Moody's raised the credit rating of CABA and 10 other jurisdictions after upgrading Argentina's rating

The international agency Moody’s raised the credit rating of the City of Buenos Aires and upgraded the evaluations of another ten Argentine jurisdictions, after improving the country's sovereign rating and recognizing the progress of the national macroeconomic order.

In the case of the City, the rating agency raised the baseline credit rating from b2 to b1 and upgraded its senior unsecured debt rating from B2 to B1, with a stable outlook. This is the best rating obtained by the city administration in the last 14 years.

The decision once again positioned CABA as the sub-sovereign jurisdiction with the highest rating in Argentina. The improvement occurred in a context marked by the strengthening of the national rating and a scenario of greater fiscal discipline, macroeconomic stability, and better financing conditions.

The head of the city government, Jorge Macri, celebrated the decision and highlighted both the order of the City’s finances and the recovery of the national economy.

“After 14 years, we have regained Moody’s B1 rating and we have the highest sub-sovereign rating in Argentina. There are no magic formulas. Order in the City’s finances and a country with a stable macroeconomy. This is the way forward,” he stated.

In the same vein, the city’s Minister of Finance, Gustavo Arengo, stated that the improvement is due to the fiscal discipline of the local administration and the economic order promoted by the government of Javier Milei.

He explained that the new national scenario creates more favorable conditions for provinces and municipalities to access financing at a lower cost and expand their investment possibilities.

Moody’s review also reached other jurisdictions. The agency upgraded the baseline credit ratings of Córdoba, Mendoza, and Santa Fe from b3 to b2, while their ratings improved from B3 to B2.

The province of Buenos Aires and Chaco, for their part, improved their ratings from caa3 to caa2 and their ratings from Caa3 to Caa2, with stable outlooks.

Entre Ríos and the municipality of Córdoba recorded an increase from caa1 to b3 and from Caa1 to B3, accompanied by a change in outlook from stable to positive. Río Negro maintained its rating, although its outlook also changed to positive.

Moody’s also confirmed the ratings of Chubut and Tierra del Fuego, both with stable outlooks.

The rating agency explained that the revisions are directly related to the improvement of Argentina's sovereign rating, which rose from Caa1 to B3, the increase in the ceiling for foreign currency debt, and the change in the national outlook from stable to positive.