Fitch Ratings, one of the so-called “Big Three” credit rating agencies, downgraded El Salvador’s long-term foreign currency issuer default rating (IDR) from “B-” to “CCC”.
Fitch, February 9 in its report published on El Salvadordowngrade to “CCC” increased risk from increased reliance on short-term debt, limited scope for additional domestic market financing, uncertain access to additional multilateral and foreign market financing due to high borrowing costs stated that it reflects
Despite the authorities’ commitment to service debt, it has left El Salvador with high and increasing financing needs in the 2022-2023 periods. increased risks await indicating Fitchthe country 2023in about 1.2 billion dollars is faced with the depreciation of foreign debt and that 800 million dollars He stressed that it should be paid in January. Fitch also 2022‘also 1.2 billion dollars faces a financing gap and 2023in $2.5 billion He said he would rise.
In the statement made by Fitch;
The weakening of institutions and the concentration of power in the presidency increased the unpredictability of policies, while the adoption of bitcoin as legal tender has increased uncertainty about the potential for an IMF program to solve the problem of financing for 2022-2023.
statements were included.
Another rating agency moody’s In July, El Salvador downgraded the country’s foreign currency issuer and senior unsecured ratings from “B3” to “Caa1”, citing its adoption of bitcoin as legal tender.
El Salvadorthe day before the news 1 billion dollars first Bitcoin (BTC) bond issuer 15-20 march announced that it would take place between
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