\t\t\t\t\t \t\t\t\t\t \t\t\t\t\t Credit rating agency Moody\u2019s raised Argentina\u2019s sovereign debt rating and upgraded its outlook on the country from stable to positive, citing lower default risk and \u201cimproving governance.\u201d<\/p>\n
On Tuesday, the agency upgraded the government of Argentina\u2019s long-term local and foreign-currency issuer ratings from Caa1 to B3.<\/p>\n
Argentine Economic Policy Secretary Jos\u00e9 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 \u201care now aligned on a B- rating for over a decade.\u201d<\/p>\n
He added that \u201cthousands\u201d of institutional investment mandates requiring ratings from two or three agencies, or based on an average rating, now have the \u201cgreen light\u201d to invest in Argentina.<\/p>\n
Moody\u2019s rating Moody\u2019s said in a statement that the upgrade to the country\u2019s rating reflects their assessment that Argentina\u2019s default risk has \u201cdeclined materially\u201d as macroeconomic stabilization has advanced \u201cbeyond the initial adjustment phase\u201d and into a \u201cmore durable improvement\u201d in credit fundamentals, which they deemed \u201ca sign of improving governance.\u201d<\/p>\n
\u201cSustained fiscal surpluses, declining inflation and continued economic liberalization strengthen policy credibility and reduce macroeconomic volatility,\u201d the agency stated.<\/p>\n
It also explained that prospects for Argentina\u2019s external position \u201chave improved markedly\u201d thanks to stronger export performance and rising foreign direct investment in the energy and mining sectors, as well as improved access to external financing.<\/p>\n
\u201cThe positive outlook reflects our view that Argentina\u2019s credit profile may strengthen further as structural improvements in external finances combine with ongoing macroeconomic stabilization,\u201d they said.<\/p>\n
While acknowledging that political risks remain ahead of the 2027 presidential election, the agency considered that \u201cthe 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.\u201d<\/p>\n
According to Moody\u2019s, Argentina\u2019s macroeconomic adjustment has \u201cevolved into a more comprehensive normalization process,\u201d underpinned by sustained fiscal surpluses and a \u201cdecisive shift\u201d toward stabilizing economic and monetary policy.<\/p>\n
Deza celebrated Moody\u2019s consideration that macroeconomic stability and fiscal discipline \u201chave growing chances of lasting beyond this government.\u201d<\/p>\n
Local and foreign currency ceilings The agency also raised Argentina\u2019s local currency country ceiling from B1 to Ba3. The foreign currency country ceiling was also raised from B2 to B1.<\/p>\n
\u201cThe three-notch gap between the local currency ceiling and the B3 sovereign rating balances the increasing predictability of government actions and institutions and a decreased footprint of the government in the economy and the financial system, against lingering political risks and slowly improving external imbalances,\u201d Moody\u2019s explained.<\/p>\n
Regarding the one-notch gap between the foreign currency ceiling and local currency ceiling, the agency said it \u201creflects improved policy effectiveness and relatively low external indebtedness, balanced by low capital account openness.\u201d<\/p>\n
According to Deza, this will enable Argentine companies with better credit profiles to obtain higher ratings, \u201cthereby reducing their financing costs and expanding their access to international markets.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Credit rating agency Moody\u2019s raised Argentina\u2019s sovereign debt rating and upgraded its outlook on the country from stable to positive, citing lower default risk and \u201cimproving governance.\u201d On Tuesday, the agency upgraded the government of Argentina\u2019s long-term local and foreign-currency issuer ratings from Caa1 to B3. Argentine Economic Policy Secretary Jos\u00e9 Luis Daza highlighted that […]<\/p>\n","protected":false},"author":10,"featured_media":94056,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[42,19285],"tags":[96,19284],"class_list":["post-94055","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economics","category-moody039s","tag-economics","tag-moody039s"],"_links":{"self":[{"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/posts\/94055","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\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/comments?post=94055"}],"version-history":[{"count":0,"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/posts\/94055\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/media\/94056"}],"wp:attachment":[{"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/media?parent=94055"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/categories?post=94055"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/service.codeus.ca\/index.php\/wp-json\/wp\/v2\/tags?post=94055"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}