dec. 26 for AR$18.846B; the government paid the Bopomo (a locally issued peso-denominated bond) due Dec. 23 for AR $24.3B.
- "The government continues to work on an overall debt management strategy, though it has not yet announced a plan for an immediate restructuring," according to the S&P statement.
- The CC rating is 10 levels below investment-grade and is characterized as near default.
- ETFs: ARGT