S&P: El Salvador negative

Standard & Poor's said it revised its outlook on the Republic of El Salvador to negative from stable.

At the same time, the agency said it affirmed the BB-/B long- and short-term sovereign credit ratings on El Salvador. The AAA transfer and convertibility assessment, reflecting the country's use of the U.S. dollar as its local currency, is unchanged.

"The outlook revision reflects the risk of a downgrade if political polarization continues to weigh on investment and GDP growth, resulting in a higher burden of fiscal and external debt," said S&P credit analyst Joydeep Mukherji in a news release.

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