Fitch cuts Mendoza bonds to D

Fitch Ratings said it downgraded the rating on the Province of Mendoza's $250 million 10% bonds due 2007 to D from C.

The rating action signals Mendoza's failure to make an interest payment of $12.5 million scheduled for Sept. 6.

The province is in a restructuring process for the existing bonds, for 5.5% amortizing bonds due 2018. The expiration date for the exchange offer was extended up to Oct. 15 from the original July 30.

Province of Mendoza is one of Argentina's 24 regional districts. Bordering on the Andean range along the Chilean border, Mendoza's diverse economy centers on agriculture and wine production, hydrocarbons, and tourism.

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