Argentina's credit rating has been upgraded by Moody's Ratings for the second time this year, moving it up two notches to Caa1 from Caa3. This new rating places Argentina on par with countries like Egypt and Suriname, and the outlook has been changed from positive to stable. This upgrade is attributed to the government's efforts in easing currency controls and receiving support from the International Monetary Fund.
This latest upgrade follows earlier positive developments for Argentina's credit standing. In January, Moody's had also upgraded Argentina's credit rating, citing improved financial stability and reduced debt default likelihood, raising it one notch to Caa3 with a positive outlook. Prior to that, in June, S&P Global Ratings upgraded Argentina to B- from CCC+, six notches below investment grade, due to positive fiscal outcomes and improved liquidity for debt servicing under President Javier Milei's administration.
Fitch Ratings also upgraded Argentina's credit score in May, indicating growing confidence in President Milei's economic reforms and ability to secure financing for upcoming debt obligations. These series of upgrades reflect a general market sentiment of improving financial conditions in Argentina, largely due to the Milei administration's economic policies.
Despite these upgrades, Argentina's government is currently shunning international markets due to high interest rates, preferring alternative financing sources. Economy Minister Luis Caputo stated that the government aims to refinance maturities at the lowest possible rates and is targeting investment-grade status by 2031, at the end of a potential second term for President Milei.
