On June 30, 2014, the Republic of Argentina failed to make a US$539 million interest payment on its discount bonds maturing in December 2033 (Discount Bonds). Standard&Poor's does not rate the Discount Bonds. The Discount Bonds provide for a 30-day grace period for payment. On July 30, the grace period expired with bondholders not receiving their payment. We are therefore lowering our long- and short-term foreign currency sovereign credit ratings on Argentina to selective default ('SD') from 'CCC-/C', indicating that Argentina defaulted on some of its foreign currency obligations. At the same time, we are removing the 'CCC-/C' foreign currency ratings from CreditWatch, where they were placed with negative implications on July 1, 2014. If and when Argentina
