1. Permission to reprint or distribute any content from this presentation requires the prior written approval of Standard & Poor’s. Copyright (c) 2006 Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. All rights reserved. Inter American Development Bank Washington D.C. May 9, 2008 Latin America: Golden or Leaden Casket ? John Chambers, CFA Managing Director Chairman, Sovereign Ratings Committee Standard & Poor’s

2. 2. Permission to reprint or distribute any content from this presentation requires the prior written approval of Standard & Poor’s. Sovereign Ratings

3. 3. Permission to reprint or distribute any content from this presentation requires the prior written approval of Standard & Poor’s. Sovereign Ratings

4. 4. Permission to reprint or distribute any content from this presentation requires the prior written approval of Standard & Poor’s. Sovereign Ratings

5. 5. Permission to reprint or distribute any content from this presentation requires the prior written approval of Standard & Poor’s. Quotation Merchant of Venice William Shakespeare Act II, Scene VII MOROCCO O hell! what have we here? A carrion Death, within whose empty eye There is a written scroll! I'll read the writing. Reads All that glisters is not gold

6. 6. Permission to reprint or distribute any content from this presentation requires the prior written approval of Standard & Poor’s. Ratings Latin America 1998* lowest 1998-20082008** ArgentinaBBSD (2001-2004)B+ BahamasA- (2003)A- (2003-08)A- BarbadosA- (1999)BBB+ (2004-08)BBB+ BelizeBB (2000)SD 2006B BoliviaBB-B- ( 2003-08)B- BrazilBB-B+ (1999-00,2002-03)BBB- ChileA-A- (1998-2002)A+ ColombiaBBB-BB (2000-06)BB+ Costa RicaBBBB(1998-2008)BB Dominican Rep.B+***SD (2005)B+*** EcuadorB- (2000)CCC (2007)B- Long-term foreign currency sovereign ratings * Jan 1 unless otherwise noted ** May 8, 2008 *** Credit Watch Negative

7. 7. Permission to reprint or distribute any content from this presentation requires the prior written approval of Standard & Poor’s. Ratings Latin America 1998* lowest 1998-20082008** El SalvadorBBBB (1998-99)BB+ GuatemalaBB (2001)BB-(2003-2005)BB JamaicaB (1999)B(1999-00,2003-08)B MexicoBBBB (1998-99)BBB+ PanamaBB+BB(2001-07)BB+ ParaguayBB-SD (2003-04)B PeruBBBB-(2000-03)BB+ SurinameB- (1999)B-(1999-2006)B+ Trinidad &TobagoBB+BB+ (1998)A- UruguayBBB-SD (2003)B+ VenezuelaB+SD (2005)BB- Long-term foreign currency sovereign ratings * Jan 1 unless otherwise noted ** May 8, 2008

8. 8. Permission to reprint or distribute any content from this presentation requires the prior written approval of Standard & Poor’s. GDP per capita annual growth * Simple average of per capita growth of China, Indonesia, India, Philippines and Thailand

9. 9. Permission to reprint or distribute any content from this presentation requires the prior written approval of Standard & Poor’s. General Government balance / GDP

10. 10. Permission to reprint or distribute any content from this presentation requires the prior written approval of Standard & Poor’s. External financial sector debt / CAR

11. 11. Permission to reprint or distribute any content from this presentation requires the prior written approval of Standard & Poor’s. Inflation