S&P GLOBAL RATINGS UPGRADED ARGENTINA'S SOVEREIGN CREDIT RATINGS in both local and foreign currency to 'B-/B' from 'CCC+/C', with a stable outlook. The upgrade reflects a reduction in economic vulnerabilities, a sustained fiscal surplus, and gradual BCRA reserve accumulation — factors that have strengthened the government's access to voluntary financing to cover 2026 and 2027 debt maturities. S&P cautioned that risks remain: net reserves are still negative, inflation continues to outpace the pace of exchange rate depreciation, growth is uneven across sectors, and the political outlook ahead of the October 2027 elections could generate tensions. A further upgrade could materialize within 18 to 24 months if external liquidity access consolidates and macroeconomic stability is sustained.
THE TREASURY ROLLED OVER 120% OF MATURING OBLIGATIONS, placing ARS 6.12 trillion against ARS 5.1 trillion in maturities. Some 72% of the placement was concentrated in CER/Tamar Dual bonds, priced in line with secondary market levels, once again extending the maturity profile to 2028 and beyond. A further 26% went into the August 2026 Dollar-Linked instrument, which priced at a slight premium to the secondary market. Additionally, ARS 3.04 trillion was exchanged — from June-maturing Duals and CER bonds — into CER/Tamar Duals due 2028, 2029, and 2030. On the hard dollar front, USD 200M was placed at a yield of 8.63%, slightly above secondary market levels.
DOLLAR-DENOMINATED SOVEREIGNS HAD A NEGATIVE SESSION, falling 0.5% in line with broader emerging markets, with steeper losses at the long end. Bonares retreated, led by AL41 (-0.8%) and AL30 (-0.4%), while Globales also closed in the red: GD35 and GD41 fell 0.4% and 0.7% respectively, with GD29 the lone exception, gaining 0.2%. Country risk rose to 503 bps. Bopreales were unchanged.
ARS-DENOMINATED DEBT HAD A POSITIVE SESSION ACROSS MOST SEGMENTS. Lecaps gained an average of 0.7%, with the long end outperforming while shorter maturities saw limited movement. CER bonds added 0.7% on an index basis, with TZXA7 leading gains (+1.4%), while shorter maturities were mixed. Dual bonds rose 0.7%, with TMG27 standing out within the segment (+1.3%). Dollar-linked bonds were the exception, slipping 0.2% in line with dynamics observed in the official FX market.
THE OFFICIAL EXCHANGE RATE CLOSED AT ARS 1,436.6, falling 0.7% from the prior session and sitting 23.4% below the upper band ceiling. Financial FX rates also declined: CCL (GD30) fell 0.5% to ARS 1,506.5 and MEP (GD30) dropped 0.5% to ARS 1,453.2, with the cross-market spread holding near 3.7%. The gap between the CCL and the official rate closed at 4.9%. The decline in FX rates coincided with another BCRA purchase of USD 121M — bringing the monthly total to USD 750M at a daily pace of USD 94M — though gross reserves fell USD 274M to USD 47,558M due to a lower gold price.
THE MERVAL OUTPERFORMED LATAM AND BRAZIL, gaining 0.2% in pesos and 0.7% in dollar terms, closing at USD 2,096. Utilities, energy, and materials led the advance, while real estate, banks, and communication underperformed. Top local performers were Cresud (+2.8%), TGS (+2.7%), and Transportadora Gas del Norte (+2.5%), while IRSA (-4.2%), Loma Negra (-1.9%), and Holcim (-1.8%) were the main laggards. Among NYSE-listed names, the group fell an average of 0.4%, with TGS (+3.1%), Central Puerto (+2.0%), and Cresud (+2.0%) as the top gainers, while MercadoLibre (-3.2%), Corporación América (-3.0%), and Loma Negra (-3.0%) posted the steepest declines.
