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Tuesday, April 24, 2012

Fitch warns Argentina on “growing diplomatic isolation” and “investment shortages”

In an article posted on the Fitch Wire credit market commentary page the rating agency slammed Argentina for its government’s decision to seize a majority stake in YPF from Spain’s Repsol as announced by President Cristina Fernández de Kirchner on Monday.

Fitch expressed on Friday its concern over what it called Argentina’s “a growing diplomatic isolation” and warned the country could face investments shortages.

“We do foresee increased regulatory uncertainty, growing diplomatic isolation, and the potential continuation of unorthodox government policies. We expect this to curtail foreign direct investment (FDI) in key sectors such as energy, utilities, and telecom,” alerted Fitch. Read More