Moody’s Lifts Argentina Sovereign Rating Two Notches After Reforms

Moody’s Ratings upgraded Argentina’s long-term foreign- and local-currency issuer ratings two notches to Caa1 from Caa3, its second increase this year. The agency also shifted the outlook to stable, signalling balanced risks after a period of economic turbulence. The firm said the decision reflects the sweeping liberalisation of currency and, to a lesser extent, capital controls undertaken by President Javier Milei, together with a new programme agreed with the International Monetary Fund. These measures have improved Argentina’s access to hard-currency liquidity and eased external financing pressures, reducing the likelihood of another credit event. The move came as the central bank reported gross reserves rose almost US$280 million on Thursday to roughly US$39.8 billion, bolstering confidence in the authorities’ reform drive. A higher rating could help lower borrowing costs as the government pursues further fiscal consolidation and market-oriented policies.