Moody’s: Argentina bonds B3

Moody's Investors Service said it assigned a B3 rating to the Government of Argentina's $3.25 billion bond due 2022 and $3.75 billion bond due 2027.

The outlook is stable.

The ratings balance the country's economic development and government debt metrics with underlying weaknesses resulting from a history of economic policies that led to macroeconomic imbalances and microeconomic distortions, Moody’s explained.

Argentina's economic strength is supported by a $20,499 GDP per capita, significantly higher than the $6,958 median for B-rated sovereigns, the agency said.

Argentina's estimated 2017 economy of $570 billion is significantly larger than the $22 billion peer median, Moody’s said.

After a recession in 2016, the agency said it expects the economy will grow 3% in 2017, bolstered by increased public and private investment.

Weak institutions remain Argentina's main ratings constraint, Moody’s said.

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