We are reviewing our assessment of Russia’s monetary flexibility and the impact of the weakening economy on its financial system. As a result, we are placing our long-term sovereign credit ratings on Russia on CreditWatch with negative implications. We expect to resolve the CreditWatch upon the conclusion of our review, which we expect by mid-January.
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.
- We have revised our 2014-2016 average real GDP growth projections for Ireland upward to 2.7% from 2.0%.
- This reflects our expectation of a continued strong external performance and a sustained recovery of the domestic economy.
- We are therefore raising our long-term sovereign credit ratings on Ireland to ‘A-‘ from ‘BBB+’. We are affirming the short-term ratings at ‘A-2’.
- The outlook is positive, reflecting our view of at least a one-in-three possibility that we could raise our ratings on Ireland again in the next two years.
On June 6, 2014, Standard & Poor’s Ratings Services raised its long-term foreign and local currency sovereign credit ratings on the Republic of Ireland to ‘A-‘ from ‘BBB+’. At the same time, we affirmed the short-term ratings at ‘A-2’. The outlook is positive.