S&P rates El Salvador notes B-

S&P said it assigned a B- rating on the Republic of El Salvador's senior unsecured notes issuance of $601.085 million.

The notes are due in February 2029 and have a coupon of 8.625%.

The proceeds from the issuance will be used to refinance short-term debt and to cover government expenses carried over from fiscal 2016, S&P explained.

The rating on the notes is the same as the long-term foreign-currency sovereign credit rating on El Salvador, the agency said.

The ratings reflect the continued erosion of the country’s fiscal and debt profiles and rising concerns about its access to adequate liquidity to meet its funding requirements for 2017 and 2018, S&P said.

The ratings also consider the country's weakening prospects for economic growth in a context of lower investor confidence and the need to undertake fiscal adjustment to stabilize the government's growing debt burden, the agency said.

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