Moody's upgrades Argentina's ratings to Caa1, outlook to stable

Moody's upgrades Argentina's ratings to Caa1, outlook to stable

Moody's Investors Service has upgraded Argentina's long-term foreign currency and local currency issuer ratings to "Caa1" from "Caa3" on July 17, 2025. The ratings agency also changed its outlook to stable from positive [1].

The upgrade reflects Moody's view that the extensive liberalization of exchange and capital controls, alongside a new International Monetary Fund (IMF) program, support the availability of hard currency liquidity and ease pressure on external finances. This reduces the likelihood of a credit event [1].

Moody's had taken the rating up to "Caa3" in January 2023, its first upgrade for South America's No. 2 economy in more than five years, after a 2020 downgrade over disrupted debt restructuring talks as the global pandemic increased its risk of slipping into default [1].

The outlook balances positive developments against continued credit challenges and a so far limited structural rebalancing of the external accounts, as well as less favorable trade terms that could narrow the trade surplus [1].

References:

[1] https://www.reuters.com/world/americas/moodys-hikes-argentina-ratings-up-two-notches-outlook-stable-2025-07-17/