By Stephen Nakrosis
Fitch Ratings said it was upgrading its rating on Argentina following the October elections that saw President Javier Milei emerge with a stronger popular mandate.
Fitch said Tuesday it upgraded the country's Long-Term Foreign Currency and Local Currency Issuer Default Rating to B- from CCC+, with a stable ratings outlook.
The rating reflects Argentina's structurally improved fiscal and external balances, progress on economic reforms, and improved prospects for FX reserve accumulation, Fitch said. In addition, Fitch expects the government will secure adequate financing to cover debt obligations.
Fitch also noted Argentina's foreign currency debt service has stepped up and will rise further in 2027 ahead of elections. Inflation in the country also rose to 3.4% in March, according to Fitch.
The B- rating is constrained by a number of factors, including Argentina's international liquidity position, as well as high inflation and a record of macroeconomic instability, Fitch said.
Milei won election in 2023, promising to cut Argentina's government spending and to reduce inflation, which had reached triple digits.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
05-05-26 1844ET
