Dec 17 (Reuters) – S&P Global upgraded Argentina’s long-term foreign currency sovereign credit rating to “CCC+” from “CCC” on Wednesday, citing improved liquidity and easing economic vulnerabilities after midterm elections and lower inflation.
The agency also raised local currency sovereign credit ratings on the country to “CCC+/C” from “SD/SD”, reversing a February downgrade triggered by repeated local debt exchanges amid limited access to external capital markets.
Argentina’s economy expanded 3.3% in the third quarter compared with the same period last year, driven by strong investment and sectoral boosts in finance, mining and hospitality, official data showed on Tuesday, marking its fourth consecutive quarterly gain.
Last week, the government said it raised $1 billion through a sale of a four-year dollar bond governed by local law, a move seen as bolstering creditworthiness and reducing default risk even if future debt exchanges occur.
S&P maintained Argentina’s outlook at “stable”.
(Reporting by Aatrayee Chatterjee in Bengaluru; Editing by Alan Barona)
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