Moody’s upgrades Argentina to B2

Moody's Investors Service said it upgraded the Government of Argentina's local and foreign currency issuer and senior unsecured ratings to B2 from B3.

The senior unsecured shelves were upgraded to provisional B2 from provisional B3.

The outlook is stable.

At the same time, the agency affirmed Argentina's short-term rating at Not Prime (NP). The senior unsecured ratings for unrestructured debt were affirmed at Ca and the unrestructured senior unsecured shelf affirmed at provisional Ca.

Moody’s said the key drivers of the upgrade of the rating: (a) A record of macro-economic reforms that are beginning to address long existing distortions in Argentina's economy; and (b) the likelihood that reforms will continue and in turn sustain the recent return to positive economic growth.

The agency also upgraded the foreign currency bond ceiling to B1 from B2 and the foreign currency deposit ceiling to B3 from Caa1. The long term local currency bond and deposit ceilings were raised to Ba2 from Ba3. The short-term foreign-currency bank deposit ceiling, the short-term foreign-currency bond ceiling, and the short term local currency bond and deposit ceilings all remain unchanged at NP.

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