Sovereign Default Risk Spikes

Argentina's short-term political risk rating currently stands at a lowly 57.1 out of 100, reflecting the poor score in the social stability subcomponent. This, in turn, is due to the high level of inflation and the potential for strike action to impact government policy. The short-term rating also scores poorly in the policy-making process subcomponent, due to political ruptures within the ruling coalition. Argentina's short- and long-term political risk ratings are boosted by the high level of policy continuity. We note, though, that uncertainty surrounding the future of Cristina Fernández' government may weigh on the policy continuity

To read the full article, please choose one of the following options: