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S&P slashes some Argentine foreign-currency bonds to…

July 1 – Ratings agency S&P Global on Wednesday slashed seven Argentine foreign-currency bonds to default, triggered by non-payment of interest, as the government remains entangled in debt negotiations with its foreign creditors.

S&P said it downgraded to “D” from “CC” three foreign-law foreign-currency bonds that had about $582 million in interest due at the end of June. It also downgraded four Argentine-law, U.S. dollar-denominated bonds with $837 million interest due at the end of June.

“The ratings on these bonds will remain ‘D’ pending the conclusion of the debt renegotiations that are underway,” the ratings agency said in a press release.

Argentina, which defaulted on foreign bond payments in May, is aiming to avoid a messy legal standoff with creditors over the restructuring of about $65 billion in foreign debt. The government has extended the deadline for talks with bondholders several times as it seeks to reach a deal on debt it says it cannot pay under the current terms.

S&P also slapped Argentina with downgrades in late May, cutting four foreign currency bonds and a local-law dollar bond to default.

S&P said in the press release it expected Argentina to pay a Japanese-law yen-denominated discount bond due in December 2033 on time, as it is not part of the ongoing restructuring negotiations.

(Reporting by Vibhuti Sharma in Bengaluru and Cassandra Garrison in Buenos Aires; Editing by Vinay Dwivedi and Diane Craft)

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