NEW YORK (Standard&Poor's) Aug. 22, 2001--Standard&Poor's today affirmed its single-'B'-minus long-term and 'C' short-term sovereign credit ratings on the Republic of Argentina. The outlook is negative. The affirmation reflects the possibility that the US$8 billion in additional financial support announced by the IMF yesterday will generate enough confidence to stem deposit outflows and provide opportunity to implement the "zero deficit" law. If deposits continue to fall, the growing strain on the financial sector would imply a further deterioration in Argentina's credit standing due to an unsustainable worsening of the credit crunch, pressures on the reserves required to maintain the convertibility law, and additional fiscal pressure. Even if confidence is restored over the short term, the implementation
