This is the second risk assessment agency to reduce the country's rating, in the last weeks due to the growing financing needs to cover budget gaps and pay the US$800 million debt maturing in january 2023.

According to S&P, the new long-term local and foreign currency sovereign long-term credit ratings are "CCC+" from a previous "B-" and "the outlook is negative".

While the short-term local and foreign currency credit ratings are "C" from a previous "B".

The agency added that "the Central Government's high financing needs and its heavy reliance on short-term domestic debt have exacerbated refinancing risk amid shrinking financing options".

The institution indicated that this downgrade reflects "the country's institutional weaknesses, reflected in the long-standing difficulty in predicting future policy responses amid weak checks and balances".

The 'CCC' rating indicates that the issuer's or issue's ability to meet its financial obligations is very low. Issuers or issues with this rating currently suggest a high probability of default.

Scales between AA and CC may have a (+) or (-) sign, indicating whether the rating is close to the next higher or lower category, respectively.