On March 23, 2006, Standard&Poor's Rating Services raised its long-term sovereign credit rating on the Republic of Argentina to 'B' from 'B-'. Standard&Poor's also raised its short-term sovereign credit rating on the republic to 'B' from 'C', and its national scale rating to 'raAA-' from 'raA'. The outlook on the long-term and national scale ratings remains stable. The ratings on Argentina are supported by: A declining external debt burden. Net external debt is projected to decline to 100% of projected current account earnings this year, almost one-third its level in 2004. The lower debt levels, the diminished risk of economic disruption caused by creditors who rejected the 2005 sovereign debt rescheduling offer, and the return of
