The risk rating agency rose to “CAA3” the country’s note. In addition, the perspective changed from “stable” to “positive.”
The Moodys Risk Qualification Agency uploaded Argentina’s note as a long -term debt issuerboth in local and foreign currency, to “Caa3” from “CA” as a result of the fiscal order promoted by the government of Javier Milei.
According to a statement on Friday, the decision reflects “the energetic change of government policy, which has allowed a fiscal adjustment which helps correct economic imbalances. “
Moodys highlighted the official measures, which included Generalized spending cutswhich resulted in a substantial reduction in public debt burden. Public debt is expected to continue decreasing, approaching 50% of GDP in 2026.
The fiscal adjustment allowed the Central Bank (BCRA) to adopt a restrictive monetary policy, which contributed to reduce inflation from very high levels. In addition, Argentina’s external liquidity has increased thanks to Blanqueo that made almost US $ 20,000 million emerge In assets held abroad, already measures to attract additional currency tickets, which has allowed the authorities to gradually accumulate international reserves.
On the other hand, Moodys also raised the perspective from stable to positive. This indicates the possibility of new qualification improvements as Argentina continues its macroeconomic adjustment and goes to a more open capital account.
However, The elimination of capital and change controls could give way to new challenges that could compromise the progress made to date. In that sense, considerable risks still persist regarding the country’s ability to deal with the next payments of external debt.
Source: Ambito
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