FX.co ★ S&P Raises Argentina's Credit Rating to B-

Credit ratings agency S&P Global has raised Argentina's long-term sovereign credit rating to 'B-' from 'CCC+', citing reduced economic vulnerabilities and a gradual improvement in external liquidity. At the same time, S&P cautioned that the rating remains limited by still-low net foreign-currency reserves, a track record of policy volatility, and government debt levels that are high relative to comparable countries.

S&P anticipates that Argentina’s economy will continue to recover after emerging from recession, supported by easing inflation, rising real wages, and a gradual rebound in domestic demand. In addition, better access to external financing—through multilateral funding and a cautious return to international capital markets—is expected to aid the buildup of foreign-exchange reserves and facilitate debt repayments.

Moody’s last assigned Argentina a sovereign credit rating of Caa1 with a stable outlook, while DBRS most recently rated the country at B (low), also with a stable outlook.