The credit rating agency Fitch raised Argentina's long-term foreign currency debt rating from CCC to CCC+. Similarly, it improved the long-term local currency issuer default rating, which also rose from CCC to CCC+.
According to analysts, this improvement is due to the start of a new agreement with the International Monetary Fund (IMF) and a significant deregulation of the foreign exchange market, factors that strengthened both the country's external liquidity and the stability of the successful economic plan led by President Javier Milei.
"The economic recovery and disinflation have already exceeded our previous expectations and should be further boosted by these policy changes," they stated in a release.
Javier Milei, presidente de Argentina.
Currently, Argentina's credit rating outlook is as follows: Moody's keeps its long-term foreign debt rating at WR with a positive outlook, while S&P gives a CCC rating to long-term foreign currency debt.
What does this improvement represent for the Argentine economy?
While the "CCC+" rating is still within a high-risk category, the fact that it has been raised is an encouraging sign for both investors and financial markets. This change can be read as an initial endorsement from the international sphere of the economic measures the Government has been adopting.
From a practical perspective, this progress could translate into a reduction in the cost of external borrowing, facilitate access to international credit, and, in the medium term, contribute to a better assessment of country risk. Meanwhile, it sends a signal to the market regarding a possible consolidation of macroeconomic stability if the current course is maintained.
This is the first improvement in Argentina's credit rating granted by Fitch since Javier Milei assumed the presidency, and it occurs in a key context, where important structural reforms are being discussed in Congress and the Executive is working to maintain the fiscal surplus.
