The ratings on the Republic of Argentina reflect: A higher level of human development, including better health and education, than other similarly rated sovereigns. The ratings are constrained by: A high government debt burden; Limited fiscal flexibility; and Limited monetary flexibility. Argentina has emerged from the selective default that took place in November 2001, and was assigned 'B-' long-term and 'C' short-term sovereign credit ratings on June 1, 2005. However, the ratings are constrained by a high general government debt burden, which is likely to remain above 70% of GDP after the financial close of the current debt-rescheduling exercise. Adding the approximately US$20 billion in defaulted debt (excluding past-due interest on it) that has not been exchanged in the recent
