Argentina's credit rating alternative

Author: | Published: 7 Mar 2011

As US regulators look to replace references to credit ratings in their rulemaking, Argentine pension funds have already been making investments using alternative means of analysis, including reports from local universities.

But while Argentina’s regulators insist the selection process is thorough, financial attorneys have their doubts that the system operates exactly as intended.

"With the combination of no rating plus the political criteria for investment, the government ends up making investments the private sector would not have made," said Bruchou Fernández Madero & Lombardi partner Hugo Bruzone.

When the pension funds were nationalised in 2008, the rules governing investment were changed to encourage...


 

 

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