NEW YORK--(BUSINESS WIRE)--Dec. 20, 2001--Fitch, the international
rating agency, said today that following the resignation of Economy
Minister Cavallo and mounting social unrest, a broad and disorderly
default by the Argentine government on around US$97 billion of
outstanding debt owed to private creditors is imminent.
Around US$600 million in payments are due on Argentine bonds over
the remainder of December. Argentina's default will be the largest
default by any debtor.
Fitch does not believe that 'dollarization' of the Argentine
economy is currently a viable option. Argentina's 'Convertibility'
regime whereby the peso is pegged one-for-one to the U.S. dollar is
also no longer viable. The combination of a disorderly default and
devaluation implies that creditors will ultimately be forced to
write-off at least 50% of the face value of their claims on the
Argentine government. Fitch currently rates Argentina at 'DDD'. Fitch
will be reviewing all outstanding bond ratings.
--30--SOS/ch*
CONTACT: Fitch, New York
Theresa Paiz-Fredel, 212/908-0534
Morgan Harting, 212/908-0820
Richard Fox +44 (0) 20 7417 4357, London
KEYWORD: NEW YORK INTERNATIONAL LATIN AMERICA ARGENTINA
INDUSTRY KEYWORD: BOND/STOCK RATINGS
SOURCE: Fitch
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