Argentina could achieve investment grade status during the next presidential term if Javier Milei is re-elected in 2027
The projection was made by Facundo Gómez Minujín, CEO of JPMorgan for Argentina, Uruguay, Paraguay, and Bolivia, who considered that the four years of the potential second presidential term under libertarian management would be sufficient to advance in the necessary rating improvements
“I believe that if Milei wins, during the next term it will definitely be investment grade,” the executive stated in an interview with Bloomberg Línea and La Estrategia del Día Argentina. When asked if a four-year term would be enough to achieve the necessary improvements, he replied: “I think so”
The so-called investment grade identifies countries whose sovereign debt receives ratings that reflect a low risk of default. In the major agencies, the threshold starts at BBB- for S&P and Fitch and at Baa3 for Moody’s. Currently, Argentina is still below those categories
The leap to investment grade would be significant for the financial market because it would expand the universe of investors eligible to incorporate Argentine debt. Among them are certain passive funds, insurance companies, and pension funds that have restrictions on investing in countries that do not have investment grade
The market awaits the 2027 elections
Gómez Minujín's projection comes as the financial market maintains a more cautious stance towards Argentina. The executive described investors as “a little in wait and see mode” and noted that the country risk is “more or less stabilized” around 500 points
