Fitch says Argentina default is 'probable'
NEW YORK (AP) — The credit rating agency Fitch Ratings on Tuesday downgraded Argentina, which is locked in a court battle in New York over its debt, and said the country would probably default.
Fitch cut its long-term rating for Argentina to "CC" from "B," a downgrade of five notches, and cut its short-term rating to "C'' from "B." A rating of "C'' is one step above default.
U.S. judge Thomas Griesa of Manhattan federal court last week ordered Argentina to set aside $1.3 billion for certain investors in its bonds by Dec. 15, even as Argentina pursues appeals.
Those investors don't want to go along with a debt restructuring that followed an Argentine default in 2002. If Argentina is forced to pay in full, other holders of debt totaling more than $11 billion are expected to demand immediate payment as well.
Argentine politicians, even those opposed to President Cristina Fernandez, have nearly unanimously criticized the judge's ruling as threatening the success of the debt relief that enabled Argentina to grow again.
Business Photo Galleriesview all
- 21361Oklahoma tornadoes: The 'Big Dog,' the little boy and the hug that triumphs over tragedy
- 10815Oklahoma tornadoes: Woman meets the military officer who shared the clothes off his back
- 8633Hobby Lobby argues case before federal judges
- 8589Oklahoma tornadoes: Thunder reverses the role, takes a turn at cheering on the community
- 8336Finding Addyson – One family's struggle in the Moore tornado
- 7789Blake Shelton's "Healing the Heartland" televised tornado benefit set for Wednesday at Chesapeake Energy Arena
- 7697Story behind the photo: Family members describe desperate search for one another after EF5 twister