Limited access to funding. Lack of predictability on the direction of economic policies, in the context of high inflation. Growing rigidities in government spending, in large part because of rising subsidies, which will complicate fiscal policy implementation. Diminishing debt levels relative to GDP, in particular with private sector creditors, which lowers rollover risk. A relatively high level of international reserves, despite the use of reserves for payment of external debt. High levels of human capital that support long-term growth. The negative outlook on the unsolicited ratings on the Republic of Argentina (assigned in April 2012) is based on the implication of government policies enacted since the October 2011 presidential elections that we believe could over time increase the risk of
