S&P affirms El Salvador

Standard & Poor's said it affirmed its BB+ long-term and B short-term sovereign credit rating on the Republic of El Salvador.

The outlook remains stable.

S&P noted that the ratings on the Republic of El Salvador reflect a stable monetary environment created by the 2001 adoption of the U.S. dollar as the local currency, a fairly strong and well-regulated banking system relative to those of its neighbors as well as strong and increasing flows of workers remittances.

The ratings are constrained by a relatively low tax base and the increasing cost of pension reform, which continue to limit fiscal flexibility in the context of a country with a dollarized economy, widespread poverty and public security concerns, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.