Moody’s upgraded Argentina’s long-term foreign and local currency issuer ratings by two notches, raising them to "Caa1" from "Caa3," though the country remains in junk territory. The ratings agency also revised Argentina’s outlook to stable from positive, citing improved currency liquidity and reduced external pressure due to exchange rate reforms, limited capital controls, and IMF support. However, the stable outlook reflects ongoing credit challenges and limited structural rebalancing of Argentina’s external accounts. Weaker trade terms that could shrink the country’s trade surplus were also noted as a concern. This marks the second upgrade this year, after Moody’s raised Argentina’s rating to "Caa3" in January - the first in more than five years. The country’s credit profile had been downgraded in 2020 due to stalled debt restructuring talks and heightened default risk during the pandemic.