Moody's changes El Salvador view to positive

Moody's Investors Service said it changed the outlook on the government of El Salvador to positive from stable. Concurrently, Moody's affirmed the B3 issuer and long-term senior unsecured debt ratings.

The key factors driving the change in outlook are the government materially cutting its liquidity risks and improved business conditions that could lift private investment and fuel economic growth.

The new administration secured the necessary votes in the legislative assembly to pass its budget proposal last December and also to contract long-term debt to fund this year's fiscal deficit.

The new government has also taken steps to jumpstart private investment. In addition to an improved dialogue with the business community, the authorities cut red tape and regulatory bottlenecks to improve business conditions, the agency said.

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