S&P cuts El Salvador

Standard & Poor's said it lowered the long-term sovereign credit ratings on El Salvador to BB- from BB and affirmed its B short-term ratings.

The outlook is stable.

The downgrade reflects the view that the political environment is deteriorating because of a growing and more evident divide between President Funes and the FMLN party, which is expected to continue to impede progress on a number of crucial reforms and ultimately weaken fiscal flexibility and economic growth prospects, S&P said.

The stable outlook reflects the expectations that a modest economic recovery and adherence to fiscal targets, anchored by the agreement with the IMF, will stabilize, the agency said.

© 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.