Moody's Investors Service downgraded Colombia's long-term credit rating from Baa2 to Baa3, citing a worsening debt burden and the government's decision to suspend the fiscal rule that limited borrowing. The rating outlook was set to stable. Shortly after, S&P Global also downgraded Colombia's credit rating to BB, removing the country's local debt from investment grade. These downgrades reflect concerns over Colombia's fiscal deterioration, including rising deficits and debt, and have led to declines in Colombian assets. Analysts have noted the possibility of Fitch following suit and placing Colombia in speculative grade. Meanwhile, Argentina's credit rating was upgraded by Moody's from Caa3 to Caa1, a two-notch improvement attributed to economic reforms, easing currency controls, and support from the International Monetary Fund (IMF). This upgrade has positively influenced Argentine assets, with the S&P Merval index and ADRs experiencing gains. Moody's also improved the credit ratings of eight Argentine companies following the sovereign upgrade. The positive momentum in Argentine markets has been supported by reforms under President Javier Milei, including reduced taxes and fiscal measures. Despite Colombia's fiscal challenges, the Ministry of Finance maintains it has a fiscal management plan, though market confidence remains cautious. Additionally, a Citi report highlighted fiscal deterioration in Colombia, potential electoral impacts in Chile, and a dovish policy stance by Mexico's central bank.