A declining external debt burden. A higher level of human development than in other similarly rated sovereigns. A legacy of weak public institutions and legal and regulatory uncertainty. The ratings on the Republic of Argentina (B+/Stable/B sovereign credit ratings) reflect the impressive improvement in the sovereign's external liquidity, combined with a falling debt burden. Net external debt may decline toward 95% of current account receipts (CAR) in 2006 from over 120% last year. Total public sector debt may fall below 60% of GDP during the course of 2007 from nearly 80% last year. Impressive current account and fiscal surpluses, combined with rapid and broad-based GDP growth in recent years, have strengthened Argentina's financial profile. The threat of economic disruption caused
