On June 30, 2014, the Republic of Argentina missed a US$539 million interest payment on its discount bonds due in December 2033. Under the terms of the discount bonds, Argentina has a 30-day grace period following the scheduled interest payment date to make payment without defaulting. Standard&Poor's does not rate the discount bonds. The missed payment is the latest development arising out of Argentina's 2005 and 2010 restructurings of its sovereign debt and the challenges to such restructurings by certain "holdout" bondholders. We are placing our 'CCC-/C' long- and short-term foreign currency sovereign credit ratings on Argentina on CreditWatch with negative implications, reflecting our assessment that there is at least a one-in-two probability that the missed payment will
