The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Borrowers: Wait for the rate

Borrowers: Borrowers start to play a strategic game


As well as extending the maturity of its debt, diversifying the international investor base and developing its domestic treasury markets, the economy ministry has another important item on its agenda over the next two years - to press Argentina's case for an investment grade credit rating.

The ministry recognizes that, however efficient it is in accessing new markets and widening the investor base, the critical issue on funding costs will be the jump from double-B to triple-B, which typically allows a borrower to shave 100 basis points and more off the spread on its new issues.

Argentina's case for an upgrade is a strong one, since the country has low inflation, solid GDP growth, and a small budget deficit. However, its Achilles heel, as far as the credit analysts are concerned, is its poor showing in debt service costs as a percentage of total exports, where it flunks the test with a high figure of 45%.

But in spite of this one unfavourable number, under-secretary of finance Miguel Kiguel says Argentina compares favourably to other triple-B sovereign credits around the world.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree