International credit rating agency Fitch announced Tuesday it has raised Argentina’s long-term foreign and local currency debt ratings from “CCC+” to “B-” while maintaining a stable outlook for the South American nation.
The ratings improvement comes as Fitch recognized better fiscal and external financial positions, advancement in economic policy changes, enhanced possibilities for foreign exchange reserve growth, and expectations that Argentina’s government will obtain necessary funding to meet debt payments.
However, the agency acknowledged ongoing challenges including limited international reserves, elevated inflation rates, and Argentina’s track record of economic instability.
Fitch forecasts Argentina’s economic expansion will slow to 3.2% by 2026.
The ratings firm highlighted increased political support for President Javier Milei following October 2025 midterm election results.
The electoral victory allowed Milei’s administration to push forward with significant policy changes, including workplace reforms that lengthened the standard work day and new laws reducing mining limitations in glacier-containing areas.
Argentina’s Political Economy Secretary Jose Luis Daza celebrated the development on social media platform X, stating: “With this move, Argentina has crossed a key threshold in international markets.”
“Thousands of institutional funds are currently unable to invest in CCC-rated instruments. Now they will be able to invest in Argentine bonds,” Daza explained.
President Milei has prioritized maintaining fiscal responsibility as a central pillar of his presidency, rejecting legislation he views as threatening to budgetary stability. This approach has drawn criticism from social organizations that have experienced budget reductions under his leadership.
While inflation has decreased from its highest points, it has remained persistent in recent months due to currency devaluation and increased utility costs. Economic expansion continues to be unbalanced, with growth primarily occurring in energy, mining, and agricultural sectors.
