Argentina Rating Downgraded by Fitch: ‘Probable’ Default

Argentina’s credit rating was cut by Fitch Ratings, which said a default is probable after a U.S. judge ruled the country can’t make payments on its restructured bonds unless it pays holders of defaulted debt by Dec. 15.

The rating on Argentina’s international law bonds was lowered to CC, eight levels below investment grade, from B, Fitch said today in an e-mailed statement. It cut the rating on bonds sold under Argentine law to B- from B.

U.S. District Judge Thomas Griesa ruled on Nov. 21 Argentina must deposit $1.33 billion for creditors who rejected the terms of the country’s two debt restructurings before it makes a $3 billion coupon payment to holders of performing securities next month. Fitch said the country’s failure to make a payment on warrants that are linked to economic growth would be considered a default on the country’s other debt securities issued under international law…..

Read more at http://www.businessweek.com/news/2012-11-27/argentina-rating-downgraded-by-fitch-on-probable-default#r=bloomberg