MercoPress. South Atlantic News Agency

S&P upgrades Argentina's debt rating

Standard & Poor's, the credit-rating agency upgraded Argentina's long-term debt rating to a B- with a stable outlook, up from SD, or selective default, a sign the country is mending its relationship with international markets after declaring a record default in December 2001

Argentina is this week expected to issue bondholders who participated in February's $100bn (£55bn) debt restructuring with about $35bn in new securities. They will also receive interest payments of more than $600m on the back-dated bonds.

More than 76% of Argentina's defaulted bonds were tendered in February's debt-swap. The offer is estimated to be worth roughly 34 cents on the dollar. In February S&P said it intended to upgrade Argentina after completion of the debt-swap.

Last February Argentina completed it debt re-structuring process managing a 76,15% acceptance. The defaulted bonds not included in the swap continue to be classified "D".

However it's not clear what will happen with the controversial 24% left out, since multilateral organizations are pressing Argentina to help find a solution and the Kirchner administration has ruled out such a possibility.