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Buenos Aires Province Cut to Selective Default by S&P Global

  • Buenos Aires failed to meet deadline on $150 million payment
  • Restructuring talks continue after deadline moved to May 26
A pedestrian passes closed stores in the financial district of Buenos Aires, Argentina, on April 30. 

A pedestrian passes closed stores in the financial district of Buenos Aires, Argentina, on April 30. 

Photographer: Sarah Pabst/Bloomberg
Updated on

Argentina’s largest and most populous province was cut to selective default by S&P Global Ratings after it missed a deadline to make a $150 million payment.

The province is considered to be in selective default because negotiations with creditors are ongoing, making the proposal a “distressed exchange,” according to an S&P statement. Buenos Aires extended this week to May 26 an offer to restructure $7 billion of overseas debt. The default highlights risks for the national government as it pursues similar talks with bondholders.