Moody's upgrades Argentina's debt rating to B3 with a positive outlook

Moody's Ratings has elevated Argentina's creditworthiness, upgrading the nation's long-term issuer ratings in both local and foreign currency from Caa1 to B3. Concurrently, the outlook has been revised from "stable" to "positive," reflecting a notable reduction in the country's default risk.

This decision by Moody's, which aligns with previous upgrades from Fitch Ratings and S&P Global Ratings, is attributed to Argentina's macroeconomic stabilization surpassing its initial adjustment phase. The agency noted a more durable improvement in credit fundamentals and a strengthening of governance, suggesting that the risk of non-compliance has significantly diminished.

The upgrade could help push the country's risk premium below 400 basis points, a level it had previously touched before global financial market deterioration. Economy Minister Luis Caputo and Secretary of Economic Policy José Luis Daza celebrated the decision on social media. Daza highlighted that this marks the first time in over a decade that all three major rating agencies have aligned on a B- rating, potentially opening investment opportunities for numerous institutional mandates.

Moody's cited sustained fiscal surplus, decelerating inflation, and the continuation of economic liberalization as key factors reinforcing policy credibility and reducing macroeconomic volatility. The country's external position has also significantly improved, driven by robust exports, increased foreign direct investment in the energy and mining sectors, and enhanced access to external financing. The positive outlook anticipates further strengthening of Argentina's credit profile through ongoing macroeconomic stabilization and structural improvements in external accounts.