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S&P cuts Argentina's credit rating further as talks drag on

Argentine Economic Minister Axel Kicillof is surrounded by members of the media as he arrives at an office to continue meetings with mediator Daniel Pollack in New York, July 30, 2014.
Peter Foley | Bloomberg | Getty Images
Argentine Economic Minister Axel Kicillof is surrounded by members of the media as he arrives at an office to continue meetings with mediator Daniel Pollack in New York, July 30, 2014.

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.

The country's economy minister is expected to speak at the Argentine consulate in New York at 5:15 p.m. ET.

S&P said that in its opinion, Argentina has now failed to make a $539 million payment due on its discount bonds due in 2033.

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 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.''