Policy Continuity Issues Add To Woes

As the dispute between the government and local farmers lingers on, the political outlook in Argentina continues to deteriorate. As a result, we have downgraded our short-term political risk rating. The country now scores just 65.4 out of 100, down from 67.9 in June, with the latest downgrade coming in the policy continuity category resulting from the lack of commitment from key government allies to President Cristina Fernández' agricultural tax policy. Felipe Solá, the former governor of Buenos Aires and a prominent figure in the ruling Partido Justicialista, has refused to support Fernández' controversial sliding scale tax on grains exports

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