BELIZE CITY, BELIZE (Aaron Simonsky, Energy Analytics Institute, 24.Jan.2025) — Moody’s Ratings upgraded the government of Argentina’s long-term foreign currency and local currency issuer ratings to Caa3 from Ca.
The outlook has been changed to positive from stable, Moody’s said 24 Jan. 2025 in a research report seen by Energy Analytics Institute (EAI).
“The upgrade of the ratings to Caa3 reflects our view that the government’s forceful policy shift has enabled fiscal and monetary adjustment that is helping to address economic imbalances and to stabilize external finances, decreasing the likelihood of a credit event,” Moody’s said,
The rating agency warned that significant risks to Argentina’s ability to cover upcoming external debt payments remain. These risks relate to a “removal of capital and exchange controls or from negative shocks that could lead to a credit event with material losses on bondholders,” Moody’s said.
The change in the outlook to positive reflects upside potential for the ratings as the South American country continues to move toward the next phase of its macroeconomic adjustment, the agency said.
This, as president Javier Milei boasts widespread popular support after his first year in office, despite some economic and financial changes that were highly questionable by pundits when they were initially announced and then implemented.
“An orderly transition to a more open capital account would be consistent with higher ratings,” Moody’s said.
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By Aaron Simonsky reporting from Belize City. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.