RAISE COUNTRY RISK ON ARGENTINA

The United States Supreme Court has declined to hear Argentina's appeal of a lower court decision that required that South American nation to honor outstanding Sovereign bonds that the country defaulted upon a decade ago, ahead of any other government debt. The holders of these bonds, who had refused to accept severely discounted debt in exchange, are seeking payment, and pursuing Argentina's global assets.

For political as well as fiscal reasons, Argentina has sought to evade its obligations, and if it ends up paying out $15bn to these creditors, or alternatively, it defaults, the net results will not be good for the Argentinian economy, rate of unofficial international exchange of its currency with the dollar, and fears in the international financial community over receiving full payment on future indebtedness issued by the country. Under the circumstances, and considering the knock-on effect of this decision, it is prudent to raise County Risk on Argentina at this time.