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Moody's downgrades El Salvador´s Debt Rating

Moody's downgraded the rating to "Ba2" from "Ba1", citing a continued deterioration of the country's financial condition.

Thursday, March 24, 2011

©image: Moody's

In a statement the rating agency stated, "The metrics for sustainability of government debt (including debt to income ratio) are not consistent with a grade of 'Ba1' in light of the limited prospects for growth the country has," Yahoo News published.

The rating outlook on El Salvador was upgraded from negative to stable.

Source: Yahoo! Noticias

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Fitch Downgrades AES El Salvador's Ratings

May 2010

Fitch Ratings has downgraded AES El Salvador Trust's foreign and local currency Issuer Default Ratings (IDRs) to 'BB' from 'BB+'.

The rating action applies to US$300 million of Political Risk Protected (PRP) bond issuance due Feb. 1, 2016. Concurrently, Fitch has downgraded Compania de Alumbrado Electrico de San Salvador, S.A.

Moody’s Upgrades Nicaragua’s Credit Rating

May 2010

The company raised Nicaragua's foreign currency government bond rating to B3 from Caa1.

"The upgrade of the foreign currency bond rating unifies that rating with its domestic currency counterpart," said Moody's Vice President Gabriel Torres. "This action reflects our view that, with rare exceptions, a government is equally likely to default on its domestic and foreign currency obligations."

El Salvador's Debt Lowered to Junk

November 2009

Moody's cut the country's rating for foreign-currency government bonds to Ba1 with a negative outlook.

This downgrade lowers El Salvador sovereign debt to 'junk', down from Baa3, the lowest level of investment grade.

"Since last year, El Salvador has been subject to severe shocks that have exposed underlying vulnerabilities associated with its condition as a small open economy with a high dependence on the U.S.

S&P Lowers El Salvador Rating

January 2011

Standard & Poor's downgraded the country's rating to "BB-" from "BB" with an overall picture of "stable”.

Reuters reports part of the S&P statement "The downgrade reflects Standard & Poor's view that political climate is deteriorating due to the growing division between president Mauricio Funes and the FMLN."

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