Fitch Ratings rewards Milei's discipline with a jump to B-, highlighting the surplus of 1.1% of GDP and the transformation of Argentina into a net energy exporter after years of Kirchnerism
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In a historic turn that confirms the end of economic decline, the international agency Fitch Ratings has decided to raise Argentina's sovereign debt rating, catapulting it from CCC+ to a solid B- with a stable outlook. This move, announced on May 5, represents the third consecutive rise in the country's ranking under the administration of Javier Milei, consolidating a trajectory of credibility that the market already anticipated as the direct result of
current economic policy.
According to the rating agency's report, this rise is based on a structural improvement in fiscal and external balance sheets, driven by an unprecedented agenda of economic reforms. The agency stressed that the official strategy has allowed an enviable accumulation of reserves and has guaranteed that the Government obtains the necessary funding to meet its obligations, breaking with years
of systematic defaults. Fitch Ratings
From a particular perspective, the pillars of this success are detailed in strong figures and key legislative victories: Fiscal Strength:
The balanced budget has become the newnational standard. Fitch estimates a primary surplus of 1.1% of GDP, projecting that Argentina's general deficit will be among the best in category B, marking a “significant break with respect to the
past”.
External and Energy Strength: Thanks to investment promotion policies, the country has become a net energy exporter.
According to the agency, “Argentina has strengthened its resilience to the global energy price shock,” achieving a current account deficit of just 1% of GDP by 2026.
Reserve Shielding: The Central Bank (BCRA) has demonstrated relentless management, with purchases reaching USD 7.1 billion since the elections, pointing to an ambitious goal of between USD 10,000 and USD 17 billion by the end of the year.
Net international reservesare expected to increase by USD 8 billion, fully in line with the IMF's goals.
Legislative Achievements: The improvement in the score is also a recognition of the political muscle of the ruling party, which has achieved the approval of the labor reform, strategic modifications to the National Glacier Law to unleash the potential ofmining, and the sanction of the 2026 Budget with a non-negotiable fiscal anchor.
The president, Javier Milei. Regarding the financial strategy, the libertarian administration has designed an intelligent scheme to face future maturities through multilateral guarantees, the issuance of local bonds in dollars and resources derived from the necessary privatizations of inefficient state enterprises.
By avoiding a premature return to foreign markets, the Government protects liquidity and avoids unnecessary borrowing costs, prioritizing the health of the national balance sheet over
electoral spending.
Finally, the report clarifies that, while other districts such as the City of Buenos Aires already maintained a B- score for their specific instruments, the current jump corresponds to the nation as a whole, showing that the course set by the Executive is the only path to investment and sustained growth.
Although challenges such as inflation (in sharp decline) and vulnerability to external shocks persist, Fitch Ratings is clear: the perception of international markets has changed dramatically thanks to fiscal adjustment and economic deregulation.
