Moody's Ratings has upgraded Argentina's credit score by two notches, moving it from Caa3 to Caa1, which puts it on par with countries like Egypt and Suriname. This marks the second upgrade for Argentina this year from Moody's. The outlook for the nation has been revised from positive to stable, reflecting the agency's assessment of the country's economic trajectory.
The rationale behind this upgrade, according to Moody's, includes the easing of currency controls by the Argentine government. Additionally, the continued support from the International Monetary Fund (IMF) played a significant role in the decision. These factors are seen as contributing to an improved financial stability and reduced risk profile for the South American nation.
This upgrade follows earlier positive assessments from other rating agencies. S&P Global Ratings previously raised Argentina's rating to B- from CCC+, attributing the improvement to positive fiscal outcomes and improved liquidity for servicing debt. Fitch Ratings also upgraded Argentina, citing growing confidence in President Javier Milei's economic reforms and ability to secure financing for upcoming debt obligations.
These upgrades highlight the market's increasing confidence in President Javier Milei's administration and its efforts to stabilize the economy, reverse budget deficits, and address high inflation. While Moody's previous upgrade in 2025 moved Argentina one notch to Caa3 and changed its outlook to positive, this recent action further solidifies the positive trend in the country's creditworthiness.
