Buenos Aires City, March 19, 2014 -- Moody's Latin America Agente de Calificación de Riesgo downgraded the bond fund ratings of 19 Argentine bond funds. Moody's also placed on review for downgrade the bond fund ratings of 13 Argentine bond funds. The action follows Moody's 17 March 2014 downgrade of the Argentine government's bond rating to Caa1 with stable outlook from B3 with negative outlook. The deterioration in Argentina's credit profile as captured in the rating downgrade has direct implications for the ratings of Argentine bond funds, given that it resulted in weakening credit quality of issuers in various local sectors that are invested by bond funds, including banks, corporates, sub-sovereigns, local financial guarantors and structured finance transactions, as well as also expresses the increase of systemic risks for all local credits.
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