Moody's Ratings raised the credit rating of eight of the leading non-financial companies in Argentina this Tuesday, following the recent upgrade of the country's sovereign debt rating announced last week.
The companies benefiting from this update are: YPF, Arcor, Pan American Energy, Tecpetrol, Telecom Argentina, Vista Energy Argentina, Pluspetrol, and Raghsa.
The positive review impacts key firms in strategic sectors such as energy, food, telecommunications, and real estate, all with financing needs to meet commitments and carry out investment plans.
In particular, oil companies operating in Vaca Muerta stand out among the most favored, such as YPF, whose recent issuances reflect its solid position, even surpassing the country's sovereign rating, along with other companies in the same sector.
Moody’s Ratings
The rating agency's decision is based on the recent upgrade of Argentina's sovereign bond rating, which moved from Caa3 to Caa1, maintaining a stable outlook. Meanwhile, the agency raised the country's local currency rating ceiling to B1 from B3, and the corresponding foreign currency ceiling to B2 from Caa1.
These ceilings indicate the maximum rating level that, in general, the strongest financial obligations issued by entities based in the country can receive.
According to Moody's, "the improvement in Argentina's sovereign rating reflects the liberalization of the foreign exchange market, the easing of capital controls, and the adoption of a new program with the International Monetary Fund (IMF), which has improved hard currency liquidity and reduced external vulnerabilities."
Javier Milei
The agency also noted that the disinflation process and pro-investment reforms support a gradual transition toward a more sustainable external situation, although structural weaknesses and a fragile position in international reserves still persist.
The report detailing the upgrade in Argentina's debt rating, cited by the agency, clarifies that "the one-notch gap between the foreign currency ceiling and the local currency ceiling reflects greater policy effectiveness and a low level of external indebtedness, balanced by limited capital account openness." Moody's warned that, if the sovereign rating improves, this gap could narrow.
