short-term local debt 👀 El…”> S&P Global Ratings recently upgraded El Salvador’s credit rating, citing the government’s successful restructuring of short-term local debt.
The upgrade, which was announced on Tuesday, raised El Salvador’s long-term foreign currency rating from ‘B-‘ to ‘B’, and its long-term local currency rating from ‘B’ to ‘B+’. The outlook for both ratings is stable.
The upgrade reflects El Salvador’s successful restructuring of short-term local debt, which has reduced the country’s debt burden and improved its fiscal position. The government has also implemented a number of reforms to strengthen its fiscal framework, including the adoption of a fiscal responsibility law and the establishment of a fiscal council.
In addition, S&P Global Ratings noted that El Salvador’s economy has been resilient in the face of the COVID-19 pandemic, with GDP growth expected to remain positive in 2021. The country has also benefited from increased remittances from abroad, which have helped to support domestic consumption.
The upgrade is a positive sign for El Salvador, and should help to attract foreign investment and boost economic growth. It is also a testament to the government’s commitment to fiscal responsibility and economic reform.
GPT: El Salvador’s credit rating has been upgraded, which is good news