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Rating agency Fitch downgrades El Salvador's creditworthiness again

Fitch downgrades El Salvador's creditworthiness for the second time in a year.

By Mike Hesp
• 2 min read
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Rating agency Fitch downgrades El Salvador's creditworthiness again

The rating agency Fitch downgrades El Salvador's creditworthiness for the second time in a year.

Fitch downgrades El Salvador's creditworthiness again from "CCC" to "CC". The rating agency announced the downgrade in a press release.

Fitch cites the country's "catastrophic" liquidity situation as the reason. Additionally, bond maturities are approaching. The rating agency doubts whether the January 2023 deadline can be met.

Fitch assumes a total financing need of $3.7 billion through January 2023. A standard institution is "likely".

This is the second downgrade for El Salvador within a year. Fitch Ratings last lowered the country's creditworthiness in February. One of the reasons was the bitcoin law enacted in September last year.

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