On January 24, Moody's raised Argentina's long-term foreign currency sovereign credit rating from "Ca" to "Caa3," attributing this improvement to the government's impactful shift in policies that have tackled economic challenges and stabilized external finances.
Official figures released on Monday show that Argentina achieved a record $18.9 billion in 2024, predominantly during President Javier Milei's inaugural full year in office, highlighting the influence of his economic strategies.
Milei's administration inherited escalating inflation, low international reserves, and substantial economic disparities that significantly increased the risk of a credit event, as noted by Moody's.
"The implementation of a resolute fiscal adjustment, combined with measures to cease monetary financing, has effectively addressed these imbalances," stated Moody's.
Argentina's financial markets have thrived due to Milei's stringent "zero deficit" policies, leading to reduced inflation rates and a strong governmental commitment to fulfilling debt obligations.
For the first time in five years, Moody's has upgraded Argentina's credit rating following a 2020 downgrade caused by tumultuous debt restructuring negotiations during the global pandemic, elevating the risk of default.
Additionally, Argentina's outlook was revised from "stable" to "positive" on Friday, reflecting ongoing advancements in the government's macroeconomic stabilization program.