On Oct. 26, the U.S. Second Circuit Court of Appeals affirmed the ruling by a District Court in New York on the effect of the equal treatment provision in the terms of certain Argentinean bonds. This, along with recent events, including the payment in local currency of a provincial bond denominated in U.S. dollars and the blocking of an Argentinean Navy ship in Ghana by holders of defaulted sovereign debt, highlight the increasing challenges the government will likely continue to face to design its economic and debt management policy. We are lowering our unsolicited ratings on the Republic of Argentina to 'B-' from 'B' to reflect our view of these risks. The outlook is negative, reflecting the risks we believe
