Overview

• Moody’s elevated Argentina’s foreign- and local-currency ratings from Caa3 to Caa1 on July 17 and moved the outlook to stable.
• The agency lifted country ceilings to B1 for local debt and B2 for foreign debt, reducing the likelihood of a near-term default.
• Progressive removal of currency and capital controls and a managed float exchange regime underpinned Moody’s assessment of lower credit event risk.
• A new IMF program pledges $20 billion through 2029, including $12 billion already disbursed, $3 billion pending review and $6.1 billion from multilateral banks.
• Moody’s warned that weak international reserves and structural investment barriers will limit prospects for further rating increases.