NEW YORK (Standard&Poor's CreditWire) Nov. 1, 2000--Standard&Poor's today placed the triple-'B'-minus/'A-3' local and the double-'B'/single-'B' foreign currency sovereign credit ratings of the Republic of Argentina on CreditWatch with negative implications. The CreditWatch action reflects the heightened political uncertainty of recent weeks, which, if it persists, will jeopardize the government's efforts to reduce its budget deficit, promote a stronger economic recovery, and ensure that the public debt burden is on a steadily downward trend. Since Standard&Poor's affirmation of Argentina's ratings and outlook on Sept. 22, 2000, three senior members of the Alianza government, including the vice president, resigned amid a political scandal. The resulting uncertainty has hurt market confidence and raised market interest rates significantly.
