S & P relegated the debt letter from Argentina from B + to B | Economy | world

The financial rating agency S & P relegated the debt on Tuesday Argentina from "B +" to "B" due to the economic crisis that impedes the implementation of the government's fiscal adjustment plan.

The outlook for the note is stable, according to the bureau in a statement.

"This reduction reflects the erosion of the growth path, the dynamics of inflation and the trajectory of debt, after the difficulties to implement the demanding economic adjustment program," the agency said.

Argentina is immersed in a recession that should continue in 2019, according to the International Monetary Fund (IMF) and the government is trying to apply austerity measures in exchange for help from the fund.

According to the IMF, the activity should amount to 2.6% in 2018.

The monetary crisis of August and September accelerated the price increase and since January the peso has lost 50% of its value against the dollar, which has stimulated inflation.

In exchange for the IMF's aid, Buenos Aires promised to reduce the primary deficit to zero (excluding the payment of the debt).

"Recent budgetary and monetary changes helped stabilize financial markets," says S & P.

"However, the impact of the irregular application of the economic strategy has led us to" reduce the note and forecasts of growth and inflation for the next two years, "the agency added.

S & P predicts a contraction in activity of 2.5% this year and 1% next year.

In the face of the economic crisis, the conservative government of Mauricio Macri asked the IMF for a loan of US $ 57,000 million to stabilize the third largest economy in Latin America.

Source: AFP

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