The improvement came after the upgrade of Argentina's sovereign rating, driven by the fiscal balance and macroeconomic stabilization achieved by Javier Milei's administration
In the words of the rating agency, this rise “reflects an improvement in the entities' ability to withstand adverse conditions associated with a sovereign default and maintain sufficient liquidity to meet their financial obligations”. In fact, the agency was emphatic in stating:
“We now rate these entities one notch above the long-term foreign currency rating for Argentina, reflecting our view that they could withstand the conditions associated with a sovereign default”.
Although the path to full normalization still presents challenges, the outlook for these firms remains stable, in line with the country's trend. Analysts positively assessed the combination of continuous fiscal surpluses and the accumulation of international reserves by the Central Bank, factors that have fortified the national liquidity profile.
While these companies' ability to meet long-term foreign currency payments will continue to be linked to access to the foreign exchange market, the perception of the risk of sovereign interference is today significantly lower thanks to the political paradigm shift. This financial milestone marks the beginning of an era where compliance with obligations and respect for markets are once again the norm in the Republic of Argentina
In a resounding endorsement of Milei's management, the prestigious international agency S&P Global Ratings has raised the sovereign credit rating of Argentina to 'B-/B' from its previous position of 'CCC+/C'. This upward adjustment is a direct response to the drastic reduction of economic vulnerabilities and a gradual recovery of external liquidity, factors that, according to the rating agency itself, “lay the groundwork for sustained economic recovery”.
The firm highlighted that the fiscal austerity policy implemented by the current administration has been the key to reopening the State's access to voluntary financing in the capital markets and to credits from international organizations. This new solvency will allow the country to firmly meet the foreign currency commercial debt commitments scheduled for 2026 and 2027.
As an immediate consequence of this cleanup of public accounts, confidence has shifted to the private sector. S&P Global Ratings upgraded the rating of eight Argentine companies in the infrastructure and corporate sectors, raising their rating from 'B-' to 'B'. Additionally, the assessment of transfer and convertibility (T&C) —a key indicator for foreign trade— was updated to 'B' from 'B-', reflecting a lower risk of state intervention in access to foreign currency.
The companies benefiting from this wave of financial optimism are: Aeropuertos Argentina 2000 S.A., Empresa Distribuidora de Electricidad de Mendoza S.A. (EDEMSA), Genneia S.A., Pampa Energía S.A., Telecom Argentina S.A., Transportadora de Gas del Sur S.A. (TGS), YPF Energía Eléctrica S.A. (YPF Luz) and YPF S.A..
The technical analysis underscores the robustness of these entities, which have independent credit profiles of at least 'B' and passed the agency's stress test. This evaluation allows companies to position themselves one notch above the sovereign rating, demonstrating exceptional resilience.
