S&P rates El Salvador bonds BB

Standard & Poor's said it assigned a BB senior unsecured debt rating with a recovery rating of 3 to El Salvador's $800 million bonds due 2019.

El Salvador (BB/stable/B) will use the proceeds for general financing and to refinance part of the government debt.

The agency said the ratings on El Salvador are supported by the country's stable monetary environment, track record of and commitment to prudent macroeconomic policies and structural reforms as well as a strong and well-regulated banking system relative to that of its neighbors.

Structural weaknesses continue to hinder El Salvador's creditworthiness despite economic progress helped by a series of important macroeconomic reforms passed during the past two decades, S&P said, adding that poor social indicators; education, technology and training gaps; and high crime rates constrain economic prospects.

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