Argentina wards off ratings downgrade after U.S. bailout deal, Fitch says

**Argentina Wards Off Ratings Downgrade Following U.S. Bailout Deal, Fitch Says**

Argentina has successfully averted a ratings downgrade after the United States signed a $20 billion currency stabilization agreement with the South American nation, Fitch Ratings reported.

According to Fitch, the U.S. backstop has played a crucial role in helping Argentina maintain its current credit rating by stabilizing its international reserves. However, Fitch noted that while this aid has been beneficial, it alone is not sufficient to warrant a ratings upgrade. For a potential upgrade, the agreement would need to be part of broader reforms aimed at strengthening Argentina’s own foreign exchange buffers.

Following the announcement of the agreement, Argentina’s Merval Index, as well as U.S.-traded Argentine stocks, have experienced positive momentum, reflecting investor confidence in the country’s short-term economic outlook.

**Quick Insights:**
– The $20 billion U.S. currency stabilization deal has helped Argentina avoid a ratings downgrade.
– Aid alone is unlikely to trigger a ratings upgrade without comprehensive reforms to bolster Argentina’s foreign exchange reserves.
– Market response has been positive, with notable gains in Argentine equities both domestically and abroad.

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– ARGT
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– ARS: USD

*Stay tuned for further updates on Argentina’s economic developments and market performance.*
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