S&P Global Ratings upgraded Argentina's sovereign credit rating from CCC+ to B- on Friday. Country risk closed at 437 basis points, the lowest level since May 2018.
The upgrade was based on reduced economic vulnerabilities, the fiscal surplus and a gradual recovery of external liquidity. S&P also raised the transfer and convertibility rating to B from B-.
As a result, eight Argentine companies received rating improvements. Aeropuertos Argentina 2000, EDEMSA, Genneia, Pampa Energía, Telecom Argentina, Transportadora de Gas del Sur, YPF Luz and YPF moved from B- to B.
The J.P. Morgan index fell 1.4% on the day and accumulated a drop of 66 basis points during the week. The outlook assigned to the sovereign debt and the companies is stable.
