Recent update on Argentina: Government’s decision to freeze energy prices and suspend VAT on certain products will complicate fiscal metrics. The country is likely to miss the IMF target of a primary balance for 2019. However, the IMF could disburse the September tranche of financial assistance, although conviction levels are low. Credit rating downgrade: As expected, markets reacted negatively to this news. The focus now would be on government’s ability to roll over short-term USD and Argentina Peso (ARS) denominated loans.