MercoPress

Friday, October 26, 2012

Although the agency acknowledges that the Argentine Central bank currently allows the purchase of foreign currency to service bonds issued according to international Law and payable overseas, the growing restrictions in access to foreign currency for servicing domestic debt makes availability of funds for honouring debt overseas even more uncertain”, reads the brief announcement.

For Moody’s the bonds ratings reflect the transfer and convertibility risks for an issuer of local debt in foreign currency which depends on a reliable access to foreign currency through overseas operations.

For full text of this article, visit Moody’s lowers Argentina’s foreign currency bonds’ ceiling to b3 from b2