The Risk Qualifier Fitch improved debt note in long -term foreign currency of Argentina and the He went from CCC to CCC+. The rating of breach of the issuer in local long -term currency also rose CCC A CCC+.
“The improvement of Argentina’s qualification reflects the launch of a new IMF program and an important liberalization of the exchange market, that reinforced the external liquidity and durability of the economic stabilization program of President Javier Milei, “experts said.
As expressed in a statement, “Economic recovery and disinflation have already exceeded our previous expectations and should receive an additional impulse thanks to these policy changes. “
The qualifier stressed that in April, The authorities replaced the minidevaluations scheme (“Crawling Peg”) with a new exchange regimein which the weight floats inside a band ($ 1,000– $ 1,400), which requires exchange intervention in the upper and lower limits.
In the letter it was also announced that Fitch Normally assigns qualification perspectives (rating outlooks) to sovereign countries with a lower or lower ‘CCC+’ rating.
At this time, Argentina’s credit qualification profile is as follows: Moody’s long -term external debt qualification, WR, positive perspective, long -term foreign currency debt rating of S&P, CC.
The doubts that the Fitch rating has still
The qualifier assured that although the country’s capacity was improved to comply with debt payments in the short term, Although challenges and uncertainties persist in the medium term, which is reflected in the ‘CCC+’ qualification.
“The accumulation of reservations is not secured under the new exchange rate regimedue to the preference of the authorities for a strong currency, while Access to external markets is still prohibitive“They said.
In addition, they argued that The mid -term legislative elections will probably be a key factor in international reserves dynamics and access to markets, since they represent a “crucial test” of support to the economic program of Milei, as well as A possible source of volatility during the campaign.
Source: Ambito
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