ICYMI: Fitch downgrades El Salvador rating on debt concerns
“The government has been in extended discussions with the IMF for nearly a year for a possible USD 1.3 billion three-year program; however, there are important differences between the two sides in many key areas, in Fitch's view,” Fitch said. “A deal would help cover the government's financing gap and likely unlock other multilateral loans. It would also help provide more clarity on the government's medium-term fiscal strategy.
The downgrade announcement comes shortly after El Salvador’s finance minister Alejandro Zelaya told viewers of a local television program that theHowever, Fitch raised concerns about the uncertainty of external financing sources, including the bitcoin bonds. “There is a high degree of uncertainty surrounding other sources of external financing, such as additional multilateral funding, given doubts surrounding an IMF program, as well as the capacity to issue ‘bitcoin-backed bonds’ through new distribution channels,” Fitch wrote. It also called rates in the external bond markets “prohibitive.”is considered “speculative grade,” which indicates a higher level of credit risk than “investment grade” ratings. A CCC rating signals “substantial credit risk.
© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Fitch Downgrades El Salvador to ‘CCC’ Weeks Before Bitcoin Bond IssueEl Salvador gets a downgrade from Fitch as the credit agency is concerned about nayibbukele's plan to issue bitcoin-backed bond. By thesamreynolds
Leer más »
Fitch downgrades El Salvador rating on debt concernsNew York-based Fitch Ratings has downgraded El Salvador’s long-term foreign currency issuer default rating (IDR) to “CCC” from its most recent rating of “B-.”
Leer más »
Fitch Ratings Downgrades El Salvador Deeper Into Junk Status Citing Bitcoin Risks – Finance Bitcoin News“The adoption of bitcoin as legal tender has added uncertainty about the potential for an IMF program that would unlock financing for 2022-2023.” crypto cryptocurrency $BTC
Leer más »
Fitch lowers El Salvador’s rating due to Bitcoin adoptionAn increase in short-term debt, an $800 million payment due soon, and a high fiscal deficit contributed to the downgrade.
Leer más »
El Salvador’s Rating Downgraded By Fitch For Adopting Bitcoin As Legal TenderFitch Ratings, one of the “big three” credit rating agencies, has lowered El Salvador’s long-term issuer default rating (IDR). In a Wednesday report, Fitch pinned the nation’s debt repayment capacity at a mere CCC from the previous B-. The downgrade stems primarily from El Salvador’s big bitcoin...
Leer más »
Fitch Downgraded El Salvador's Rating Citing Bitcoin Adoption RisksAmerican credit rating agency Fitch Ratings revealed downgrading El Salvador's long-term foreign currency Issuer Default Rating (IDR) to 'CCC' from 'B-.'
Leer más »