Despite some deterioration, we expect that Argentina will maintain surpluses or only small deficits in both its fiscal and current accounts in 2010. A relatively high level of international reserves despite using reserves to pay external debt. High levels of human capital that support long-term growth. Limited access to funding. Lack of predictability on the direction of economic policies and an increasingly challenging political environment. Growing rigidities in government spending, in large part because of rising subsidies, that will complicate fiscal policy implementation. Standard&Poor's Ratings Services ratings on the Republic of Argentina primarily reflect the government's inability to gain access to diverse sources of financing. At the same time, there is a lack of predictability on the direction
