The rating agency Fitch Ratings upgraded Argentina's rating as a long-term foreign currency debt issuer from CC to CCC. It is noted that the domestic country risk is below its historical average, standing at 780 basis points.
Fitch emphasized confidence in Argentina's ability to meet upcoming foreign currency bond payments without the need for restructuring. This improvement is attributed to the increase in reserves, driven by a capital amnesty with an inflow of over 20 billion dollars, and the reduction of sovereign bond spreads.
Despite this improvement, the agency warned about the persistence of some issues, such as the low level of net reserves and uncertainty regarding external financing. Fitch also highlighted the progress made in reducing inflation and stabilizing the economy, although it cautioned about the risks associated with exchange rate policies and future debt obligations, especially from 2025.
