The sovereign credit rating on the Republic of Argentina balances the increasing challenges in managing economic risks as inflation remains relatively high and economic activity decelerates gradually with macroeconomic results that still show fiscal and current account surpluses and a relatively high level of international reserves. Despite the fiscal surplus, Argentina's government debt maturities of about US$12 billion in 2009 will require a reaffirmation of the government's commitment to a high primary surplus. This is because of Argentina's lack of access to international capital markets and the high level of uncertainty prevailing in the local market, particularly at times of increasing financial instability worldwide. Argentina's macroeconomic strengths, which have built up after the 2002 collapse, have deteriorated over the last
