June 17 Standard & Poor's Ratings Services lowered its long-term foreign currency rating on Argentina to "CCC-" from "CCC+", citing a higher risk of default on the country's foreign currency debt.
The U.S. Supreme Court on Monday refused to hear an Argentinian appeal aimed at staving off a default, following which, President Christina Fernandez vowed not to pay holdout investors who did not participate in the country's restructuring of its debt several years ago.
"The Argentine government has limited capacity to pay the plaintiff creditors while servicing its current debt," S&P said. (r.reuters.com/xax22w)
The rating agency affirmed its short-term foreign currency rating at "C", saying the disruptions on payments due to the adverse court rulings were not likely to affect the government's ability to service debt issued in local currency. (Reporting By Kanika Sikka in Bangalore; Editing by Maju Samuel)