(Reuters) – Credit rating agency Moody’s (NYSE: ) raised Argentina’s long-term foreign currency sovereign credit rating from “Ca” to “Caa3” on Friday, citing a strong government policy shift that helped address economic challenges and stabilize external finances .
Argentina ran a record $18.9 billion trade surplus in 2024, according to official data released Monday, largely coinciding with the first full year of libertarian President Javier Miley’s term, reflecting the impact of his economic policies.
The Milei administration inherited spiraling inflation, depleted international reserves and extensive economic imbalances that led to a very high probability of a credit event, according to Moody’s.
“Decided fiscal adjustments have been introduced, along with measures to stop monetary financing that have proven effective in addressing imbalances,” it said.
Argentina’s financial markets were buoyed by Miley’s strict “zero deficit” policy, slowing inflation and the government’s commitment to meeting its debt obligations.
Moody’s raised Argentina’s credit rating for the first time in five years, following a 2020 downgrade as stalled debt restructuring talks amid the global pandemic raised the country’s risk of bankruptcy.
Argentina’s outlook was also upgraded to “positive” from “stable” on Friday, as the government continues to make progress on its macroeconomic stabilization program.
