Standard & Poor’s upgraded Argentina’s credit rating from CCC+ to B- on Thursday, sparking a wave of euphoria in the local market.
Dollar-denominated sovereign bonds registered sharp gains, and the country risk index plummeted to 444 basis points, reaching its lowest level since May 2018.
The local S&P Merval index rose more than 7% in hard currency, while Argentine ADRs climbed as much as 11.5%, led by bank stocks.
The upgrade follows a similar rating action by Fitch Ratings in early May and reinforces investors’ perception of a gradual reduction in Argentina’s risk profile. Spurred by this momentum, foreign-currency securities advanced by up to 3.5% on the local market.
Dollar-denominated bonds rose as much as 3.3%, led by the Global 2041, followed by the Global 2038 (+2.8%), the Global 2035 (+2.7%), and the Bonar 2041 (+2.7%).
