The agency, which classifies risk for foreign investment, added to its report that the perspective for the rating is negative.
Reporters Mariana Belloso and Irene Valiente wrote for Laprensagrafica.com: “Fitch predicts that El Salvador’s economy will shrink by 2.5% in 2009, and runs the risk of shrinking even more." Fitch claims that, “Optimism about growth has been reduced to the point that potential investments have been postponed because of political and economic uncertainty.” According to the firm, there will be no economic growth at all next year, and it will potentially grow by just 1% in 2011.”
Guatemala´s BB+ sovereign risk rating and stable perspective, which is so close to the desired “Investment Grade,” is facing four threats.
According to an article by C.Véliz and J. Gramajo in Sigloxxi.com, Mauricio Choussy, the director of Fitch Central America, notes that four weaknesses persist in the country: “Low tax revenue, weak social indicators, social instability, and high levels of delinquency.”
Fitch Ratings has lowered the investment rating of the electical distribution company AES El Salvador from BBB- to BB+.
The ratings company said it downgraded the company because changes in the regulatory system have negatively affected its EBITDA and its profitability.
EBITDA refers to the relationship between debt and cash flow of a company.
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