July 30 Standard & Poor's on Wednesday cut its
credit rating on Argentina's foreign-currency sovereign debt to
"selective default" even as talks between officials from Latin
America's No. 3 economy and a group of holdout creditors
continued in New York.
S&P said that in its opinion, Argentina has now failed to
make a $539 million payment due on its discount bonds due in
The payment, originally due on June 30, was subject to a
30-day grace period, which expires at the end of Wednesday.
The country has until midnight Wednesday (0400 GMT on
Thursday) to break the deadlock between itself and holdout hedge
funds who were awarded $1.33 billion by a U.S. judge. Argentina
has exhausted all legal options to avoid payment.
The default rating will remain until Argentina makes a
payment on the discount bonds, S&P said. S&P had previously
assigned Argentina a long-term rating of "triple-C minus."
(Reporting By Dan Burns; Editing by Diane Craft)