Moody’s raises Argentina’s ranking for the primary time in 5 years

(Reuters) – Rankings company Moody’s (NYSE:MCO) on Friday raised Argentina’s long-term overseas forex sovereign credit standing to “Caa3” from “Ca”, citing the federal government’s forceful coverage shift that has helped deal with financial challenges and stabilize exterior funds.

Argentina achieved a document $18.9 billion commerce surplus in 2024, based on official information launched on Monday, which largely coincided with libertarian President Javier Milei’s first full yr in workplace, reflecting the impression of his financial insurance policies.

Milei’s administration inherited spiraling inflation, depleted worldwide reserves, and in depth financial imbalances that led to a really excessive likelihood of a credit score occasion, based on Moody’s.

“Decisive fiscal adjustment, alongside measures to halt financial financing had been put in place and have confirmed efficient in addressing imbalances,” it stated.

Argentina’s monetary markets have been buoyant attributable to Milei’s powerful “zero deficit” insurance policies, cooling inflation and the federal government’s dedication to satisfy its debt obligations.

Moody’s upgraded Argentina’s credit standing for the primary time in 5 years, following a downgrade in 2020 as disrupted debt restructuring talks amid the worldwide pandemic elevated the nation’s threat of slipping into default.

Argentina’s outlook has additionally been revised to “optimistic” from “secure” on Friday, as the federal government continues to make progress on its macroeconomic stabilization program.