November 27, 2012 / 9:24 PM / 5 years ago

Fitch cuts Argentina's credit rating to near default status

Farmer Rodolfo Picchi drives a tractor pulling a sowing machine to plant sorghum in the town of Estacion Islas in Buenos Aires province, November 24, 2012. REUTERS/Enrique Marcarian

NEW YORK (Reuters) - Fitch Ratings on Tuesday downgraded Argentina’s sovereign credit rating to CC from B, a five-step cut reflecting its view of a “probable” default after a U.S. judge ordered payment to holdout investors from its historic 2002 default.

“The increased probability that Argentina will not service its restructured debt securities issued under New York law on a timely basis” stems from U.S. District Court Judge Thomas Griesa’s order for Argentina to pay holdout investors concurrent to bondholders who participated in two prior debt restructurings.

Reporting by Daniel Bases and Pam Niimi; Editing by James Dalgleish

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