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.
| 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.
| 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.
| 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.
| 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.
