Continued funding from public sector agencies has reduced the level of capital market debt maturing over the next two years. We have raised our foreign and local currency rating on Argentina to 'B'. The ratings remain constrained by a polarized political and economic environment, lack of predictability in government policies and high inflation. The outlook remains stable. On Sept. 13, 2010, Standard&Poor's Ratings Services raised its long-term foreign and local currency credit ratings on the Republic of Argentina to 'B' from 'B-'. In addition, we have raised our transfer and convertibility assessment on Argentina to 'B' from 'B-'. Standard&Poor's '4' recovery rating on the republic's unsecured debt issues remains unchanged. The outlook on the ratings remains
