Standard & Poor’s said yesterday that unless Argentina and holdout bond investors reach a payment agreement on defaulted debt from 2002 its B-minus credit rating on the South American nation is at risk of a downgrade.

On Nov. 29 the US 2nd Circuit Court of Appeals granted an emergency stay on a lower court’s order that Argentina transfer into an escrow account for holdout investors a payment of $1.33 billion by Dec. 15.

While that removed the threat of an imminent default and therefore a downgrade of its credit rating, Argentina has vowed it would never pay holdout investors.

“We believe that the chances of Argentina making that deposit would have been low,” S&P said late yesterday, referring to the deposit that would guarantee payment to the holdout investors if they ultimately triumph.