Traders Eye CDS Payout as Fitch Downgrades Argentina to RD
- Argentina missed payment on $500 million in overdue interest
- Country in talks to restructure $65 billion in bonds
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Argentina’s ninth default on its external debt is now official after some of its bonds were cut to default status by two rating companies.
Fitch Ratings reduced the South American nation to restricted default Tuesday, while S&P Global downgraded four of its dollar-denominated bonds to default from CC following a missed $500 million payment last week. That sets up a potential payout for traders who hold credit derivatives.