Fitch downgrades Argentina on 'probable default'

Fitch Ratings agency announced it has downgraded Argentina's long-term foreign currency Issuer Default Rating from "B" to "CC," with a negative outlook, as it sees a "probable default" if the country misses its payment to holdout investors.

The agency stated in a communiqué that "the increased probability that Argentina will not service its restructured debt securities issued under New York law on a timely basis reflects US District Judge Griesa's decision on Nov. 21 to remove the stay order on the ruling that Argentina must pay US$1.33 billion to holdout investors concurrent with or prior to its payments due to holders of the 2005 and 2010 restructured debt."

Fitch assured that a missed payment could lead to a "cross default on all exchanged debt securities issued under international law."

"A missed coupon payment of any other external securities would also trigger a cross default on all exchanged bonds issued under international law," it continued.