Fitch rates El Salvador bond BB

Fitch Ratings said it assigned El Salvador's upcoming dollar-denominated bond issue, which matures in 2019, a BB rating.

The rating is in line with El Salvador's long-term foreign-currency issuer default rating of BB with a negative outlook.

Proceeds will go toward refinancing a portion of domestic public debt.

Sustained fiscal slippage, a more difficult financing outlook and resurgent political gridlock could reinforce downward pressure on El Salvador's sovereign ratings, the agency said.

On the other hand, stronger growth, fiscal consolidation and easing of financing constraints could help uphold El Salvador's sovereign creditworthiness, the agency noted.

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