What were the main reasons Fitch cited for upgrading Argentina's credit rating to 'B-'?

Fitch cited 'improved fiscal and external balances, progress on economic reforms, improved prospects for FX reserve accumulation' and its expectation that the government will secure financing to cover its debt obligations. It also noted stronger political backing for President Javier Milei following the October 2025 midterm elections, which enabled advancement of structural reforms including a labor program extending the working day and legislation easing mining restrictions in glacier regions.

What does Fitch identify as ongoing vulnerabilities for Argentina's economy despite the upgrade?

Fitch stated that vulnerabilities persist due to weak international reserves, high inflation, and a history of macroeconomic instability. It also observed that inflation—though down from peak levels—has proven sticky recently due to exchange-rate depreciation and rising utility prices, and that economic growth remains uneven, concentrated in energy, mining, and agriculture.

Fitch Upgrades Argentina to 'B-' on Milei's Economic Reforms

May 5, 2026

Fitch upgraded Argentina's credit rating to B-, citing fiscal reforms and eased mining restrictions, while noting persistent inflation and uneven growth in energy and agriculture.

reuters

2026-05-05

Fitch Upgrades Argentina to 'B-' on Milei's Economic Reforms

Fitch Upgrades Argentina to 'B-' on Milei's Economic Reforms

FAQ