BUENOS AIRES — Ratings agency Fitch downgraded Argentina on Monday after its bond prices popped higher and country risk spreads tightened as the government announced a plan to temporarily suspend payments on debt denominated in dollars but subject to Argentine law. The move by the government to ease what it has called an unsustainable financial burden was met favorably by markets. Over-the-counter government bonds rose 1.2% and the Merval stock index rose 3.5% after losing 30% in March. Country risk spreads were also stronger on Monday, tightening 22 basis points to 3,661 over safe-haven U.S. Treasury paper, according to JP Morgan's Emerging Markets Bond Index Plus <11EMJ>. Fitch, however, downgraded Argentina's long-term foreign currency rating to 'Restricted Default' from 'CC' following the government's decision.

Source: International New York Times April 06, 2020 20:57 UTC