What’s a Default? Argentina’s Debt Buyback Splits S&P, Moody’s
- Moody’s defines buyback plan as default under its criteria
- Fitch, S&P share concern but refrain from default designation
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Argentina’s plan to buy back $1 billion of global bonds from creditors is sparking a debate over what, exactly, constitutes a default.
The world’s most-watched credit assessors are split after Moody’s Investors Service classified the nation’s plan to repurchase its debt in the open market as a distressed exchange. It’s a call neither Fitch Ratings nor S&P Global Ratings have chosen to echo despite shared doubts about Economy Minister Sergio Massa’s strategy.