S&P revises El Salvador credit outlook to negative

Standard & Poor's revised the sovereign credit outlook for El Salvador to negative from stable but affirmed the "BB+" rating on Wednesday, citing structural weaknesses despite progress on economic management.

Wednesday, September 17, 2008

"Poor social indicators; education, technology, and training gaps; and high crime rates constrain economic prospects," S&P said in a statement.
S&P did say the rating, one notch below investment-grade, was supported by a stable monetary environment which benefited from dollarization in 2001. It also benefited from a track record of predictable, market-oriented policies that has created a favorable investment environment, sustained economic growth, and led to gradual debt reduction.

More on this topic

S & P Also Rates Honduras as Negative Outlook

March 2013

Standard & Poor's has revised its outlook on the long-term sovereign rating of Honduras, from stable to negative due to the risk of continued deterioration of macroeconomic stability.

From a statement from Standard & Poor's Ratings Services:

Standard & Poor's has revised the outlook to negative for Honduras because of its larger fiscal deficits

S&P Lowers Salvadoran Rating to “BB”

May 2009

Standard & Poor's risk rating, lowered El Salvador’s rating from "BB+" to "BB."

The rating firm indicated that the effects of international crisis on the Salvadoran economy are mainly reflected in the fiscal situation.

Analyst Ricardo Perdomo told Laprensagrafica.com: "The progressive deterioration of the economy, especially in regards to the increasing fiscal deficit, allowed a prediction that ratings would go down."

S&P lowers outlook for Guatemala

November 2008

S&P revised its outlook from positive to stable, but it maintained its country risk rating for foreign currency at BB/B.

"The revision from positive to stable reflects the slowdown of record growth, both for tax collection as well as for the growth of the GDP during the last two years," explained Roberto Sifon Arevalo, S&P analyst.

S&P revises El Salvador credit outlook to negative

September 2008

Standard & Poor's revised the sovereign credit outlook for El Salvador to negative from stable but affirmed the "BB+" rating on Wednesday, citing structural weaknesses despite progress on economic management.

"Poor social indicators; education, technology, and training gaps; and high crime rates constrain economic prospects," S&P said in a statement.

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