Fitch Ratings downgraded the credit rating of El Salvador, which started using Bitcoin as its official currency, to CCC. This level is described as “garbage” in the industry. The reason why Fitch Ratings made such a decision is that Bitcoin is considered risky.
making financial ratings for countries Fitch Ratingsmade its decision on El Salvador, which took a decision last year to use Bitcoin as its official currency. In the statements made by Fitch Ratings, El Salvador’s credit rating downgraded to CCC stated that the decision has been made. This level is in the industry “rubbishThe general meaning of CCC is “Investment advantage is weak at the moment. It varies according to economic conditions.
Fitch Ratings reports that El Salvador’s adoption of Bitcoin as its official currency is still a big risk declared that. In addition, the country’s short-term debt dependency Fitch Ratings officials, who cited the increase as the reason, stated that El Salvador’s $800 million dollar investment in January 2023. global bond payment They also reminded me to do it.
Criticism of Nayib Bukele
President of El Salvador, by Fitch Ratings Nayib Bukele There are also comments on the subject. In the statements made, “The concentration of power in the presidential position and the weakening of institutions increase the unpredictability in the country’s policies. The announcement of Bitcoin as legal money is also related to the launch of the IMF’s financial program in the period 2022-2023. creates uncertainty.” expressions were used. However, let us remind you that Bukele sees himself as the CEO of the country.
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To be frank, El Salvador is committed to doing the hitherto untried and traditional finance order. trying to oppose. The end of this is unknown, but the negative attitudes of rating agencies such as Fitch Ratings towards El Salvador that there is nothing to worry about we can easily say.
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