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

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, Bloomberg News reported. 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. “The specifics of the proposal, coupled with the stressed economic and financial conditions in Argentina and the province, are consistent with our view of the offer as a distressed exchange and tantamount to default,” S&P analysts led by Buenos Aires-based Carolina Caballero wrote in a statement. Investors had long-fretted that bonds sold by the Province of Buenos Aires could be at risk as Argentina grappled with a budget deficit, high inflation and the deepening Covid-19 pandemic. Read more