Fitch Ratings Agency Says Argentina Default Is ‘Probable’
The credit rating agency Fitch Ratings on Tuesday downgraded Argentina, which is locked in a court battle in New York over its debt, and said the country would probably default.
Fitch cut its long-term rating for Argentina to ”CC” from ”B,” a downgrade of five notches, and cut its short-term rating to ”C” from ”B.” A rating of ”C” is one step above default.
U.S. judge Thomas Griesa of Manhattan federal court last week ordered Argentina to set aside $1.3 billion for certain investors in its bonds by Dec. 15, even as Argentina pursues appeals.
Those investors don’t want to go along with a debt restructuring that followed an Argentine default in 2002. If Argentina is forced to pay in full, other holders of debt totaling more than $11 billion are expected to demand immediate payment as well.