Tag Archives: sd

S&P: Argentina Foreign Currency Ratings Lowered To ‘SD’ After Holders Of Discount Bonds Did Not Receive Interest Payment

  • On June 30, 2014, the Republic of Argentina failed to make a US$539 million interest payment on its discount bonds maturing in December 2033 (Discount Bonds). Standard & Poor’s does not rate the Discount Bonds. The Discount Bonds provide for a 30-day grace period for payment.
  • On July 30, the grace period expired with bondholders not receiving their payment.
  • We are therefore lowering our long- and short-term foreign currency sovereign credit ratings on Argentina to selective default (‘SD’) from ‘CCC-/C’, indicating that Argentina defaulted on some of its foreign currency obligations. At the same time, we are removing the ‘CCC-/C’ foreign currency ratings from CreditWatch, where they were placed with negative implications on July 1, 2014.
  • If and when Argentina cures the payment default on the Discount Bonds, we could revise our ratings on Argentina depending on our assessment at that time of Argentina’s residual litigation risk, its access to international debt markets, and its overall credit profile.

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  • Greece has completed a distressed debt buyback.
  • Following completion of the transaction, we are raising our long- and short-term sovereign credit ratings on Greece to ‘B-/B’ from ‘SD’ (selective default).
  • The upgrade reflects our view of the strong determination of European Economic and Monetary Union (eurozone) member states to preserve Greek membership in the eurozone.
  • The outlook on the long-term rating is stable, balancing our view of the government’s commitment to a fiscal and structural adjustment against the economic and political challenges of doing so.

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S&P: Greece Ratings Lowered To ‘SD’ (Selective Default)

  • We are lowering our sovereign credit ratings on Greece to ‘SD’.
  • This follows the Greek government’s Dec. 3, 2012, invitation to private sector bondholders to participate in a series of debt buyback auctions, which under our criteria we view as a selective default.
  • When the buyback is consummated (which we understand is scheduled to occur on or about Dec. 17, 2012), we will likely consider the selective default to be cured and raise the sovereign credit rating on Greece to the ‘CCC’ category.

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