Following the hearing on Feb. 27, 2013, the U.S. Second Circuit Court of Appeals asked the Republic of Argentina to present a formal payment proposal to holders of defaulted debt that litigated against the Republic. Argentina presented the proposal, and then the court forwarded it to the plaintiffs, asking them to reply by April 22. Several scenarios remain open as to the impact of the final Court of Appeals ruling on Argentina's ability to make its payments to the exchange bonds. The ratings implications will depend on the final ruling of the court, as well as future legal developments. We are affirming our unsolicited 'B-' long-term sovereign rating on Argentina. In our view, the 'B-' rating already incorporates the risks
