Overview
- S&P Global Ratings raised Argentina’s long‑term foreign‑currency rating from CCC+ to B‑ in a decision announced on Wednesday, June 10, moving the country out of the highest default‑risk rung of ratings.
- The agency credited continued fiscal surpluses, slower inflation, growing gross reserves and expanded financing channels for improving Argentina’s liquidity and debt‑service capacity.
- Markets reacted quickly with dollar sovereign bonds up about 3–4% and the country‑risk measure (Riesgo País) falling toward the 450–500 range, pushing some index levels to their lowest since 2018.
- S&P stressed important risks remain, citing negative net reserves once liabilities are netted, concentrated 2026–27 external maturities (about USD10–10.5bn this year), exchange‑rate volatility and weak institutional credibility.
- The upgrade, which follows Fitch’s move in May, could open Argentina to more institutional investors and cheaper funding if policies and reserve accumulation hold, while market attention turns to Moody’s review in July.