Fitch Ratings downgraded Argentina's debt Tuesday, as it said a default is "probable."
Fitch on Tuesday cut its rating of the country's long-term foreign currency Issuer Default Rating to "CC" from "B'', and the short-term IDR from "B'' to "C'' just one step above default.
A New York court has ordered the Argentine government to pay back more than $1 billion to investors who bought its restructured debt, but Argentina has said it won't follow the court's orders - which would result in a default.
Fitch said Argentina's economy has slowed sharply this year because of increased government intervention, leading to high inflation, protests and allegations of corruption. The value of Argentina's restructured bonds has fallen, and the cost of insuring its debt soared in recent days.