Moody's upgraded the international credit rating of the Province of Córdoba

International rating agency Moody’s raised Córdoba's credit rating from Caa2 to B3. The upgrade represents a two-level rise on the international scale. The decision was based on structural factors that support the province's economic and fiscal performance.

According to the published report, the upgrade is due to "the Province's strong economic essentials, its broad revenue base, and a track record of prudent fiscal policies." Moody’s valued the "solid operating results" achieved by Córdoba and its sustained fiscal discipline. The agency also highlighted the stability in the management of public revenues and expenditures.

The rating agency emphasized the existence of debt levels considered moderate and sufficient liquidity reserves. These conditions allow the province to maintain financial balance in the medium term. The combination of these factors strengthened its credit profile in the markets.

Impact of the issuance and evolution at the national level

The international upgrade was announced following a recent operation in global financial markets.Córdoba issued debt at the end of June, becoming the first Argentine public entity to obtain external financing since 2017. The operation included a bond swap that cleared future maturities, although it validated a very high annual rate of 9.5% in dollars.

The report stated: "the issuance and the selective tender operation on the PDCAR 27 bond cleared the maturity horizon in the coming years." According to Moody’s, this "improved the Province's credit profile and provided greater sustainability to its accounts." The operation was seen as a stabilization tool.

Meanwhile, Moody’s local subsidiary had upgraded Córdoba's national rating by two notches. The rating rose from A.ar to AA-.ar, reflecting "very strong credit quality compared to other Argentine issuers." This combination of upgrades reinforces its positioning as a reliable issuer.