The ratings on the Republic of Argentina reflect: A declining external debt burden; and A higher level of human development than other similarly rated sovereigns. The ratings are constrained by: A high debt burden; Limited monetary flexibility; and A legacy of weak public institutions. Recent years of impressive economic growth and fiscal surpluses, combined with the reduction in the sovereign's debt burden in 2005 after debt rescheduling, have strengthened Argentina's financial profile. The threat of economic disruption caused by the acrimonious process of debt rescheduling has also abated. Argentina's ratings are constrained by its high debt burden. Despite the impact of debt rescheduling, the public sector debt burden, (at around 60% of GDP in 2006), is similar to the levels
