S&P lifts El Salvador

S&P said it raised El Salvador’s long- and short-term sovereign credit ratings to B-/B from CCC+/C.

“We raised our sovereign credit ratings on El Salvador to B-/B because we consider that the government's recent program to gradually refinance its short-term debt with local banks will reduce rollover needs and mitigate the risk of a default over the next two years. This strategy is another step in the broad debt reprofiling process that began around a year ago, with two external debt repurchases and a pension debt exchange. (We deemed the pension debt exchange to be a distressed exchange.), S&P said in a press release.

The outlook is stable.

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