May 21, 2013
Lorenzino blasts credit rating agencies
Economy Minister Hernán Lorenzino questioned the "credit rating agencies' behaviour" and the tendentious use of their analysis to develop "self fulfilling prophecies."
The minister stated that "the 2009 and current international financial crisis demonstrate the limitations of the analysis method the rating agencies apply."
Lorenzino also assured that the "credit rating agencies were created to evaluate the debt payments independently, but this evaluations have an impact in the debt value they are analyzing, generating negative process as "self fulfilling prophecies."
The minister took the cases of Argentina and Greece as an example, saying that "in 2009, Greece had the investment grade, before the crisis, the subprime. Its rating has been downgraded since 2009 intensifying the crisis."
In the case of Argentina, he affirmed that "the process has been the other way round, for the last five years we've been rated as a country in a crisis with a high debt risk."
"For the agencies, Argentina is constantly about to get into a crisis, but Argentina has grown for the last ten years and fulfills its financial obligations," he continued.