Fitch Ratings Boosts Argentina's Credit Outlook Amid Fiscal Improvements

Fitch Ratings has raised Argentina's long-term issuer default rating from 'CC' to 'CCC'. This improvement reflects better economic prospects, aiding Argentina's access to global financial markets. Despite facing significant upcoming debt payments, enhanced dollar inflows through a successful tax amnesty have strengthened international reserves.

On Friday, Fitch Ratings announced an upgrade to Argentina's long-term issuer default rating, moving it from 'CC' to 'CCC'. This shift signifies a growing confidence in Argentina's capacity to fulfill forthcoming foreign-currency bond obligations.

Fitch highlights that the improved credit rating points to a gradual enhancement in Argentina's economic landscape. This development could potentially boost the country's access to international financial markets. A successful tax amnesty program has spurred dollar inflows, helping to lift international reserves and bolstering the sovereign's dollar access.

Despite these gains, Argentina contends with substantial debt obligations, with payments of $4.3 billion due in both January and July 2025, in addition to around $2.3 billion in scheduled foreign-exchange bond settlements by the central bank and $2.7 billion from provincial governments. Fitch noted that the current international reserves of $30 billion are low and primarily consist of a China swap and gold that would first need to be sold.

(With inputs from agencies.)