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Argentine Debt Downgraded; Nation Effectively in Default, Two Wall St. Rating Firms Say

The "voluntary" debt restructuring offered by Argentina, Latin America's third-largest economy and one of the world's biggest debtor nations, is effectively a default on a chunk of its $132 billion debt, two bond-rating agencies on Wall Street determined today.

As the embattled administration of President Fernando de la Rua pushed ahead today with the first phase of the deal, launching negotiations to swap $60 billion worth of debt with domestic bondholders, Standard & Poor's Corp. declared Argentina in "selective default" -- the same designation it gave Russia in 1998 after Moscow reneged on payments to investors. Another leading agency, Fitch Inc., dropped its ratings on most of ...

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