21/07/2026 21:17 - Economia
On July 21, 2026, the international credit rating agency Moody's announced a significant upgrade to Argentina's sovereign debt credit rating. The rating jumped from Caa1 to B3 for both local and foreign currency obligations, while the outlook was revised from stable to positive.
For international readers, a credit rating evaluates the creditworthiness of a country. The 'B' category indicates speculative grade, but it is a massive leap from the 'Caa' category, which denotes very high credit risk and imminent default. This upgrade signals that Argentina is successfully paying its debts and stabilizing its economy.
According to Infobae, this decision responds to a substantial reduction in default risk, driven by macroeconomic stabilization, sustained fiscal surpluses, and a notable drop in inflation.
With this improvement, the three major global credit rating agencies—Moody's, S&P, and Fitch—are now aligned at B- for Argentina for the first time in over a decade. Argentina's Minister of Economy, Luis Caputo, and Vice Minister, José Luis Daza, celebrated the achievement, highlighting that thousands of institutional investment mandates now have a "green light to invest in Argentina."
Driven by investments in hydrocarbons, mining, and infrastructure.
The rating firm highlighted that the macroeconomic adjustment relies on a sustained correction of fiscal imbalances and the elimination of monetary financing (the practice of printing money to fund government spending). Furthermore, it emphasized the role of the Large Investment Incentive Regime (RIGI), a special legal framework designed to attract foreign capital. The RIGI currently boasts a project portfolio of USD 141.7 billion, of which USD 45 billion is already under execution.
Another key factor was the accumulation of foreign reserves. The Central Bank of Argentina (BCRA) purchased more than USD 11 billion so far in 2026, significantly strengthening the country's balance of payments.
Currently, Argentina's country risk sits around 421 basis points. For context, the country risk premium measures the extra yield investors demand to hold Argentine debt compared to safe US Treasury bonds. Analysts consulted by Infobae agreed that this rating upgrade is a crucial step for Argentina to eventually return to international capital markets, a scenario that could become concrete if the indicator breaks below the 400 points threshold.
Moody's warned that political risks persist ahead of the general elections in 2027. A future "more interventionist" government could reintroduce economic distortions. However, the agency considers that the policy playbook has narrowed, increasing the probability of continuity for the current economic measures.
Alfredo S. Quiroga
