Moody's raises Argentina's rating for the first time in five years
Argentina achieved a record $18.9 billion trade surplus in 2024, according to official data released on Monday, which largely coincided with libertarian President Javier Milei's first full year in office, reflecting the impact of his economic policies
Ratings agency Moody's on Friday 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.
Argentina achieved a record $18.9 billion trade surplus in 2024, according to official data released on Monday, which largely coincided with libertarian President Javier Milei's first full year in office, reflecting the impact of his economic policies.
Milei's administration inherited spiraling inflation, depleted international reserves, and extensive economic imbalances that led to a very high probability of a credit event, according to Moody's.
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"Decisive fiscal adjustment, alongside measures to halt monetary financing were put in place and have proven effective in addressing imbalances," it said.
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.
Moody's upgraded Argentina's credit rating for the first time in five years, following a downgrade in 2020 as disrupted debt restructuring talks amid the global pandemic increased the country's risk of slipping into default.
Argentina's outlook has also been revised to "positive" from "stable" on Friday, as the government continues to make progress on its macroeconomic stabilization program.
