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Ratings agency S&P says Argentina in 'selective default' amid talk with creditors in New York

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    Axel Kicillof, Argentina's economy minister, arrives amid a crowd of reporters for negotiations, Wednesday July 30, 2014, in New York. Argentina officials and U.S. bondholders met for the first time in hopes of preventing an Argentine default. (AP Photo/Bebeto Matthews) (The Associated Press)

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    Argentina's economy minister Axel Kicillof, center, stops for a snap shot photo as he arrives for negotiations, Wednesday, July 30, 2014 in New York. (AP Photo/Bebeto Matthews) (The Associated Press)

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    In this Friday, July 25, 2014 photo, pedestrians walk past a branch of the Industrial and Commercial Bank of China, a target for anti-capitalist agitation ever since a 1927 anarchist bombing of what was then a Bank of Boston, in Buenos Aires, Argentina. In 2001, this neo-colonial bank building from Argentina's golden age was ground zero for the country's financial earthquake. Mobs of protesters stared down riot police to demand the return of their savings confiscated by the government in a last-ditch, and ultimately failed, attempt to stay current on its debt. Thirteen years later, a July 30th midnight deadline approaches to avert another default. (AP Photo/Natacha Pisarenko) (The Associated Press)

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    In this Friday, July 25, 2014 photo, a man sleeps on a street in Buenos Aires, Argentina. As the clock ticks down to a July 30th deadline to reach a deal with creditors over unpaid debts, Argentines are bracing for what is likely to be the country’s 8th time to default in its history. (AP Photo/Natacha Pisarenko) (The Associated Press)

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    In this Friday, July 25, 2014 photo, customers buy meat at a market in Buenos Aires, Argentina. As the clock ticks down to a July 30th deadline to reach a deal with creditors over unpaid debts, Argentines are bracing for what is likely to be the country’s 8th time to default in its history. (AP Photo/Natacha Pisarenko) (The Associated Press)

Standard & Poor's says some Argentine bonds are in 'selective default' in what could be the start of a wave of downgrades amid a standoff between the South American country and some creditors.

The ratings agency says it lowered its rating on some Argentine bonds because the country did not make a $539 million interest payment due on June 30.

Argentina tried to make the payment but was prevented by a New York judge as part of an effort to force the country to settle a dispute with U.S. creditors.

S&P said Wednesday it could revise the rating if Argentina were to make the interest payments.

The downgrade came as the economy minister led a last-gasp effort to strike a deal with hedge funds demanding payments of about $1.5 billion.