Moody's Upgrades Argentina's Credit Rating Amid Economic Reforms

Moody's Investors Service (NYSE:MCO) raised Argentina's long-term foreign currency credit rating to "Caa3" from "Ca," citing the government's robust economic policies under libertarian President Javier Milei. This marks the first upgrade in five years after a 2020 downgrade during pandemic-driven debt challenges.

Argentina recorded a historic $18.9 billion trade surplus in 2024, reflecting Milei's economic reforms in his first full year in office. These policies tackled hyperinflation, depleted reserves, and significant fiscal imbalances, significantly reducing default risks, Moody's noted. The agency highlighted the "decisive fiscal adjustments" and measures to halt monetary financing, which have stabilized external finances and restored investor confidence.

Milei's "zero deficit" policy has boosted financial market performance and curbed inflation. Moody's also revised Argentina's outlook to "positive" from "stable," acknowledging progress in macroeconomic stabilization and commitment to debt obligations.

This rating upgrade underscores a pivotal shift in Argentina’s economic trajectory, fueled by Milei's reformist approach.