May 6, 2022
Moody's has downgraded El Salvador's foreign-currency debt ratings by two notches to Caa3 with a negative outlook, citing the "increased probability" of a restructuring, distressed exchange or even a default.
"[T]he sovereign faces a challenging debt amortization schedule with bond maturities in 2023 and 2025 in a context of continued funding stress and persistently high financing needs," Moody's said in a report on Wednesday.
"The downgrade incorporates Moody's expectation of high material loss
Rating agency cuts the Central American sovereign issuer to Caa3 on funding difficulties and high financing needs