Fitch downgrades Argentina

Fitch Ratings said it downgraded the Republic of Argentina's long-term local-currency issuer default rating to B- from B and country ceiling to B from B+, and performing bonds in foreign- and local-currency governed by Argentine law to B-/RR4 from B/RR4.

The outlook on the local-currency issuer default rating is stable.

The long-term foreign-currency issuer default rating remains in restricted default. Fitch affirmed the short-term issuer default rating at B, performing bonds in foreign currency governed by foreign law at B-/RR4, defaulted senior unsecured notes at CC/RR4 and defaulted collateralized Brady bonds at CCC-/RR3.

The downgrades reflect concerns about the challenges ahead with respect to meeting Argentina's fiscal and external financing requirements, the agency said.

"Lower economic growth, falling commodity prices and limited funding sources have increased the risk of Argentina facing difficulties in meeting significant fiscal and external financing needs over the next two years," Erich Arispe, an associate director at Fitch, said in a statement.

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