Fitch Raises Argentina’s Credit Rating to B-, Signaling Confidence in Milei’s Economic Overhaul

Fitch raised Argentina’s long-term foreign-currency and local-currency issuer default rating from CCC+ to B- on 5 May 2026, a six-notch improvement with a stable outlook. The agency said the upgrade reflects stronger fiscal and external balances, progress on reforms, better reserve prospects, and confidence the government will secure financing for upcoming debt.

Fitch Upgrades Argentina to B- as Milei Reforms Strengthen Economy

President Javier Milei, reinforced by an October 2025 midterm win, has pushed aggressive fiscal tightening, deregulation, and a market-oriented monetary regime. Recent legislative wins include labor-market reforms, eased mining restrictions, and a 2026 budget focused on fiscal discipline, helping generate a record $5.5 billion first-quarter trade surplus that turned Argentina into a net energy exporter. The rating lift pushed yields on the benchmark 2035 dollar bond to about 9.7 % and lifted its price to 75.9 cents. Inflation fell to 1.5 % month-over-month in May 2025 after a March peak of 3.4 %. The World Bank is negotiating a guarantee of up to $2 billion, the IMF has agreed to release $1 billion, and Finance Minister Luis Caputo says the government will rely on local funding rather than immediate foreign-law bond issuances.

Fitch Upgrades Argentina to B- as Milei Reforms Strengthen Economy

Labor unions protested in Plaza de Mayo on 30 April 2026, denouncing Milei’s reforms and warning that a “weak” international liquidity position makes Argentina vulnerable to confidence shocks. Fitch analysts also cautioned that the country’s international liquidity remains weak, while Finance Minister Caputo has ruled out short-term foreign-law bond issuances, creating a tension between the agency’s expectation of external financing and the government’s current funding strategy. Detailed plans for meeting the $8.8 billion (2026) and $9.8 billion (2027) foreign-currency debt service are not yet disclosed.

Bloomberg

• “reflects structurally improved fiscal and external balances, progress on economic reforms, improved prospects for FX reserve accumulation and our expectation that the government will secure adequate financing to cover debt obligations,” — Christopher Dychala, Richard Francis, Shelly Shetty, Fitch Analysts

Bloomberg

• “This is an additional incentive to bring sovereign spreads closer to market-access levels,” — Pedro Siaba Serrate, Head of Research, Portfolio Personal Inversiones

Buenos Aires Times

• “Fitch has recognised what the market had been slowly pricing for months: a structurally stronger macro framework, a firmer fiscal anchor and improving external dynamics.” — Pedro Siaba Serrate

Buenos Aires Times

Argentina faces sizable foreign-currency debt maturities in 2027. The government plans to meet them through privatization proceeds, local dollar-bond issuances, and a bank loan backed by multilateral guarantees. Fitch expects further rating upgrades could broaden access to institutional investors, easing financing ahead of the 2027 schedule.

Buenos Aires Times