\t\t\t\t\t \t\t\t\t\t \t\t\t\t\t Credit rating agency Moody\u2019s upgraded Buenos Aires City\u2019s debt rating to \u201cAAA,\u201d the only Argentine region included in the agency\u2019s top category.<\/p>\n
According to the report published on Tuesday, the upgrade was based on the city\u2019 fiscal and financial performance, as well as improvements in its maturity profile.<\/p>\n
City Finance and Public Credit Minister Gustavo Arengo said that the credit rating upgrade was the \u201cresult of having orderly public accounts and fiscal discipline.\u201d<\/p>\n
\u201cThis allows us to achieve a solid credit reputation, an essential condition for accessing low-cost financing, thereby increasing our investment capacity,\u201d he added.<\/p>\n
For the city, this allows them to access foreign financing at lower interest rates. However, it should be noted that its bonds are also tied to Argentina\u2019s sovereign debt rating.<\/p>\n
For reference, the highest rating Moody\u2019s assigns to debt is AAA, followed by Aa, which is further divided into subcategories: Aa1, Aa2, and Aa3. This process is also repeated for the A, Baa, Ba, and finally Caa categories.\u00a0<\/p>\n
Argentina\u2019s sovereign debt is rated Caa1 \u2014 indicating a very high risk of default \u2014 but with a stable outlook.<\/p>\n
Moody\u2019s Report Moody\u2019s report noted that Buenos Aires\u2019 ratings reflect its \u201ccredit resilience, evidenced by its ability to navigate challenging environments in recent years.\u201d\u00a0<\/p>\n
Prior to the arrival of President Javier Milei, they explained, local and regional governments faced a \u201cchallenging\u201d economic and social context due to surging inflation, a shortage of international reserves, and political uncertainty.\u00a0<\/p>\n
With Milei\u2019s arrival, it was noted that \u201cstructural changes occurred\u201d that have impacted regional governments in several ways.\u00a0<\/p>\n
In 2025, regional governments experienced \u201ca notable deterioration in their fiscal metrics, possibly due to difficulties in the recovery of economic activity.\u201d\u00a0<\/p>\n
In the case of Buenos Aires, they also noted that this deterioration was a consequence of delays in non-automatic transfers by the national government. They added, however, that the two recently reached an agreement to settle the outstanding balance from July 2025 to March 2026.<\/p>\n
\u201cIn 2026, our baseline scenario anticipates a gradual normalization of key economic variables,\u201d Moody\u2019s added.<\/p>\n
Pablo Repetto, head of research at brokerage firm Aurum Valores, told the Herald that this improvement in Buenos Aires\u2019 situation is linked to the fact that a few weeks ago it issued a 10-year bond for US$500 million. This allowed it to \u201cpay off debt maturing in the very short term.\u201d<\/p>\n
\u201cThe maturity horizon for the [city\u2019s] debt has become much clearer,\u201d he commented.<\/p>\n
He also noted that there are historical reasons why BA is the region with the highest credit rating in Argentina, even well above the level of Argentina\u2019s sovereign debt.\u00a0<\/p>\n
\u201c[They were] the only debt issuer that did not default in 2001\u20132002, when all of Argentina\u2019s debt did,\u201d he explained.\u00a0<\/p>\n
Differences with the country\u2019s debt Repetto said that unless the Milei administration \u201cdoes what Buenos Aires did,\u201d he doesn\u2019t see the city\u2019s ratings improvement impacting the country\u2019s sovereign debt.<\/p>\n
He noted that the criticism leveled at the Milei administration is that it is not clearing debt maturities for the coming years.\u00a0<\/p>\n
\u201cEven if you have to pay a slightly longer-term and higher rate, you clean up the maturity profile, and that alone will improve your rating and payment perception,\u201d he added.<\/p>\n
In 2027, Argentina will face payments of more than US$8.5 billion in sovereign bonds. According to data from GMA Capital, this is more than double than what it has to pay this year.<\/p>\n
Last month, Moody\u2019s itself acknowledged that it does not foresee an immediate upgrade of Argentina\u2019s sovereign debt rating.\u00a0<\/p>\n
It cited the persistence of political risk ahead of next year\u2019s presidential elections and the fact that it is still awaiting a program detailing how the country will meet its substantial 2027 financial commitments.<\/p>\n","protected":false},"excerpt":{"rendered":"
Credit rating agency Moody\u2019s upgraded Buenos Aires City\u2019s debt rating to \u201cAAA,\u201d the only Argentine region included in the agency\u2019s top category. According to the report published on Tuesday, the upgrade was based on the city\u2019 fiscal and financial performance, as well as improvements in its maturity profile. City Finance and Public Credit Minister Gustavo […]<\/p>\n","protected":false},"author":261,"featured_media":74926,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15579,42,63,19285],"tags":[15576,96,1692,19284],"class_list":["post-74925","post","type-post","status-publish","format-standard","has-post-thumbnail","category-debt-rating","category-economics","category-markets","category-moody039s","tag-debt-rating","tag-economics","tag-markets","tag-moody039s"],"_links":{"self":[{"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/posts\/74925","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/users\/261"}],"replies":[{"embeddable":true,"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/comments?post=74925"}],"version-history":[{"count":0,"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/posts\/74925\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/media\/74926"}],"wp:attachment":[{"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/media?parent=74925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/categories?post=74925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/tags?post=74925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}