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Economy / Argentina

Government's Defeat Weighs On Ratings

August 2008 | Risk Summary

We have downgraded of our short-term political risk rating from 65.4 to 57.1 to reflect the heightened uncertainty resulting from the government's defeat in congress in July. However, with the government's image suffering, we believe that the long-overdue decision to hike electricity tariff rates has positive implications for the political outlook. Indeed, it may suggest that under pressure from members of her own party, President Cristina Fernández is beginning to adopt more orthodox and sustainable economic policies. With her popularity at an all-time low of 19.2% according to the latest poll by

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