March 17 (Reuters) - Moody’s downgraded its rating on Argentina’s government bond to “Caa1” from “B3”, citing a fall in its official reserves leading to an increased risk of not meeting foreign-currency debt service obligations.
“Moody’s estimates that the government faces dollar debt payments of over $20 billion between 2014 and 2015. However, Argentina does not have external funding options that would reduce its reliance on official reserves to pay debt,” Moody’s said in a statement on Monday. ()
Moody’s also changed its outlook on the government bond Caa1 rating to stable from negative, citing a balance between no further significant drops in official reserves and continued pressure on the government in addressing the macroeconomic imbalances of the country.