Fitch upgrades Argentina

Fitch Ratings said it upgraded Argentina’s long-term foreign-currency issuer default rating to B from RD (restricted default).

Fitch also said it upgraded the short-term foreign-currency issuer default rating to B from RD.

The ratings on Argentina’s senior unsecured foreign-currency bonds also were affirmed at B, along with its long-term local-currency issuer default rating at B and country ceiling at B.

The upgrade was driven by Argentina’s resumption of debt payments to restructured bondholders, thus curing the default of July 2014, Fitch said.

The ratings reflect the improved consistency and sustainability of Argentina’s policy framework, reduced external vulnerability and the easing of external and fiscal financing constraints, the agency said.

The stable outlook balances these improvements against risks related to relatively weak external liquidity, continued macroeconomic underperformance compared with peers and deterioration of public finances in recent years, Fitch said.

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