Moody’s: Argentina on review

Moody’s Investors Service said it placed Argentina’s Caa2-rated foreign legislation debt under review with direction uncertain.

The review will focus on the Argentine government’s response to U.S. legal rulings requiring it to pay certain holdout bondholders who have sued the government, concurrently with any payments it makes to holders of its restructured debt, Moody’s said.

In line with those rulings, the U.S. courts stopped Argentina from making a scheduled bond payment on restructured debt due June 30, the agency said.

The non-payment constitutes only a technical default, since the documentation for the restructured bonds still gives Argentina a 30-day grace period to make the payment, Moody’s said.

During this time, if sufficient progress is made in negotiations with litigating bondholders, the court injunction against servicing the restructured debt could be lifted, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.