Moody’s alters El Salvador view to negative

Moody’s Investors Service said it changed El Salvador’s government’s outlook to negative from under review and confirmed its B3 issuer and senior unsecured ratings.

These actions conclude the review started on Nov. 16, the agency said.

“The negative outlook captures the credit risks associated with implementation risks of their forthcoming fiscal adjustment efforts, high liquidity risks driven by large gross financing needs in 2021-23 and persistent debt sustainability concerns despite an expected fiscal adjustment. Even though Moody’s believes the government will begin consolidating its finances this year and through 2022, debt is unlikely to stabilize, surpassing 90% of GDP, and market access will be needed in 2022 as an $800 million bond matures in January 2023,” Moody’s said in a press release.

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