Standard&Poor's Ratings Services said today that it revised its outlook on its sovereign credit ratings on the Republic of Argentina to negative from stable and affirmed its 'B+' long- and 'B' short-term ratings on the republic. The negative outlook reflects the government's rejection of policies to correct the country's overheating economy, signaled by the resignation of Economic Minister Martin Lousteau. Standard&Poor's expects current policy to increase the likelihood of continued acceleration in inflation, which could both fray social cohesion and lead to additional direct governmental interventions in the economy. Inflation expectations reached 32% for the next 12 months. Although strong economic activity matched with rising inflation and export taxes helped support fiscal accounts, yielding a forecasted
