The Argentine Minister of Economy, Luis Caputo, has pointed to 2031 as the horizon by which the country's credit rating could return to the coveted 'investment grade', which would mean abandoning its current consideration as high-risk debt or 'junk bond'.
"If President Javier Milei achieves a second term, we will seek for Argentina to be investment grade, a goal we believe is achievable in 2031," Caputo stated at a press conference held this Monday. Milei himself insisted in Madrid two weeks ago that he does not intend to run for a third term.
The head of Economy has clarified, however, that within about five years the country could meet the necessary conditions to issue debt in international markets again. However, he stressed that such an eventual issuance will be solely an "option" to consider and "not a priority objective" of the economic strategy.
Currently, S&P Global Ratings gives Argentine sovereign debt a 'B-' rating, Moody's places it at 'Caa1', and Fitch also at 'B-', all with a stable outlook. In June, S&P improved the country's rating from 'CCC+' to 'B-' maintaining a stable outlook.
According to S&P, Argentine debt is now classified as "highly speculative," compared to the previous level of "substantial risk," which is interpreted as a endorsement of the pro-market reforms promoted by the Milei government along with the process of state downsizing.
In terms of the most immediate commitments, Argentina must face payments to private bondholders totaling 4.3 billion dollars (3.758 billion euros) starting this Thursday, July 9.
Looking at the medium term, the country has maturities scheduled for 2026 totaling 19.2 billion dollars (16.778 billion euros). Despite this, Caputo has indicated that these commitments are "over-fulfilled," referring to the room for maneuver that, according to the government, the current fiscal and financial path offers.