Argentina's country risk index hits lowest level since 2018

Argentina's country risk index has reached its lowest point in eight years, signaling increased investor confidence following a credit rating upgrade. The JP Morgan index dropped 2.3% on Friday to 433 basis points, a level not seen since May 2026.

This significant decrease is largely attributed to the credit rating agency S&P's decision last Wednesday to improve Argentina's sovereign debt issuer rating to 'B-', a move from 'CCC+' (substantial credit risk) previously assigned by Fitch earlier in May. This upgrade has spurred investor appetite for Argentine dollar-denominated sovereign bonds.

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the main determinant

The Argentine government, led by President Javier Milei, asserts that these positive developments, including the risk index reduction, are a direct result of the stabilization of macroeconomic variables, economic liberalization, and structural reforms undertaken since late 2023. The government views these upgrades as validation of its economic policies.

Argentina's Vice Minister of Economy, José Luis Daza, highlighted the importance of the country risk index, stating it is "the main determinant" of the cost of capital within the South American nation. He expressed optimism that further upgrades from agencies like Moody's would continue to lower the risk index, attracting new investors. Argentina has not accessed international debt markets for financing since early 2018, when its country risk index hovered between 360 and 400 basis points.

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With these 'upgrades' new investors enter and the country risk will continue to fall.