A recent debt restructuring lowered the default probability for the next two years. However, absent the unexpected strengthening of economic and financial conditions in Neuquen and Argentina, the province's debt is unsustainable in the long term. Neuquen's timely debt service is also subject to Argentina's foreign-currency access restrictions. A recovery in oil prices should provide some relief to Neuquen's fiscal accounts in the short term. But the budgetary flexibility is likely to remain weak, given expenditure pressures and a lack of fiscal flexibility. Due to narrow access to the domestic debt market at favorable terms, roll over risk will rise during the next 24 months. The stable outlook reflects lower risks of default in the next 12 months following the
