EIU downgraded Argentina's sovereign risk rating to CC in July. A worsening trade balance amid a severe drought has seen the current-account deficit widen and foreign-exchange reserves erode. Argentina is relying on an extended fund facility (EFF) programme with the IMF to instil confidence in policymaking and avert another default. Election-related tax and spend policies raise the risk that the EFF deal could falter, posing significant downside risks to the rating.