Moody’s Raises Argentina’s Credit Rating, Citing Policy Shift and Economic Progress
Ratings agency Moody’s has raised Argentina’s long-term foreign currency sovereign credit rating to “Caa3” from “Ca”, citing the government’s forceful policy shift that has helped address economic challenges and stabilize external finances. The upgrade comes as Argentina achieved a record $18.9 billion trade surplus in 2024, largely due to the impact of libertarian President Javier Milei’s economic policies.
Milei’s administration inherited a dire economic situation, including spiraling inflation, depleted international reserves, and extensive economic imbalances that led to a high probability of a credit event. However, the government implemented decisive fiscal adjustment and measures to halt monetary financing, which have proven effective in addressing imbalances.
Argentina’s financial markets have been buoyant due to Milei’s tough “zero deficit” policies, cooling inflation, and the government’s commitment to meet its debt obligations. The country’s outlook has also been revised to “positive” from “stable” as the government continues to make progress on its macroeconomic stabilization program.
The upgrade marks the first time in five years that Moody’s has raised Argentina’s credit rating, following a downgrade in 2020 due to disrupted debt restructuring talks amid the global pandemic. The improved rating reflects the country’s progress in addressing its economic challenges and improving its creditworthiness.
