Moody’s Downgrades El Salvador

Moody’s Downgrades El Salvador

El Salvador Corporate & Sovereign Strategy

In light of weakening growth trends and debt reduction hurdles, Moody’s has dropped El Salvador’s rating to Ba3 from Ba2, it says. The agency expects to see investment ratios hit 14% of GDP in 2012, compared to 16% in 2007. El Salvador also saw a fiscal deficit of 3.9% of GDP in 2011, which is higher than the 3.5% target contemplated in the country’s IMF standby arrangement. Moody's expects the government to miss this year's 2.5% of GDP target, likely posting a 3.8-3.9% deficit instead. The outl

Already have an account?

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial