Moody’s Lifts Argentina Debt Rating in Fresh Boost to Milei

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Or sign-in if you have an account.no2wc[qrmj4dgh]k}6bb}crm_media_dl_1.png JP EMBI(Bloomberg) — Lea la nota en españolTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountMoody’s Ratings upgraded Argentina’s credit score, giving the nation its third sovereign upgrade in less than three months and further validating President Javier Milei’s economic overhaul plan. The South American nation was raised to B3 from Caa1, with a positive outlook. While the upgrade still leaves it deep into speculative territory, all three major credit-rating firms now rate Argentina above the highly distressed category, a milestone for a country that spent years among the riskiest sovereign borrowers in global markets. “The upgrade reflects our assessment that Argentina’s default risk has declined materially as macroeconomic stabilization has advanced beyond the initial adjustment phase into a more durable improvement in credit fundamentals, a sign of improving governance,” analysts wrote on a Tuesday statement. “Prospects for Argentina’s external position have improved markedly, supported by stronger export performance and rising foreign direct investment in the energy and mining sectors, alongside improved access to external financing.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe positive outlook, Moody’s added, “reflects the view that Argentina’s credit profile may strengthen further as structural improvements in external finances combine with ongoing macroeconomic stabilization.”The move follows Fitch Ratings’ decision in May to lift Argentina to B1 and a similar move by S&P Global Ratings in June, with all of the firms citing Milei’s success in restoring fiscal accounts and bringing inflation down from triple-digit levels. Argentina’s sovereign bond spread over their US counterparts now stands at nearly 400 basis points, the lowest in eight years as the country looks to put years of economic crisis and debt defaults behind it.Rear more: Argentina Bonds Jump, 2035s Hit Record High on S&P Upgrade The upgrades broaden the pool of potential investors that can own Argentine debt. While an initial move out of the highly distressed category can begin to attract new buyers, subsequent upgrades typically expand the universe of institutional investors permitted to hold the country’s bonds.Milei’s government has maintained fiscal surpluses and relied on local-law dollar debt issuance, repo agreements with international banks and multilateral-backed financing to meet outstanding debt obligations. The central bank has also accelerated reserve accumulation, meeting the government’s target with the International Monetary Fund of purchasing more than $10 billion in foreign currency during the first half of 2026.At the same time, the government has gradually eased some capital controls and implemented reforms aimed at normalizing the country’s monetary and exchange-rate regime.Moody’s upgrade further strengthens the case for Argentina’s return to international debt markets. Bond spreads tightened materially following the upgrades by Fitch and S&P, with the latter helping drive sovereign risk premium to the lowest levels of the Milei era.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Still, government officials have repeatedly argued that Argentina’s borrowing costs still don’t adequately reflect the country’s improving fiscal and external fundamentals, and should be closer to the 250-300 basis point range.Moody’s said its positive outlook reflects the possibility of further upgrades as Argentina continues to make structural improvements to its external finances. It cautioned that risks remain ahead of the 2027 presidential election, although it noted that the “range of policy outcomes has narrowed” relative to previous election cycles, increasing the likelihood of policy continuity — long one of investors’ biggest concerns.(Adds context, further detail on Moody’s assessment starting in seventh paragraph)Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.