Wednesday, October 3, 2012
By Ignacio Olivera Doll
The Moody’s ratings agency made it very clear yesterday that it sees it as very likely that it will finally determine a lowering of the rating assigned to Argentina’s debt – after having changed its perspective to “negative” last week – for the continuation of some policies that put its capacity to pay in doubt.
The agency believes that the adulteration of official statistics, which affect yields on bonds indexed by the official inflation index, and the decision to leave the debt with the Paris Club unpaid, describe in large part the debt profile that the Argentine government represents as an emitter. And that they could be a sign of the commitment that the current administration could assume towards its creditors in a more complicated macroeconomic scenario, as is already being predicted.
“What we put forth is this: if with record commodities prices and historic public revenues give Argentina the luxury of not paying its debt, what will happen in the medium term if those revenues fall?” warned Gabriel Torres, the sovereign director for the agency.