Fitch: Argentine companies challenged

Global and local events have accelerated and amplified the challenges that will be faced by Argentine companies in 2009, Fitch said.

Inflation and sovereign risks continue to be concerns, as is the negative business climate and lack of institutional trust, Fitch Ratings said it said, adding that lower profitability over the coming year is likely due to rising wages and waning consumer confidence associated with heightened systemic risks.

These risks have been manifested through the continuation of an unsustainable energy framework, and the paralyzing showdown between the government and farmers over a tax increase on grain exports, the agency noted.

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