Fitch cuts Santiago del Estero 05 notes to D

Fitch Ratings said it downgraded the global scale foreign and local currency ratings of Santiago del Estero's series 05 notes under the co-participation tax revenue collateralized medium-term note program to D from C.

Additionally, Fitch has placed the C rating of series 04 notes on Rating Watch negative.

The rating action followed the default on the debt service payment of series 05 notes, of $10,828,019 due on June 16. The trustee did not inform why it did not use the funds deposited in the reserve account in order to pay the debt service.

Fitch said this constitutes an event of default and, consequently the holders of at least 20% of the total principal amount of series 05 notes outstanding may declare immediately due and payable the principal amount of all the notes issued under the MTN program (including series 04 notes).

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