S&P downgrades Argentine governments

Standard & Poor’s said it lowered the foreign-currency global scale ratings on the City of Buenos Aires and the provinces of Buenos Aires, Cordoba and Mendoza to CCC- from CCC+.

The outlook remains negative.

The agency also said it placed the CCC+ local-currency global scale ratings on these four entities on CreditWatch with negative implications.

S&P also lowered the global-scale foreign-currency debt ratings on the provinces of Salta and Neuquen to CCC- from CCC+.

The downgrades follow the lowering of the unsolicited long-term foreign currency rating and revision of the transfer and convertibility (T&C) assessment on the Republic of Argentina to CCC- from CCC+.

The downgrades on these local and regional governments reflect the close linkage between them and the sovereign, S&P said.

The downgrades also consider the increasing risks for the Argentinean local and regional governments to access to financing given the risks of sovereign default, the agency said.

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