The Argentine government is making its third debt exchange this year. Standard&Poor's does not view this exchange as a default. We are affirming our 'B-/C' ratings on Argentina. The outlook remains stable. Argentina's financing prospects in 2010 remain a constraint on the 'B-' rating, but there are sufficient intra-government resources to meet its financing needs in 2009, and we expect the government to run a close to balanced fiscal position. On Aug. 25, 2009, Standard&Poor's Ratings Services affirmed its 'B-' long-term and 'C' short-term sovereign credit ratings on the Republic of Argentina. The outlook remains stable. Argentina is issuing a new peso-denominated nominal bond due in 2014 in exchange for peso-denominated bonds linked to the inflation
