The decline in the JP Morgan indicator comes after Fitch's rating rise and the rebound of sovereign bonds.
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Argentina's country riskfell significantly and closed on May 6 at 514 basis points, consolidating an improvement in investor perception of the local economy.
The indicator prepared by JP Morgan fell 39 units compared to the previous close of 554, representing a decrease of - 7.2% in a single day.
The compression of country risk was accompanied by a positive reaction in the debt market. Sovereign bonds in dollars, both Globales and Bonares, showed average increases of close to 1%, reflecting greater demand for
Argentine assets. President Javier Milei.
This movement occurred in a context marked by the recent decision of Fitch Ratings to improve Argentina's credit risk rating to “B-” from “CCC+”, both in foreign and local currencies,
with a stable outlook.
In its report, the agency highlighted advances in key economic variables, such as “improved fiscal and external balances, progress in economic reforms, better prospects for the accumulation of foreign exchange reserves.”
He also said he is confident in the ability of Javier Milei's government to obtain financing and meet its debt commitments.
The improvement in the credit rating was the central factor behind the decline in country risk, opening the door to a wider universe of institutional investors. In this regard, the Deputy Minister of Economy, José Luis Daza, highlighted the impact of the decision: “With this, Argentina crosses a key threshold in international financial markets
.” Javier Milei and Luis Caputo.
Along the same lines, he added: “thousands of institutional funds cannot invest in CCC qualified instruments. Now they will be able to invest in Argentine bonds.”
Fitch also referred to the political context, citing the victory of the ruling party in the legislative elections of October 2025 as an element that facilitated the progress of structural reforms, including changes in labor matters and measures related to mining activity.
Thus, the drop in country risk to 514 points marks an important fact for the financial market, reflecting an improvement in expectations for the Argentine economy and greater confidence in the direction taken.
