For a qualifier, Argentina is still in high -risk territory although “with some improvements”

“The Administration of Milei has taken comprehensive measures to reduce inflation and eliminate fiscal deficits, laying the basis for economic stabilization and sustained growth,” says the last evaluation of Global Ratings.

It should be remembered thatS & p It is one of the main credit rating agencies in the world, together with Moody’s and Fitch Ratings. It is a division of S&P globala financial analysis company based in the United States. and evaluates the capacity of governments, companies and financial institutions to fulfill their debt obligations (bonds, loans, etc.). Their qualifications indicate the level of non -payment risk and serve as a reference for investors and markets.

Despite recognizing some improvements and giving “credit” to the work of Milei, the evaluation concluded that “Argentina’s economic conditions remain fragile, and external liquidity continues to be a weakness, despite a slight improvement.”

S&P Global ratified the sovereign grades of Argentina in foreign and short -term local currency in ‘CCC/C’maintaining a perspective stableaccording to your latest report. In addition, he confirmed the qualification in national scale in ‘Rab+’ and improved the transfer and convertibility evaluation (T&C) of ‘Cc’ a ‘b-‘reflecting a slight improvement in the conditions of access to foreign exchange.

The perspective of long -term qualifications remains stablereflecting a balance between the risks derived from the weak external liquidity and persistent economic vulnerabilities, in the face of recent fiscal advances and inflation reduction.

S&P Global Ratings decided to keep the credit qualification of Argentina unchanged, reflecting the fragile economic stability of the country. “We maintain our sovereign and short-term credit grades in local and foreign currency of ‘CCC/C’ for Argentina. We also affirm our national rating of ‘Rab ‘From’ CCC ‘, “the company said in a statement.

The conclusion of the agency

The agency justified its decision in the persistent financial vulnerability, despite some improvement signals. “The perspective of long -term qualifications remains stable, balancing the risks raised by the weak external liquidity and persistent economic vulnerabilities with advances Recent in fiscal results and in the reduction of inflation, “he explained.

In his analysis, S&P delineated two possible scenarios for the short and medium term. In the most adverse, he warned that deterioration in financing conditions could aggravate instability. “Not moving forward in exchange, monetary and other reforms could generate instability and increase the probability of a default,” he said.

He also alerted about the challenges that would make the exchange controls more flexible: “Lifting exchange controls entails risks. A strong depreciation of currency after the elimination of exchange controls could boost inflation, undermining the recent advances in the stabilization of the economy. The net currency reserves of the Central Bank are still negativewhich limits its ability to intervene in the market to avoid a possible excess exchange rate after the end of the capital account controls. “

On the other hand, S&P contemplated a more favorable outcome if economic policies manage to stabilize the situation. “An skilled management of inflation and exchange rate could create the conditions for sustained stability and growth,” the rating company projected. Under this scenario, the administration could recover Access to external financing under more favorable conditions. “The government would enjoy better access to voluntary financing of external capital markets and multilateral credit agencies,” he concluded.