Guatemala fights to free coupon frozen by court as surprise default looms

Guatemala, Antigua, Coronavirus, LatAm, 575
By Oliver West
18 Nov 2020

Guatemala is locked in a legal fight with Florida-based Teco Energy that public credit director Rosa María Ortega said in a motion to a New York District Court endangered the Central American sovereign’s “perfect” bond repayment record.

Fitch placed Guatemala’s BB- rating on negative rating watch on Tuesday and downgraded the issue rating on its $700m of 4.5% 2026s from BB- to C, after the dispute with Teco forced the sovereign to miss a coupon payment due November 3. Guatemala deposited the $15.75m coupon payment ...

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