We present a lattice Monte Carlo study to examine the effect of denatu
rants on the folding rates of simplified models of proteins. The two-d
imensional model is made from a three-letter code mimicking the presen
ce of hydrophobic, hydrophilic, and cysteine residues. We show that th
e rate of folding is maximum when the effective hydrophobic interactio
n epsilon(H) is approximately equal to the free energy gain epsilon(s)
upon forming disulfide bonds. In the range 1 less than or equal to ep
silon(H)/epsilon(S) less than or equal to 3, multiple paths that conne
ct several intermediates to the native state lead to fast folding. It
is shown that at a fixed temperature and epsilon(S) the folding rate i
ncreases as epsilon(H) decreases. An approximate model is used to show
that epsilon(H) should decrease as a function of the concentration of
denaturants such as urea or guanidine hydrochloride. Our simulation r
esults, in conjunction with this model, are used to show that increasi
ng the concentration of denaturants can lead to an increase in folding
rates. This occurs because denaturants can destabilize the intermedia
tes without significantly altering the energy of the native can format
ion. Our findings are compared with experiments on the effects of dena
turants on the refolding of bovine pancreatic trypsin inhibitor and ri
bonuclease T1. We also argue that the phenomenon of denaturant-enhance
d folding of proteins should be general.