On Oct. 2, 2006, Standard&Poor's Ratings Services raised its long-term local and foreign currency credit rating on the Republic of Argentina to 'B+' from 'B'. Standard&Poor's also affirmed its 'B' short-term ratings on The Republic of Argentina. The outlook on the long-term ratings is stable. At the same time, Standard&Poor's raised its foreign and local currency ratings on the city of Buenos Aires and the province of Mendoza to 'B+' from 'B'. The outlook on the city of Buenos Aires remains positive and the outlook on Mendoza is stable. The upgrade on Argentina reflects improvement in the country's external liquidity, combined with a falling debt burden. Net external debt may decline toward 95% of
