Credit rating agency Moody’s raised Argentina’s sovereign debt rating and upgraded its outlook on the country from stable to positive, citing lower default risk and “improving governance.” On Tuesday, the agency upgraded the government of Argentina’s long-term local and foreign-currency issuer ratings from Caa1 to B3. Argentine Economic Policy Secretary José Luis Daza highlighted that the new rating is equivalent to the B- rating from agencies Fitch and S&P, meaning that the three main raters “are now aligned on a B- rating for over a decade.” He added that “thousands” of institutional investment mandates requiring ratings from two or three agencies, or based on an average rating, now have the “green light” to invest in Argentina. Moody’s rating Moody’s said in a statement that the upgrade to the country’s rating reflects their assessment that Argentina’s default risk has “declined materially” as macroeconomic stabilization has advanced “beyond the initial adjustment phase” and into a “more durable improvement” in credit fundamentals, which they deemed “a sign of improving governance.” “Sustained fiscal surpluses, declining inflation and continued economic liberalization strengthen policy credibility and reduce macroeconomic volatility,” the agency stated.
It also explained that prospects for Argentina’s external position “have improved markedly” thanks to stronger export performance and rising foreign direct investment in the energy and mining sectors, as well as improved access to external financing. “The positive outlook reflects our view that Argentina’s credit profile may strengthen further as structural improvements in external finances combine with ongoing macroeconomic stabilization,” they said. While acknowledging that political risks remain ahead of the 2027 presidential election, the agency considered that “the range of policy outcomes has narrowed relative to previous cycles, increasing the probability of policy continuity and sustained gains in external liquidity and debt payment capacity.” According to Moody’s, Argentina’s macroeconomic adjustment has “evolved into a more comprehensive normalization process,” underpinned by sustained fiscal surpluses and a “decisive shift” toward stabilizing economic and monetary policy.
Deza celebrated Moody’s consideration that macroeconomic stability and fiscal discipline “have growing chances of lasting be…
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