Fitch rates Argentina bonds B

Fitch Ratings said it assigned a B rating to Argentina’s international bonds consisting of $2.75 billion 6¼% notes due 2019, $4.5 billion 6 7/8% notes due 2021, $6.5 billion 7½% notes due in 2026 and $2.75 billion 6 5/8% notes due in 2046.

The proceeds will be used to pay settlement agreements between Argentina and holdout creditors that did not participate in the 2005 and 2010 bond debt restructurings, Fitch said. The balance of the debt will be used for general purposes of the government, the agency added.

The ratings reflect the improved consistency and sustainability of Argentina’s policy framework, reduced external vulnerability and expected easing of fiscal financing constraints, Fitch said.

These improvements balance risks related to the country’s relatively weak external liquidity, continued macroeconomic underperformance compared to peers and deterioration of public finances in recent years, the agency said.

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