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S&P Global Ratings has raised Argentina’s sovereign credit rating, citing improving economic indicators and stronger political backing for the government’s reform agenda. The agency said these developments enhance the country’s ability to service its debt and reduce near-term default risks.
Upgrade reflects improving fundamentals
S&P lifted Argentina’s rating to CCC+, still well below investment grade but signaling a meaningful improvement in credit quality. The outlook was set at stable, indicating expectations that recent gains in economic management and political support can be sustained.
According to the agency, declining inflation and a fiscal surplus recorded during 2025 have strengthened the government’s liquidity position and eased immediate pressures on public finances.
Political momentum supports reform agenda
The upgrade also reflects Argentina’s shifting political landscape following the October midterm elections. A strong showing by President Javier Milei’s party has increased expectations that his market-oriented reforms will gain broader backing in Congress.
S&P noted that stronger political standing improves policy predictability, an important factor for investors assessing the country’s creditworthiness and long-term repayment capacity.
Bond markets reward improved outlook
Investors have responded decisively to the improving narrative. Argentine bonds have returned nearly 29% since the congressional vote, making them the top performers in a Bloomberg index of peer countries. The rally gained further momentum after authorities announced plans to ease currency-trading restrictions, reinforcing hopes of financial normalization.
These gains suggest a reassessment of default risks and growing confidence in Argentina’s economic trajectory.
Still deep in speculative territory
Despite the upgrade, Argentina’s rating remains firmly in speculative territory, reflecting ongoing vulnerabilities such as limited external financing options and exposure to political and economic shocks. Even so, S&P said the likelihood of a conventional default has diminished as fiscal discipline improves and macroeconomic imbalances narrow.
The upgrade brings S&P’s assessment in line with those of Moody’s and Fitch, reducing discrepancies among major rating agencies and offering investors a more consistent view of Argentina’s credit profile.
As International Investment experts report, S&P’s upgrade marks an important turning point for Argentina’s debt story. While it validates recent progress on inflation control and fiscal management, further upgrades will depend on the durability of reforms, continued political cohesion and the government’s ability to translate early successes into lasting economic stability.