Moody's upgrades Argentina's sovereign rating and Buenos Aires city credit rating

Moody's Ratings raised Argentina's sovereign rating from Caa1 to B3 for both local‑currency and foreign‑currency obligations, marking the first upgrade in years and signaling a lower probability of default. In the same week the agency upgraded the credit rating of the City of Buenos Aires from B2 to B1, the highest sub‑national rating in the country and two notches above the new national rating.

The improvements were attributed to tighter fiscal discipline, robust liquidity, reduced financing needs and a more stable macro‑economic environment. City officials highlighted the orderly public accounts, while analysts cited the reforms of President Javier Milei as contributing to the better outlook. Market reaction included a fall in Argentina's country‑risk indicator to roughly 410–437 basis points—the lowest level in over eight years—supporting a modest rise in sovereign bond prices and paving the way for a potential return to international capital markets.