Fitch upgrades four Argentine governments

Fitch Ratings said it upgraded the ratings of several Argentine local and regional governments, including its long-term foreign- and local-currency issuer default ratings and related issue ratings.

These rating actions follow the upgrade of Argentina’s country ceiling to B from CCC, Fitch said.

The upgrades were driven by the improved consistency and sustainability of Argentina’s policy framework, reduced external vulnerability and expected easing of fiscal financing constraints, the agency said.

These improvements balance risks related to relatively weak external liquidity, continued macroeconomic underperformance compared with peers and deterioration of public finances in recent years, Fitch said.

The upgraded ratings include the city of Buenos Aires’ long-term foreign- and local-currency issuer default rating to B from CCC, short-term foreign- and local-currency issuer default rating to B from C, euro medium-term note program to $2.29 billion long-term rating to B from CCC and its series 10 for $415 million long-term rating to B from CCC.

The municipality of La Plata’s long-term foreign- and local-currency issuer default rating was upgraded to B from CCC.

The province of Salta’s long-term foreign- and local-currency issuer default rating also was upgraded to B from CCC and the long-term rating on its secured note for $185 million to B from CCC.

The province of Neuquen’s long-term foreign- and local-currency issuer default rating also was upgraded to B from CCC.

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