S&P ups El Salvador view to positive

S&P said it revised its outlook on the Republic of El Salvador to positive from stable and affirmed its CCC+/C long- and short-term sovereign credit ratings on El Salvador. The AAA transfer and convertibility assessment is unchanged.

S&P said the positive outlook indicates there is at least a one-in-three likelihood of an upgrade in the next 12 months if ongoing Congressional negotiations result in agreements on financing that would enable the government to meet upcoming amortizations in 2018 and a eurobond ($800 million) due in December 2019, thus decreasing the likelihood of default.

In addition, the positive outlook reflects recent gains from pension reform that will alleviate the government's structural fiscal deficit and reduce its short-term financing needs, the agency said.

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