LatinNews Daily - 18 November 2024

*International credit ratings agency Fitch Ratings has upgraded Argentina's Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘CCC’ from ‘CC’, and its Long-Term Local-Currency IDR to ‘CCC’ from ‘CCC-’. In a statement explaining its decision, the credit ratings agency cites developments that have improved its “confidence in the authorities’ ability to make upcoming foreign-currency bond payments without seeking relief of some sort”. It notes that “dollar inflows prompted by a successful tax amnesty have begun to lift international reserves, and should continue to do so as they circulate in the financial system, supporting… access to dollars”. Yet Fitch highlights that risks to repayment capacity persist, as captured in the ‘CCC’ rating, which maintains the country in junk status, citing “still uncertain prospects for a transition to monetary and exchange-rate policies that can ensure a durable improvement in reserves and recovery of market access.”