Fitch highlighted improved confidence in the country’s ability to meet upcoming foreign currency bond payments without restructuring.
The rating agency Fitch Ratings announced this Friday that decided to raise Argentina’s rating as an issuer of long-term foreign currency debt (IDR), from CC to CCC, with a domestic country risk already below its historical average (780 basis points).
Fitch highlighted the improvement in confidence in the country’s ability to meet upcoming foreign currency bond payments without restructuring.
This is due, according to the agency, to the growth of reserves, driven by the money laundering, which attracted more than $20 billion and a reduction in sovereign bond spreads. However, he warned that some problems persistlike the low level of net reserves and the uncertainty of financing abroad.
Fitch highlighted the progress made in reducing inflation and economic stabilizationbut pointed out the risks linked to exchange rate policies and future debt obligations, particularly in 2025.
In development…
Source: Ambito
