El Salvador Credit Ratings in 2022

El Salvador Credit Ratings
San Salvador, El Salvador.

El Salvador Credit Ratings in 2022 are: Fitch rating is CC with no outlook available; Standard & Poor’s Rating is CCC+ with a negative outlook, and Moody’s Rating is Caa3 with a negative outlook.

El Salvador Credit Ratings 2022
Agency Rating Outlook Date
Fitch CC N/A September 15th, 2022
Standard & Poor’s CCC+ Negative September 15th, 2022
Moody’s Caa3 Negative May 4th, 2022

All three rating agencies, Fitch, Standard & Poor’s, and Moody’s have downgraded El Salvador’s debt in 2022. The downgrade is attributed to the country’s liquidity and upcoming bond payments for 2023 and 2025.

The implementation of Bitcoin has also contributed to the rating agency’s downgrades. In September 2022, El Salvador became the first country to make Bitcoin a legal tender.

Fitch rating

On September 15th, 2022, Fitch downgraded the rating for El Salvador to CC with no outlook from CCC. According to Fitch rankings, the CCC gives El Salvador debt a very low margin for safety, and the default is a real possibility. Fitch has downgraded El Salvador’s rating twice in 2022.

Fitch Rating for El Salvador since 2015
Date Rating Outlook
September 15th, 2022 CC N/A
February 9th, 2022 CCC N/A
April 20th, 2020 B- Negative
October 6th, 2017 B- Stable
April 10th, 2017 CCC N/A
February 1st, 2017 B Negative
July 9th, 2015 B+ Stable

Standard & Poor’s Rating

On June 1st, 2022, the rating agency Standard and Poor’s lowered El Salvador's credit rating from B- to CCC+; this is one of the worst credit ratings the country can have.

The agency’s reasons for lowering the country’s credit position are based on external debt and fiscal vulnerabilities and its dependence on favorable economic conditions to meet its fiscal commitments.

Standard & Poor’s Rating for El Salvador since 2014
Date Rating Outlook
June 1st, 2022 CCC+ Negative
October 21st, 2021 B- Negative
December 28th, 2018 B- Stable
December 14th, 2017 CCC+ Positive
October 3rd, 2017 CCC+ Stable
May 5th, 2017 CC Negative
April 13th, 2017 CCC- Negative Watch
December 8th, 2016 B- Negative
October 16th, 2016 B Negative Watch
October 6th, 2016 B+ Negative Watch
December 22nd, 2014 B+ Staple

Moody’s Rating

El Salvador’s credit rating with Moody’s is Caa3, which translates to “Speculative of poor standing and subject to very high credit risk.”

On May 4th, 2022, Moody's downgraded the Government of El Salvador’s long-term foreign currency from Caa1 to Caa3 and gave it a negative outlook.

Moody’s Rating for El Salvador since 2015
Date Rating Outlook
May 4th, 2022 Caa3 Negative
July 30th, 2021 Caa1 Negative
February 5th, 2021 B3 Negative
November 16th, 2020 B3 Under Review
March 12th, 2020 B3 Positive
February 23rd, 2018 B3 Stable
April 13th, 2017 Caa1 Stable
November 7th, 2016 B3 Negative
Ausust 11th, 2016 B1 Negative
November 19th, 2015 Ba3 Negative

El Salvador Credit Ratings

In 2022, El Salvador’s credit ratings are at the lowest possible level. According to the rating agencies, the Salvadoran debt has junk status with imminent default and little prospect for recovery.

The implementation of Bitcoin as a legal tender and the current situation between the Nayib Bukele administration and the United States are two other reasons El Salvador will continue to have a low credit rating.