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.''