We do not expect Argentina to cure its foreign currency default before the October 2015 presidential election. The winner of that election will face a weak economy, fiscal and monetary rigidities, and diminished external liquidity brought on by current policies and lack of transparency. The foreign currency ratings on Argentina will remain at 'SD/SD' until the government cures its external debt default. We are affirming our 'CCC+/C' local currency ratings on Argentina. The local currency ratings are constrained by the government's policy mix and by fiscal and monetary rigidities. The negative outlook on the long-term local currency rating indicates we could lower the rating further if inflation accelerates, fiscal and current account deficits widen, or the government's litigious relationship with
