Central Bank announces that Standard & Poor's upgrades rating to El Salvador

Central Bank announces that Standard & Poor's upgrades rating to El Salvador

The international firm Standard & Poor's improved El Salvador's risk rating by passing it from CCC + Positive / C to B-Stable / B, the Central Reserve Bank (BCR) of the Central American country reported today.

"In the opinion of the rating agency Standard and Poors, El Salvador's fiscal deficits will be consistently moderate and its debt levels stable over the next three years," the BCR said according to the Standard & Poor's report.

The source said that the rating agency Standard & Poor's improved the risk rating of El Salvador "after recognizing the important step taken by the Legislative Assembly to establish agreements to pay 800 million dollars in Eurobonds due in December 2019."

On December 21, the Congress of El Salvador approved with 83 votes the General Budget of the Nation 2019 for 6,713.2 million dollars and authorized the Executive the issuance of securities for 1,297 million to pay debt maturity and cover extraordinary expenses of the budget.

El Salvador will pay in 2019 a total of 1,822 million dollars of debt, of which 1,090 million correspond to "amortization" and 732 million dollars to "interest", according to the Ministry of Finance.

In April 2017, the Government of El Salvador fell into default on the debt with the Pension Fund Administrators (AFP) due to the lack of agreements between the ruling party and the opposition to issue bonds and settle the payment.

To settle the default, the Congress of the Central American country subsequently authorized cuts to the General Budget and the areas most affected were those of Security, Education, Health and the Environment.


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