Fitch affirms El Salvador

Fitch Ratings said it affirmed El Salvador's foreign- and local-currency issuer default ratings at BB, short-term issuer default rating at B and country ceiling at BBB-.

The outlook was revised to negative from stable.

The outlook revision reflects El Salvador's sustained economic growth underperformance relative to peers, which is expected to continue during the forecast period due to structural impediments faced by the economy, according to the agency.

El Salvador's economic growth prospects are weaker than those of most peers in light of the country's low competitiveness and investment levels, and high crime rates, the agency said.

El Salvador's ratings are supported by its macroeconomic stability underpinned by dollarization, its adequately capitalized financial system and solid repayment record, the agency noted.

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