Fitch downgrades El Salvador to CCC, moving the country to junk category
Fitch also said that its decision to cut the nation’s credit rating to CCC from B- was taken keeping the “heightened financing risks stemming from increased reliance on short-term debt,” ahead of an $800 million global bond payment due January 2023
By Yashasvini Razdan
Published - Feb 10, 2022, 07:38 PM ET
Last Updated - Feb 15, 2024, 07:54 AM EST
• El Salvador became the first country to adopt bitcoin as legal tender last year
• Fitch cut the nations credit rating, moving it to lower-than-investment-grade status
Fitch Ratings downgraded El Salvador's credit further into junk territory after the country adopted bitcoin as a legal tender.
Fitch also said that its decision to cut the nation’s credit rating to CCC from B- was taken keeping the “heightened financing risks stemming from increased reliance on short-term debt,” ahead of an $800 million global bond payment due January 2023.
