|S&P Downgrades Argentina after Nationalizing Oil|
|by Tom McGregor||Mon, Apr 23, 2012, 08:00 PM|
On Monday, Standard & Poor’s downgraded its credit rating outlook for Argentina from stable to negative, after its government seized control of the nation’s largest oil company, YPF.
The Korea Herald quotes the rating agency’s statement as saying that, “in our view, the recent government policies could increase risks of Argentina’s macroeconomic framework, squeeze its external liquidity and hinder medium-term growth prospects. As such, we revised the outlook on the Republic of Argentina to negative from stable.”
The S7P announced the decision was sparked from policies implemented since President Christina Kirchner was re-elected last year.
It said, “these include rising restrictions to international trade and recent steps to nationalize the hydrocarbon company Yacimientos Petroliferos Fiscales (YPF).”
The Korea Herald reports that, “the agency affirmed Argentina’s credit ratings at B. It said the negative outlook indicates at least a one-in-three chance of a downgrade this year or next.”
On April 16, Argentina declared YPF, a public utility, which allows the government to seize a 51% stake. Later in the week, it extended the move to YPF Gas, a separate company 85 % owned by Spain’s Repsol.
written by G S , April 24, 2012
As a forum, Dallas Blog is failing. To promote discussion you need comments and comments on comments, etc. This isn’t happening. Your review policy is killing any interchange of ideas. There is nothing wrong with your policy, but if you make a comment, it won’t show up until it’s been reviewed, probably tomorrow (at least that’s been my experience). By then, who cares.
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