Nov. 10 (Bloomberg) -- Autopistas del Sol SA, an Argentine toll operator, will seek to restructure its debt, including interest payments due on Nov. 23, after a delay in rate increases hurt the company’s ability to service its debt.

Ausol, as the company is known, has $155 million outstanding of 11.5 percent bonds maturing in 2017 and $215 million outstanding of 3.5 percent notes due in 2014, according to Bloomberg data.

“Rate adjustments postponed by the Planning Ministry” led to a decline in revenue, Buenos Aires-based Ausol said in a filing today with the Buenos Aires Stock Exchange.

Ausol, which holds a concession through 2020 to operate and maintain a section of highways leading into the Argentine capital, said its finances also deteriorated after labor costs rose and the peso’s slide quickened late last year. Argentina’s economy may contract 3.1 percent this year as the global recession reduces commodity-export revenue, according to the median estimate of seven economists in a Bloomberg survey.

Argentina’s peso has dropped 9.5 percent this year, the worst performance against the dollar among emerging-market currencies tracked by Bloomberg. Ausol earns revenue in pesos, while its debt is denominated in dollars.

Standard & Poor’s cut Ausol’s credit rating to CC from CCC today, and said it will lower it to D once the company misses a $9 million interest payment due Nov. 23.

‘Further Deteriorate’

“Ausol’s financial position and repayment capacity have continued to further deteriorate in recent quarters, given lower traffic levels, increasing operational costs, and a gradual devaluation of Argentina’s currency,” S&P said in a statement.

Ausol board directors met yesterday and proposed hiring Barclays Plc as financial agent, the company said. They also recommended law firms Cleary Gottlieb Steen & Hamilton LLP and Alegria, Buey Fernandez, Fissore & Montemerlo, according to the company. Ausol will hold a special shareholders meeting in Buenos Aires Dec. 18.

A Planning Ministry spokesman didn’t immediately return a call seeking comment.

Ausol’s 2017 bonds traded at 39 cents on the dollar yesterday, according to Bloomberg data.

To contact the reporter on this story: Drew Benson in Buenos Aires at abenson9@bloomberg.net

Last Updated: November 10, 2009 15:54 EST