Rating Agencies Net Worth

On November 11, 2007, the Argentine Securities Exchange Commission (the “CNV” or Comisión Nacional de Valores) issued General Resolution No 518/2007 (the “Resolution”), by which Section 1 of Chapter XVI of the General Regulations is modified, and a new Section 91 is incorporated into Chapter XXXI.

Section 1 of Chapter XVI of the CNV General Regulations establishes the provisions with which a company must comply in order to be registered as a Rating Agency in Argentina.

Additionally, Section 6(d) of Decree No 656/1992 provides that Rating Agencies must have a minimum net worth of AR$ 250,000 and specifically empowers CNV to modify this requirement.

Section 1 of the Resolution modifies these requirements by increasing the minimum net worth from AR$ 250,000 to AR $800,000, and incorporating this requirement into the provisions of Section 1 of Chapter XVI of the CNV General Regulations.

Finally, Section 2 of the Resolution incorporates Section 91 into Chapter XXXI of the CNV General Regulations, which provides that all existing and already registered Rating Agencies must prove compliance with this new requirement by filing evidence of having a minimum net worth of AR$ 800,000 before January 8, 2008.

The Resolution is important as it modifies the requirements with which a Rating Agency must comply in order to be registered with the National Securities Commission of Argentina. Registration is mandatory to carry on business as a Rating Agency in Argentina. The Resolution also establishes the term within which all existing and already registered Rating Agencies must have complied with this new requirement.