S&P lowers four Argentine governments

Standard & Poor’s said it lowered the local-currency global scale ratings on the provinces of Buenos Aires, Cordoba and Mendoza and the city of Buenos Aires to CCC- from CCC+, and removed the ratings from Creditwatch with negative implications.

The agency also said it affirmed the CCC- global scale foreign-currency rating on these four entities.

The outlooks are negative.

The downgrades follow a review of the entities’ financial flexibility and liquidity position, S&P said.

The agency said it considered cross-default clauses included in each government’s debt obligations in a scenario of worsening macroeconomic conditions and limited external financing after S&P said it lowered Argentina to selective default on July 30.

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