S&P Upgrades Argentina’s Sovereign Debt Rating
It is worth noting that last week Argentina returned to international dollar debt markets for the first time in eight years.
Quick overview
- S&P Global Ratings upgraded Argentina's long-term sovereign debt rating from CCC to CCC+, citing lower inflation and a sustained fiscal surplus.
- The outlook on Argentina's debt remains 'stable,' with potential for a 'positive' revision if current trends continue.
- Argentina returned to international dollar debt markets for the first time in eight years, raising USD 1 billion through a four-year bond.
- The government plans to implement a reserve rebuilding strategy starting in 2026, linked to increased foreign currency inflows.
The rating was raised from CCC to CCC+, the same level seen in the final year of the previous administration.
Markets believe that the removal of capital controls could pave the way for further upgrades.
S&P Global Ratings upgraded Argentina’s long-term sovereign debt rating on Wednesday from CCC to CCC+, citing lower inflation, a sustained fiscal surplus, and stronger political backing following the recent legislative elections.
In its report, the rating agency stated that the outlook on Argentina’s debt remains “stable,” although market participants expect it could be revised to “positive” if current trends continue.
The new rating matches Argentina’s standing in 2023, when country risk stood near 2,000 basis points—compared with below 570 today—highlighting a disconnect that investors attribute to pending structural reforms, particularly in the foreign exchange regime. Many believe further progress, such as the elimination of capital controls, would justify a stronger rating.
In line with this view, financial analyst Leonardo Svirsky said that “based on current market pricing and Argentina’s policy performance, the rating should be significantly higher.” He added that “at a minimum, it should be BB, and Morgan Stanley should upgrade Argentina back to emerging market status.”
S&P raised the foreign-currency credit rating from CCC to CCC+, while the local-currency rating was upgraded from SD (selective default) to CCC+.
Argentina Gradually Returns to International Debt Markets
It is worth noting that last week Argentina returned to international dollar debt markets for the first time in eight years. Ahead of major maturities in January, the country raised USD 1 billion through a four-year bond issued at a yield of 9.26%.
The Ministry of Economy now faces the challenge of securing financing without a substantial buildup of international reserves, which explains why the bond’s yield is still considered high by New York standards. In this context, the government announced this week that starting in 2026 it will implement a plan to rebuild reserves, linked to rising demand for pesos and increased foreign currency inflows through the official foreign exchange market.
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