Fitch lifts Argentina's credit rating to 'B-'

BUENOS AIRES

A silhouetted man walks beneath a large Argentine flag during a demonstration called by Argentine unions in Plaza de Mayo, Buenos Aires, on April 30, 2026, on the eve of International Workers' Day and against the government of Argentine President Javier Milei. (Photo by Juan Mabromata / AFP)

Fitch raised its credit rating on Argentina one notch to level "B-" on May 5, citing the country's improved fiscal picture and its progress on economic reforms.

The new level places the South American country in a category considered "highly speculative" but above its prior spot, "CCC+," where there is "substantial credit risk," according to the Fitch scale.

Fitch said Argentina's outlook is "stable," which means it does not envision a new rating in the next six months.

Argentina's improved external position reflects its status as a net energy exporter, with the first quarter trade surplus hitting a record of $5.5 billion.

Fitch pointed to a "robust pipeline of energy projects" expected to further boost foreign investment.

The note also cited legislative victories by Argentine President Javier Milei on labor reforms and the easing of environmental restrictions on mining.

Fitch said Argentina's rating is constrained by a "weak" international liquidity position to "manage potential confidence shocks, to which Argentina has been particularly vulnerable, as well as high inflation and a record of macroeconomic instability."

The World Bank said last month it was working on a guarantee of up to $2 billion to help refinance some of Argentina's debt, while the IMF said it reached an agreement with the country that would unlock $1 billion.