Argentina’s state-controlled oil company YPF has made a daring offer to swap $6.2 billion-worth of international bonds in an effort to lengthen its entire debt profile while relieving liquidity pressures in the wake of the Covid-19 pandemic.

However, the debt restructuring move was not well-received in some quarters, with Fitch Ratings swiftly downgrading YPF’s existing bonds after drawing the conclusion that the offer amounted to a distressed debt exchange.

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